Tell me about P2P (procure to pay) Cycle
verbally as well as accounting entries?
First
you enter the Requisition in PO module. Supplier sends quotation reply of
requisitions or RFQ. You can approve the quotation of a supplier after to
record all information received from your supplier such as terms and
conditions, shipment and price breaks.
Then
you can go ahead for Purchase Agreement. Purchase Agreement has two types:
first Blanket and Contract Purchase Agreement. You cans use blanket purchase
agreement to communicate to those supplier that are negotiating pricing before
actually releasing firm purchases. A blanket purchase agreement must have
detailed information besides the header level information. A blanket purchase
agreement contains lines for specific terms, quantity, promised date,
need-by-date and prices.
You can
create a contract purchase agreement with a supplier to agree on terms and
conditions without entering into and agreement for specific items or services.
A contract purchase agreement can support competitive solicitation through the
RFQ process and then through the purchase releases because a contract purchase
agreement has only header level information and no detailed information. Header
level includes terms, currency Supplier and a supplier site. You can enter
Purchase Order for confirms to purchasing services or goods. Purchase order has
four types: Standard, Planned, Blanket and Contract.
Whenever
you get goods or service that time you enter receipts in system. There are five
types of receipts: manual receipts, express receipts, cascade receipts,
unordered item receipts and substitute item receipts. That time accounting
entry should be debited to Inventory
Material Value and credited to Payable Clearing Account.
Whenever
you get the invoice in account department, it enters in the system that time
accounting entries should be debited
Payable Clearing and credited to Payable. Then you make a payment to
supplier that time accounting entries should
be debited Payable liability and credited to cash clearing account. After
reconciliations between cash management and bank, accounting should be debited to cash clearing account
and credited to bank or cash account.
Accrual Accounting -
Perpetual Accrual (On Receipt)
Enter purchase order (1)
When you enter a purchase order, accounts are
created and stored with the purchase order distribution. The accounts will eventually be used as a
basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself
generates no accounting that is sent to the general ledger.
Receive (2)
When you accrue on receipt, processing a
receiving transaction automatically sends a receipt accrual to the general
ledger. The Receiving Inventory
Account is debited (quantity x purchase order line unit price) and the
Inventory AP Accrual account (uninvoiced receipts account) is credited the same
amount. Run the Journal Import
process with a source of Purchasing to create unposted journals in the general
ledger.
Deliver and cost (3)
After delivering to the final destination, the
Receiving Inventory Account is cleared and the Material account is
debited. If you use standard costing,
the Material account is debited with the standard cost of the item and any
difference is charged to the Purchase Price Variance account.
Period end accrual (4)
When items are accrued on receipt, no
period-end accrual is generated by the Receipt Accruals - Period-End
process. The receipt accrual is
automatically generated when the receipt is processed.
Invoice and match (5)
Entering an invoice and matching creates a
debit to the Inventory AP Accrual account to clear the liability for the
uninvoiced receipt (you now have an invoice).
The credit is to the AP Liability account that defaults from the
supplier site if the invoice unit price is the same as the purchase order line
unit price. Any difference is charged
to the Invoice Price Variance account.
For items with destination type of Inventory, the Invoice Price Variance
account will be the Invoice Price Variance account specified when you defined
Inventory Information for your inventory organizations in the Other Accounts
tab. The AP Liability account is cleared
when the invoice is paid.
Accounting for Mass Additions
- Periodic Accrual (Period End)
Enter purchase order (1)
When you enter a purchase order, accounts are
created and stored with the purchase order distribution. The accounts will eventually be used as a
basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself
generates no accounting that is sent to the general ledger.
Receive (2)
For most expenses and asset purchases (other
than inventory), receipt accruals are generally processed at period end, so no
accounting is transferred to the general ledger at the time the receipt is
processed.
Period end accrual (3)
If no invoice is received and matched to the
purchase order at period end, the Receipt Accruals - Period End process will
generate an accrual that is transferred to the GL Interface. Run the Journal Import process to create
unposted journals in the general ledger.
Reverse accrual (4)
Perpetual accruals (on receipt accruals) are
reversed when the invoice entered in Payables is matched to the purchase
order. Periodic accruals (period end
accruals) are reversed when a reversing journal is created and posted in the
general ledger.
Invoice and match (5)
Entering an invoice and matching creates a
debit to the Inventory AP Accrual account to clear the liability for the
uninvoiced receipt (you now have an invoice).
The credit is to the AP Liability account that defaults from the
supplier site if the invoice unit price is the same as the purchase order line
unit price. Any difference is charged to
the Invoice Price Variance account. For
items with destination type of Expense, the Invoice Price Variance account will
be the same as the charge account. In
the case of an asset that will be capitalized and depreciated in assets, the
charge account is an asset clearing account associated with an asset category
in Assets. The AP Liability account is
cleared when a payment is processed.
Post asset to Assets (6)
The Post Mass Additions process places the
asset in service. When the Create
Journal Entries process is run in Assets, the charge account (the clearing
account on the invoice distribution) is relieved and the cost account
associated with the asset category is charged for the cost of the asset.
Enter invoice (1)
A standard, unmatched invoice entered into
Payables will generate a credit to the AP Liability account and a debit to the
charge account specified on the invoice distribution. For expenses, this will be an income
statement account; for assets that will be capitalized in Assets and depreciated,
this account will be a balance sheet account (asset clearing account); for
inventory received, the account will be the Inventory AP Accrual account.
Pl.
describe the P2P process in terms
Procure to Pay Process
Demand
The procurement process
generates and manages requests for the purchase of goods. The demand for purchase items may be a
one-time event or may recur in either predictable or random time intervals.
Source
The procurement sourcing
process covers the business activities related to the search, qualification,
and selection of suitable suppliers for requested goods and services.
Order
The procurement ordering
process includes purchase order placement by the buying organization and
purchase order execution by the supplying organization.
Receive
The receipt process
acknowledges that a purchase order has been duly executed. For orders of physical goods, it will
typically include the receipt, inspection and delivery of the goods to
inventory or to another designated location.
For orders of services, it will typically consist of a notification from
the requester or the approving person that the service has been performed as
agreed.
Invoice
The invoice process
includes entering supplier and employee invoices.
Pay
The payment process
consists of those activities involved in the payment for ordered goods and
services.
Definitions of Purchasing Document
Blanket Purchase Agreement: It committed amounts for specific date range for service
or goods.
Contract Purchase Agreement: It committed amount for certain period of unspecified
goods.
Purchase Order types:
Standard:
It is regular purchases order to represents your order to the supplier.
Planned:
It is a purchase order before you actually order the goods and services.
Blanket:
It is entering to against of blanket purchase agreement.
Contract:
It is entering to against of contract purchase agreement.
Types of receipts:
Manual:
It is for inputting data manually.
Express:
It is a quicker method-if you have specified PO then requires fewer keystrokes.
Cascade:
It is assists in the distributions of the quantity of a receipt from a single
supplier to multiple shipments and distributions.
Unordered:
When you are missing a PO or if you’re not sure to which PO the receipt should
be matched against, you can enter this type receipt.
Substitute Item: If you do not have any information for the Order
Information alternative region then you enter a receipt for substitute item.
Quotation:
It is used for quotes from the supplier regarding prices, terms and conditions
of items.
RFQ: It
is used for soliciting quotes from the supplier regarding prices, terms and
conditions of items.
Purchase
Release: It is used for releases against
other document types, there are two subtypes for this: Blanket and Schedule.
Entering Invoices
Overview
You can manually enter supplier
invoices in either the Invoice Workbench or the Quick Invoices window. You can
match to purchase orders when entering these invoices.
Invoice Workbench
(Invoice Batches window,
Invoices window, Distributions window, and the associated windows). Use the
Invoice Workbench to enter any invoice directly into the Payables system. You
use this instead of the Quick Invoices window when entering complex invoices or
invoices that require online validation and defaulting. Also, use this window
when entering an invoice that needs immediate action, such as payment.
Quick Invoices window
Use the Quick Invoices
window for high–volume invoice entry for invoices that do not require extensive
validation and defaults. After entering invoices in the Quick Invoices window,
import them into Payables. Validation and defaulting occurs during import.
Creating Invoices
Automatically
Recurring Invoices
You can set up your system
to automatically create periodic invoices, for example, rent invoices.
RTS Invoices
If you use Return to
Supplier feature in Oracle Purchasing, the system creates these debit memos
directly in your Payables system.
Retroactive Price
Adjustment Invoices.
If Oracle Purchasing users
use the Retroactive Pricing of Purchase Orders feature, the system automatically
creates Adjustment and PO Price Adjustment invoices.
Pl. describes the setup of AP?
Setup
steps unique to AP: Ledger Selection, Payment Terms, Invoices Tolerances,
Invoice Approval Codes, Distributions Sets, Expense Report Templates, IT
Regions, Define Banks, Automatic Payments, Special Calendars, Payable System
Options, Payable Options, Financials Options, Profile Options and Open
Accounting periods.
There
are many sets up that are unique to Oracle Payables’ implementation. The
primary Ledger selection specifies the accounting structure, the functional
currency, and the accounting calendar used by Payables. Payment terms define
payment schedules and corresponding discounts. Invoice tolerances definitions
control the amount of variance allowed between invoices, purchase orders, and
receipts when matching is performed. Various codes are defined in Payables.
Because invoice approval codes are used to apply or release invoice holds, they
should be descriptive and meaningful. Many setups facilitate and speed up data
entry, and distribution sets are predefined allocation structures that can be
used to populate invoices with preassigned distributions. Expense report
templates can be defined and created with commonly used expense items to
populate expense report lines. Certain setups relate to tax reporting
functionality.
In the
financial options setup, you select a Ledger and an inventory organization. You
also define accounting, budgetary control, encumbrance, payment, personnel,
purchasing, VAT registration, and vendor options. To support payment
processing, payment format and banks must be defined, and reporting formats can
be defined to provide expense reports and aging reports that better meet the
user’s business requirements. Special calendars can be created to further
customize the recurring invoices, automatic withholding tax, and key indicators
reports. In addition, users can define descriptive flexfields to capture
additional data that was not previously captured in Oracle Payables.
Payables
options control and set defaults for Payables functions. It should be noted
that if the Automatic Offset feature in the Accounting region is enabled, the
user cannot allow reconciliation accounting, enable withholding tax, or allow
adjustments to paid invoices. In addition, the journal entries creation mode
determines whether audit entries will be created for the liability, gain or
loss, rounding, discount taken, and cash clearing journals. As in Purchasing,
default values can be specified in these options regions. Certain default
values will default based on a hierarchy. For example, the tax name will
default by a user-defined hierarchical order.
How many types of Invoices?
There
are Eleven types of invoices:
Standard, Debit Memo, Credit Memo, Expense Report, PO Default, Prepayment
(Temporary and Permanent), Quick-Match, Mixed, With-Holding, Interest,
Retainage Release, Transportation Invoices and Three Special Type of
invoices which generated automatically: Recurring, RTS, Retroactive Price
Adjustment.
Standard
An invoice from a supplier representing an
amount due for goods or services purchased. Standard invoices can be either
matched to a purchase order or not matched.
Credit Memo
A memo from a supplier representing a credit
amount toward goods or services.
Debit Memo
An invoice you enter to record a credit for a
supplier who does not send you a credit memo.
Mixed
An invoice type you enter for matching to both
purchase orders and invoices. You can enter either a positive or a negative
amount for a Mixed invoice type.
Prepayment
A type of invoice you enter to pay an advance
payment for expenses to a supplier or employee.
Expense Report
An invoice representing an amount due to an
employee for business-related expenses.
Withholding Tax
An invoice you enter to remit taxes withheld to
the appropriate tax authority.
Interest
If you allow interest invoices, payables will
automatically calculate interest for overdue invoices and create interest
invoices for selected suppliers.
QuickMatch
This invoice provides you with an
alternative way to match an invoice to all PO shipments. To perform a
QuickMatch, you must enter the PO number. The PO number defaults the supplier,
the supplier number, the supplier site, and the currency. QuickMatch matches an invoice to all PO shipments, while a PO default match allows you to pick and
choose.
Retainage Release
Invoices created for complex work and advance
contract financing.
Transportation Invoices
Invoices from freight payment.
Creating Invoices
Automatically
Recurring Invoices
You can set up your system to automatically
create periodic invoices, for example, rent invoices.
RTS Invoices
If you use Return to Supplier feature in Oracle
Purchasing, the system creates these debit memos directly in your Payables
system.
Retroactive Price Adjustment Invoices.
If Oracle Purchasing users use the Retroactive
Pricing of Purchase Orders feature, the system automatically creates Adjustment
and PO Price Adjustment invoices.
Tell me about Prepayment / expense Report?
Expense Report is used for invoices that reimburse the employee’s
expenses.
Prepayment
used for to pay prepayment to suppliers, employees and Government Authorities.
There are two types of prepayment: temporary for suppliers and employees,
permanent for to pay deposit with government authorities.
Temporary prepayments can be applied to invoices or expense reports
you receive. For example, you use a Temporary prepayment to pay a hotel a
catering deposit. When the hotel’s invoice arrives, apply the prepayment to the
invoice to reduce the invoice amount you pay. Permanent prepayments
cannot be applied to invoices. For example, you use a Permanent prepayment to
pay a lease deposit for which you do not expect to be invoiced.
Match Approval Level
Options
The match approval level
defaults to purchase order shipment lines when the purchase order is
entered. You can override the default on
the purchase order shipment. If you find
that you are frequently overriding this value, change the default at the
supplier site level.
If an item is used on the
PO, the match approval level will default from the item and will override the
supplier site. If the Item match approval level for the Item = Receipt
required, then it results in a 3-way match. If the Item match approval level
for the Item = Inspection required, then it results in a 4-way match.
When quantities and prices
exceed specific tolerances you define, the Payables Validation process will
place a matching hold on the invoice.
