Oracle Accounts Payable

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Oracle Applications 11i

Accounts Payable

A Presentation by EAS – Oracle Applications
Aug 2003

Accounts Payable
Agenda
 Introduction
 Overview
 Workflow
 Payables Cycle
 PO Matching
 Masters

 Accounting Methods &
Entries
 Set-Up
 Innovative Uses
 Data Model
 Maintenance &
Reports

Introduction
 Last stage of the SCM where suppliers are paid for merchandise and services.
 To help manage the procurement cycle processing high transaction volumes and
controlling the cash flow.
 Better manage supplier relationships and price comparisons.
 Saves money by enforcing various payment policies:
 Paying suppliers on time after availing the full credit period.
 Availing discounts.
 Preventing duplicate invoice.
 Avoiding Bank ODs.
 Integrated with other modules –
 PO ( to pay for only what was ordered and received at the quoted price).
 FA ( to account for Fixed assets purchased).
 HR ( to ensure that employee expenses are paid efficiently).
 CM (to enable reconciliation of payments against a bank statement).

Overview

Moment a company agrees to purchase goods or services from a supplier, an encumbrance
is created.

On availing the goods / services, the encumbrance is converted to a liability to pay the
agreed price for the goods and the liability remains on the Balance sheet until paid off.

Payables Liability is measured in various ways: On Receipt of Invoice, Invoice Date, Date
when Goods are Received etc.

Payment terms would have been agreed upon at the purchase stage and quoted by the
supplier when the invoice for the goods / service is sent. These terms will differ supplierwise or by PO. The invoice due date is for operational control and has no bearing on when
the eventual liability is accounted.

When the invoice becomes due, it is to be paid off. The payment can be made by check,
EFT, cash etc,. Once paid, the liability is knocked off.

Payables needs to be reconciled with GL by comparing the Payable TB with the liability
account line in GL. This would explain the supplier liability figures appearing on the Balance
Sheet.

it will be reflected as bank statement entries in Cash management which enables to handle queries from suppliers effectively. Assets. .Workflow Payables is tightly integrated with other modules of Oracle suite like Purchasing. tracking to billing. are posted to GL.  Once invoices are paid off. Cash Management. Projects and GL.  All accounting transactions entered in Payables.  POs raised in Purchasing give raise to invoices in Payables through PO matching.  Expenditures can be transferred to Projects for project accounting.  Asset lines in invoices gives raise to asset addition in Assets.

Integration With Other Oracle Suite Purchasing Payables Projects Assets Cash Management General Ledger .

II. IV. . Enter Invoices (This process may or may not include PO matching) Approve Invoices for payment. Reconcile the payments with the bank statement. Select and Pay approved invoices. III.Payables Cycle All payments pass through the following four-step Payables cycle: I.

Payables Cycle (Contd…) Enter Supplier POs Enter Invoices Approve Invoices General Ledger Pay Invoices Reconcile Payments .

The various ways in which an invoice can be entered are: Manual: Invoice Workbench: Invoices are directly entered in the Payables system. Electronic invoices transferred from Oracle e–Commerce Gateway. • Oracle Internet Expenses expense reports: Expense reports your employees enter using a Web browser. Validation and defaulting occur during import. • Oracle Projects expense reports. loaded using SQL*Loader. high volume invoices that do not require extensive validation and defaults. allowing to process all types of invoices while maintaining accuracy and control on the payment. Invoices. Automatic Invoice Creation: These are basically recurring invoices which are required to be generated and paid on a frequent basis. such as invoices from legacy systems. • Invoices from external systems. Usually complex invoices or invoices which require online validation or invoices which have to be paid immediately.Enter Invoices Invoice is at the heart of AP processing. The credit card company sends you these invoices as a flat file. Project–related expense reports entered in Oracle Projects. • Credit Card invoices: Invoices for employee credit card expenses. Imported Invoices: One can import invoices or invoice information to create invoices in Payables. these invoices are imported into the Payables system. • Oracle Property Manager invoices: Lease invoices transferred from Oracle Property Manager. After entry. • Oracle Assets lease payments: Lease payments transferred from Oracle Assets. • EDI invoices. are entered through this mode Invoice Gateway: Used for quick. .

To make any adjustment to an invoice's scheduled payments if the invoice is not fully paid by adding as many new payments as required. Click to get an Invoice Overview / summary To Enter Invoice Distribution Lines . and by altering unpaid scheduled payments. Invoice (if Cr/Dr Memo) or Receipt Click to initiate various Invoice Actions. To review payments against an invoice Click to Match Against PO. Also to defer payment by adjusting due dates on schedules or by applying holds to selected scheduled payments.Enter Invoices – Header To Put on / Release a hold on the invoice.

Header Description and Payment Method. Supplier Name.Enter Invoices – Header (Contd…) Select/Enter the Invoice Type. . Payment Currency. Distribution Set. Invoice Date-Num-Curr-Amount Select / Enter the GL Date. Supplier Site.

Invoice Types There are various types of invoices which are: Standard A regular supplier invoice. PO Default An invoice for which the matching PO no is known. Credit Memo An invoice received from a supplier representing a credit for goods or services purchased. another invoice or both. Debit memo An invoice to notify a supplier of a credit recorded for goods or services purchased. Mixed A standard or credit/debit memo invoice for matching a PO. Prepayment To make advance payments for expenses/capital items where the goods/services may not have been actually received. . Expense Report For recording business-related expenses for employees. Quick Match To automatically match to a specified PO and all the shipment lines on the PO.

or miscellaneous distributions To reverse the existing distribution and enter revised distribution. freight. DFF and Line Description. AP calculates the Sales Tax / VAT / WT and increases the invoice value accordingly or decreases the Payable Value. Enter the Invoice Line Amount. .Enter Invoices . Create through Allocation. Create through Allocation. Account Details. Create Freight Distributions by Create by using theFreight Create Distributions Freight using the Create Freight Distribution check box in the Distribution check box in the Invoices window. To automatically create tax. Use a Distribution Set. Based on the Tax Code.throug Automatic Tax Calculation. Match an invoice to a purchase Match invoice to a purchase order or an receipt. Invoices window. distributions window.Distribution One can enter distributions in One can enter distributions in the following ways: the following ways: Enter manually in the Enter manually in the distributions window. Create Tax distributions through Create Tax Automatic Taxdistributions Calculation. order or receipt. GL Date. Tax Code. Use a Distribution Set.

. Select the Tax Code (if type=Tax) and Enter a Description for Allocation. Select the Distribution Lines against which the Allocation has to happen. Select whether to Prorate based on the Distribution Lines. else enter the amount to be allocated. If Prorate is checked then leave it blank. Enter the Amount of Tax/ Freight/ Miscellaneous to be allocated. . Amount allocated to the distribution. Tax or Freight.. Sum of the amounts you are allocating (values in the Allocated Amount fields).Enter Invoices – Distribution (Contd. Click to automatically Select/Unselect the Distribution Lines. Click to initiate the Allocation.) Select the Type: Miscellaneous.

Initiate Approval: to initiate approval via Initiate Approval: to initiate approval via Workflow. tax. not have any effective or accounting Invoice amount payments and all accounting holds. initiation. and available Prepayment distributions thatallcan be Prepayment distributions that can be applied. Workflow. Apply / Un apply Prepayment: the Apply / Un apply Prepayment: the opens Apply/Un-apply Prepayments window Apply/Un-apply Prepayments window opens displaying all prepayments that have been displaying allinvoice. Pay in Full: to Pay the Invoice in full directly Paythis in Full: to Pay the Invoice in full directly from window. applied. If the invoice hasanWT. period Validate: to check theand matching. are reversed. given to the supplier for his confirmation. Payables automatically creates invoice Payables automatically creates an invoice for the tax authority supplier to offset the for the of taxthe authority supplier to offset the amount withholding tax invoice.Actions Validate: to check the matching. and distribution information and automatically apply holds to information and automatically apply holds to exception invoices. prepayments have been applied to the and allthat available applied to the invoice. Release Holds: to Release a Hold giving the Release Holds: Release a Hold giving the Release Name andtoReason Release Name and Reason Print Notice: to Print an invoice notice to be PrinttoNotice: to Print notice to be given the supplier foran hisinvoice confirmation. exchange rate. If the invoice has WT. from this window. distribution status. exchange rate.Enter Invoices . to all invoice distributions andare any invoice distributions and any to purchase order shipments and matches distributions purchase order shipments and distributions are reversed. Invoice amount and all scheduled payments are set to zero. Force Approval: to Force Approval if to be Force Approval: to Force Approval if to be approved without using the Workflow approved without using the Workflow initiation. amount of the withholding tax invoice. Cancel Invoices: to cancel unpaid / Cancel Invoices: unpaidinvoice / unapproved invoice to or cancel an approved unapproved invoice an approved invoice that does not have anyoreffective payments or that does holds. all scheduled payments setmatches to zero. Create Accounting: to create and then view Create Accounting: create and then view the accounting Lines intoAP. exception invoices. . period status. the accounting Lines in AP. tax.

Click and then Enter the Release Name.Holds Enter the Hold Name and Save the Invoice to put it on Hold Reflects the PO and Receipt Details against the Invoice. Also reflects the status of the hold/release.Enter Invoices . . Click on Ok to Release the H on the Invoice. Click to Hold or modify a Scheduled Payment.

