Saturday, October 1, 2016

Oracle Project Accounting Intigration with Purchase Orders and Payable Modules

Create a Purchase Order- Committed Cost Flow

Purchase Order needs to be created in Purchasing in order to complete the Committed Cost Flow.

N ==>Purchase Orders==> Purchase Orders

[cid:image103.jpg@01D21C07.FC0B3F30]


1. Operating Unit: This is a new feature in R12. It gets defaulted from Profile Options.
It's a new feature in R12. You can define your Implementation options based on your Operating Units. It means that from a single responsibility you can Define/Query Multiple Operating Unit based Implementation Options Set Ups. The same feature was not available in previous releases.
2. Type: Type Should always be Standard Purchase Orders
3. Supplier: Select the appropriate active Supplier.
4. Description: Give the appropriate Description

Line Level Details
1. Type: Select the Type as Goods if you are entering a PO for particular Item.
2. Category: Select the Appropriate Item Category and Commodity.
3. Description: Enter the Appropriate Description.
4. UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5. Quantity: Enter the Appropriate Quantity of the Goods.
6. Price: Enter the Appropriate Quantity of the Goods.
7. Promised Date: It is mandatory to enter either Promised Date or Need by Date while creating a Purchase Order.
8. SAVE YOUR WORK.

Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
[cid:image104.jpg@01D21C07.FC0B3F30]

Now, click on Distributions Tab

Destination Tab,
1. Type: Type should always be expense while entering a Purchase Order.
2. Quantity: The same quantity entered at the Line Level should get copied over to the Destination Tab.
3. PO Charge Account: Enter the appropriate Charge Account's Department and Account Details
4. SAVE YOUR WORK
[cid:image105.jpg@01D21C07.FC0B3F30]

Projects Tab,
1. Project Number: Enter the Project Number of the Project that you had initially created for Costing Purposes.
2. Task: Enter the Appropriate Task Number.
3. Expenditure Type: Select the Appropriate Expenditure Type from the List of Values.
4. Expenditure Organization: Select the Appropriate Expenditure Owning Organization from the List of Values.
Note: Expenditure Organization and Project Owning Organization can be different.
5. Date: Select the Appropriate Date.
6. Quantity: The Amount of Quantity you had entered at the Line Level should get copied over to the Project Tab.
7. SAVE YOUR WORK.
[cid:image106.jpg@01D21C07.FC0B3F30]


Now, Approve the above Purchase Order
[cid:image107.jpg@01D21C07.FC0B3F30]

Now, Go to Projects Responsibility
Run, the report PRC: Update Project Summary Accounts with Project Number as the Parameter and submit the above Request.
[cid:image108.jpg@01D21C07.FC0B3F30]

One the Above report is completed; we will need to check the Project Status Inquiry.
The Total Cost in the PO will get transferred to Projects as a Committed Cost and will appear in the Commit Amount Column.
[cid:image109.jpg@01D21C07.FC0B3F30]

The Expenditure Entry for the above PO can also be checked in Expenditure Inquiry Screen.
[cid:image110.jpg@01D21C07.FC0B3F30]

Create a Purchase Order- Accrued Cost Flow

Purchase Order needs to be created in Purchasing in order to complete the Accrued Cost Flow.

N ==> Purchase Orders==>Purchase Orders
[cid:image111.jpg@01D21C07.FC0B3F30]

1 .Operating Unit: This is a new feature in R12. It gets defaulted from Profile Options.
It's a new feature in R12. You can define your Implementation options based on your Operating Units. It means that from a single responsibility you can Define/Query Multiple Operating Unit based Implementation Options Set Ups. The same feature was not available in previous releases.
2. Type: Type should always be Standard Purchase Orders
3. Supplier: Select the appropriate active Supplier
4. Description: Give the appropriate Description

Line Level Details
1. Type: Select the Type as Goods if you are entering a PO for particular Item.
2. Category: Select the Appropriate Item Category and Commodity.
3. Description: Enter the Appropriate Description.
4. UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5. Quantity: Enter the Appropriate Quantity of the Goods.
6. Price: Enter the Appropriate Quantity of the Goods.
7. Promised Date: It is mandatory to enter either Promised Date or Need by Date while creating a Purchase Order.
8. SAVE YOUR WORK.

Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
[cid:image112.jpg@01D21C07.FC0B3F30]

Now, click on Distributions Tab

Destination Tab,
1. Type: Type should always be expense while entering a Purchase Order.
2. Quantity: The same quantity entered at the Line Level should get copied over to the Destination Tab.
3. PO Charge Account: Enter the appropriate Charge Account's Department and Account Details
4. SAVE YOUR WORK
[cid:image113.jpg@01D21C07.FC0B3F30]

Projects Tab,
1. Project Number: Enter the Project Number of the Project that you had initially created for Costing Purposes.
2. Task: Enter the Appropriate Task Number.
3. Expenditure Type: Select the Appropriate Expenditure Type from the List of Values.
4. Expenditure Organization: Select the Appropriate Expenditure Owning Organization from the List of Values.
Note: Expenditure Organization and Project Owning Organization can be different.
5. Date: Select the Appropriate Date.
6. Quantity: The Amount of Quantity you had entered at the Line Level should get copied over to the Project Tab.
7. SAVE YOUR WORK.
[cid:image114.jpg@01D21C07.FC0B3F30]

Now, Approve the above Purchase Order
[cid:image115.jpg@01D21C07.FC0B3F30]

Prior to Creating a Receipt for a Purchase Order, some mandatory set ups needs to be done.


N ==>Setup ==> Organization==>Purchasing Options==>Receipt Accounting
An HTML page will open up; you will need to look for Receipt Accounting Option.
Now, within Receipt Accounting Option, Change the Accrue Expense Items should be set at "AT RECIPT" and Accrue Inventory Items should be set at "AT RECIPT".
[cid:image116.png@01D21C07.FC0B3F30][cid:image117.jpg@01D21C07.FC0B3F30]

And also In the Shipments of your Purchase Order, you will need to check the Accrue at Receipt checkbox must be checked mandatory in order to enable you to enter Receipts against the Purchase Order.
[cid:image118.png@01D21C07.FC0B3F30][cid:image119.jpg@01D21C07.FC0B3F30]

Also, you will need to take a note of the Ship To Organization Name as you will only be allowed create receipts against the PO in that Organization only. In this case it is H1
[cid:image118.png@01D21C07.FC0B3F30][cid:image120.jpg@01D21C07.FC0B3F30]

RECEIPTS CREATION
N==>Receiving==>Receipts
Query the Purchase Order that you have created.
[cid:image121.jpg@01D21C07.FC0B3F30]

Now, the Header form check the Checkbox against the Quantity after ensuring that it's the same that you have entered in the Purchase Order.
Enter a valid Location and save your work
[cid:image122.jpg@01D21C07.FC0B3F30]

Click on the Header Tab and make a note of the Receipt Number 2130
[cid:image123.jpg@01D21C07.FC0B3F30]

Now, we will need to transfer the Receipt to Projects
Now, in Projects, Vision Operations
Run the Report "PRC: Interface Supplier Cost" and select the Option as "YES" for Interface Receipt Accruals" in the Parameters and Submit the Report.
[cid:image124.png@01D21C07.FC0B3F30][cid:image125.jpg@01D21C07.FC0B3F30]

Now, in the Expenditure Inquiry, check for the above Expenditure Item.
N==>Expenditures==>Expenditure Inquiry==>Project
[cid:image126.png@01D21C07.FC0B3F30][cid:image127.png@01D21C07.FC0B3F30][cid:image128.jpg@01D21C07.FC0B3F30]

Now click on Item Details Tab and select PO Receipt, in order to review the Receipt associated with the particular Expenditure Item.
[cid:image049.png@01D21C07.8D4BF580]

[cid:image129.png@01D21C07.FC0B3F30][cid:image124.png@01D21C07.FC0B3F30][cid:image130.jpg@01D21C07.FC0B3F30]

You can also cross verify your Purchase Order Number and Receipt Number.

