XII. Expenditures

Guide to Financial Operations

XII.8.G Payment Methods

XII. Expenditures
Guide to Financial Operations

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, two-day Automated Clearing House (ACH), one-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. Two-day ACH payments are electronic payments made from the State’s bank to the vendor’s bank within two business days after OSC approves the payment in accordance with the pay terms and Scheduled Due date or Net Due date on the voucher. 

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

ACH payments generally require two business days to deposit into the vendor’s account. However, an agency can request that OSC process a one-day ACH payment when the State has a business need for a next day payment. One-day ACH payments require the vendor’s record in the SFS vendor file be set up so that the vendor is able to receive ACH payments. One-day ACH payments are more costly to process than two-day ACH payments. Therefore, agency requests for this payment method must be approved by OSC on an emergency, exception-only basis.

Wire Payments

Wire payments are an option in certain mandated or emergency payment situations, when immediate payment is necessary and 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 are significantly more costly than ACH payments. 

When a wire is necessary, depending on the situation and the requirements of the agency/vendor, the agency may work with OSC to set up a one-time or recurring wire payment. 

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 explain in the email the need for the expedited payment.
  • An error free, agency-approved voucher must be entered into SFS by 11:00 AM on the business 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 needs to wire a payment to a vendor, the agency must first submit the voucher to OSC through the SFS and:

  • Enter an “N” or select “Same Day Wire” in the handling code field on the voucher.
  • Ensure that the Invoice/Reference field does not exceed 14 characters.
  • An error free, agency-approved voucher must be entered into SFS by 9:00 AM on the day the wire payment will be processed.

Once the voucher is in SFS, the agency must upload a completed Wire Payment Request Form along with supporting documentation (e.g., invoice, receipt, contract, etc.) to their agency Box folder. If your agency does not have a Box account or requires a copy of the Agency Wire Request Form, email [email protected]. The agency should not send banking information to OSC via email.

OSC will review the wire request to determine if it can be fulfilled and will coordinate with agency staff as needed.

Recurring Wire Payments

If an agency anticipates making recurring wire payments to a vendor, the agency should contact OSC’s Bureau of State Expenditures at (518) 474-4868 or [email protected] for additional information.

For both one-time and recurring wire payments, after processing the wire payment, OSC 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. 02/19/2025