Enter Invoices – Schedule Payments Invoice amount minus the gross amounts of the remaining payments Payables calculates the date the invoice is due based on the invoice Terms Date and invoice Payment Terms. .

Pay Group and GL Date. Either Batch option or Invoices Either Batch option or Invoices Option.) Click to enter Invoices in the Batch. But these Actions to be performed. but not both. For this the Option. . option can be used at a time. also. Batches reduce the no of Invoice Batches reduce the no of Invoice Actions to be performed. (all these can be defaulted at the invoice level. Batch Date. To create and view accounting lines for all the invoices under this batch. Enter the Invoice Currency. but not both. set accordingly. additional Invoices at any time. Batches can be appended with Batches can be appended with additional Invoices at any time. Invoice Type. For this the System Profile option: AP: Use System Profile option: AP: Use Invoice Batch Controls must be Invoice Batch Controls must be set accordingly.Enter Invoices – Batch Mode Only one Invoice workbench Only one Invoice workbench option can be used at a time. Enter an Invoice Batch Name. But these can be done at the invoice level can be done at the invoice level also. Control Checks. Click to validate all the Invoices under the Batch.

The following fields are required for each invoice line: Line Type. Prepayment Details and Work flow details. or a source defined in the AP Lookups. Payables tables. . GL Date. Invoice Amount. invoices. Site. Find or Enter accordingly. validate thedefault valuesvalues. Ex Rate type . Payables creates regular Payables invoices thatcreates can beregular viewed. and validated in the modified. to purge invoice records from the interface tables. a Hold Name (if reqd. The other fields to be entered are: GL Account. Query the rejected invoice Query in thethe rejected records Invoiceinvoice Gateway records in the Gateway window. modified. Enter at least one invoice line. import. and then create invoices then createand invoices with distributions scheduled distributions and scheduled payments in the regular payments in the regular Payables tables. Amount. Line Description. GL Date to any invoice record in the Invoice Gateway batch that does not already have a GL Date at the line or header level. Date Inv received.them correct resubmit for them. Discount. Invoice header and line information is entered. Pay alone. Then submit the Payables Open Then submit Payables Interface Importthe Program to Open Interface to validate theImport valuesProgram you entered. invoices that can be viewed. Click to launch the process of creation of invoices. provide any and provide any defaultwith values. Payment Date. Enter the Gateway Source. The other Fields to be entered are: Invoice Date. The Create Invoices window opens. you entered. Payment Method. and then window. Submit a customized workflow Submit to a customized workflow program automate the program to processes forautomate managingthe processes for managing invoices.and then resubmit them for import. WT group. Checks on Asset Track-Price Correction-Include Tax etc. This line information is entered. information is stored in the This information is stored in the Payables Open Interface tables. For the Source. Payables uses information Payables uses information entered in the Invoice Gateway entered in the Invoice Gateway window to create invoices in window toInvoice createheader invoices in Payables. Invoice Workbench. Enter a unique value for the Gateway Batch. Currency. Terms.) . correct Invoice them. Payables Open Interface tables. to summarize the Audit section of the Payables Open Interface Import Report. and Payables. Click to view rejections on Invoice Lines. The following header fields are required: Supplier or Supplier Num. Amount. GL date. Gateway Batch Name. Header Description. enter Invoice Gateway. Ex Rate. Pay group.Invoices – Gateway Enter the invoice header information. and validated in the Invoice Workbench. Doc Category.

Review. One can also apply hold to an expense report to prevent payment. Define the employee as a supplier. Submit the Employee Update Program to update employee-type supplier records with up-to-date name and address information from the employee record.Expense Report  Use the Expense Reports window in Payables to enter Payables expense reports for the employees and to review/modify any of the following expense reports: expense reports entered in the Payables Expense Reports window or submitted by the enterprise's employees using Oracle Internet Expenses or entered in Oracle Projects and then transferred from Projects to Payables. 3. Optionally modify or review Payables or Projects expense reports. 9. submit the Expense Report Import program which automatically creates invoices from the expense reports. This can be from any source. and account for the invoices. 7. 8. and default expense accounts. define expense report templates that model the different expense report formats your employees use.  If advance has been paid to an employee use this window to apply advances to expense reports to reduce the amount to be paid. 6. For expense reports entered in Payables and Oracle Internet Expenses. 5. One can then use Payables to validate. Oracle Internet Expenses and Oracle Projects. Pay the invoices as any other invoices are paid off. In the Payables Expense Reports window optionally apply holds and/or apply advances to the expense reports. correct any expense reports that caused exceptions and resubmit Expense Report Import.  The following are the steps to be follow to manage expense reports: 1. 2. Supervisors.  Before one can pay expense reports. Enter Human Resources Financials options and Expense Report Payables options. If there are exceptions. and approve expense reports entered in Oracle Internet Expenses. Submit Expense Report Import to create invoices and invoice distributions for the expense reports. . expense addresses. Enter expense reports in any of the following products: Payables. pay. audit. 4. Enter employees and their locations. Review the Expense Report Import.

Invoice Number. Date. Description. Enter the Invoice number of a specific prepayment Distribution number the maximum currency amount of the prepayments GL Date. amount of an expense item. WT Group. default GL Account displayed by AP for the expense item. GL account of the Employee. . Date and Ex Rate. WT group and Hold if any. Currency. Apply Advances. Lines Total is sum of all Individual line amounts & = to Invoice Amount.Expense Report (Contd…) Enter the Name and No of the Employee. Includes Tax. Payables applies the advances you specify when Expense Report Imports submitted for an expense report. Expense report template for entering the expense report Which determines the expense report items that can be selected. Name of an expense item. This GL account is overrides the Employees GL on generation. Amount. Tax Code. Enter the Functional Currency. Accounting date for the application of the advance. Ex Rate Type. Enable this check box to apply employee advances (prepayments) to an expense report.

first define a recurring invoice template. For creating a template a Special Recurring Calendar and a Distribution Set (of Type Full) is required. then the Terms Date is the invoice date. which is the first day of the period in which the recurring invoice is created. then create invoices based on the template.  Define recurring invoices to increase or decrease by a fixed percentage from period to period.  Create up to two special one-time invoice amounts of a non-standard amount.Recurring Invoices One can enter invoices for periodic expenses for which invoices may not be received. such as a deposit or balloon payment. To enter recurring invoices. then the Terms Date is the same date that the recurring invoice was created. With a recurring invoice template.  If the Terms Date Basis is set to anything else. When Payables creates recurring invoices. the invoice date is the first date of the period in which the recurring invoice is created. one can do the following:  Specify the intervals in which invoices based on the recurring invoice template will be created. The Terms Date depends on the Terms Date Basis setting at the supplier site. but is calculated differently than for regular invoices:  If the Terms Date Basis is set to System Date. . such as rent.

Recurring Invoices – Special Calendar Enter a Calendar Name. From Date & To Date. Enter as many lines in a Year as the no of periods per year defined above. Select the Type as Recurring Invoice. Enter a Period Name. Description and the No of Periods per Year. . The System Name is automatically assigned (Prefix Month & Suffix YY from Year). Seq (Calendar Seq). Year.

Check if project related and the GL account. Enter the Line No. Allocation in %. Use Full Distribution Sets to Use Full Distribution create distributions withSets set to create distributions set percentage amounts. with or use percentage amounts. The Type is assigned on Saving. or use Skeleton Distribution Sets to Skeleton Distribution create distributions withSets no to create distributions with no set distribution amounts set distribution amounts . which indicates that the Distribution is fully allocated in % amounts Use a Distribution Set to Use a Distribution automatically enter Set to automatically distributions for enter an invoice distributions for an itinvoice when not matching to a when not matching it to a purchase order. You can assign a default You can assign Distribution Set toaadefault supplier Distribution Set to .Recurring Invoices – Distribution Sets Enter a Set Name and Description. It has to be Full for Recurring Invoices.a supplier site or to an invoice site or to an invoice . purchase order. Enter the Income Tax Type and Tax Code (if applicable) Enter the Project Description if Project Related.

Enter the Recurring Calendar. Enter the Invoice Currency. Expiry Date. Enter the Header Description. WT group and Whether Approval workflow required. Hold Details. Pay Alone. . The next and Remaining are automatically updated as and when Invoices are generated. Select Distribution Origin as Set and the Set Name. the No of Periods for which Recurring Invoices are to be generated in a year (can be <= to the Calendar period). Select the First Period for which Recurring Invoice is to be generated. the Pay Group and Payment Method.Recurring Invoices – Create Enter the Supplier Details. else enter as PO and the PO number. GL Date. Enter the Invoice Number. Terms. The system automatically assigns the Period Name to the Number given.