You can configure matching holds so manual override is not possible in
the Invoice Holds and Release Names window.
2-Way (Invoice to
Purchase Order)
*
Quantity billed vs.
quantity ordered on shipment line
*
Invoice unit price vs.
purchase order line unit price
3-Way (Invoice to
Purchase Order and Receipt)
*
2-Way match criteria
AND
*
Quantity billed vs.
quantity received
*
Item = Receipt
Required
4-Way (Invoice to
Purchase Order and Receipt and Inspection)
*
3-Way match criteria
AND
*
Quantity billed vs.
quantity accepted
Note: Quantity accepted =
(Quantity received - quantity rejected)
*
Item = Inspection
Required
How many scenarios of matching invoices in
AP?
When an
invoice for the PO arrives in the payables department, the supplier invoice is
entered into the system and PO shipments/distribution can then be matched to
the supplier’s invoice. The matching method ensures you pay suppliers only for
the items that you have agreed to purchase and at the price stated on the
purchase order within the set tolerances.
Matching invoices to purchase orders by
enforce two-way, three-way, and four-way matching. At the simplest level—known as two-way matching—matching
compares invoice amount and quantity with the amount and quantity of the
matched purchase order. The invoice can only be approved if the amount and
quantity match to the purchase order within a predefined tolerance. In addition
to requiring two-way matching, users can also enforce matching of the invoice
amount and quantity to that received (three-way matching), and to that
inspected (four-way matching).
QuickMatch provides you with an
alternative way to match an invoice to all PO shipments. To perform a
QuickMatch, you must enter the PO number. The PO number defaults the supplier,
the supplier number, the supplier site, and the currency. QuickMatch matches an
invoice to all PO shipments, while a PO default match allows you to pick and
choose.
Purchase order shipment
match
Based on the quantity
invoiced, Payables prorates the match amount across all non-fully billed
purchase order distributions associated with the purchase order shipments you
match to.
Receipt match
Reasons to use match to
receipt:
*
Matching to receipts
allows you to pay only for goods you receive.
*
Any exchange rate
variance that results from matching is likely to be smaller because the time
between the receipt and invoice will probably be less than the time between the
purchase order and invoice.
*
Matching an invoice
for freight or miscellaneous charges to a material receipt is required for
accurate costing data if you use periodic costing.
Note that you can also only
pay for what you receive by using Match to PO and letting the invoice go on
hold if the receipt is not in.
Purchase order
distribution match
If you are billed for only
a portion of a shipment, you may want to match at the distribution level to
ensure you charge the correct account.
If you choose not to match to the distributions, Payables prorates the
match amount across the available distributions for that shipment.
Price correction
You may want to record a
price correction for a purchase order shipment if you receive an invoice from
the supplier that is an adjustment to the unit price of an invoice you
previously matched to that purchase order shipment. Price corrections adjust
the unit price without adjusting the quantity billed on the purchase order.
Reasons to use price
correction:
*
You use a price
correction when a supplier sends an invoice for a change in unit price for an
invoice you have already matched to a purchase order. If you simply enter an
invoice for a unit price increase or a credit/debit memo for a unit price
decrease without using price correction, invoice price variances will not be
accurate.
*
You can enter and
match an invoice to record a price increase, or you can enter and match a
credit memo or debit memo to record a price decrease.
*
Use a price correction
to adjust the invoiced unit price of previously matched purchase order
shipments, distributions, or receipts without adjusting the quantity billed.
Note: Price corrections are very different from
overriding the unit price when matching an invoice to a purchase order. When you are entering an invoice and matching
to a purchase order, you can override the unit price that defaults from the
purchase order so it is the same as the unit price on your invoice. You use price corrections only after the
initial match.
Matching to
Distributions for Assets
The charge account on the
purchase order for an item that will be capitalized and depreciated is a
balance sheet account and will be a clearing account associated with an asset
category (like COMPUTER-PC) in Assets.
After matching, the asset clearing account will be on the distribution
for the invoice. When the asset is
prepared and posted to Assets, the clearing account is cleared and the asset
cost account associated with the asset category is charged for the cost of the
asset. Payables will transfer the asset
clearing account to the general ledger and Assets will transfer the clearing
account clearing entry and the asset cost entry.
Matching to
Distributions for Expenses
The charge account on the
purchase order for an item that will be expensed (for example, office supplies)
is an income statement account. After
matching, the expense account is transferred to the invoice distribution if you
are accruing at period end. When
accounting is transferred to the general ledger, the amount charged to the
expense account can be reported on the income statement.
Matching to
Distributions for Inventory
The charge account on the
purchase order for an item that will be capitalized as inventory is a balance
sheet account and will be a material clearing account associated with an
inventory organization in Inventory.
After matching, the Inventory AP Accrual Account will be on the
distribution for the invoice. When the
receipt is processed the AP Accrual Account (uninvoiced receipts account) is
credited. When booking the invoice and
matching, the receipt is now invoiced and the balance in the AP Accrual Account
must be cleared. At receipt, Purchasing
will transfer the accrual to the AP Accrual Account (a credit) and after
matching, Payables will transfer the clearing entry to the AP Accrual Account
as part of the Transfer Journals to GL process.
Multiple Organization
Access Control
Oracle Payables leverages
Oracle Applications' Multiple Organization Access Control feature. Multiple
Organization Access Control (MOAC) lets you define multiple organizations and
the relationships among them in a single installation of Oracle Applications.
These organizations can be ledgers, business groups, legal entities, operating
units, or inventory organizations.
Implement Multiple
Organization Access Control
*
If you implement MOAC,
you can enter invoices for multiple operating units without switching
responsibilities. To enter an invoice for an operating unit, enter a value in
the Operating Unit field of the Invoices window (part of the Invoice
Workbench). Each invoice must be for a single OU, but you can enter multiple
invoices for different OUs, without changing responsibilities.
*
Pay invoices for
multiple operating units in a single pay run.
Set Up Multiple
Organization Access Control
To set up MOAC, define the
following profile options:
*
MO Security
Profile. This option controls the list of
operating units that a responsibility or user can access. So you would assign
the Security Profile that you just created to this profile option. If you set
the this option at the responsibility level, then all users using that
responsibility will have access to only the operating units available in the
security profile. If you set this option at the user level, then the user will
have access to only those operating units, irrespective of the applications
responsibility that they log into.
*
MO: Default
Operating Unit. This option allows you to
specify a default operating unit that will be the default when you open
different subledger applications (Payables, Receivables, and so on) pages.
Because users can access multiple operating units, you may want to set up a
default one instead of forcing users to constantly have to choose one. With User
Preferences, you can also specify a default operating unit at the user level.
This profile option is optional.
*
MO: Operating Unit. This option provides backwards compatibility and supports
products that do not use MOAC. If you specify a security profile for the MO:
Security Profile, then those products that use MOAC will ignore this option.
New Payment Terminology
in R12
Key concepts that are new
to Payables in R12 include the following:
Document Payable. A document to be paid by the deploying company (Payer) and it
may represent, for example, a Payables invoice or scheduled payment.
Pay Run/Payment Process
Request. A pay run is a broad term, which
describes the process by which a group of invoices is selected and processed
for payment. It is roughly equivalent to the Release 11i concept of a payment
batch. The term Pay Run is often used interchangeably with the term Payment
Process Request. A payment process request is technically a request created by
a source product for Oracle Payments payment services. The payment process
request, which originates in the source product during the invoice selection
process, contains one or more documents payable to be paid. During the payment
process, the documents payable in the payment process request are built into
payments.
Payee. The person or organization that is being paid, for example,
the supplier, employee, or customer to whom the payment is made.
Payment Instruction. A payment instruction is a collection of payments, along
with aggregate payment information, that is formatted. Depending on the setup,
a payment instruction may be converted into a file to be printed onto checks or
into a payment file that is transmitted to a payment system for further
processing and disbursement.
Payment Process Profile.
A payment process profile is a payment
attribute assigned to documents payable, which specifies handling of the
documents payable, payments, and payment instructions. Payment process profiles
including specifications for payment instruction formatting and transmission.
Payment process profiles
contain the following information:
*
payment instruction
formatting information
*
transmission
information
*
payment grouping
*
payment limits
*
payment sorting
details
Payment Process Request
Template. A blueprint that simplifies and
expedites pay runs by preselecting pertinent payment data, such as general
header information, payment selection criteria, payment attributes, processing
instructions, and how validation failures are handled.
Payment Format. A set of rules that determine how a payment instruction or
settlement batch is converted into a payment file, readable by a payment
system. Payment formats are registered and maintained in Oracle XML Publisher.
Payment Method. A payment attribute on a document payable. The payment method
indicates the medium by which the deploying company (first party payer) makes a
payment to a supplier (third party payee). Examples of payment methods are
checks printed in-house by the payer, checks outsourced to the bank for
printing, and wires.
Open Interfaces
Use the following open
interfaces to import data into Payables from other applications or third-party
solutions:
*
Payables Open
Interface
*
Payables Expense
Report Open Interface
*
Payables PCard Open
Interface
*
Payables Credit Card
Open Interface
*
Payables Matching Open
Interface
*
Payables Supplier Open
Interface
*
Payables
Invoice Open Interface
Use the Payables Invoice
Open Interface to load invoices from a variety of sources including invoices
generated from the Pay on Receipt Autoinvoice process, EDI invoices generated
by the e-Commerce Gateway, invoices from credit card and procurement card
transactions and invoices from external systems. You can load standard invoices as well as
credit memos using the Payables Invoice Open Interface. Once invoices are loaded, use the Payables
Open Interface Import process to validate them and load them into Payables.
Payables Expense Report
Open Interface
Accounts Payable teams can
key paper invoices using the expense reports form or employees can submit their
own expense reports using iExpenses. Run
the Payables Invoice Import process to validate expense report data and create
expense reports in Payables.
Payables PCard Open
Interface
You can streamline your
procure-to-pay process by implementing a procurement card program. Employees purchase items directly from
suppliers using a credit card and then the credit card issuer sends transaction
files directly to your company. You can import credit card transaction files
from your card issuer directly into Payables helping you reduce transaction
costs and eliminate low dollar value invoices.
Payables Credit Card
Open Interface
Use SQL*Loader scripts to
load credit card transactions for corporate credit (travel) cards into the open
interface if you are using a credit card program. Corporate credit (travel) cards are similar
to procurement cards but are generally used for travel expenses. After transactions are validated, you include
them in expense reports you enter through the Self Service Web Applications.
The following predefined
SQL*Loader control files come delivered with Oracle Applications:
*
American Express
*
Diner’s Club
*
GE Capital MasterCard
*
US Bank Visa
*
Payables
Matching Open Interface
*
Use SQL*Loader to load
the required information into the purchasing interface tables. You will need to
create a SQL*Loader control file to format the information you want to load.
The file you write will vary greatly depending on the nature and format of the
flat file you use. You match invoices to
purchase order shipments during invoice entry.
*
Payables
Supplier Open Interface
*
Use the Payables
Supplier Open Interface to load supplier data from external systems. You can load suppliers, supplier sites, and
supplier contacts using the Payables Supplier Open Interfaces. Once supplier data is loaded, use the
Payables Supplier Open Interface Import process to validate them and load them
into Payables.
Supplier - Accounting
Use the Supplier :
Accounting page to define the default accounting information for your suppliers
and supplier sites.
Liability
The Liability Account and
description for a supplier site’s invoices. If you use the Multiple
Organization Support feature, you can enter a value in this field only at the
supplier site level.
Prepayment
The supplier default for
this field is the Financials option for the Prepayment account. If you use the
Multiple Organization Support feature, you can enter a value in this field only
at the supplier site level.
Bills Payable
If you use bills payable
(future dated payments), enter the account you want to use. The Financials
option value defaults to new suppliers, and the supplier value defaults to new
supplier sites. You can override these defaults. When Payables creates a future
dated payment, it uses the future dated payment account from either the
supplier site or the payment document, depending on which option you select in
the Payment Accounting region of the Payables Options window.
If you relieve liability
for future dated payments when the payment is issued, then use an asset
account. If you relieve liability at clearing time, then use a liability
account.
If you use the Multiple
Organization Support feature, you can enter a value in this field only at the
supplier site level.
Distribution Set
The default Distribution
Set for all invoices entered for the supplier site. Distribution Sets are used
to expedite entry of distribution lines on invoices.
*
Full distribution sets
will automatically create distribution lines with both account numbers and
currency amounts.
*
Skeleton distribution
sets will automatically create distribution lines with only account numbers and
you must provide the currency amounts.
Define additional
Distribution Sets for the list of values in the Distribution Set window. If you
use the Multiple Organization Support feature, you can enter a value in this
field only at the supplier site level.
Invoice Workbench
The Invoice Workbench is a
group of windows that you can use to enter complex invoices or invoices that
require online validation and defaulting. Also, use the Invoice Workbench when
entering an invoice that needs immediate action, such as payment.
The primary window in the
Invoice Workbench is the Invoices window. The Invoices window is divided into
the following regions:
*
Invoice Header
*
General
*
Lines
*
Holds
*
View Payments
*
Scheduled Payments
*
View Prepayment
Applications
These regions are described
in detail in this presentation.
From the Invoices window
you can also access the other invoice-related features and windows that
comprise the Invoice Workbench:
*
Actions. Opens the Invoice Actions window for a selected invoice(s)
which you can use to perform actions such as validating, approving, cancelling,
or printing.
*
Calculate Tax. Automatically generates the tax lines for the
invoice based on the E-Business Tax setup.
*
Tax Details. Opens the Tax Lines Summary window, which displays the tax
lines on the invoice.
*
Corrections. Opens the Corrections window, which allows you to enter a
price, quantity, or amount correction.
*
Quick Match. Automatically matches the selected invoice to open,
unbilled purchase order lines for the specified supplier.