Now, Go to Projects Responsibility
Run, the report PRC: Update Project Summary Accounts with Project Number as the Parameter and submit the above Request.
[cid:image131.jpg@01D21C07.FC0B3F30]

One the Above report is completed; we will need to check the Project Status Inquiry.
The Total Cost in the PO will get transferred to Projects as a Accrued Cost and will appear in the ITD Act Cost Column.
[cid:image129.png@01D21C07.FC0B3F30][cid:image132.jpg@01D21C07.FC0B3F30]

When you further drill down to Task Status, you will be able to check the Accrued Cost Amount.
[cid:image133.png@01D21C07.FC0B3F30][cid:image134.jpg@01D21C07.FC0B3F30]

Create a Purchase Order- Actual Cost Flow

Purchase Order needs to be created in Purchasing in order to complete the Actual Cost Flow.

N ==> Purchase Orders==>Purchase Orders
[cid:image135.jpg@01D21C07.FC0B3F30]

1 .Operating Unit: This is a new feature in R12. It gets defaulted from Profile Options.
It's a new feature in R12. You can define your Implementation options based on your Operating Units. It means that from a single responsibility you can Define/Query Multiple Operating Unit based Implementation Options Set Ups. The same feature was not available in previous releases.
2. Type: Type should always be Standard Purchase Orders
3. Supplier: Select the appropriate active Supplier
4. Description: Give the appropriate Description

Line Level Details
1. Type: Select the Type as Goods if you are entering a PO for particular Item.
2. Category: Select the Appropriate Item Category and Commodity.
3. Description: Enter the Appropriate Description.
4. UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5. Quantity: Enter the Appropriate Quantity of the Goods.
6. Price: Enter the Appropriate Quantity of the Goods.
7. Promised Date: It is mandatory to enter either Promised Date or Need by Date while creating a Purchase Order.
8. SAVE YOUR WORK.

Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
[cid:image136.jpg@01D21C07.FC0B3F30]

Now, click on Distributions Tab

Destination Tab,
1. Type: Type should always be expense while entering a Purchase Order.
2. Quantity: The same quantity entered at the Line Level should get copied over to the Destination Tab.
3. PO Charge Account: Enter the appropriate Charge Account's Department and Account Details
4. SAVE YOUR WORK
[cid:image137.jpg@01D21C07.FC0B3F30]

Projects Tab,
1. Project Number: Enter the Project Number of the Project that you had initially created for Costing Purposes.
2. Task: Enter the Appropriate Task Number.
3. Expenditure Type: Select the Appropriate Expenditure Type from the List of Values.
4. Expenditure Organization: Select the Appropriate Expenditure Owning Organization from the List of Values.
Note: Expenditure Organization and Project Owning Organization can be different.
5. Date: Select the Appropriate Date.
6. Quantity: The Amount of Quantity you had entered at the Line Level should get copied over to the Project Tab.
7. SAVE YOUR WORK.
[cid:image138.jpg@01D21C07.FC0B3F30]

Now, Approve the above Purchase Order
[cid:image139.jpg@01D21C07.FC0B3F30]

Purchase Order Cost will become actual cost only when you create an Invoice against the Purchase Order.
Go to Payables, Vision Operations, in order to create an Invoice.


N ==> Invoices==>Entry==>Invoices
[cid:image140.jpg@01D21C07.FC0B3F30]


To enter a basic invoice:

1. In the Invoices window choose Standard for the invoice Type.

2. Enter the Supplier or Supplier Number.

3. Enter the Supplier Site to which you will send payment of the invoice. Payables will print the address for this site on the payment.