. enter the amount of first invoice in the First Amount field. enter the percentage in the Change field. These statuses are updated as and when invoices are generated.Recurring Invoices – Create (Contd…) If invoice amounts are to increase or decrease by a set percentage from period to period. and Payables will recalculate the Control Amount. If total sum of the recurring invoices to be created is known. Enter the no of invoices to be generated. If a special invoice amount is to be created for recording a deposit or balloon payment. If the periodic recurring invoice amount is known. enter one or two Special Invoice Amounts and the Periods. Click to launch a program for creating Recurring Invoices. enter the Control Amount and Payables will calculate and enter the First Amount. Payables will calculate and enter the Control Amount field. The system will recalculate the Control Amount.

a typed check or wire transfer. Electronic: An electronic funds transfer file is generated and delivered to bank to create payments. Refund: A payment received from a supplier or employee to return funds for an invoice payment made.Payment Once the invoice has been entered and approved. or an e-Commerce Gateway payment. Wire: Used to manually record a wire transfer of funds between organizations’ bank and supplier's bank. a Quick payment. Refund payments pay a debit balance. which is a single computer-generated check. Batch: A payment created by payment batch processing. Clearing: Used for recording invoice payments to internal suppliers within organization. The pay run will select all invoices that are to paid. Quick: Quick payment. For example. and are always entered as negative amount payments. it must be paid in a timely manner to take advantage of available discounts. Payment Methods: Check: A manual check. according to the criteria and generate the appropriate payment documents. . or a check in a payment batch. Payment Types: Manual: Used to record a payment made outside of Payables. Either a single payment can be made for the unpaid invoices of a supplier or each of them can be paid separately. One can initiate payment runs on a regular basis at a defined frequency.

Cleared But Unaccounted. Negotiable. Document (name). Payment Date. Issued. Click to perform various Payment Actions. Document Num and Voucher No are assigned by the system. Whether Future dated payment. Ex Rate. Bank Account. Voided. Status represents the following Payment Statuses: Cleared.Payment – Manual/Quick/Refund Select the Payment Type. Overflow. Stop Initiated. Unconfirmed Set Up. Click to Enter / Adjust Invoices to be paid for the selected Supplier. Reconciled But Unaccounted. Maturity details. Reconciled. Functional Currency & Amount. Set Up. . To see the Payment Summary Click to view the Invoice Details. Select the Payment Method and Supplier. Ex Rate Type. Payment Amount. Spoiled. Payment Currency.

.Payment – Manual/Quick/Refund (Contd…) Enter the Invoice or open the Drop Box to Select the Invoice Select the Invoices from this drop box one by one.

Payment – Manual/Quick/Refund (Contd…) Format: Enter the Format Format:and Enter the Format Program Initiate Format andChecks Initiate Format forProgram getting the for getting Checks Printed in thethe prescribed Printed in the prescribed format. Print Now: Select to print the Print Now: Select to print the check. accounting lines in AP. Create Accounting: To Create Accounting: create and view the To create andlines viewinthe accounting AP. format. Print Remittance Advise: Print the Remittance Advise: Select Program To print Select the Program the advise for giving itTo to print the advise for giving it to Supplier. its encashment. which is not voided. Enter the VoidTo Date. Invoice Select the Invoice Actions. Initiate/Release Stop: to Initiate/Release Stop: to initiate Stop / Release a Stop Stop / Release a Stop oninitiate a check and thus holding a check and thus holding itson encashment. Void: To Void a check. Date and Select the Date. Reissue: To reissue a check Reissue: reissue a check which is notTo voided. Enter Void: VoidGL a check. Date and the Void GLActions. check. Supplier. .

one can optionally prevent payment to a supplier or of a particular invoice or change the invoice amount or add an invoice that AP did not originally select. The Invoice remains unpaid and the document status is Set-up. in which case a data file containing the payment information is formatted according to a particular bank or EDI format. Print Preliminary Register: Print this register to identify the first and last document (instrument) numbers assigned. Confirmation step releases a concurrent process and records each status as mentioned above. This document can be reissued for future payments. A payment needs to be confirmed based on the following status: Printed: The document has been properly printed/pay file generated. currency. Format & Print: The selected invoices are formatted either as checks. Deliver: Checks are posted to the Supplier or a bank file is generated. payment method etc. A batch can be cancelled at any stage upto CONFIRMED. . calculates how many documents are needed and allocates document nos to each selected invoice Modify: At any time before formatting. Skipped: The document got skipped while printing or pay file generation. This process selects the invoices and invoice installments for payment. Set. The Standard build program is resubmitted to reallocate the document nos. The invoice is marked as paid and the document status is Negotiable. The invoice remains unpaid and the document status is spoiled. Spoiled: The document has been spoiled while printing/pay file generation. in which case AP produces a print file containing remittance advise information and the formatted check information. Each step launches a concurrent manager ‘Payment Process Manager’ and the corresponding requests. are selected. or as an electronic payment file. Confirm: This is the last step and a very important one because it generates document and invoice payment records updating the payment history of invoices paid in a payment batch. Checks are printed on preprinted stationary or on blank check stock with Image printing or a bank file is transmitted to the bank over a modem link.up: The document has been specifically identified as a non-negotiable only for aligning and test printing purposes.Payment – Batch Each Payment Batch run involves the following steps: Select & Build: All outstanding Invoices which fall due on before the specified “pay by” date and which meet the other criteria like pay group.

To copy a Payment Batch details from one Batch to another to copy the Batch Parameters To view the individual payments in a Batch after the Status is Confirmed.Payment – Batch (Contd…) Enter a Unique Batch Name. after the Built Action. . Pay Group. Bank Account. Payment Date. The Status reflects the latest Step performed on the Batch Click to initiate various Payment Batch Actions To select/unselect the Suppliers or Invoices under a Supplier which have been selected by the Batch. Save to re-build the batch. Requery Batch to Update the current Status. Document Name and Document Sort order.

Ex Rate Type.Payment – Batch (Contd…) Enter the Payment Method. . The other fields are display fields which show: First & Last Document No. Batch Payment Total. Pay through date. The Next Step reflects the next stage of the Payment Batch to be performed. Check (if applicable) whether it is a Future Dated Payment.. to allow zero invoices and to include only Due invoices. Enter the account currency. Ex Rate. Payment Currency. No of Invoices and No of instruments.

Build Payments: To build all the selected Build Payments: build all the selected invoices. Launches To a concurrent program invoices. Print Remittance Advise: Select the Print Remittance Select theit to Program To print theAdvise: advise for giving Program To print the advise for giving it to Supplier. Launches a concurrent program Build Payments. Print Now: Select the printer to print the Print Now: Select the printer to print the check. unconfirmed batch and start a fresh Batch. getting the Checks Printed in the prescribed Checks Printed in the prescribed format. Launches a concurrent program the Select Batch.up. Confirm Payment Batch: to be confirmed Confirm Payment Batch: to be confirmed based on the following status: based on the following status: Printed. Spoiled.up. Create Positive Pay File: to generate a pay Create Positive Pay generate a pay file for transmitting to a File: bankto (EFT) file for transmitting to a bank (EFT) Print Final Register: To print the final Print Final print the final register used Register: for recordsToand audit register used for records and audit purposes. check. Print Preliminary Register: to identify the Print Register: to identify the first andPreliminary last document numbers assigned. Set. Set. Build Payments. Supplier. Launches a concurrent program Auto Auto Select Invoices. first and last document numbers assigned. Modify Payment Batch: To prevent Modify to Payment Batch: prevent payment a supplier or of To a particular payment to aan supplier of aAP particular invoice or add invoiceorthat did not invoice or add an invoice that AP did not originally select. purposes. Cancel Payment Batch: to cancel an Cancel Payment Batch: an unconfirmed batch and starttoacancel fresh Batch. To create and view the accounting lines in AP. Spoiled. originally select. . Skipped Printed.Payment – Batch (Contd…) Select Invoices: To select all the unpaid Select based Invoices: To select all thedefined unpaid in Invoices on the parameters Invoices based on the parameters defined in the Batch. Invoices. Format Payments: Enter the Format Formatand Payments: Enter the Program Initiate Format for Format getting the Program and Initiate Format for format. Skipped Create Accounting: To create and view the Create Accounting: accounting lines in AP.

Click to view the invoice summary. This reflects the Total Payment Amount of the Supplier Select Yes/No to Pay or Not to Pay the Supplier itself. To select/unselect the Suppliers or To select/unselect the Suppliers or Invoices under a Supplier which have Invoices under a Supplier which have been selected by the Batch. Click on Build to rebuild Built Action. the batch. If not to be paid.Payment – Batch (Contd…) Supplier wise Invoice wise details are shown here. Click to Rebuild the Payment Batch. after the been selected by the Batch. after the Built Action. . enter the reason. Enter an Amount if Partial Payment is to be done. Click on Build to rebuild the batch. Select Yes/No to Pay or Not to Pay an Invoice under a Supplier.

 Updates Quantity_Billed in PO_Line_Locations. Purchase invoices must be matched to PO and optionally. ordered. three. ordered and received or. At the time of invoice entry. Matching can be two-. AP performs the following updations in the PO tables on matching:  Updates Quantity_Billed and Amount_Billed in PO_Distributions. received and accepted are paid for. one has to select whether to match to the PO shipment or specific PO distributions. the invoice has to be put on hold and not paid till the difference is clarified with the supplier. receipts and inspections before they can be approved for payment. received and accepted.and four-way Matching to ensure that the payment is made for only goods / services that have been ordered.PO Matching AP provides extensive PO matching features to ensure that only goods / services which are ordered. choose the shipment or distribution to be matched along with the quantity and price. . If a discrepancy appears. Then.  Creates one or more AP_Invoice_Distributions in addition to the existing distribution.

Click to view the PO/Invoice/Receipt details. Click Match to initiate Match. The Invoice Distributions defaults the PO/Receipt/Invoice distribution lines. For each PO distribution you want to match to. Displays all the information on Shipment. To match in further detail with PO distributions: Enter a value for Quantity Invoiced. then choose the Distributions button. Select the PO/Receipt/Invoice to be matched. Enter the Qty Invoiced or/and unit Price to arrive at the Match Amount.Enter Invoices . Check Price Correction to record a price correction without affecting the quantity. PO and the Allocated Distribution.Match Enter the relevant Parameters to find the PO/Receipts/Invoice. . select the PO distribution and enter the Quantity Invoiced. Rest all details default from the source document.