*
Match. Allows you to start one of the following matches, based on
the invoice you select. Select the invoice you want to match to from the
poplist, then choose the Match button. If you enter a positive amount invoice,
then Payables defaults either Purchase Order or Receipt, based on the Invoice
Match option of the supplier site.
-
Purchase Order. Match a selected invoice to a purchase order.
-
Receipt. Match a selected invoice to a purchase order receipt.
-
Credit Memo. Match a selected credit/debit memo to an invoice.
*
All Distributions. Opens the Distributions window to view all distributions
for a selected invoice.
*
Distribution
Sets
*
You can assign a
default Distribution Set to a supplier site so Payables will use it for every
invoice you enter for that supplier site. If you do not assign a default
Distribution Set to a supplier site, you can always assign a Distribution Set
to an invoice when you enter it.
*
For example, you can
create a Distribution Set for an advertising supplier that allocates
advertising expense on an invoice to four advertising departments.
*
Full
Distribution Sets
*
Use Full Distribution
Sets to create distributions with set percentage amounts, or use Skeleton
Distribution Sets to create distributions with no set distribution amounts. For
example, a Full Distribution Set for a rent invoice assigns 70% of the invoice
amount to the Sales facility expense account and 30% to the Administration
facility expense account.
*
Skeleton
Distribution Sets
*
A Skeleton
Distribution Set for the same invoice would create one distribution for the
Sales facility expense account and one distribution for the Administration
facility expense account, leaving the amounts zero. You could then enter
amounts during invoice entry depending on variables such as that month’s
headcount for each group.
*
If you enable and use
a descriptive flexfield with your distribution set lines, the data in the
flexfield will be copied to the invoice distributions created by the Distribution
Set.
*
Importing
Invoices with Distribution Sets
*
If you are importing
invoices, enter a Distribution Set before you import the invoice record.
*
You can provide
account information from only one of the following sources or the invoice will
be rejected during import: Distribution Set, purchase order, Account field,
allocation of a non–Item type line, or Projects information. Import will reject
the invoice record if you use a Skeleton Distribution Set and use the Allocate
feature for the same line.
*
Invoice
Distribution Types
*
Type
*
Select a distribution
Type. Each invoice distribution will have one and only one distribution type.
If you are using periodic costing and need to include the cost of freight and
miscellaneous charges with a receipt, you must use the Allocation window to
allocate those distributions to a distribution line created by the matching
process.
*
In addition to the
Item, Freight, Miscellaneous, and Tax types, described previously, you can also
have the following distribution types.
*
Withholding
*
Records the amount of
taxes withheld from an invoice.
*
Prepayment
*
Records the amount of
a prepayment applied to an invoice.
*
Amount
*
The amount of the
distribution.
Adjustment and PO Price
Adjustment Invoices
The two types of adjustment
invoices are:
PO Price Adjustment
Invoice
This invoice is for the
difference in price between the original invoice and the new purchase order
price. PO price adjustment invoices can be matched to both purchase orders and
invoices.
Adjustment Invoice
This invoice effectively
reverses any outstanding regular Payables price corrections and PO Price
Adjustment invoices. This is so the PO Price Adjustment document can be for
only the price difference between the original invoice and the new PO price.
These adjustment invoices
can be positive, negative, or zero amount. When the original invoice and its
related adjustment documents are paid, the net effect is as if the original
invoice had always had the new price. The supplier is paid the appropriate
amount, and the accounting is adjusted accordingly.
You cannot manually enter
these types of invoices, nor can you adjust or cancel them. You can view,
report on, validate, account for, and pay them.
Invoice Import
Oracle Internet Expenses
expense reports
Expense reports your employees
enter using a Web browser.
Payables expense reports
Expense reports entered in
the Payables Expense reports window by the Payables department.
Credit Card invoices
Invoices for employee
credit card expenses. The credit card company sends you these invoices as a
flat file.
EDI Invoices
Electronic invoices
transferred from Oracle e–Commerce Gateway.
XML Invoices
Electronic invoices
transferred from the Oracle XML Gateway. See: XML Invoices, Oracle Payables
Implementation Guide.
Invoices from external
systems
Invoices, such as invoices
from legacy systems, loaded using SQL*Loader.
Oracle Property Manager
invoices
Lease invoices transferred
from Oracle Property Manager.
Oracle Assets lease
payments
Lease payments transferred
from Oracle Assets.
Invoice Workbench
The Invoice Workbench is a
group of windows that you can use to enter complex invoices or invoices that
require online validation and defaulting. Also, use the Invoice Workbench when
entering an invoice that needs immediate action, such as payment.
The primary window in the
Invoice Workbench is the Invoices window. The Invoices window is divided into
the following regions:
*
Invoice Header
*
General
*
Lines
*
Holds
*
View Payments
*
Scheduled Payments
*
View Prepayment
Applications
These regions are described
in detail in this presentation.
From the Invoices window
you can also access the other invoice-related features and windows that
comprise the Invoice Workbench:
*
Actions. Opens the Invoice Actions window for a selected invoice(s)
which you can use to perform actions such as validating, approving, cancelling,
or printing.
*
Calculate Tax. Automatically generates the tax lines for the
invoice based on the E-Business Tax setup.
*
Tax Details. Opens the Tax Lines Summary window, which displays the tax
lines on the invoice.
*
Corrections. Opens the Corrections window, which allows you to enter a
price, quantity, or amount correction.
*
Quick Match. Automatically matches the selected invoice to open,
unbilled purchase order lines for the specified supplier.
*
Match. Allows you to start one of the following matches, based on
the invoice you select. Select the invoice you want to match to from the
poplist, then choose the Match button. If you enter a positive amount invoice,
then Payables defaults either Purchase Order or Receipt, based on the Invoice
Match option of the supplier site.
-
Purchase Order. Match a selected invoice to a purchase order.
-
Receipt. Match a selected invoice to a purchase order receipt.
-
Credit Memo. Match a selected credit/debit memo to an invoice.
*
All Distributions. Opens the Distributions window to view all distributions
for a selected invoice.
Match Approval Level
Options
The match approval level
defaults to purchase order shipment lines when the purchase order is
entered. You can override the default on
the purchase order shipment. If you find
that you are frequently overriding this value, change the default at the
supplier site level.
If an item is used on the
PO, the match approval level will default from the item and will override the
supplier site. If the Item match approval level for the Item = Receipt
required, then it results in a 3-way match. If the Item match approval level
for the Item = Inspection required, then it results in a 4-way match.
When quantities and prices
exceed specific tolerances you define, the Payables Validation process will
place a matching hold on the invoice.
You can configure matching holds so manual override is not possible in
the Invoice Holds and Release Names window.
2-Way (Invoice to
Purchase Order)
*
Quantity billed vs.
quantity ordered on shipment line
*
Invoice unit price vs.
purchase order line unit price
3-Way (Invoice to
Purchase Order and Receipt)
*
2-Way match criteria
AND
*
Quantity billed vs.
quantity received
*
Item = Receipt
Required
4-Way (Invoice to
Purchase Order and Receipt and Inspection)
*
3-Way match criteria
AND
*
Quantity billed vs.
quantity accepted
Note: Quantity accepted =
(Quantity received - quantity rejected)
*
Item = Inspection
Required
*
Tell me about Quick
Invoices
*
You use the Quick
Invoices window for your everyday entry of invoice records. You use this window
for rapid, high–volume entry of Standard and Credit Memo invoices that are not
complex and do not require extensive online validation or defaulting of values
during entry. You can use this window for purchase order matching and for
applying prepayments to the invoice you are entering.
*
The information
entered in the Quick Invoices window is stored in the Payables Open Interface
tables. Because the system performs limited validation and defaulting of
invoice values while you are entering invoices, you can enter invoices more
quickly in the Quick Invoices window than you can in the Invoice Workbench.
*
You can use the Quick
Invoices window if you want to use the Open Interface Workflow. You can
customize the Open Interface Workflow to process your invoice records before
you import them. For example, you can perform custom validation of cost center
information before you submit import.
*
Note: Speed up invoice record entry by customizing Quick Invoices
folders. You can resize, rename, move, and hide fields to meet your needs.
*
Quick Invoice
Process
*
When you enter invoice
records in the Quick Invoices window, you can submit a customized workflow
program to automate your processes for managing invoices. For example, you can
customize the workflow program to validate the cost center on all invoices
before you import them.
*
The invoice records
you enter in the Quick Invoices window are stored in interface tables:
AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE.
*
These tables store
invoice header and line information.
*
Import invoice records
by using the Create Invoices window, or by submitting the Payables Open
Interface Import Program from the Submit Request window.
*
Payables validates the
invoice records during import and creates invoices with distributions and
scheduled payments.
*
After import, Payables
provides a report that lists invoice records that were successfully imported
and any that could not be imported because they had invalid or missing
information. You can query the rejected invoice records in the Quick Invoices
window, correct them, and then resubmit them for import.
*
When you import
invoice records successfully, Payables creates regular invoices that you can
view, modify, and validate in the Invoice Workbench.
*
After you successfully
create invoices based on data in the invoice records, you can purge the invoice
records from the Open Interface tables.
*
Quick Invoice
Batches
*
You can use the Quick
Invoices Batch name to query the group of invoice records in the Quick Invoices
window, and to identify a group of invoice records that you want to import
together.
*
Note that if you use
invoice batch control and you want to maintain the grouping of invoices after
import, then when you submit import for the Quick Invoices batch, you can
assign an Invoice Batch name to the group of invoices that Payables creates.
*
You can then use the
Invoice Batch name to query the same group of invoices in the Invoice
Workbench.
Entering Recurring
Invoices
Recurring Invoice Template
With a recurring invoice
template, you can do the following:
*
Specify the intervals
in which invoices based on the recurring invoice template will be created.
*
Create up to two
special one–time invoice amounts of a non–standard amount, such as a deposit or
balloon payment.
*
Define recurring
invoices to increase or decrease by a fixed percentage from period to period.
When Payables creates
recurring invoices, the invoice date is the first date of the period in which
the recurring invoice is 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, then the Terms Date is the same date that the
recurring invoice was created.
*
If the Terms Date
Basis is set to anything else, then the Terms Date is the invoice date, which
is the first day of the period in which the recurring invoice is created.
Special Calendar
You use the Special
Calendar window to define periods that Payables uses for automatic withholding
tax, recurring invoices, payment terms, and for the Key Indicators Report. For
example, if you monitor staff productivity weekly, use this window to define
weekly periods for the Key Indicators calendar type.
The Report Run display–only
check box indicates that a Key Indicators Report has been run for this period.
The check box is not applicable to Payment Terms, Withholding Tax, or Recurring
Invoices calendar types.
Note: The periods you define in the Special Calendar window are completely
separate from the periods you define in the Accounting Calendar window for your
AP Accounting Periods.
·
How many Levels of
Invoice Validation
System level validation
Manually submit the
Payables Invoice Validation process or schedule it to run periodically from the
Submit Request window. Submit the Payables Invoice Validation process right
before you process payments to update the status on all invoices. Payables will
use the Option parameter to select unvalidated invoices for validation. Enter All to ensure you release any existing
holds on invoices as well as place new holds. Otherwise, Invoice Validation
reviews only those invoice distributions that were not already reviewed by
Invoice Validation. Optionally, enter other criteria to submit Invoice
Validation for specific groups of invoices.
Batch level validation
Submit Invoice Validation
for one or more invoice batches from the Invoice Batches window. Batch level
validation is only allowed if the Allow online validation Payables option is
enabled also.
Invoice level (online)
validation
If the Payables option to
allow online validation is enabled, you can submit online validation for one or
more individual invoices when an invoice must be validated and paid
immediately. You can also validate related invoices for credit and debit memos
by choosing Validate Related Invoices in the Actions window after you enter a
credit or debit memo.
Invoice level (online)
validation is only allowed if the Allow online validation Payables option is
enabled also.
Validation and Approval
The order of the Invoice
Validation process and Invoice Approval Workflow Program is based on the
Approval Processing Sequence Payables option. For example, you might want to
validate before you approve to create tax lines and distributions for your
invoices.
Approval
You might want to enable
the Require Validation Before Approval Payables option if your approvers need
to review tax details before they approve an invoice.
Invoice Selection Criteria
An invoice must meet all of
the following criteria to be processed:
1. If the Require Validation Before Approval
Payables option is enabled, or if the invoice was submitted by a Supplier using
iSupplier Portal, then the invoice must be validated.
2. The Approval field value in the Invoices
window must be:
-
Required, if you
submit the workflow program from the Submit Requests window
-
Anything except
Initiated or Manually Approved, if you submit the workflow program from the
Invoice Actions window
- The invoice amount must equal the distribution total.
Approving Invoices at
the Line Level
Line-level approval is the
approval of one specific line or set of lines within an invoice, rather than
approving the entire document. Approvers have access to the Notification Detail
and Interactive Line Details pages to review the invoice details. The pages
display only the appropriate level of information for the approver to view.
That is, approvers view only the information that they can approve or reject.
Furthermore, no additional login or privileges are required for the approver to
approve. The self-service login that an approver uses to view the notifications
is sufficient to review the invoice information.
The system does not
initiate document level approval until all lines have been approved. If an approver
rejects one line, the remaining line level approvals continue to go through
approval. This allows the continuation of the line level approval process while
the rejected line is being resolved. However, the system does not continue to
document level approvals unless all lines are approved.
Tell me about Invoice
Approval Workflow
The workflow then
sequentially asks each approver in the approval list to approve invoices
online. For example, you can define a rule so invoices over $100,000 require
CFO approval and then CEO approval.
If you use Invoice Approval
Workflow, then every invoice that requires approval must be approved before you
can pay it. Payables indicates that an invoice requires approval by setting the
value in the Approval status field in the Invoices window to Required.
