SECTION OVERVIEW AND POLICIES

This section advises agencies on payment methods available in the Statewide Financial System (SFS). There are four available payment methods in the SFS: check, one- day Automated Clearing House (ACH), two-day ACH and wire payments. 

Check and Two-Day ACH Payments

Check and two-day ACH payments are the primary vendor payment methods in the SFS. Check payments are physical, printed checks that are mailed to the vendor through the United States Postal Service. ACH payments are electronic payments made from the State’s bank to the vendor’s bank within two business days. 

Two-day ACH is the preferred payment method because it is the most efficient and cost-effective, and it minimizes the risk associated with a physical payment. 

One-Day ACH

As described above, ACH payments generally require two business days to deposit into the vendor’s account. However, a one-day ACH payment option is available when there is a State business need for a next day payment. One-day ACH payments are made using SFS functionality with the vendor’s banking information, so the vendor receiving payment must already have banking information in the vendor file. One-day ACH payments are more costly to process than two-day ACH payments and should be used on an emergency, exception-only basis.

Wire Payments

Wire payments are an option in certain mandated or emergency situations, due to the immediate nature of the transaction, when cash is readily available. Wire payments are not the State’s standard payment method for the following reasons:

• Wire payments require manual business processes and information exchanges that increase the risk of errors and require additional resources.
• Wire payments have a significantly higher per-transaction service cost than ACH payments.

Process and Transaction Preparation:

Check or two-day ACH Payments

Agencies should prepare and submit a voucher in SFS using the proper vendor location and allowing adequate time for audit and OSC approval prior to the scheduled payment date. To view a specific vendor’s available payment locations and methods, see the location tab on the vendor record. Additional information about reviewing and selecting locations can be found in XII.5.D Selecting the Appropriate Location.

One-Day ACH Payments

Requests for one-day ACH payments require the following:

• The agency requesting the one-day ACH payment must email [email protected], [email protected], and [email protected] as soon as the need for the expedited payment arises.
• The agency must include a justification for the expedited payment in the email.
• An error free, agency-approved voucher must be in SFS by 11:00 AM on the day prior to the requested payment date.

OSC will review the email to determine if the request can be fulfilled and will coordinate with agency staff if alternative arrangements need to be made.

Wire Payments

One Time Wire Payments

If an agency determines it needs to wire a payment to a vendor, it must first submit the voucher electronically to OSC through the SFS and:

• Enter an “N” or select “Same Day Wire” in the handling code field of the voucher.
• Ensure that the Invoice/Reference field does not exceed 14 characters.

The agency should then email [email protected], [email protected], and [email protected] stating the request for a wire and provide the following information:

• Business Unit
• Voucher number
• Vendor name
• Payment amount
• SWIFT code/IBAN number
• Bank name
• Bank Address
• Name of account owner
• Account number
• Justification for wiring the payment

OSC will review the email to determine if the request can be fulfilled and will coordinate with agency staff if alternative arrangements need to be made.

 Recurring Wire Payments

If an agency determines that a vendor may need recurring wire payments (e.g., payments to the federal government) OSC is able to set up a vendor’s record to allow for wire payments to be processed through the SFS. Please contact OSC’s Bureau of State Expenditures at (518) 474-4868 or [email protected] for additional information about recurring wire payments.

Wire Confirmation

After processing the wire payment, OSC’s Bureau of State Expenditures will enter a payment confirmation number in the Payment Reference field of the Payments tab on the voucher, which will indicate the transaction is complete. Agencies can check the M-161 extract or open the voucher in SFS to confirm the payment wire was processed. The voucher’s payment line will have a payment method of either “MAN” or “WIR” to indicate a wire transfer was processed. 

Payment Method Questions

For questions regarding the available payment methods, please contact the Bureau of State Expenditures’ Customer Service Help Desk at (518) 474-4868, or by email addressed to [email protected].

Guide to Financial Operations

REV. 02/22/2024