Each Supplier is the database has an account. GL account. This master is primarily maintained from Oracle HRMS if it is being used. payment terms etc. which can be overridden. Supplier Master: The Supplier Master is used to enter and maintain the Supplier Header and the Various Site level information. Employee Master: This is used to enter and maintain the Employee details. A site is basically an address from which the supplier conducts the business. defaults at the time of transaction entry. Payroll No. This balance can be viewed in various supplier reports. Each Supplier is assigned a Vendor Number which is separately for Header and Site. These include the Supplier Master. The information includes address. Details like address. etc are captured. Credit Card Master: AP Accounting Calendar Master: Tax Master: . DOB. DOJ.Masters There are a lot of Masters to be maintained in AP. Supplier account balance = Invoices + Dr Memo + Cr Memo-Prepayments-Payments. Sites could be Purchasing sites. The information captured in the master. bank information. RFQ only sites and Pay sites. An account is a record of all transactions that affect that supplier. The information captured here defaults to the transaction but can be overridden. AP Accounting Calendar Master and Tax Master. Employee Master.

Once saved. Name of supplier’s parent organization if supplier is a franchise or subsidiary. Supplier Number is generated based on the options in the setup. This number appears on the PO. . The no supplier uses to identify the company or organization. Enter an alternate name if the Payee is different. Click to Enter the Supplier Site Information. a record can’t be deleted. Also enter the Taxpayer ID and Tax Regn No. but can be inactivated by entering the Inactive On date.Supplier Master Enter a Unique Suppler Name. The parent organization must also be defined as a supplier in the system.

Employee Name + No if the Supplier is an Employee. whether this is a One Time Supplier to designate a supplier with whom repeat business is not expected.Supplier Master (Contd…) Enter a Supplier Type (Classification) for reports. The minority group if the supplier is a minority–owned business. Enter a Standard Industry Code (SIC).. enforce Hold restrictions – All or Unmatched or Unvalidated. . also whether it is a Small Business and / or Women Owned for reporting Purposes. Enter a reason for Payment Hold. Invoice Match Option – PO or Receipts. Enter the Amount Limit per Invoice.

Invoice (Date) &Invoice Received.Supplier Master (Contd…) Payment Terms: Payment terms used to schedule payments for an invoice. Effective Dates From/To. regardless of when the invoice is paid.Electronic. .•System (Date). Curr: Payables displays the currency defined for the bank account.Due or Discount Payment Method: The method used most frequently to pay this supplier’s invoices:Check. Primary: Enable this check box to use this bank account as a default when the supplier is paid electronically. •Clearing Always Take Discount: to always take an available discount for a supplier. The system uses payment terms to automatically calculate due dates. Pay Group: Used for Grouping Invoices in Payment Batches to facilitate quicker payment processing of a select category. Exclude Freight From Discount: to automatically subtract the freight amount from the invoice amount when calculating the invoice amount subject to discount. discount dates. and discount amounts for each invoice you enter. Payment Priority: From 1 to 99 to prioritize payment processing Currency: The Invoice and Payment Currency. Enter dates if you want to limit the time during which a supplier site uses this bank account as the primary bank account for receiving electronic payments in the bank account currency. Pay Date Basis: The Pay Date Basis for a supplier determines the pay date for a supplier’s invoices.Goods Received. Terms Date Basis: Date from which Payables calculates a scheduled payment for a supplier.Wire. Name of the Bank A/c and the Bank A/c No that this supplier uses. Pay Alone: to create a separate payment for each invoice. Interest Invoices: to calculate interest for the supplier’s overdue invoices and create corresponding interest invoices when the overdue invoices are paid. Both could be different.

Round to the nearest number. round Up. Party responsible for sending the remittance advice to the payee. Transaction Handling. and if the difference between Up and Down is equal.Up. Payment Format.Supplier Master (Contd…) Payment Method. to record taxes on invoices while offsetting the tax liability Calculation Level. Indicates type of information being transmitted with the funds if the Payment Method is ACH. Line. Nearest. Text of specific wire or other electronic payment instructions for an intermediary or recipient financial institution (optional). Use Offset Taxes. None.D. s to subtract the calculated tax from distributions when Payables automatically creates tax distributions.I. defaults to the corresponding fields in certain fields Rounding Rule. Standard EDI transaction code (ANSI ASC X12) designating the action to be taken by all parties. Distribution Amounts Include Tax. Remittance Instruction. Tax code or tax group that represents the tax charges generally received on invoices from a supplier. Remittance Information Only. Round up. . to use to round the automatically–calculated tax amount. Make Payment Only. Select the level at which you want Payables to automatically calculate tax for this supplier or supplier site: Header. Invoice Tax Code. Round down. How the electronic payment will be made. Tax Code. Remittance Method. Down. C Payment Accompanies Remittance Advice. Allow Calculation Level Override.

Date when tax verification was received from the supplier.Partnership. Federal.Foreign Corporation.Foreign Government Agency. Withholding Tax Group. The first four characters of the last name of the 1099 supplier. Reporting Site. Verification Date. Government Agency. This reporting supplier site’s address is printed on the 1099 form. Enable to allow WT for the supplier and supplier site. A default withholding tax group to assign to all invoices for the supplier site.Foreign Individual. The US IRS requires this information if magnetic media is used to file 1099 tax information: Corporation. Type of organization for this supplier. Income Tax Type. Name Control. Reportable to the US IRS for 1099 reportable supplier payments. Tax reporting name for a supplier subject to US IRD income tax reporting requirements. Organization Type.Supplier Master (Contd…) Allow Withholding Tax.Foreign Partnership . Individual. Reporting Name. Income tax type for a US 1099 reportable supplier.

Warning. Match Approval Level.4– Way. Location where a supplier sends shipments for goods/services. Bill–To Location. FOB. How Purchasing handles receipts that exceed the Quantity Received Tolerance:None. Max acceptable no of days early/late for receipts. Warning. 3–Way. Quantity Received Exception. 2–Way. Location to which a supplier sends the invoice for goods or services. Reason for preventing approval of PO for a supplier. Receipt Date Exception. Reject. The value entered in this field determines whether the receiving location must be the same as the ship–to location: None.Reject. Freight terms are negotiated with a supplier to determine whether the co or the supplier pays for freight charges on goods you order from a supplier. Ship Via. Create Debit Memo From RTS Transaction. One can create a PO for the supplier. Days Early/Late Receipt Allowed.Reject. Quantity Received Tolerance. Inspection Required. Enforce Ship–to Location. .Supplier Master (Contd…) Ship–To Location. Free–on–Board (FOB) code for a supplier. To perform online matching of invoices and original PO or PO receipts. Warning. Freight Terms. or Standard Receipt. Default receipt routing assigned to goods: Direct Delivery. to automatically create a Debit Memo in Payables when a Return To Supplier (RTS) is entered in Purchasing. How Purchasing handles receipts that are earlier or later than the allowed number of days selected None. Freight carrier used with a supplier. Max acceptable over–receipt tolerance percentage. but cannot approve the same Purchasing Hold Reason. Receipt Routing. Purchase Order Hold.

Shipping Network Location. An RFQ Only site is a site from which quotations are received.Printed Document. Address details. RFQ Only. Disallow entering PO for a supplier site. Communication Details of the Supplier. E–mail.Site Enter the Unique Site Name. Language spoken at the site.Fax. Supplier Notification Method. Purchasing and WIP uses this information when it receives outside processing items. Supplier site to which payment is sent invoice. Pay. Procurement Card. Supplier site from which goods or services are ordered. . Physical location of the supplier site. This value controls the language in which Payables prints certain reports. Purchasing.Supplier Master . Supplier site that accepts the credit card brands of procurement cards. Primary way to send PO to the supplier.

The Liability Account and description for a supplier site’s invoices. The Financials option value defaults to new suppliers. When you create the default Liability Account. The supplier default is the Financials option for the Liability Account. Prepayment. The supplier default is the Financials option for the Prepayment Account. When Payables creates a future dated payment. Future Dated Payment. Payables uses this as the default GL account and account description for Item lines that Payables automatically creates for prepayments. depending on the option selected in the Payment Accounting region of the Payables Options window.Supplier Master-Site (Contd…) Distribution Set. and the supplier value defaults to new supplier sites which can be overridden. . it uses the future dated payment account from either the supplier site or the payment document. Default Distribution Set for all invoices entered for the supplier site. Contact Details of the Supplier Liability. Payables defaults this Liability Account to each supplier you enter and in the invoice which can be overridden.

Supplier Master-Site (Contd…)
Tax Registration
Number: ex a supplier’s
value–added tax (VAT)
registration number.

EDI Location. for this supplier site.
This field appears only at the supplier
site.
EDI ID Number. This field is used
only by Oracle Energy, if you have
installed it, and it appears only at the
supplier site.
Payment Method. How the electronic
payment will be made.
Payment Format. Indicates type of
information being transmitted with the
funds if the Payment Method is ACH.
Remittance Method. Party responsible
for sending the remittance advice to the
payee.
Remittance Instruction. Text of
specific wire or other electronic
payment instructions for an
intermediary or recipient financial
institution (optional).
Transaction Handling. Standard EDI
transaction code (ANSI ASC X12)
designating the action to be taken by all
parties.C. Payment Accompanies
Remittance Advice.D. Make Payment
Only.I. Remittance Information Only.
U. Split Payment and Remittance. Z.
Other Handling.