When you use this feature,
all invoices require approval, with the following exceptions. Payables sets the
Approval status of the following invoices to Not Required:
*
expense reports
imported through the Expense Report Export program (because these expense
reports have already been through an approval process)
*
recurring invoices if
the recurring invoice template did not have the Approval Workflow Required
option enabled (because recurring invoices are often approved in advance)
*
invoices that existed
before you enabled the feature
*
invoices that
completed the Invoice Approval Workflow process and the Invoice Approval
Workflow process determined that according to the rules set up in Oracle
Approvals Management that no one needs to approve the invoice
You can submit the Invoice
Approval Workflow for an invoice either from the Invoice Actions window, or
from the Submit Requests window.
System Setup
Notification from
Approvers
Approvers can approve or
reject the invoice.
*
If an approver
approves the invoice, then the invoice goes to the next person in the approver
list until all required people approve the invoice.
*
If an approver rejects
the invoice, then the workflow program ends.
*
If an approver does
not respond within the time you specify, then Workflow will request approval
from that person’s manager.
If an approver rejects an
invoice, then you can perform one of the following actions from the Invoice
Actions window:
*
Use the Force Approval
option to manually approve the invoice
*
Use the Initiate
Approval option to resubmit the invoice to the Invoice Approval Workflow after
correcting any issue that caused the approver to reject the invoice
*
Use the Cancel Invoice
option to cancel the invoice
Suggestion: We recommend that you schedule the Invoice Approval Status
Report to run nightly so you can closely monitor your rejected invoices.
You can review the approval
status of an invoice that has started the Invoice Approval Workflow in the
following ways:
*
Invoice Approval
History window
*
Invoice Approval
Status Report
Invoice Approval
Workflow Program
When you start this
program, it updates the approval status of the invoice to Initiated. The
invoice is then placed in the WF_DEFERRED queue.
The next time the Workflow
Agent Listener runs, the system initiates Invoice Approval Workflow for the
invoice.
Prerequisites:
*
Define all your
invoice approval rules in Oracle Approvals Management (OAM).
*
Set up, and optionally
customize, the Invoice Approval Workflow.
*
Enable the Use Invoice
Approval Workflow Payables option.
*
Each invoice meets all
selection criteria.
*
In the Submit Requests
window your system administrator should schedule the Workflow Agent Listener to
run regularly.
Invoice Approval History
(N) Invoices >
Inquiry (M) Reports > View Invoice Approval History
This window shows you all
the approvers for an invoice in the order that the workflow requests approval
from them. You can see who has reviewed the invoice, whether the approver
approved or rejected it, the response date, what the invoice amount was when
the approver reviewed it, and any comments the approver entered. You also see
who the pending approver is and who the planned approvers are. If an invoice is
force approved, then you see the username of the person who approved the invoice.
Invoice Approval History
Window Reference
*
Action Date. Date that the approval action occurred. For example, the
date an approver rejected the invoice.
*
Action. The window shows the action associated with each approver.
-
Approved. The invoice was approved by this approver.
-
Rejected. The invoice was rejected by this approver.
-
Pending. The invoice is in this approver’s queue.
-
Future. The invoice is not yet in the approval queue of the
approver.
-
Manually Approved. An accounts payable processor manually approved the invoice
by using the Force Approval feature.
*
Approver. Name of the approver who is assigned to perform an action
in response to a request for approval notification or escalation notification.
You set up approvers in Oracle Approvals Management (OAM). If an invoice was
force approved, this field shows the username of the accounts payable processor
who force approved the invoice.
*
Amount Approved. Invoice total at the time of approval or rejection. This
field serves as an audit trail because the invoice amount can change between
approvers.
*
Comments. As an invoice goes through the Invoice Approval Workflow
process, the approver can enter comments about the approved or rejected
invoice. If the invoice is force approved then this field is blank.
*
Tell me about
the Reports in AP
*
Batch Control
Report by Batch Name
*
Lists invoice batches
in order of batch name and batch date. Also sorts by entry name.
*
Batch Control
Report by Entered By
*
Lists invoice batches
in order of entry person. Also sorts by batch name.
*
Credit Memo
Matching Report
*
This report lists
credit memos and debit memos that match the supplier and date parameters you
specify. The report also lists the total
of the distribution line amounts of each credit memo in your entered currency and
your functional currency.
*
Invoice Aging
Report
*
Use this report to
view your unpaid invoices. This report provides information about invoice
payments due within four time periods you specify in the Aging Periods
window. This report does not included
cancelled invoices.
*
Invoice Audit
Listing by Voucher Number
*
Use this report to
review your invoices with assigned sequential voucher numbers. Either you or
Payables can assign a unique, sequential number to an invoice during invoice
entry, if you enable the Sequential Numbering profile option.
*
Invoice Audit
Listing
*
Use the Invoice Audit
Listing to audit invoices for duplicates. You should audit invoices
periodically to ensure control of invoice payments. You can sort this listing
in six different ways. You can also use this report to obtain a listing of your
invoices by invoice type.
*
Invoice Audit
Report
*
Use the Invoice Audit
Report to audit invoices for duplicates. The report lists invoices that appear
as potential duplicates according to several criteria. One criterion you specify
is the number of characters in the invoice number which two or more invoices
have in common. The report lists invoices that meet this criterion and have the
same invoice amount, the same invoice date, and the same supplier. You can limit the search by checking for
duplicate invoices within a time period you specify. Payables sorts the report alphabetically by
supplier name, and lists possible duplicates together on consecutive lines.
*
Invoice History
Report
*
The Invoice History
Report is needed to justify the balance for a given range of invoices. It helps
you to quickly identify and review a detailed list of all activities pertaining
to a specific invoice including all payments, gain/loss, credit/debit memos,
and discounts. The balance of the invoices is then summed for each supplier
site, for each supplier, and for the entire report.
*
Invoice on Hold
Report
*
Use the Invoice on
Hold Report to review detailed information about invoices on hold. You can
submit the Invoice Validation process before submitting this report to obtain
the most up-to-date hold information. To
obtain additional detail for invoices on matching hold, you can submit the
Matching Hold Detail Report.
*
Invoice
Register
*
Use the Invoice
Register to review detailed information about invoices. You can also use this
report to view the offsetting liability accounts that Payables creates for each
invoice distribution when you validate an invoice. Payables orders the report by invoice
currency and, if you use batch control, the invoice batch name then by supplier
name and invoice number.
*
Matching Detail
Report
*
Use this report to see
the detail of how an invoice, purchase order, or receipt was matched. This
report is especially helpful when an invoice is on hold and you are trying
determine why the hold was placed.
*
Matching Hold
Detail Report
*
Use the Matching Hold
Detail Report to review detailed accounts payable and purchasing information
for invoices with matching holds and matching hold releases. You can print this
report before initiating a payment batch to determine whether to manually
release any invoices for payment.
*
Use this report to
review recurring invoice templates you defined during a specific time period.
You can review this report to determine the amount you have authorized for a recurring
invoice template, how much you have released, and the next amount you have
scheduled.
*
Matching Hold
Agent Notice
*
Use the Matching Hold
Agent Notice to print a notice informing a purchasing agent of any matching
holds due to a variance between an invoice and the agent’s purchase order. When
you submit this report, Payables prints a notice to each purchasing agent who
has issued a purchase order that has a variance with its matched invoice.
*
Print Invoice
Notice
*
Generate a
standard invoice notice to send to a supplier to inform them about one or more
invoices you have entered. For credit/debit memos, the notice informs the
supplier of outstanding credit or debit memos that you will apply to future
invoices. You can generate this report
from either the Invoices window or the Submit Requests window. You can use Reports to change the boilerplate
text.
*
Supplier Paid
Invoice History
*
You can submit the
Supplier Paid Invoice History Report by supplier or supplier type to review
payment history, discounts taken, and frequency of partial payments.
*
Matching Holds
by Buyer
*
View matching holds
placed on invoices by buyer associated with the purchase order.
*
Reports
*
Receiving Hold
Requestor Notice
*
Use the Receiving Hold
Requestor Notice to print a notice informing a requestor of an invoice hold
because the requestor has not acknowledged the receipt of invoiced items.
*
Distribution
Set Listing
*
Use the Distribution
Set Listing to review a complete list of all the Distribution Sets you have
defined. Distribution Sets simplify and speed invoice entry by automatically
generating invoice distributions for invoices that have assigned Distribution
Sets.
Pl. Describe the new
terms in R12 Payables
Key concepts that are new
to Payables in R12 include the following:
Document Payable. A document to be paid by the deploying company (Payer). It
may represent, for example, a Payables invoice or scheduled payment.
Pay Run/Payment Process
Request. A pay run is a broad term, which
describes the process by which a group of invoices is selected and processed
for payment. It is roughly equivalent to the Release 11i concept of a payment
batch. The term Pay Run is often used interchangeably with the term Payment
Process Request. A payment process request is technically a request created by
a source product for Oracle Payments payment services. The payment process
request, which originates in the source product during the invoice selection
process, contains one or more documents payable to be paid. During the payment
process, the documents payable in the payment process request are built into
payments.
Payee. The person or organization that is being paid. For example,
the supplier, employee, or customer to whom the payment is made.
Payment Instruction. A payment instruction is a collection of payments, along
with aggregate payment information, that is formatted. Depending on the setup,
a payment instruction may be converted into a file to be printed onto checks or
into a payment file that is transmitted to a payment system for further
processing and disbursement.
Payment Process Profile.
A payment process profile is a payment
attribute assigned to documents payable, which specifies handling of the
documents payable, payments, and payment instructions. Payment process profiles
including specifications for payment instruction formatting and transmission.
Payment process profiles
contain the following information:
*
payment instruction
formatting information
*
transmission
information
*
payment grouping
*
payment limits
*
payment sorting
details
Payment Process Request
Template. A blueprint that simplifies and
expedites pay runs by preselecting pertinent payment data, such as general
header information, payment selection criteria, payment attributes, processing
instructions, and how validation failures are handled.
Payment Format. A set of rules that determine how a payment instruction or
settlement batch is converted into a payment file, readable by a payment
system. Payment formats are registered and maintained in Oracle XML Publisher.
Payment Method. A payment attribute on a document payable. The payment
method indicates the medium by which the deploying company (first party payer)
makes a payment to a supplier (third party payee). Examples of payment methods
are checks printed in-house by the payer, checks outsourced to the bank for
printing, and wires.
Using the Payments
Manager
Using the Payments Manager,
you can complete a pay run from start to finish. A pay run is the process by
which a group of invoices is selected and processed for payment.
Note: A pay run is roughly equivalent to the Release 11i concept
of a payment batch.
The Payments Manager
enables you to perform the following payment actions:
*
Create payment process
request templates by specifying invoice selection criteria.
*
Use templates to
automatically select invoices to pay that meet the criteria for payment.
*
Schedule pay runs.
*
Modify invoice
selection and payment amounts.
*
Automatically submit
invoices for processing and payment by scheduling payment process requests.
*
Initiate payment
instructions.
*
View the status of
payments.
*
Void or record stop
payments.
Seeded Payment Methods
These payment methods are
seeded, but deploying companies can create their own payment methods.
Check. A paper check is printed and used as:
*
one payment in a group
of multiple payments
*
a Quick payment
*
a Manual payment
Outsourced check. This payment method is used to transmit payment information
to an external party, such as your bank, that will print checks on your behalf.
Electronic. You use the Electronic payment method to create
instructions for your bank to make payment to a supplier bank account.
Typically, this communication is an electronic file that instructs your
disbursement bank to pay your suppliers, and is in the specific format that
your bank requires. Validations ensure that you have recorded supplier bank
account information when you use the Electronic payment method.
Wire. You can use the Wire payment method to manually record
payment when you have used a process outside of your Oracle Payables system to
instruct your disbursement bank to pay a supplier.
Payables does not require
supplier bank account information when you use the Wire payment method. When
you define payment documents for these payments, Oracle recommends you use the
Recorded disbursement type because you are simply recording a payment made
outside of the system. Note: It is recommended that you record the
transaction with a Manual payment.
The system allows you to
use any disbursement type. For example, some users who regularly record Wire
payments for multiple suppliers use payment documents with the Computer
Generated disbursement type, create an electronic pay run, and then delete the
resulting electronic file.
Bank Account Model
Payables leverages Oracle
Trading Community Architecture and Oracle Cash Management to set up the bank
accounts that you use to do business (internal bank accounts). Banks and Bank
Branches are created as parties in Trading Community Architecture via the user
interface in Oracle Cash Management. Bank Accounts are defined in Oracle Cash
Management. Each bank can have multiple branches and each branch can have
multiple accounts.
When you enable a bank
account for use with Payables, you can associate the account with multiple
payment documents.
When you set up your suppliers
in Oracle iSupplier, you can also set up supplier bank accounts (external bank
accounts).
Multiple Currency
Payments. If you have enabled the Use
Multiple Currencies Payables option and you want to use this bank account to
pay invoices entered in multiple currencies, enable this option.
Pooled Account. If you use Automatic Offsets and you want to associate
multiple companies with this bank account, then enable this option. When you enable the Automatic Offsets
Payables option, Payables creates one offsetting liability distribution for
each invoice distribution. If you pay an
invoice from a pooled bank account, then when Payables accounts for the invoice
payment, Payables creates one corresponding cash accounting entry for each
liability distribution.
*
In addition, Payables
builds the cash account based on the Cash Account defined for the bank account
and the account segments of the liability lines.
*
If you do not use
a pooled account, then when the payment is accounted, a single accounting entry
is created for the Cash account, using the Cash Account that is defined for the
bank account without modifying any account segments.
*
Defining
Payment Documents
*
To define payments
documents:
*
1. Query the bank account.
*
2. Click the Manage Payment Documents button.
*
3. Click Create.
*
4. In the Name field, enter a name for the payment
documents.