4. Enter the Invoice Date or accept the Payables default (today's date) by choosing [TAB].

Payables may use the invoice date you enter as the Terms Date and GL Date default for an invoice, depending on how your Payables Options and Defaults are set up.

If your GL Date Basis Payable Option is set to Invoice (Date), you must enter an invoice date that is in an open or future period.

5. Enter the Invoice Number from the invoice your supplier sent you or accept the Payables default (today's date) by choosing [TAB]. Payables will not allow you to enter duplicate invoice numbers for the same supplier.

Suggestion: You may want to use an invoice numbering convention that minimizes the risk of separate entries of the same invoice under different invoice numbers. For example, if you consistently enter alphanumeric invoice numbers in upper case you would enter an invoice number only as ABC123, and not also as abc123.

Enter the full Invoice Amount including tax, freight and miscellaneous charges.

5. Enter the Description of your invoice. This will appear on your payment document and may appear in your general ledger.



Now, you will need to match this invoice with the Purchase Order that you had created for the accumulation of the actual cost.



Note: Purchase Order will get matched to an Invoice only when the supplier's data is same as that of the Purchase Order.

[cid:image141.png@01D21C07.FC0B3F30][cid:image142.jpg@01D21C07.FC0B3F30]



You will need to click on Match Tab and query your Purchase Order.

[cid:image143.jpg@01D21C07.FC0B3F30]



Input the Purchase Order Number and Line will be 1 and Shipment will be 1 and click on Find

Now, click on the Match Checkbox and verify the Quantity entered is same as the Invoice and then click on Match.

[cid:image144.png@01D21C07.FC0B3F30][cid:image145.jpg@01D21C07.FC0B3F30]



[cid:image144.png@01D21C07.FC0B3F30]Now, click on Actions tab,

[cid:image146.png@01D21C07.FC0B3F30][cid:image147.jpg@01D21C07.FC0B3F30]



Validate and Create Accounting for the above invoice. Please Note that Project and Other Details would already got copied over from PO.
[cid:image148.jpg@01D21C07.FC0B3F30]


When you check the Inoice Status it says it needs revalidation. This means that there are some holds that are preventing the invoice to get the invoice from validation.

You will need to release the hold in order to validate the invoice.
Please click on the Holds Tab, and click on Release 1 Tab
[cid:image144.png@01D21C07.FC0B3F30][cid:image126.png@01D21C07.FC0B3F30][cid:image149.jpg@01D21C07.FC0B3F30]

Select the appropriate Release Reason and click OK.
[cid:image090.png@01D21C07.8D4BF580]

The Invoice Status will automatically get updated to Validated. It means that this invoice is ready for transfer to Projects.
[cid:image150.jpg@01D21C07.FC0B3F30]

Now, the same invoice needs to be transferred to Projects.
Run the Report, PRC: Interface Supplier Costs with Project Number as the Parameter Costing Training Project and submit the Report.
[cid:image151.jpg@01D21C07.FC0B3F30]

You can check in the below Output File that the above Invoice has been successfully been transferred from Payables to Projects.
[cid:image152.png@01D21C07.FC0B3F30]


The same can be cross checked In Expenditure Inquiry as well

N--> Expenditures --> Expenditures Inquiry --> Enter Project number[cid:image129.png@01D21C07.FC0B3F30]
If you further Drill down to Item Details Tab you can also track the AP Invoice associated with the above expenditure Entry.

Choose AP Invoice to drill down to the Invoice Overview form in Oracle Payables. (This option is only enabled for expenditure items whose expenditure type class is either Supplier Invoices or Expense Reports.)
[cid:image153.jpg@01D21C07.FC0B3F30]

[cid:image129.png@01D21C07.FC0B3F30][cid:image129.png@01D21C07.FC0B3F30][cid:image154.jpg@01D21C07.FC0B3F30]
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