Supplier Master-Site (Contd…)
Pay On. Enter a value
for the Pay On field only
if the supplier site is a
purchasing site.
Receipt. to use the Pay
on Receipt Auto Invoice
Program to automatically
create invoices based on
receipts entered for this
supplier site.
Blank. If you do not
want to use the Pay on
Receipt Auto Invoice
Program, leave this field
blank.
Alternate Pay Site. Pay
site to be used as the
supplier site when the
system creates invoices
from this supplier site’s
receipts.
Invoice Summary
Level. Enter the level at
which one wants to
consolidate invoices for
this supplier site when
the Pay on Receipt Auto
Invoice Program is
submitted :
Pay Site,Packing Slip,
Receipt.

Supplier Merge

Select whether to Merge All Invoices or Unpaid Invoices or None.
Select whether to merge the POs as well.
Enter the supplier name and site from which to merge information.
Enter the supplier name and site to which to merge information.
If the source supplier has multiple sites, then enter a row for each supplier and site
combination.
If supplier sites for the same supplier are merged, then enter the same supplier for
both the From and To Supplier Names.
If one wants the merge to automatically create an existing site belonging to the old
supplier for the new supplier, along with merging information in that site, select Copy
Site. But one will not be able to enter a site in the To Supplier Site field.

Click to Launch the Merge Program.
Review the Supplier Merge Report after the
request completes.

The Supplier Merge
The Supplier Merge
Program is a utility which
Program is a utility which
can be used to maintain
can be used to maintain
the supplier records. One
the supplier records. One
can merge duplicate
can merge duplicate
suppliers into a single,
suppliers into a single,
consolidated supplier or
consolidated supplier or
merge transactions within
merge transactions within
the same supplier from
the same supplier from
one supplier site to a
one supplier site to a
different supplier
different supplier
Site or merge all
Site or merge all
transactions for a supplier
transactions for a supplier
into a new supplier, or
into a new supplier, or
merge unpaid invoices.
merge unpaid invoices.
When one chooses to
When one chooses to
merge all invoices,
merge all invoices,
payments are merged as
payments are merged as
well. Payables makes
well. Payables makes
inactive any supplier
inactive any supplier
sites and / or the Supplier
sites and / or the Supplier
depending on the options
depending on the options
selected.
selected.

Credit Cards

Enter the Credit Card Program, The Card Profile,
The Card Holders Name as it appears on the Credit
Card, The Credit Card No, Employee Name, Card
Expiration Date, Department / Enterprise Name as
appearing on the card and Other Personal Details.

Maximum Amount Per
Transaction. to override the card
holder's authorized amount per
transaction

Enter the Supplier details
(Merchant Establishments)
with which this card scheme
is tied up.

Maximum Amount Per Period. to
override the card holder's authorized
credit limit per billing period,
Physical Card Issued. Check this
option if a physical card has been
issued to the employee.
Paper Statement Wanted. Check
this option if the card holder wants to
receive a paper statement from the
card issuer.

Procurement Cards Enter the Card Number of the credit card that incurred the transaction. Amount. Payables converts transaction distributions into transaction invoices with distributions distributions.into One invoices with distributions. The then be processed separately. and update credit card transaction transaction distributions. Transaction Date. Employee Name. To review and update credit card To review distributions. Transaction Reference Number. Transaction Card Code. Merchant Name. During Payables Open Interface DuringPayables Payablesconverts Open Interface Import. Import. Click to enter the distributions. One a can also use this window to split can also use this window transaction distribution into to split a transaction distribution intocan multiple distributions which multiple distributions which can then be processed separately. . transaction amount.. The total amount of the transaction total amount of the transaction distributions must equal the distributions must equal the transaction amount. Currency. Card Program.

All approvals are complete and the transaction is ready for import. . Validated.Procurement Cards .Distribution Status. A card holder assigns this status to a distribution to indicate that there is a problem with the transaction. Description. Workflow assigns this status to a transaction if the manager denies approval for the transaction. Hold. Description of the transaction distribution (invoice distribution description). Account to which the transaction distribution will be charged. Verified. Rejected. A card holder uses this status to indicate that a transaction was personal. Current status of the transaction. the card holder has verified the transaction. Account. Personal. Disputed. Approved. Either in the Credit Card Transaction Verification page or by using workflow. Amount of the transaction distribution. Amount. A card holder or manager assigns this status to a distribution to indicate that there is a dispute over the transaction. The Procurement Card Transaction Validation Report assigns this status to a transaction if it was successfully validated.

a primary and an optional secondary accounting method is required. . is recognized when the invoice is received from the Supplier. Only payments are posted to GL and not the liability. Accrual: When an item is purchased.Accounting Methods While setting up AP. The accounting method determines the number and nature of the journal entries Payables creates when the transactions are transferred to GL. At that point a liability is recorded to pay the invoice. Both invoice and payments are posted to GL The invoice distributions typically debit the expense or asset a/c and credit a liability a/c. the expense or the increase in asset value of an FA item. The payment distributions typically debit the expense or asset a/c and credit the cash/bank/cash clearing a/c. The primary and secondary set of books are to be determined. Combined: One can maintain one set of books for cash accounting and another for accrual accounting. Invoice distributions are entered in the accrual set of books and the payment distributions are recorded in both cash and in the accrual set of books. There are three accounting methods which are as under: Cash: When an item is purchased. the expense or the increase in asset value of an FA item. is recognized when the item has been paid for.

And Dr. Prepayments: Prepayment is payment before the receipt of invoice from a supplier. A prepayment could be sent with PO as deposit for goods / services. The expense (or asset) and tax accounts are to be entered in the invoice distribution lines. Payments do not give raise to tax postings. Both Cr. Invoices: An invoice increases the supplier’s account balance by the invoice amount. Payments: A payment decreases the Supplier’s a/c balance by the payment amount. memo reduce the amount that is owed to a Supplier. The various accounting events are: Invoice entry. Memo: Negative amount invoice created by a supplier and sent to the company to notify a credit Dr. issuing payments. On applying a prepayment to an invoice. Cr. resulting in a payment being issued for the reduced amount. Cr. They are netted off against the original invoice at payment time. and Dr. adjusting invoices. Memos: A memo increases the supplier balance by the memo amount. the amount due on the invoice is reduced. They are used to record a credit against an invoice for goods/services purchased. .Accounting Entries Accounting entries are based on accounting events. creating expense reports and processing prepayments. Memo: Negative amount invoice created by the company and sent to the supplier to notify the supplier of a credit the company is recording. The nature of the accounting transactions for an invoice depends on whether liability has been posted for goods received and whether Oracle Purchasing is used to initiate the invoice.

Accounting Entries (Contd…) Accounting Event Account Head Entering Invoices Expense / Asset A/c Making Payments Debit 100$ Tax A/c (say 10%) 10$ Supplier Liability A/c 90$ Supplier Liability A/c 90$ Cash/Bank/Cash Clearing A/c Cr. Memos Credit Supplier Liability A/c 90$ 50$ Expense / Asset A/c 45$ Tax A/c (say 10%) 5$ . Or Dr.

AP also creates distributions for discounts taken and foreign currency ex gain/loss incurred between invoice and payment time. . payment or both. One can choose to transfer invoice.Accounting Entries (Contd…) Accounting Event Account Head Entering Prepayments Advance A/c Adjusting Prepayments Debit Credit 100$ Tax A/c (say 10%) 10$ Supplier Liability A/c 90$ Expense / Asset A/c 200$ Advance A/c 100$ Tax A/c (say 10%) 10$ Supplier Liability A/c 90$ GL Transfer: A program has to be run from AP for transferring the accounting entries of all transactions in a batch mode to the interface table that is ready to be imported to the GL as a journal. journal name and sources. These journals are identified based on the Batch name.

regions. . GL account sets and Code sets are defined here. distribution sets. reporting entities. Hold & Release names and Expense report templates are defined. interest rates and bank charges are defined. Tax: Here. Options: All the Financial (accounting rules) and Payables options are defined. Calendar: This is used for opening/closing AP Accounting periods. Tax codes. Withholding certificates and groups. Credit Card: Define the credit card program here.AP Set-Up Steps in AP Setup: Invoice: In Invoice set up. Lookups: There are lot of values used in various AP forms. Recovery rules etc are defined. Invoice payment terms. bank setup. Payment: In Payment set up. the payment program. Procurement Cards: The credit card profile. tolerance limits. payment format. These are called lookup values and defined here.