*
5. In the Paper Stock Type field, select Blank
Stock for non-numbered check stock or Prenumbered Stock from the drop-down
list.
*
6. If your check stock has an attached remittance
stub, select the Attached Remittance Stub check box.
*
7. If your check stock has an attached remittance
stub, specify the number of lines per remittance stub in the Number of Lines
per Remittance Stub field.
*
8. In the Number of Setup Documents field, specify
the number of checks you want to allow for testing check stock setup.
*
9. In the Format field, select a check format from
the list of values.
*
10. In the Payment Document Category field,
select the type of payment document from the list of values.
*
11. If your check stock is prenumbered, enter
the first and last document numbers in the fields under the Document Numbers
region.
*
12. If your organization uses a company
checkbook, enter the appropriate information in the Checkbooks region.
Manual Payment Overview
When you create a payment
outside of Payables, such as a typed check or wire transfer, you can record the
payment within Payables and update the invoice or invoices that you paid.
With a Manual payment, you
can override some payment controls of Payables. You can record a single Manual
payment for multiple Pay Alone invoices. You can record payment for invoices
that are associated with any payment method except Electronic. You can also pay
an invoice for a supplier that has the Hold All Payments option enabled.
Prerequisites for
processing Manual payments in Payables are:
*
Create the payment
outside of Payables.
*
Each invoice you paid
must be validated, uncanceled, without holds and must have the same currency as
the payment.
Creating Manual Payments
*
When you create a
payment outside of Payables by typing a check or performing a wire transfer,
you can record the payment within Payables and update the invoices that you
paid. You can also use this method to pay invoices with the Clearing payment
method.
*
Note: A Manual payment is typically used to record a wire
transfer. However, you can also use pay runs and Quick payments.
Recording a Manual
Payment
Payables Responsibility
(N) Payments > Entry
> Payments
1. In the Payments window,
select Manual in the Type field.
2. Enter a Trading Partner.
The Supplier Number is automatically displayed. If there are multiple Supplier
Sites, select the appropriate site from the list.
3. Enter the Payment Date.
The date must be in an open or future period. You can only predate a computer
generated payment if the Allow Pre-Date option is enabled in the Single Payment
region of the Payment tab within the Payables Options window.
4. Enter the Bank Account
from which you want to make the payment.
5. Select a Payment Method.
6. If Printed is selected
as the Payment Process Profile, select the type of Payment Document.
7. Select a Payment Process
Profile.
8. If you enabled the Allow
Remit-to Account Override option in the Invoice tab of the Payables Options
window, then you can select a different, active Remit-To account. The list of
values includes bank accounts assigned to the supplier that have the same
payment currency.
9. If the Bills Payable
payment method is selected, enter a Maturity Date.
10. Select a Rate Type.
11. If necessary, enter or
adjust other information:
*
If you created the
payment for an address different from the supplier site and the Allow Address
Change option is enabled in the Single Payment region within the Payment tab of
the Payables Options window, adjust the address. For example, you may need to
send an expense check to a consultant working at a site away from home.
*
If you record voucher
numbers either manually or using Sequential Numbering, enter or review voucher
information.
*
If the payment
currency was different from your functional currency, enter exchange rate
information.
12. Choose Enter/Adjust
Invoices to navigate to the Select Invoices window. Select the invoices you
paid. The sum of the invoices must equal the payment Amount you entered.
Optionally click the Invoice Overview button to see detailed information about
an invoice.
13. Save your work. Payables records your payment and updates the
invoices as paid. If you have selected the wrong invoice, you can select the
invoice, and then click the Reverse Payment button. This automatically creates
a reversal, which disassociates the invoice from the Manual payment. You can
now select the correct Invoice.
Initiating Manual
Payments from the Invoice Workbench
In the Invoice Workbench,
you can initiate Manual payment of one or more invoices or one or more
scheduled payments. You do this by
selecting the invoices you want to pay manually, clicking the Actions button
and selecting the Pay in Full option to navigate to the Payments window. You then select Manual as the Payment Type.
Payables automatically enters most of the payment information for you (such as
payment amount and supplier/site name), and you skip the invoice selection step
you would perform if you were to initiate the Manual payment from the Payment
Workbench (Payments window).
Overriding Payment
Controls
With a Manual payment, you
can override some payment controls. You can:
*
record a single
payment for multiple Pay Alone invoices
*
record payment for
invoices that are associated with any Payment Method type, except Electronic
*
pay an invoice for a
supplier that has the Hold All Payments option enabled
Future Dated Manual
Payments
For future dated Manual
payments, if the Payables option Use Future Dated Payment Account is set to
Supplier Site, then you can select invoices for payment only if the supplier
site Future Dated Payment Account is the same as that of the supplier site in
the payment header.
Withholding Taxes
If you withhold taxes at
payment time, Payables does not automatically withhold taxes if you pay with a
Manual payment.
Prerequisites
*
Create the payment
outside of Oracle Payables.
*
Each invoice you want
to pay must be validated, uncanceled, and without holds.
*
If you use Invoice
Approval Workflow, then each invoice that requires approval must be approved
before you can pay it.
*
Each invoice must have
either the same currency as the payment or use an associated fixed-rate
currency.
*
The bank account must
have at least one payment document.
*
The payment method is
not electronic.
*
For future dated
payments, if the Payables option Use Future Dated Payment Account is set to
Supplier Site, then you can select invoices for payment only if the supplier
site Future Dated Payment Account is the same as that of the supplier site in
the payment header
Creating Quick Payments
You can create and print a
computer generated payment to pay a supplier for one or more invoices. You can
also create a check, save it, then print it later.
When you create a quick
payment, you can select an invoice regardless of the payments’ terms and due
date. For example, you can create a Quick payment for an invoice that is not
yet due.
Prerequisites
*
Invoices must be
validated, uncanceled, and without holds.
*
If you are creating an
electronic payment, you must assign supplier banks to your supplier.
Creating a Quick Payment
Payables Responsibility
(N) Payments > Entry
> Payments
1. In the Payments window, if you have access to
more than one Operating Unit, select the appropriate operating unit, otherwise
the default operating unit is automatically entered.
2. Enter a Trading Partner. The Supplier Number
is automatically displayed. If there are multiple Supplier Sites, select the
appropriate site from the list.
3. Enter the Payment document Date. The date
must be in an open or future period. You can only predate a computer generated
payment if the Allow Pre-Date option is enabled in the Single Payment region of
the Payment tab within the Payables Options window.
4. Enter the Bank Account from which you want to
make the payment.
5. Select a Payment Method.
6. If Printed is selected as the Payment Process
Profile, select the type of Payment Document.
7. Select a Payment Process Profile.
8. If you have enabled the Allow Remit-To
Account Override option in the Invoice tab of the Payables Options window, then
you can select a different, active Remit-To account. The list of values
includes bank accounts assigned to the supplier that have the same payment
currency.
Important: The system ensures that Quick payments cannot be created
for payment to inactive bank accounts.
9. Enter a Maturity Date if the Bills Payable
payment method is selected.
10. Select a Rate Type.
11. Click the Enter/Adjust Invoices button to
navigate to the Select Invoices window. Select the invoices you want to pay.
12. Optionally click the Invoice Overview button to
review more information about an invoice.
13. Save your work. If any invoices are subject to
withholding tax, a message is displayed. You can choose to proceed, change your
selection, or cancel the process. If applicable, any Japanese bank charges are
then calculated.
Formatting and optionally
printing the Check
*
To format and print,
first verify the payment document is in your printer, then select Print Now,
optionally change the printer name, and choose OK.
*
To format only and
print the check later, select Format and choose OK. When you are ready to
print, print from the Submit Requests window. You can use the Print Now option
in the Actions window to print only if you print immediately after formatting.
Quick Payment
Restrictions
*
NUMBER OF INVOICES.
You can only pay as many invoices as you defined for the remittance advice of
the payment document.
*
SAME SUPPLIER SITE.
You can only select invoices that have the same supplier site as the payment
supplier site you enter. You can, however, change the payment mailing address
if the Allow Address Change option is enabled in the Single Payment region of
the Payment tab of the Payables Options window.
*
PAY ALONE INVOICES.
The system adjusts the list of values to ensure that you don't pay a Pay Alone
invoice when you pay multiple invoices. If you have selected an invoice for
payment and then select more invoices for payment, then Payables does not
include Pay Alone invoices on this list of values. If you select a Pay Alone invoice
for Payment, you cannot select more invoices.
*
PAYING IN A FOREIGN
CURRENCY. You must pay in the same currency as the invoice. You can enter and
pay a foreign currency invoice only if the Use Multiple Currencies option is
enabled in the Currency tab of the Payables Options window, and you have
defined a multi-currency or foreign currency denominated bank account.
*
CANNOT STOP FORMATTED
QUICK PAYMENTS. You cannot stop a Quick Payment before it has been formatted.
Processing Stop Payments
for Single Payments in the Payment Workbench
(N) Payments > Entry
> Payments > Payments window
After you call your bank to
initiate a stop payment on a payment document, you can record the stop payment
status. You can void the payment to reverse the accounting and payment records
(assuming the bank has confirmed that the payment has not cleared), or you can
release the stop payment to reset the payment status to negotiable (assuming
the bank has notified you that the payment has cleared or the supplier has
contacted you that they located the payment document).
You can review all current
stop payments in the Stop Payments Report. You can query all payments with a
status of Stop Initiated by selecting that status in the Find Payments window
and then selecting the Find button.
Stopping a Payment
*
Contact bank and
request stop payment.
*
Find the payment
online. In the Payments window, select the payment and choose the Actions
button.
*
In the Payment Actions
window, select Initiate Stop.
*
Choose the OK button
to update the payment status to Stop Initiated.
Releasing a Stop on a
Payment
*
Find the payment
online. In the Payments window, select the payment and choose the Actions
button.
*
In the Payment Actions
window, select Release Stop.
*
Choose the OK button
to release the stop on the payment and reset the status to Negotiable.
Stop Payment
Restrictions
*
PREPAYMENTS. You
cannot initiate a stop payment on a payment document that pays a prepayment
that you have applied to an invoice. You must first unapply any prepayments,
and then you can stop payment.
*
QUICK PAYMENTS. You
cannot initiate a stop payment on a Quick Payment that has been formatted.
Voiding Single Payments
in the Payment Workbench
(N) Payments > Entry
> Payments > Payments window
When you void a payment,
Payables automatically reverses the accounting associated with the payment. The
status of the paid invoices is also reset to Unpaid or Cancelled depending on
the Invoice Action you select when you void the payment. Payable also reverses any realized gains or
losses on foreign currency invoices recorded as paid by the payment.
When you void a payment,
you can select the action you want Payables to take on the invoices paid by the
void payment. You can choose to:
*
place the invoices on
hold
*
cancel the invoices
*
do nothing with the invoices,
thereby leaving them available for payment
Note: Since you cannot reverse a void on a void payment, you
should have the payment you want to void in your possession or proof that it
has not cleared the bank or has been destroyed before you record it as voided.
You may also want to review the invoices paid by that payment before you void
it, to ensure that you are voiding the correct payment. You can review these
invoices in the Invoice Workbench.
Prerequisites
*
Call your bank to
initiate a stop payment if the payment has been sent to an employee or
supplier.
*
Wait until you get
confirmation of the stop payment before you void the payment (optional but
recommended).
Voiding a Payment
Find the payment online,
and from the Payments window, select the payment and choose the Actions button.
In the Payment Actions window, select Void. Review and optionally change the
void Date and the GL Date you want Payables to use for the accounting
distributions.
*
If you want to change
the status of the related invoices to Unpaid, select None for the Invoice
Action. The invoices will be available for payment on a new payment.
*
If you want to apply a
hold to the related invoices, select Hold for the Invoice Action and select a
Hold Name in the Hold window. Payables voids the payment, resets the status of
the related invoices to Unpaid, and applies the hold you selected to the
related invoices.
*
If you want to cancel
all related invoices and reset their Amounts to zero, select Cancel for the
Invoice Action. Payables voids the payment and cancels the related invoices.
Voiding and Reissuing
Quick Payments
You can:
*
void a Quick payment
and automatically reissue payment for the same invoices
*
void the original
payment and reissue a new Quick payment
Prerequisites
Enable the Allow Void and
Reissue option in the Single Payment region of the Payment tab within the
Payables Options window. To void and reissue a Quick payment:
*
Load and properly
align your payment document in the printer.
*
Find the Quick payment
online, and from the Payments window select the payment and choose the Actions
button.
*
In the Payment Actions
window, select Reissue. Enter the Payment Date and confirm the New Check Number. Payables
automatically selects Void for you. Review and optionally update the void
dates. Payables voids the selected Quick payment and creates a new Quick
payment to pay the invoices.
Restrictions
INVOICES PAID BY ANOTHER
PAYMENT. When you void a payment, you cannot cancel a related invoice if it was
partially paid by a second payment. Instead, when you choose Cancel Invoice,
the system applies an ”Invoice Cancel” hold to the invoice for your reference.
You can release the hold manually in the Invoice Holds window.
CANCELLING ASSOCIATED
INVOICES. If you attempt to cancel an invoice that has been partially paid by
another payment by using the Cancel Invoice Action, instead of cancelling the
invoice, Payables applies an Invoice Cancel hold to the invoice. This hold is
manually releasable.
CLEARED PAYMENTS. You
cannot void a payment that the bank has already cleared.
PREPAYMENTS. You cannot
void payment on a payment document that pays a prepayment that you have applied
to an invoice. You must first unapply any prepayments, and then you can void
the payment.
Setting Up Bills Payable
The following setups must
be done to use bills payable in Payables.
Funds Disbursement
Payment Method Setup
Oracle Payments Payment
Administrator responsibility
(N) Oracle Payments Setup
> Funds Disbursement Setup > Click Go To Task icon for Payment Methods
> Payment Methods page
1. Click the Create button. The Create Payment
Method: General page appears.