Payment terms have one or more payment havelines. Enter each payment terms line. Invoice One can create for the invoice. Days. Enter one of the following to determine the portion of the invoice to discount on the scheduled payment: % Discount Or Amount Enter one of the following to determine the due date on the scheduled payment line: Due Days. Define the discounts so that the first discount has an earlier discount date than the second and so on.Invoice Setup: Payment Terms Enter a Unique Name and Description. payment. Eachthe payment line also defines due orterms line alsoamount defineson the discount a due or discount amount onOne a has scheduled payment. each of which creates one scheduled creates one payment. terms of discounts. a unique value in the Rank field if Automatic Interest is enabled. and Months Ahead Define payment terms to Definetopayment terms assign an invoice to to assign to an invoice to automatically create scheduled automatically scheduled payments whilecreate submitting payments while submitting Payables Invoice Validation for Payables Validation the invoice. Eachscheduled payment terms payment. Day of Month. One has toscheduled specify payment amounts to specify payment amounts either by percentages or by either by percentages or by fixed amounts. If discount terms are being used. fixed amounts. Day of Month. a cut-off day if Day of Month terms are used. and Months Ahead . one or more terms each of payment which terms lines. One can create multiple scheduled payment multiple scheduled payment lines and multiple levels of lines and Payment multiple levels discounts. Second. Fixed Date. Enter one of the following to determine the portion of an invoice due on the scheduled payment: % Due or Amount Enter one of the following to determine the due date on the scheduled payment line: Calendar. define payment terms lines in the First. and Third Discount tabbed regions.

Quantity Received. Price. Also set up Amount based tolerance limits for Ex Rate.Invoice Setup: Tolerances Setup % tolerance limits for Quantity Ordered. Shipment and Total Amount . and Tax.

Check for allowing Accounting and Enabling Allow Manual Release.Invoice Setup: Tolerances Enter an Invoice Hold/Release Name and Description. Select the type as whether it is for Hold or Release. .

If Internet Expenses has been installed. Justification Required. Require Receipt Above. Enter an Expense Item Name (Airfare. Misc. Enter the GL Account for each Exp item and the Project Expenditure Type (if applicable) for reporting purposes. Tax or Item). Check whether to enable for payment thru internet. to display a Calculate Amount button with any Descriptive Flexfield segments that are displayed for this expense type. use the Internet Expenses Attributes region to define additional attributes for expense types Prompt. a name other than the expense item name to appear in Internet Expenses Viewable From All Templates. expense item to appear as an expense type on every Internet Expenses enabled template.Invoice Setup: Exp Report Template Enter a Template name and Description. Card Expense Type (Air.) the Item Type (Freight. Calculate Amount. Enter Yes for this field if you want to require employees who select this expense type to enter a value in the Justification field. Car etc). Car rental etc. to submit receipts for this expense type. . check whether to include Tax and enter the Tax Code.

or select a single currency. Group payments by due date. Check whether to allow Zero Payments only. & a Format Payments Program. Choose a Build Payments Program.Payment Setup: Programs and Formats Enter the Program Name. Select where the remittance advise should appear: Before Check. Program Type (Build or Format Payments or Remittance Advice) and the (Sys admin) Registered Name Enter a Unique Payment Format Name. Either enable the format for multiple currency payments. After Check or None if advise is to be printed separately. Enter the maximum no of invoices to appear on an advise. Payment Method. . Also if Remittance is to be printed separately. then enter the Separate Remittance Program.

to all banks including the transferring bank) from a single bank to all other banks (i.Payment Setup: Interest & Bank Charges Enter the Interest Rates and The Effective dates of the same. one had the choice of selecting a particular branch of that bank or all branches... These rates are used to calculate and pay interest on overdue invoices.e. Use the Bank Charges Use the Bank Charges window to specify charges window to specify charges associated with transferring associated with transferring money between banks. If money between banks. One can define charges: from a single bank to a single bank from a single bank to all banks (i. .e. If you use Payables you you use Payables you specify charges between specify charges between your remittance banks and your remittance banks and your suppliers' banks. your suppliers' banks. to all banks except the transferring bank) from all banks to a single bank from all banks to all banks When one specifies a single bank.

A period cannot be closed without all transactions being accounted and transferred to GL. Enter each aging period: Enter the range of days for the period. Enter the column order. The period with Column Order 1 will be the first column on the report. . The aging period is used for Invoice Aging Report. Enter a Name and Description.AP Accounting Periods & Aging Periods This calendar defaults from the GL calendar associated with the Set of books. and so on. Enter the First and Second lines of the Column Heading as required on the report. One can force close by using sweep which transfers the unaccounted ones to the following month. One would have to open and close a period as a maintenance process.

Alphanumeric or Numeric. Use the Financials Options Use the Financials Options to define the options and to define the options and defaults to be used for defaults to be used for Oracle Financial Oracle Financial Application. AP assigns this account as the default Liability A/c for all new suppliers which can be overridden. To control supplier entry and purchase order matching. AP applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to either a purchase order or receipt. RFQ Only Site. Oracle Purchasing. but cannot validate or account them. If the Automatic Supplier Number Entry method is selected. One cannot create PO in Purchasing for RFQ only supplier site. To indicate how to match most invoices. Oracle are shared by AP. and FA. AP displays the no of future periods used in the set of books and limits the no of future periods one can maintain in the Control Payables Periods window. .AP Setup: Financials Options Future Periods. Expenses Clearing. and FA. If to distribute discounts to the system Discount Taken Account is chosen. Future Dated Payment. GL Accounts Liability. PO Rate Variance Gain/Loss. These values are shared by AP. One can enter supplier numbers manually or let AP automatically generate sequential supplier numbers. The Prepayment account for supplier site's invoices. then enter a value for Future Dated Payment account. Purchasing. Invoice Match Option. One can enter invoices in future periods. Discount Taken. PO or Receipts. Prepayment. enter the starting value the system should use for generating unique sequential supplier numbers. This value defaults to all new suppliers and new bank accounts. required when e Company Pay payment option of Oracle Internet Expenses is used. Type of supplier number you want Payables to use for supplier number entry. Next Automatic Number. Used only when importing invoices submitted via Oracle Internet Supplier Portal for all Miscellaneous charges on invoices the suppliers enter in Internet Supplier Portal. These values Application. Supplier Number Entry. Miscellaneous. AP uses this account to record the discounts taken on payments. Hold Unmatched Invoices. AP uses these accounts to record the exchange rate variance gains/losses for the inventory items. If future dated payments is used. Supplier Number Type.

Payment Method. discount dates. Inventory Organization. Always Take Discount. regardless of when the invoice is paid.AP Setup: Financials Options (Contd…) These values are used as default values (except Receipt Acceptance days) for the Payment region of the Suppliers window which can be overridden Payment Terms. Ship Via. Ship-To /Bill-To Location. The invoice payment method used most frequently. To be used as default values (except Inventory Org) for the Purchasing region of the Suppliers window. . Receipt Acceptance Days. If interest invoices for late payment are used. Pay Alone. enter the no of days in receipt acceptance period. to always take an available discount for a supplier. To automatically calculate due dates. Freight carrier used with suppliers. This value is the value in the Description field of the Freight Carriers window in Purchasing. To choose an inventory organization if Purchasing is used and to associate each of Purchasing operating units with one inventory item master organization. The name of the ship-to/bill-to location for the system default value. The freight terms for a supplier identify whether the co or the supplier pay for freight charges on goods received. To create a separate payment for each invoice else the invoice will be paid with other invoices for the same supplier site on a single payment. FOB. and discount amounts for each invoice. FOB terms Freight Terms.

and basic invoices (not matched). Indicate the smallest monetary unit to which one wants to round the tax amount. The Value-Added Tax (VAT) registration number of the organization. Default Tax Code. Enable Recoverable Tax. Precision. Encumbrance Type. The location of the company or organization to determine if the company or organization is located in a member state of the European Union (EU). Down or Nearest. To identify the PO encumbrance journal entries. PO Encumbrance Type. Rounding Rule. Default Recovery Rate. AP creates encumbrances when there is a variance between a matched invoice and the PO to which it is matched. Purchasing creates encumbrances when one reserves funds for a requisition or PO based on the accrual method selected. To encumber funds for PO. Tax code default value for the Invoice Tax Code option in the Suppliers window. To identify the requisition encumbrance journal entries. Reserve at Completion. to use to round the tax amount when it calculates tax in Payables and Purchasing. VAT Registration Number.. Use Requisition Encumbrance. Min Accountable Unit. Up. Use PO Encumbrance. To specify a rate that will default to tax recovery rules and tax codes defined.AP Setup: Financials Options (Contd…) To enable encumbrance accounting and to specify the default encumbrance types Payables assigns to invoices. and Purchasing assigns to requisitions and purchase orders. then enter the rate. To identify invoice encumbrance journal entries. to encumber funds for requisitions Purchasing creates journal entries and transfers them to GL to encumber funds for purchase requisitions. To indicate to which decimal place one wants to round automatically-calculated tax amounts in Payables and Purchasing. . To flag tax type distributions as recoverable for reporting purposes or To split taxes into separate recoverable and nonrecoverable lines or To automatically calculate tax and prorate it back to the GL account of the taxable distribution. Member State. and when the invoice encumbrance type is different from the Purchasing encumbrance type. PO and receipt matched invoices. Indicate whether requisition preparers have the option to reserve funds. Invoice Encumbrance Type.

Manual or Use National Identifier Number. Use Approval Hierarchies. Enter the name of the business group to be associated with Purchasing to determine which employees can use Purchasing. Business Group.AP Setup: Financials Options (Contd…) To enter the options and defaults for entering employee information . to use positions and position hierarchies to determine approval paths for documents within Purchasing. Employee Numbering Method. Employee no can be entered manually or automatically: Automatic. . Expense Reimbursement Address. Select the default address to be used on payments for employee expense reports: Home or Office.