2. In the Bills Payable region, select the Use
Payment Method to Issue Bills Payable check box. When you enable this check box, the payment
method is used only for creating bills payable.
3. In the Maturity Date Override field, specify
the number of days to add to the payment date to determine the maturity date.
Note: Payments created with a bills payable payment method will
have a maturity date that is based on the earliest available discount or due
date when the payment is created. You can optionally override this calculation
by entering a value for the number of days in the Maturity Date Override field.
The maturity date is then calculated by adding that number of days to the
payment date.
Payment Process Profile
Setup
Oracle Payments Payment
Administrator responsibility
(N) Oracle Payments Setup
> Funds Disbursement Setup > Click Go To Task icon for Payment Process
Profile > Payment Process Profiles page
To ensure that a payment
instruction contains only bills payable:
1. Click the Create button. The Create Payment
Process Profile page appears.
2. In the Payment Grouping region, select the
Bills Payable check box so only bills payable will be grouped into a single payment
instruction.
Prepayments Overview
A supplier might send an
invoice that references a prepayment. If a supplier reduces the invoice amount
by the amount of the prepayment and associated tax, you can use the Prepayment
on Invoice feature to enter the invoice.
You can enter two types of
prepayments: Temporary and Permanent.
Temporary Prepayments
Temporary prepayments can
be applied to invoices or expense reports you receive. For example, you use a
Temporary prepayment to pay a hotel a catering deposit. When the hotel’s
invoice arrives, apply the prepayment to the invoice to reduce the invoice
amount you pay.
Permanent Prepayments
Permanent prepayments
cannot be applied to invoices. For example, you use a Permanent prepayment to
pay a lease deposit for which you do not expect to be invoiced.
Applying Prepayments to
Invoices and Expense Reports
Pay a prepayment just as
you would any other invoice. However, you cannot partially pay a prepayment;
you must fully pay it. You must fully pay a prepayment before you can apply the
prepayment to an invoice.
If you entered the
prepayment as a Permanent type and want to apply it, you can query the
prepayment in the Invoices window and change the Prepayment Type to Temporary.
If you use Automatic
Offsets then your setting for the Prevent Prepayment Application Across
Balancing Segments Payables option controls whether you can apply a prepayment
to an invoice or expense report with a different balancing segment.
Reconciling Payments
with Cash Management
If you enable the Account
for Payment When Payment Clears option in the Payables Options window,
Accounting Option tab, the following accounting events generate reconciliation
accounting entries when you submit the Create Accounting process:
*
the delay in the bank
clearing of payments from the time of issuance to the time of reconciliation
*
differences between
the original payment amount and the cleared payment amount due to exchange rate
fluctuations, bank charges, or bank errors
*
reconciled payments
*
unreconciled payments
Important: You can reconcile foreign currency payments that have no
exchange rates. However, Oracle Subledger Accounting will not create
reconciliation accounting entries. If you enter the exchange rate in the GL
Daily Rates table and then submit the AutoRate program, the reconciliation
accounting entries are created for payments that were reconciled without
exchange rates.
Reports
Bank Account Listing
Use this report to review
information for each internal bank account you use. Payables provides detail
information about each bank, bank branch, bank account, and payment document
that you have defined.
Cash Requirement Report
Use the Cash Requirement
Report to forecast your immediate cash needs for invoice payments. You can
submit this report before every pay run to determine your cash requirements for
the run. You can also submit this report for the next two or three pay runs to
forecast your cash requirements for the future and improve your cash
management.
Discounts Available
Report
Use the Discounts Available
Report to identify payments where you can take advantageous discounts. If you
find that you are losing discounts, you can change your system and supplier
defaults and modify your pay run selection criteria to make sure that you take
all valid discounts.
Discounts Taken and Lost
Report
Use the Discounts Taken and
Lost report to identify payments for which you could have taken a discount, but
did not. If you find that you are losing discounts, you can change your system
and supplier defaults and modify your pay run selection criteria to make sure
that you take all valid discounts.
Final Payment Register
Use the Final Payment
Register to list each payment that was included in a pay run. The report lists
each payment in a pay run, including setup, overflow, and subsequently voided
payment documents, in ascending order by payment number.
Payment Audit by Voucher
Number Report
Use the Payment Audit by
Voucher Number Report to review payments with assigned sequential voucher
numbers. If you enable the Sequential Numbering profile option, either you or
Payables can assign a unique, sequential number to each payment you create. You
can also use this report to review assigned and available voucher numbers for
the sequence name you specify, as well as sequential numbers that have been
deleted.
Payment Exceptions
Report
Use this report to review
exception payments in Payables. This report provides you with a
state-of-the-system listing of the exception payments in Payables at any
time. Exception payments are payments
that your bank has: Not yet cleared, Cleared for an amount different from the
payment amount, Cleared before the payment date, Cleared, but the payment is
void in Payables.
Payment Gain & Loss
Report
For each payment that has
both a gain and a loss, Payables lists each currency exchange rate gain and
loss included in the payment. Use this
report if you need to know the exact gain or loss for an invoice in a payment,
or how the total gain and loss of the payment is distributed across a payment’s
invoices.
Payment Register
Use the Payment Register to
review payments created for each bank account you use during a time period you
specify. The report lists each payment, as well as the total payment amount and
cleared amount of all payments.
Positive Pay File
A positive pay file is a
security measure in the form of a document that the deploying company sends to
its payment system or bank to inform it of payments made by check. When you
print checks, then you can electronically transmit a list of payments to the
bank or payment system that indicates the checks you printed, so the bank or
payment system knows what checks to pay. This list prevents the payment system
or bank from paying fraudulent checks, since such checks are not listed on the
positive pay file.
To generate and transmit
the positive pay file when checks are printed, select the Automatically
Transmit File check box under the Positive Pay Region, Reporting subtab, of the
Update Payment Process Profile page.
Payment Process Request
Status Report
Use the Payment Process
Request Status Report to review the payments Payables will create when you
format payments for the invoices in a pay run.
Separate Remittance
Advice
Separate remittance advice
is a document that lists the invoices paid with a particular payment. You can
specify the format for the separate remittance advice document and the delivery
method.
To specify when or for
which payments remittance advice is generated, select an option from the
Condition drop-down list under the Separate Remittance Advice Region, Reporting
subtab, of the Update Payment Process Profile page.
*
Number of Documents
option: indicates the number of payments that must be included in a payment
instruction for the system to generate separate remittance advice for the
included payments.
*
The Payment Detail
Length option: indicates the minimum payment detail length required to generate
separate remittance advice for a payment.
Stop Payments Report
Use the Stop Payments
Report to review all current stop payments. Payables does not list any stop
payments which were initiated, but then released, or voided at a later time.
Supplier Payment History
Report
Use the Supplier Payment
History Report to review the payment history for a supplier, or a group of
suppliers with the same supplier type.
Unclaimed Property
Report
This report identifies
uncleared payments and is useful where you need to identify unclaimed property
that must be escheated to a designated authority.
Void Payment Register
Use the Void Payment
Register to obtain a listing of void payments. The Void Payment Register
provides you with payment and supplier information for each void payment.
Payment Terms
Payables Responsibility
(N) Setup > Invoice >
Payment Terms
Using Payment Terms
In the Payment Terms
window, you can create an unlimited number of payment terms. Payment terms have
one or more payment term lines, each of which creates one scheduled
payment. Each payment term line and each
corresponding scheduled payment have a due date or a discount date based on one
of the following:
*
a specific day of a
month, such as the 15th of the month
*
a specific date, such
as August 15, 2007
*
the number of days
added to your terms date, such as 14 days after the terms date
*
a special calendar
that specifies a due date for the period that includes the invoice terms date.
Only due dates can be based on a special calendar. Discount dates cannot be
based on a special calendar.
Each payment term line also
defines the due or discount amount on a scheduled payment. When you define
payment terms, you specify payment amounts by percentages or by fixed amounts.
After you define payment terms, you can select default payment terms that
Payables automatically assigns to the suppliers and supplier sites you enter.
The payment terms for a supplier site default to the invoices you enter for the
site.
Defining Payment Terms
Name. Enter a unique payment term name and a description. Use
names that make it easy to identify the usage of payment terms. For example,
use 1/10 Net 30 to refer to a payment term which indicates you receive a 1%
discount if you pay within 10 days and the invoice is due in 30 days. This name
will appear on a list of values with the description whenever you select a
payment term.
Description. Description of payment term.
Cut-off Day. For Day of Month terms only, the day of the month, after
which the due and discount dates of the scheduled payment will be in a future
month. The exact month depends on the value you enter for the Months Ahead
field. Payables compares the invoice
terms date to the Cut-off Day. If you leave this field blank, Payables always
uses the current accounting month to determine the due and discount dates.
For example, suppose your
Cut-off Day is 11, your Months Ahead is 0 (zero), and your Day Of Month due
date is 15. If you enter an invoice with a payment term date of January 12,
Payables will set the due date for February 15.
Note: If you use due Days or Fixed Date terms, do not enter a
cut-off day.
Rank. If you enable Recalculate Scheduled Payment, enter a unique
value to rank your invoice terms. One is
the highest rank. Payables uses ranks to
choose the most favorable payment terms from the invoice and purchase order. During Invoice Validation, Payables
recalculates the scheduled payment using the most favorable terms only if the
Recalculate Scheduled Payment Payables option is enabled.
Effective Dates Region
[From To]. If you want to make this
payment term valid on a certain date, enter that date in the Effective Dates
From field. If you want to make this payment term invalid on and after a
certain date, enter that date in the Effective Dates To field.
Due Subtab
Enter one of the following
to determine the portion of an invoice due on the scheduled payment:
*
% Due - The portion of
an invoice due. The total of your scheduled payment lines must equal 100%. You cannot combine percentages due and
amounts due for one set of payment terms.
*
Amount - For amount
due terms only, enter the amount due. Typically amount due terms have more than
one payment term line since you must specify zero as the amount on your last
payment term line. Payables uses the
zero amount payment line to determine the remaining amount due on the last
scheduled payment.
Enter one of the following to determine the
due date on the scheduled payment line:
*
Calendar - If you
enter a value in the Calendar field, Payables determines due dates for
scheduled payments by using a special calendar. A special calendar is divided
into periods, and each period has a due date assigned to it. When you assign
due dates to the periods of a payment terms calendar, you can avoid weekends
and holidays. You can define special calendars for payment terms in the Special
Calendar window.
*
Fixed Date - Specific
month, day, and year on which a payment term is due.
*
Days - Payables adds
this number of days to the invoice terms date to determine the due or discount
date on your scheduled payment line. Note:
You cannot enter values in the Day of Month and Months Ahead fields for a
payment term line if you enter a value in this field.
*
Day of Month/Months
Ahead
-
Day of Month -
Payables uses the value you enter to calculate a due or discount date for a
scheduled payment. For example, enter 15
to have Payables schedule payment for the 15th day of the month. Enter 31 if you want Payables to schedule
payment for the final day of the month, including months with less than 31
days.
-
Months Ahead - For Day
of Month terms only. Payables uses the value you enter in conjunction with the
Cut-off Day you enter to calculate the due or discount date of a scheduled
payment line. If you enter zero (0) in this field and the terms date of an
invoice is the same as or later than the Cut-off Day, then Payables uses the
day in the Day of Month field for the next month as the due date of an invoice
payment line. If you enter 1 in this field, Payables uses one month beyond the
next month as the due date. Note:
You cannot enter a value in this field if you enter a value in the due Days
field.
First Discount, Second
Discount, and Third Discount Subtabs
If you are using discount
terms, define payment term lines in the First, Second, and Third Discount
subtabs. Define discounts so that the
first discount has an earlier discount date than the second, and so on. You can
realize only one discount on a payment term line.
Enter one of the following
to determine the portion of the invoice to discount on the scheduled payment: %
Due or Amount.
In the % Discount field,
enter the discount percent. Payables uses the percentage you enter to calculate
the discount amount available for a scheduled payment. Payables multiply this
percentage with the amount due on the scheduled payment line to determine the
discount amount available on the scheduled payment line.
Note: In the Second and Third Discount subtabs, you can enter
second and third discount percentages for discounts available if you miss the
first discount date. Do not enter a value in this field if there is no discount
available.
Enter one of the following
to determine the due date on the scheduled payment line: Days, Day of Month, or
Months Ahead.
Managing Cash
Requirements
For various reasons, there
may be times when your organization does not have the necessary cash to pay the
invoices selected. Several options exist to manage your cash requirements so
that they better match the cash you have available. These options are discussed below.
Run Cash Requirement
Report
Use the Cash Requirement
Report to forecast your immediate cash needs for invoice payments. You can
submit this report:
*
before every pay run
to determine your cash requirements for the batch
*
for the next two or
three pay runs to forecast your cash requirements for the future and improve
cash management
Narrow Selection of
Invoices in Pay Run
Although you can review
invoices and payments that have been selected for a particular pay run, larger
cash flow problems can be more efficiently handled by altering the invoice
selection criteria for the pay run. Options include:
*
Additional Pay Through
Days - The defaulted date is created by referencing the Additional Pay Through
Days setting on the Scheduled Payment Selection Criteria tab in the Create
Payment Process Request Template page. This selection criteria is typically set
to coincide with the frequency of your pay runs. For example, if you process
pay runs twice a month, you would probably specify the Additional Pay Through
Days field with a value 15. In times of low cash availability, you can change
this value to 7 to pay only those invoices due in the next 7 days rather than
the next 15.
*
Payment Priorities High/Low
- You may not normally use this criteria during invoice selection. If, however,
you have assigned priorities to your suppliers appropriately, you may reduce
the number of invoices selected for payment by establishing selection criteria
for your higher priority suppliers to prevent delayed delivery of goods or
services critical to your operations.