To allow users to change the defaults set in this region while submitting the Payables Transfer to General Ledger program. In Detail. Accounting Methods. Transfer to GL Interface. Select the level at which one wants to summarize accounting entries while submitting the Payables Transfer to General Ledger program. for primary set of books. or both (combined basis) accounting methods. Secondary Accounting Method. When creating the offsetting liability account. Set of Books (Primary/Secondary) . None. Payables uses the supplier site's default liability account and overwrites the balancing segment with the balancing segment from the expense distribution GL Account. Submit Journal Import. To set defaults for submission of the Payables Transfer to GL Process. Account.AP Setup: Payables Options To control accounting information for AP. to use combined basis accounting. To set control options and To set control options and defaults used throughout defaults used throughout Payables that will simplify Payables that will simplify supplier entry. Enable Automatic Offsets by selecting Balancing or Account as Offset Method if AP is to automatically create balancing accounting entries for invoice and payment transactions. accrual basis. Payables uses the expense GL Account from the invoice distribution and overwrites the account segment with the default liability account from the supplier site. or Summarize by Accounting Period. Balancing. invoice entry. invoice supplier entry. and automatic payment processing payment processing . choose Accrual or Cash for secondary set of books else choose none. To submit journal import while submitting the Payables Transfer to General Ledger program. Summarize by Accounting Date.Assign accordingly Automatic Offset Method. and automatic entry. Primary Accounting Method. Do not use Automatic Offsets. Allow Override At Program Submission. To create accounting entries for transactions in accordance with cash basis.

When Payment Clears.Cash Basis: Records gains and losses between payment issue and payment clearing. To use as the default exchange rate type while entering invoices or creating payments.Accrual Basis: Record gains and losses between invoice time and payment clearing. Use Future Dated Payment Account.AP Setup: Payables Options (Contd…) Account For Payment: Choose when to create payment accounting entries. 2. To enter and pay invoices in a currency different from functional currency. When Payment is Issued. AP uses these accounts as the default realized gain and loss accounts for payments from each of your bank accounts. Both. Payables uses this account for currency rounding . Record currency gains and losses between invoice time and payment issue. When Payment is Issued or When Payment Clears or Both (Cash clearing a/c is used as the routing a/c) Account For Gain/Loss: Select the time at which currency gains or losses for foreign currency payments are to be recorded. Require Exchange Rate Entry. 2. To calculate and enter effective invoice exchange rates for those invoices where one already knows the functional currency amounts of the foreign currency invoices. From Payment Document or From Supplier Site Use Multiple Currencies. To require entry of an exchange rate whenever an invoice or a payment in a currency other than functional currency or an associated fixed rate currency is entered. 1. To control which a/c AP will use to create accounting entries for future dated payments. Select the transaction level at which one wants to calculate foreign currency gains and losses: For Each Invoice or For Total Payment. Realized Gain/Loss. Rounding. Record currency gains and losses between payment time and payment clearing time 1. Cash Basis: Record currency gains and losses between payment time and payment clearing time. Exchange Rate Type. Calculate Gain/Loss. Calculate User Exchange Rate. Accrual Basis: Record currency gains and losses between invoice time and payment issue time.

Bank Charge Bearer. To use a 1099 supplier's tax region as the default tax region. Enter the tax region to use as the default for the invoice distributions of 1099 suppliers.AP Setup: Payables Options (Contd…) To enter defaults for the Suppliers. To allow matching to PO distributions. Internal. Supplier/Negotiated or Supplier/Standard. Enter the Terms Date Basis and the Pay Date Basis. To automatically transfer the descriptive flexfield information from the PO distribution to the invoice distribution while matching to a PO. To allow final matching of PO matched invoices. Supplier Site. To allow override of the account for an invoice distribution created from matching to a purchase order. Enable this option if 1099 Combined Filing Program reporting is used. Combined Filing Program. Allow Distribution Level Matching. Default currency for each new supplier entered. Transfer PO Descriptive Flexfield Information. . Allow Matching Account Override. Income Tax Region. Indicate whether the company or supplier will pay for any bank charges associated with payments to suppliers. and invoice which can be overridden Pay Group. Allow Final Matching. Use Pay Site Tax Region. The Pay Group to be assigned to any new suppliers Invoice Currency.

GL Date Basis. Payment terms to use for all prepayments/. Automatically Create Freight Distribution.. Payables calculates scheduled payments using a start date and payment terms.. To allow AP processors to override the workflow and manually approve invoices by using the Force Approval option Require Validation Before Approval. No of days to add to the system date to calculate a default settlement date for a prepayment. Prepayment Settlement Days. Prepayment Payment Terms. Invoice Date. When one matches a prepayment to a PO or receipt. Allow Online Validation. AP checks the Create Freight Distribution check box in the Invoices window and automatically creates a single freight distribution using the Freight Amount and Freight Account you enter for an invoice. Goods Received/System Date. Freight Account.AP Setup: Payables Options (Contd…) Use Invoice Approval Workflow. Confirm Date as Invoice Number. AP uses this account as the default freight account for an invoice. Goods Received/Invoice Date. Invoice Approval Workflow does not select any invoice for processing unless the invoice status is Validated. Allow Adjustments to Paid Invoices. The date to use as the default accounting date for invoices during invoice entry:. unless one has manually updated any of the scheduled payments or used the Split Schedule functionality. System Date. To allow users to override the default Document Category assigned to an invoice by Payables. Payables automatically recalculates scheduled payments of invoices during Invoice Validation. To allow users to select Invoice Validation from the Invoice Actions Build Prepayment Accounts When Matching. To accept the invoice date as the default for invoice number during invoice entry. Allow Force Approval. . Allow Document Category Override. AP builds the account on each prepayment Item distribution using: the natural (charge) account or all other account segments from the corresponding PO or receipt distribution. Enable this option if you want to allow users to update the distributions of a paid invoice. Recalculate Scheduled Payment. To use the Invoice Approval Workflow feature to automate invoice approval process.

Expense Account. To apply advances to employee expense reports if the employee has any outstanding. Liability Account. Apply Advances. The default expense report template that AP Expense Reports window uses. Prorate Across Overdue Invoice. To enable Automatic Interest Calculation and then enter defaults. Allow Interest Invoices. Minimum Interest Amount. AP automatically creates a supplier for any expense report where an employee does not already exist as a supplier. Enter a value in this field that represents the minimum interest amount Payables will pay. To calculate interest for overdue invoices and create interest invoices for selected suppliers. . Pay Group and Payment Priority to be assigned to any suppliers that are created from employees during Expense Report Import. AP prorates the interest amount across the item distributions on the overdue invoice and then builds the account for each interest invoice distribution. available advances. Enter a liability account which AP uses as the liability account when it creates accounting entries for interest invoices. While importing Payables expense reports. If the Prorate Across Overdue Invoice option is disabled then when Payables creates an interest invoice it creates a single distribution with this account.AP Setup: Payables Options (Contd…) Default Template. Payables requires that each invoice is matched for the supplier site to either a PO or receipt. Hold Unmatched Expense Reports. Enter the Payment Terms. Automatically Create Employee as Supplier.

AP Setup: Payables Options (Contd…) Exclude Tax From Discount Calculation. and uses Header level tax calculation. To allow users to address a payment to an address other than the invoice's supplier site's address. Allow Remit-to Account Override. To create Quick payments. Allow Pre-Date. Allow Document Category Override. Use Bank Charges. EFT User Number. Enter a value for the Bank Charge bearer field in the Supplier region of the Payables Options window and AP will enter System Account as the value for the discount distribution method field in the Payment region of the Payables Options window . Allow Address Change. Additional Pay Through Days. To create payments with a payment date before the system date for any payment except a manual payment. Prorate Tax or System Account. The default maximum outlay amount AP will pay for each payment batch (only a warning message). When you reissue a check. AP subtracts the tax amount from the invoice amount when it enters the invoice amount applicable to discount in the Invoices window. To allow users to change the default primary supplier site bank account during Quick payment and payment batch creation. To allow users to override the default document category assigned to a payment document by Payables. Payment Batch Limit. The number which identifies the company as a user of EFT services to the bank or clearing organization. The internal bank account you use to disburse funds. The method to use for distributing the discounts to be taken when making payments: Prorate Expense. No of days between regular payment batches to determine the default Pay Through Date when a payment batch is initiated. Discount Method. When one enters an invoice. Allow Void and Reissue. To use the Bank charge feature. Payables voids the old check and creates a replacement check. To reissue a Quick payment. Bank Account. Allow Print.

Distribution Amounts Include Tax. Allow Override. To use Automatic Tax Calculation at the Line level or Tax Code level. AP automatically calculates a Tax Amount. Allow Calculation Level Override. Use Automatic Tax Calculation. Create Withholding Invoice. Use Withholding Tax. Tax Code or Line. If Automatic Tax Calculation is enabled at the Header level. At Invoice Validation Time. Tax Group. Withholding Amount Basis: Include Discount Amount or Include Tax Amount. Apply Withholding Tax.AP Setup: Payables Options (Contd…) Require Tax Entry at Header. Select the time at which AP should automatically create withholding tax invoices to remit withheld taxes to tax authorities: Never. Calculation Level. Header. Select the time at which AP should apply withholding taxes to supplier's invoices: Never. At Invoice Validation Time or At Payment Time. . To automatically calculate and enter tax on invoices. To allow users to adjust the default value of the Calculation Level option for new and existing suppliers. Select the level at which AP should automatically calculate sales tax. and to enable the Distribution Amounts Includes Tax check box for all new suppliers you enter. The name of the withholding tax group to be used as the default withholding tax group for the new suppliers. To allow manual creation and adjustments of Withholding Tax type distributions for invoices. To enable Automatic Withholding Tax. Allow Manual Withholding. At Payment Time. AP requires you to enter a Tax Code and Tax Amount in the Invoices window when you enter an invoice. To override the Distribution Amounts Include Tax check box default value for all suppliers.

and they will remain on the report until payment reconciliation. To verify that the Tax Code value assigned to an invoice matches the Tax Code value on the PO document to which one matched. If the PO is taxable. and bank accounts and thus sort reports by alternate name Tax Code Defaults. Invoice Header. Tax Code value assigned to the expense or asset account in the Tax Options in GL. . The AP Trial Balance report will not include as liabilities any invoices paid with future dated payments. Financials Options. The AP Trial Balance report will include as liabilities all invoices paid with future dated payments. Value entered for Tax Code in the Financials Options. Enforce Tax from Purchase Order. AP defaults the Tax Code value from the PO shipment. Value entered for Tax Code in Invoices. PO for Matched Invoices. Report Sorting: Sort by Alternate Fields. supplier sites. You can enter alternate names for suppliers. The AP Trial Balance report will include as liabilities all invoices paid with future dated payments. Invoice Tax Code value entered in the Invoice Tax region of the Supplier Sites / Supplier. Account. When Payment Matures.AP Setup: Payables Options (Contd…) Relieve Future Dated Payment Liability. Template. and they will remain on the report until payment maturity. To set a hierarchy for AP to use when it provides default values for Tax Code fields. To enforce the relationship between the tax code and the expense or asset account for distributions. Template used to create an invoice or invoice distributions. When Payment Clears. Enforce Tax From Account. When Payment is Issued. This option controls whether the AP Trial Balance report includes as liabilities invoices that one has paid with future dated payments. Supplier Site / Supplier.

Exposure Limit. Card Issuer Name and Site. Enter the Credit Card Program Name and Description. Employee Name of the Administrator for the program. Office Supplies. Disputed. a Card Code Set that includes card codes the card issuer uses to record restrictions on cards. Unapproved. . Unverified. If the Credit Card Invoice Interface Summary is to exclude any transaction accounting distributions with the following statuses.AP Setup: Credit Card Program & Procurement Card GL A/c Sets Enter a GL Account Set Name and Description. check each check box status you want to exclude from invoice creation. Exception Clearing Account to which AP will charge exceptions if the Procurement Card Transaction Validation Report tries to create a transaction distribution for an invalid GL account Do not Pay If Status Is. Hold . Account Exception. Select the GL accounts to form part of the set In the Description field. Personal. for example. Card Brands (Amex etc). enter the account name that credit card holders will see when they use Self-Service Web Applications to change the account for a transaction. Currency in which the card issuer invoice is created. Card Type (Procurement or Travel).

are imported from credit card The card issuer card issuer. The cardtoissuer maintains card codes maintains card codes to identify suppliers and supplier identify suppliers and supplier types for the transactions that types for the transactions the employees incur when that the employees incurcard. Enable this if the card code value is a blocking group value.AP Setup: Procurement Card Code Sets Enter a Card Code Set Name and Description. Value. enter the account here. One cana assign a default One can assign a default account to a card code so that account to a card for code so that when a transaction that when a transaction thatcan card code is imported. Description.forone card code is imported. Blocking Group. Account. . one can create a default accounting create a default distribution for theaccounting transaction distribution thecode transaction based on the for card for the based on the card code for the transaction. when using a procurement using procurement card. transaction. Card code value defined and used by credit card issuer to identify suppliers and groups of suppliers. Card code description. If one wants to associate an account with a card code. To define sets of credit card To define setsbe of used credittocard codes that can codes that can be used to create default accounting create default accounting distributions for transactions distributions for transactions that are imported from credit thatissuer.

Enter a credit card Profile Name and Description. To select the level of Manager notification or approval that the Workflow should enforce for transactions to which this profile has been assigned. Employee Notifications. To allow employees to change the status of their transactions to "Personal" during verification. The levelto of each employee verification and card holder. to which a profile is assigned specified. Approval Required. To define profiles for the various types and levels of To defineallowed profilesfor forcredit the various types and of spending card holders. Onelevels assigns creditcard cardthat holders.: No Notifications. Build Acct From Code. Allow Direct Account Entry. To use the account associated with the card code to overlay the account values from the default employee expense GL account and the profile Default Account Template. Additionally. To select the level of card holder notification or verification that the Workflow should enforce for transactions to which this profile has been assigned: No Notifications. one can define the GL accountsisthat are displayed one a can define theuses GL accounts thatWeb are displayed when card holder Self-Service when a cardtoholder Self-Service Web Applications updateuses the status or GL account of a Applications to update the status or GL account of a transaction. Program Currency and Administrator. Enter the Acct Set Name (GL account set to be assigned to the credit card profile) Default Acct Template. Onetoassigns a spending credit cardallowed profile for to each is assign a a credit card profile card that is assign to a card holder. . To default account segments to the transactions imported for this card program Exception Clearing Account. transaction. Notifications Only. credit cards tomanager which a profile is assigned is specified. To allow Self-Service Web Applications users to enter account no directly in the Account field during transaction verification. Allow Status "Personal". Notifications Only. Verification Required. Card Program Name.AP Setup: Procurement Card Profiles Manager Notifications. The level of employee verification and manager approval required for employee credit cards approval required for employee Additionally.

CCID. memos. AMOUNT AND CHECK_DATE. AP_INVOICE_PAYMENTS Holds a permanent record of all payment documents issued to pay invoices and invoice installments. AP_INVOICE_DISTRIBUTIONS It carries the invoice line comprising distribution amount. which corresponds to payments raised either through the Payment workbench or by an automatic payment run. Cr. look up codes and static info. VENDOR_NAME etc and the info of the bank account used to make the payment like BANK_ACCOUNT_ID. AP_INVOICES Stores Invoice header information having one row per each transaction type and carries the VENDOR_ID and invoice AMOUNT. The Transaction tables falls into two groups: Invoice Group.. . The table details are as under: Table Name Remarks AP_BATCHES Each Invoice is part of an Invoice Batch and the BATCH_ID is stored in AP_INVOICES.AP Data Model Oracle Payables maintains data in a large number of tables which can be either reference or transaction data. payments etc. stores the supplier info who received the payment like VENDOR_ID. AP_CHECKS It holds payment documents per each row. adjustments. which stores all the data entered through the Invoice Workbench and Payment Group. tax lines etc. / Dr. which go on to make the supplier a/c. Reference data refers to supplier info. AP_PAYMENT_SCHEDULES Holds one row per invoice and in case of installments holds one row per installment having a due date and an amount. Transaction data refers to invoices.

How AP Tables Are Affected? AP_BATCHES AP_CHECKS AP_INVOICES AP_INVOICES_ DISTRIBUTIONS AP_PAYMENT_ SCHEDULES Invoice Group AP_INVOICE_PAYMENTS Payment Group .

Innovative Uses Web-Enabled Commerce:  This is a self-service application which allows users access to data directly using a Web browser with appropriate security clearance. an ERS enables a user to automatically create standard. Oracle EDI Gateway is used to send various paper documents to the trading partners. Evaluated Receipt Settlement (ERS):  Instead paper invoice being sent to the AP dept.  With procurement card integration the transaction detail from the statement filed provided by the card issuer can be imported.  Mobile employees can use the Expense spreadsheet to track expenses offline in disconnected mode.  AP then processes the expense report and issues a payment to the employee.  The invoice may be triggered by an Advance Shipment Notice from the Supplier or a third-party receiving process.  This Gateway extracts data from apps and delivers it in a common format to an EDI translator.  Then Oracle Workflow routes the report for approval and automatically enforces company policies and business rules. Procurement Card Integration:  Companies issue corporate card to their employees for simplifying admin of employee expenses. override default transaction accounting and generate invoices automatically representing the employee’s liability to pay the card issuer . then upload their expense records into the Self-Service Expenses application to submit for approval. unapproved invoices for payment. Electronic Data Interchange (EDI):  EDI is a process for using electronic messaging to communicate with trading partners. Employees are automatically notified of the transactions appearing on their card. for payment.  Then using the Oracle Self-Service Expenses they can verify these transactions.  ERS reduces supplier’s expense of generating invoices and the buyer’s expense on matching invoice to receipts and processing payments.  The data can be sent via modem links across phone lines or across the net or a floppy. Invoices are created using a combination of receipt and PO info. The invoices are based on the receipt transactions process through Purchasing.  Employees can enter their own expense reports.  The translator then converts the common format to the standard formats.

Supplier Paid History. Expense Report Import. Employee Listing. Invoice Aging Report. Final Payment Register. Posted Reports. Supplier. Transfer to GL and reconciling AP Control accounts with GL. Unaccounted Invoices. Transfer to GL Report. .Maintenance and Reports Maintenance: AP Control Payables Periods . Accounting Reports. Employee Update Program. Invoice History Report. AP Trial Balance. Invoice Approval Status. Supplier Reports. Bank Account Listing. Bank and Tax Masters. Reports: Invoice Register. Invoice on Hold Report.open / close. Open Interface Reports. Audit Reports. Invoice Validation. Withholding Tax Reports. Employee. Creditors Ledger.

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