*
Include Only Due -
Payables selects invoices with due dates that fall within the Number of Pay
From Days and Additional Pay Through Days. These invoices may be ones that are
being paid within a discount period or simply when due. You may choose to
override the Pay Date Basis on supplier records for a particular pay run by
enabling the Include Only Due option. The system then drops invoices from the
pay run that were being paid within a discount period, thereby foregoing the
discount available.
*
Payment Limits - You
can further manage your cash requirements by lowering the maximum dollar
amounts set for a total pay run (Maximum Outlay) or for an individual payment
within the pay run (Maximum Payment), regardless of the number and dollar
amount of the invoices comprising the payment.
Be certain that you’re
aware of the impact that these changed selection criteria will have on your
organization. In the case of paying only invoices due in the subsequent week,
consider when and how you will be able to get back to a regular schedule. Also,
review the Discounts Available Report so that you’ll be aware of the cost of
foregoing these discounts and paying the full amount on the due date.
Internet Expenses
Overview
Oracle Internet Expenses
helps employees to enter and submit expense reports using a computer or
standard Web browser, Web-enabled mobile device, or Excel spreadsheet.
*
Oracle Internet
Expenses integrates with Oracle Payables to provide quick processing of expense
reports for payment.
*
Oracle Workflow
automatically routes expense reports for approval and enforces reimbursement
policies.
Internet Expenses
Overview
Advantages of Using
Oracle Internet Expenses
Internet Expenses
streamlines and automates expense management for a higher return on investment.
*
It reduces
administrative costs and data entry errors since data entry is streamlined and
accessible anywhere online (mobile, desktop, browser) or offline (spreadsheet).
*
It enforces spend
policy to control expenses, showing any policy deviations.
*
It eliminates
expensive IT customizations through global accommodation for local statutory
regulations and automates audit management, conserving staff for analytical work
and providing better information to management.
*
It increases
productivity when employees can flexibly create expense reports using a
standard Web browser, a connected Web-enabled mobile device, a disconnected
spreadsheet, and/or downloaded credit card transactions.
*
It improves cycle
times by routing expense reports via workflow.
*
It increases employee
satisfaction when their status-related questions can be self-answered within
the application.
*
Expense
Reporting Process
*
You create and submit
an expense report using Oracle Payables or Oracle Internet Expenses. The basic
expense reporting process is as follows:
*
1. The Employee submits an expense report.
*
2. The Expenses Workflow notifies the approving
authority for online review.
*
3. If the report is rejected, the Rejection
process notifies the employee by email.
You can access and update the rejected expense report from Payables, if
you submitted the expense report from Payables, or from Internet Expenses if
you submitted the expense report from Internet Expenses.
*
4. For Payables approvals, the Payables
Approval process determines whether a report requires audit. It automatically
approves if audit is not needed. The
audit rules determine whether audit is required. If required receipts are missing or there are
questions about policy compliance, auditors can request more information,
shortpay, reject or adjust the expense report.
For all cases, notifications are sent to the preparer.
*
5. After manager and/or accounts payable
department approval, the Expense Report Export program converts the expense
report into an invoice. In Oracle Payables, the system either creates the
payment or it prints the Invoice Export Exceptions Report for expense reports
that cannot be imported and have to be resubmitted.
*
6. The employee is notified and receives
payment by check or direct deposit, depending on the company policy or setup.
*
Entering
Expense Reports
*
You can enter expense
reports in either Oracle Payables or Oracle Internet Expenses. This module
focuses on entering expense reports in Payables only.
*
It is important to
note that although the expense report process is similar in these applications,
that if you enter expense reports in Payables, you can only view and modify
those expense reports in Payables; if you enter expense reports in Internet
Expenses, you can only view and modify those expense reports in Internet
Expenses.
*
To enter expense
reports in the Payables Expense Reports window:
*
*
1. Either enters the employee name in the Employee
field or the employee number in the Number field.
*
2. Optionally change the GL Account, which
defaults from the employee record.
*
3. In the Send to field, optionally change the
location to which you want to send payment for the expense report. You control
the default expense address in the Financials Options window.
*
4. In the Date field, enter the period ending
date for the expense report. Payables uses this date as the GL Date for invoice
distributions created from the expense report. When you submit Expense Report
Export you have the option to override this date.
*
5. Enter an Invoice Number, or Payables will
enter the invoice date or the expense report date as the Invoice Number. Enter
a Description of the expense report. This will become the invoice description,
and it will appear on reports.
*
6. Enter the total Amount of the expense
report. Payables will confirm that the sum of the item amounts matches this
amount.
*
7. If you enable the Reviewed By Payables check
box, this indicates that receipts are not required for this expense report.
Consequently, the Receipt Verified check box in the Expense Audit tabbed region
becomes non-updatable.
*
8. Enter the expense report Template you want
to use. If a default template is defined in the Payables Options window and the
template is active, then Payables displays that default template. The template
determines which items you can select. The template also might provide default
values for Type, Includes Tax, and GL Account. During Expense Report Export,
Payables creates invoice distributions from the lines.
*
9. For each line on the expense report, select
the line and enter the amount. Optionally update the GL Account. The default GL
Account for each item line is the GL Account for the employee overlaid with any
segments defined on the template for the expense item. As with invoices, taxes
are automatically calculated for the Expense report using the Oracle E-Business
Tax setup.
*
10. Save your work.
*
To enter an expense
reports in Payables’ Invoices window, ensure that invoice Type = Expense
Report.
*
You must use the
Invoices window to enter project-related expense reports in the Invoices
window. This window captures the necessary project and task related information
required for project-related expense reports.
*
Oracle Internet Expenses
is a self-service application that helps employees to enter and submit expense
reports using a standard Web browser or Excel spreadsheet.
*
Procurement
Card Process
*
The flow pictured in
the slide above illustrates the procurement card process:
*
1. Use a SQL*Loader script to load the
procurement card transactions into the AP_Expense_Feed_Lines_All
*
2. Validate the transactions by submitting the
Procurement Card Transaction Validation program. This program creates default
accounting distributions for procurement card transactions. It also validates
imported transactions and identifies exceptions. Exceptions include:
Transaction loaded for an employee who is not defined in Oracle Payables;
Transaction loaded for a card number that is not defined in Oracle Payables;
Duplicate reference numbers of transactions posted by your card issuer (the
reference number is the unique number assigned to each transaction by the card
issuer).
*
3. Verify the transactions with the employee by
submitting the Procurement Card Transaction Verification program. This program
initiates the Employee Verification Workflow program and runs based on the
level of notification you define at the card profile level. If verification is
required at the profile level, the employee is able to verify transactions
directly from the workflow notification (for all or none). Alternatively, the employee can use Oracle
Web Employees to verify transactions individually. With Oracle Web Employees,
you can also verify transactions using different statuses, update the default
cost center, account for a transaction, and split a transaction. If
verification is not required at the profile level, the employee receives a
notification that requires no action (unless notification level is set to
None).
*
4. Send the transactions for management
approval by submitting the Procurement Card Transactions Approval Process. This
program initiates the Manager Approval Workflow program and runs based on the
level of notification you define at the card profile level. If approval is
required at the profile level, the manager can only approve or reject
transactions directly from the workflow notification. If approval is not
required, the manager receives a notification that requires no action (unless
notification level is set to None).
*
5. If the transactions need to be adjusted,
procurement card administrators can adjust them or create transaction
distributions using the Procurement Card Transactions window.
*
6. Once the transactions are approved, create
invoices for the transactions by submitting the Create Procurement Card Issuer
Invoice program. This program moves the transaction data from the
AP_EXPENSE_FEED_DISTS_ALL table to the AP_INVOICES_INTERFACE and
AP_INVOICE_LINES_INTERFACE tables. Then, submit the Payables Open Interface
Import program to move invoices into Oracle Payables where they can be
validated and paid.
*
Setting Up
Procurement Cards and Credit Cards
*
Use the Card Programs
window and the Credit Cards window to set up your credit cards, which are used
for employee expense reports, and your procurement cards, which are used by
qualified employees to purchase items directly from suppliers. If you are using
Internet Expenses, there are additional setup steps. See: Establishing
Corporate Credit Cards, Oracle Internet Expenses Implementation and
Administration Guide.
*
Code Sets
Window
*
Your card issuer
maintains card codes, for example, Standard Industry Classification (SIC) codes
or Merchant Category Codes (MCC), to identify suppliers and supplier types for
the transactions that your employees incur when using a procurement card.
*
You can assign a
default account to a card code so that when you import a transaction for that
card code, you can create a default accounting distribution for the transaction
based on the card code for the transaction.
*
You define sets of
credit card codes in this window. You assign credit card code sets to credit
card profiles. You then assign credit card profiles to credit cards.
*
Key Processes
Create Accounting
Process
The parameters you use when
you submit the Create Accounting program determine how accounting entries are
transferred to the ledgers in your general ledger. Accounting can be created in draft or final
mode. You can transfer subledger accounting entries in summary or detail.
Regardless of the option you choose, you can always drill down to the subledger
to view the details that build the general ledger balances.
Create Accounting –
Draft
If you submit the Create
Accounting in Draft mode, you can review the subledger accounting entries generated
for your Payables transactions. If any accounting is incorrect, you can update
the transaction in Payables to correct the accounting before you create final
accounting.
Create Accounting –
Final
Run the Create Accounting
process in Final mode to generate your final subledger accounting entries. Once
you generate final accounting, you cannot correct the accounting. Instead, you
must enter correcting transactions in Payables.
Integration with Other
Applications
Other applications that
integrate with Oracle Payables such as Oracle Assets, Oracle Procurement,
Oracle Projects, and Oracle Inventory now provide Payables-related accounting
information to Oracle Subledger Accounting. Invoice Lines and Distribution
details continue to be provided to Payables directly.
Transfer Journal Entries
to GL
Submit the Transfer Journal
Entries to GL process to transfer accounting information from Oracle Subledger
Accounting to the GL Interface. The Transfer Journal Entries to GL process
transfers summary or detail accounting activity for any open period into the
general ledger interface. When more than one period is open, the transfer
selects transactions from the first open period up to the entered transfer
date, and passes the correct accounting date and financial information into the
general ledger interface.
Journal Import
Once subledger accounting
entries are transferred to the GL Interface table, use the Journal Import
process to import accounting information from the GL Interface to the general
ledger.
Posting Journals
Use the post journals
process to update the account balances of your detail and summary accounts. You
can post actual, budget, or encumbrance journal batches.
Overview of the Period
Close
*
At the end of each
accounting period, companies must complete the closing process in Payables and
reconcile Payables activity for the period.
*
You close a Payables
period after you have completed subledger accounting for transactions for the
period and you have transferred the subledger accounting entries to general
ledger.
A week before your first
period close, create a copy of the production database and then do a dry run
following your period close procedures.
The dry run will help you identify problems and issues well in advance
of the actual period close.
Prepare for Period Close
Complete all receipt
processing
Process all possible
receiving transactions so when remaining invoices are matched, Invoice
Validation will place fewer matching holds.
Use the Transaction Status Summary window to ensure all receipts were
processed and that none have a status of Error.
This form looks like a view only form, however, you can delete records
so they may be re-processed. Receipt
Accruals are not generated for errored transactions so make sure you do not
skip this step.
Confirm or cancel all
pending pay runs
Pay runs must be either
confirmed or canceled or you will not be able to close the period. After all activities relating to pay runs are
completed, process any manual payments, and Quick Payments. Also, process any stop or void payments.
Update matured bills
payable
If you use bills payable
(future dated payments), either manually update the payment status or use the
Update Mature Bills Payable Status program to update the status of any bills
payable that have reached their maturity date, but still have a status of
Issued.
Import invoices
Process any invoices that
are loaded through the Payables Open Interface with the Payables Open Interface
Import program. Review the exceptions
report and resolve any invoice related issues.
Typical types of invoices that are imported through this open interface
include:
*
EDI inbound invoices
(810)
*
Invoices from external
systems
*
Invoices created from
credit card transactions if using procurement cards
*
Advance Shipment and
Billing Notices (ASBNs)
Export and process
expense reports
Process any expense reports
that are entered using the Payables Expense Reports window as well as invoices
coming from external sources.
Interface adjustments to
supplier invoices to payables
If you are using Projects,
you will most likely be updating project balances with invoices entered in
Payables through the accounting period.
Final adjustments to supplier invoices like reclassifying from project
to project or task to task, should be interfaced back to Payables using the
PRC: Interface Supplier Invoice Adjustment Costs to Payables program. For
adjustments to expense reports, use the PRC: Interface Expense Reports from
Payables in Oracle Projects program. These programs are submitted in Projects.
Reconcile bank
statements
Reconcile any outstanding
bank statements. Depending on how your
Payables Options are set up, you may generate clearing events when you
reconcile payments. When you run the Create
Accounting process, the accounting will be generated and subsequently sent to
the General Ledger during the Transfer Journal Entries to GL process.
Run Validation/Review
and Resolve Holds
Run the Invoice
Validation Process
The Invoice Validation
process attempts to validate invoices and remove any existing holds. Some invoices may be placed on hold and not
validated. If an invoice contains a
system hold manually correct the problem that caused the hold and then rerun
the Invoice Validation process to remove the hold. All user defined holds must be manually removed.
Resolve Invoice Holds
*
Matching Hold Detail
Report - Use the Matching Hold Detail Report to review detailed accounts
payable and purchasing information for invoices with matching holds and
matching hold releases.
*
Invoice on Hold Report
- Use the Invoice on Hold Report to review detailed information about invoices
on hold. You can submit the Validation process before submitting this report to
obtain the most up-to-date hold information.
Rerun the Invoice
Validation Process if Necessary
For many system holds it
will be necessary to fix the problem that caused the hold. Rerun the Invoice Validation process after
resolving any invoice hold issues to update the status of the invoice to
Validated.
Create Subledger
Accounting
Create subledger accounting
entries for invoice and payment transactions in Payables using Oracle Subledger
Accounting.
Before you can account for
transactions, the following conditions must be met:
*
Invoices must complete
Invoice Validation and must have no holds that prevent accounting. You can
define whether a hold prevents accounting in the Invoice Hold and Release Names
tab. The system also defines several holds that prevent accounting. You can
review these holds in the Invoice Hold and Release Names tab.
*
Payments must have all
their invoices accounted first.
There are two ways to
create subledger accounting entries for invoice and payment transactions:
*
Create online
accounting for a single transaction, invoice batch, or pay run. To do this,
select the transaction, and use the Actions button to launch the Create
Accounting process.
*
Submit the Create
Accounting process from the Submit Requests window. You can schedule this
process to run periodically. If you set the process to provide Detailed
information, the process lists any transactions that accounted with errors.
Review all unaccounted transactions, correct the problems, and resubmit the
accounting process.
After you create subledger
accounting entries, you can view them in the View Accounting window.
You can update subledger accounting
entries in Payables only if you create draft accounting entries. If you
review the draft accounting entries and notice that the accounting is
incorrect, you can correct the underlying transaction, and recreate the
subledger accounting entries. You cannot adjust accounting once you create
final accounting entries. Instead, create an adjusting transaction or create a
manual journal entry.
Create Accounting
Program
The Create Accounting
program:
*
Validates and creates
subledger journal entries
*
Transfers the final
journal entries in the current batch run to General Ledger and starts the
General Ledger posting process
*
Generates the
Subledger Accounting Program Report, which documents the results of the Create
Accounting program
The program has the following
parameters:
Ledger. Required; limits accounting events selected for processing
to those of a particular ledger.
Process Category. Optional; restricts the events selected for accounting to
a particular process category.
End Date. Required; end date for the Create Accounting program;
processes only those events with event dates on or before the end date
Mode. Required; determines whether the subledger journal entries
are created in Draft or Final mode
Errors Only. Required; limits the creation of accounting to those
events for which accounting has previously failed
Report. Required; determines whether to generate a report showing
the results of the Subledger Accounting program in summary or detail format
Transfer to General
Ledger. Required if Mode is set to Final;
determines whether to transfer the subledger journal entries to General Ledger.
Post in General Ledger. Required if Mode is set to Final or Create Accounting is
set to No; determines whether to post subledger journal entries in General
Ledger.
General Ledger Batch
Name. Optional; user-entered batch name
that appears on the transferred General Ledger subledger journal entries.
Transfer to GL option must be set to Yes.
Include User Transaction
Identifiers. Required; controls whether
the report displays user identifiers' names and values.
This program generates the
Subledger Accounting Program Report. This report lists the following:
*
Successful events and
the subledger journal entries created for those events
*
Errors for failed
events
You can run the report in
summary or detail mode as follows:
*
Summary mode provides
a summary of events processed and detailed information about their errors.
*
Detail mode provides
details of subledger journal entries generated from the processing of completed
events and a detailed error report.
*
Transfer and
Review
*
Run Transfer
Journals to General Ledger
*
The Transfer Journal
Entries to GL program is used to transfer accounting entries from Subledger
Accounting to General Ledger.
*
The Transfer Journal
Entries to GL process automatically generates the Transfer Journal Entries to
GL report. It shows the results of the
Transfer Journal Entries to GL process.
*
To obtain a detailed
report of accounting entries that were transferred to the general ledger, use
the Journal Entries Report with the appropriate date range and GL Transfer
Status parameters.
*
Review Transfer
Results
*
You can use the
Subledger Accounting Program Report, the Transfer to Journal Entries to GL
Report, and the Period Close Exception report to review the subledger accounting
entries and review any unaccounted transactions.
*
Run Import
Journal
*
Run the Import Journal
process after submitting Transfer Journal Entries to GL, in order to create
unposted journal entries in General Ledger. This process must be submitted from
General Ledger.
*
Review Account
Analysis Report
*
Run the Account
Analysis report in General Ledger to review and analyze accounting
entries. You can use the report
parameters to limit the report to just the accounting information you want to
review.
Transfer Journal Entries
to GL Program
The Transfer Journal
Entries to GL program consists of a subset of parameters used in the Create
Accounting program as listed below:
*
Ledger
*
Process Category
*
End Date
*
Post in General Ledger
*
General Ledger Batch
Name
The Transfer to Journal
Entries to GL Report is generated by the Transfer Journal Entries to GL program
and lists the following:
*
Transfer to GL Summary
*
General errors
*
Post Journal
Entries in GL
*
Post Journals
in GL
*
Once journals are
imported into General Ledger, post them.
*
Create
Remaining Mass Additions
*
Run the Mass Additions
Create program after Payables subledger accounting entries have been
transferred to General Ledger (the journals do not need to be
posted). Especially if the volume of
your asset purchases is high, the Mass Additions Create program will typically
be run several times throughout the accounting period so distributions
associated with the purchase of assets may be processed. Subledger accounting entries (based on
information in the invoice lines and distributions) are transferred, and they
become journal entries in GL. Keep in
mind that it is not mandatory that all invoices for asset purchases be
processed during the period in which the asset was purchased. For example, invoices entered in May for
assets purchased in January will be processed in Assets as prior period
additions if they were actually placed in service in January.
Reconcile AP to GL
Use the following reports
to reconcile your transferred invoices and payments to your Accounts Payable
Trial Balance to ensure that your Trial Balance accurately reflects your
accounts payable liability:
*
Accounts Payable Trial
Balance (for last day of prior period)
*
Payables Posted
Invoice Register - Invoice journals must be posted in general ledger to appear
on this report.
*
Payables Posted
Payment Register - Payment journals must be posted in general ledger to appear
on this report.
*
Accounts Payables
Trial Balance (for last day of current period)
This balancing process will
help you ensure that all liabilities recorded in Payables are reflected in the
general ledger AP liability accounts. If
the balance reported by the accounts payables trial balance does not equal the
balance in the AP liability account, you can use the Account Analysis report
and the General Ledger reports to determine what journals are being posted to
that account. Before running your
reports, run the Transfer Journal Entries to GL Program for all transactions in
the period that you are reconciling.
Also, be sure to post the transactions in the general ledger.
Close the AP Period
Period Close Exceptions
Report
Use the Period Close
Exceptions report to review a complete list of exceptions that are preventing
the close of a selected accounting period. Submit this report to review a complete
list of exceptions that are preventing you from closing a Payables accounting
period. This report lists, for each organization within the set of books, the
following exceptions:
*
Outstanding Pay Runs
*
Accounting Entries not
Transferred to General Ledger
*
Bills Payable
Requiring Maturity Event and Accounting
*
Unaccounted Invoices
*
Unaccounted
Payments
Correct any exceptions
before you close the AP period.
Close the AP Period
Use the Control Payables
Periods window to close the AP period.
Close the PO Period
Review the Unnoticed
Receipts report
The Uninvoiced Receipts
Report should be run before the Receipt Accrual - Period-End process. With this
report, you can review all or specific uninvoiced receipts for both period end
and online accruals. Uninvoiced receipts
are goods and services you have received that your supplier did not invoice
yet. This report indicates exactly what you have to accrue and for what amount,
and helps you analyze your receipt accrual entries. The accrual amount is the
difference between the quantity received and the quantity billed multiplied by
the unit price of the item.
Process period-end
receipt accruals
Use the Receipt Accruals -
Period-End process to create period-end accruals for your uninvoiced receipts
for Expense distributions. Purchasing
creates an accrual journal entry in your general ledger for each uninvoiced
receipt you choose using this window. Each time you create accrual entries for
a specific uninvoiced receipt, Purchasing marks this receipt as accrued and
ignores it the next time you run the Receipt Accrual - Period-End process.
Purchasing creates accrual entries only up to the quantity the supplier did not
invoice for partially invoiced receipts.
Once the Receipt Accruals -
Period-End process completes, use Transfer Journal Entries to GL program from
Receiving to transfer the subledger journal entries to General Ledger. The
journal is assigned a reversal period based on the category setup. This journal
must be reversed in the subsequent period and posted. If the journal is not reversed and posted,
your uninvoiced receipt liability will be overstated.
Close the purchasing
period
Use the Control Purchasing
Periods window to control the purchasing periods defined in the Accounting
Calendar window. Purchasing lets you
create journal entries only for transactions you enter in an open purchasing
period. Use the Control Purchasing
Periods window to change the status of the period to Closed. Once the Purchasing period is closed, the
corresponding Payables period cannot be re-opened unless the purchasing period
is re-opened. Each period in the
purchasing calendar will have one of the following statuses:
*
Closed - When you
close a purchasing period, Purchasing does not allow further accruals during
the period. Purchasing reverses the status of accrued purchase order lines that
are set to accrue at period end so that you can accrue them in the next period
if you need to.
*
Future - Use this
option if you want to open the purchasing period in the future. This option is
available only when the current status is Never Opened.
*
Never Opened -
Purchasing displays this default status if you have not opened the period in
the past.
*
Open - Use this option
to open the purchasing period.
*
Permanently Closed -
Use this option if you do not want to re-open the period in the future. This
option is irreversible.
Process remaining
inventory transactions
Process any remaining
inventory transactions and close the inventory accounting period.
Run Accrual Reports
Run the accrual reconciliation load program and
then use the following reports to analyze the balance of the accrual accounts.
1. Summary Accrual Reconciliation Report
2. AP and PO Accrual Reconciliation Report
3. Miscellaneous Accrual Reconciliation Report
4. Accrual Write-Off Report
5. WIP Accrual Write-Offs Report. Note that this report only shows WIP write-offs that were performed in prior releases.
1. Summary Accrual Reconciliation Report
2. AP and PO Accrual Reconciliation Report
3. Miscellaneous Accrual Reconciliation Report
4. Accrual Write-Off Report
5. WIP Accrual Write-Offs Report. Note that this report only shows WIP write-offs that were performed in prior releases.
You can also use the following windows to view
write-off details:
1. AP
and PO Accrual Write-Off
2. Miscellaneous Accrual Write-Off
3. View Write-Off Transactions
Write off accrued transactions as necessary
2. Miscellaneous Accrual Write-Off
3. View Write-Off Transactions
Write off accrued transactions as necessary
After you have researched
the reported accrual balances, you can use the Accrual Write-Offs window to
indicate which entries you wish to remove and write off from this report.
Do not create manual
journal entries for write offs since the journal entries will be automatically
created against the write off transaction in the costing subledger.
Key Accounts
Receiving Inventory
Account
The Receiving Inventory
Account is a clearing account. The
account is used for perpetual (on receipt) accruals. After receiving transactions are processed
and the Transfer Transactions to GL process is run, the Receiving Inventory
Account is cleared and the Material account is charged with the cost of the
capitalized inventory. Specify this
account when you define Receiving Information for your inventory organizations.
Inventory AP Accrual
This is the account used by
Purchasing to accrue your payable liabilities when you receive items you will
capitalize as inventory. This account represents your uninvoiced receipt
liability and is usually part of your Accounts Payable Liabilities in the
balance sheet. Payables relieves this account when the invoice is matched and
validated. Specify this account when you
define Inventory Information for your inventory organizations in the Other
Accounts tab.
AP Liability
This defaults from the
supplier site and is credited when a standard invoice is entered or debited
when a credit memo or debit memo is entered.
The account is relieved when the invoice is paid.
Expense AP Accrual
This is the account used by
Purchasing to accrue your payable liabilities when you receive items you will
expense. This account represents your
uninvoiced receipt liability when you run the Receipt Accruals - Period End
process. Specify this account on the
Accrual tab when you set up Purchasing Options.
Material
An asset account that
tracks material cost. For average costing, this account holds your inventory
and in transit values. Once you perform transactions, you cannot change this
account. Specify this account when you
define Inventory Information for your inventory organizations in the Valuation
Accounts region for the Costing Information tab.
Charge Account
This is the charge account
is the account that will be charged for the purchase on either the balance
sheet or income statement. If the
destination type for the distribution is Inventory, this account will be the
Material account associated with the subinventory and you cannot override
it. This is the balance sheet account
that will be charged after inventory is capitalized. If the destination type is expense, you can
specify this account (provided it isn’t project related) and override any
defaults. This account will be either an
asset clearing account that will be included on the balance sheet or an expense
account that will be included on the income statement. This account is either created or specified
when you create a purchase order.
Purchase Price Variance
This account is used to
record differences between purchase order line price and standard cost. The
Purchase Price Variance is calculated when items delivered to inventory are
costed. This account is not used with
the average cost method. For example,
assume the purchase order line price for an item was set at $10 per item but
standard cost was set to $12 per item and you purchased 10 items. The Purchase Price Variance would be $20.
Specify the Purchase Price Variance account when you define Inventory
Information for your inventory organizations in the Other Accounts tab.
Invoice Price Variance
The variance account used
to record differences between purchase order price and invoice price. This
account is used by Payables to record the invoice price variance for inventory
items. For expense items, the account
generator uses the charge account to record any invoice price variance. For
example, assume the purchase order line price for an item was set at $10 per
item but you were charged $12 per item and you purchased 10 items. The Invoice Price Variance would be $20. Specify this account when you define
Inventory Information for your inventory organizations in the Other Accounts
tab.
Accrual Accounting -
Perpetual Accrual (On Receipt)
Enter purchase order (1)
When you enter a purchase
order, accounts are created and stored with the purchase order
distribution. The accounts will
eventually be used as a basis for creating accounting that is sent to the
general ledger. Creating a purchase
order in and of itself generates no accounting that is sent to the general
ledger.
Receive (2)
When you accrue on receipt,
processing a receiving transaction automatically sends a receipt accrual to the
general ledger. The Receiving
Inventory Account is debited (quantity x purchase order line unit price) and
the Inventory AP Accrual account (uninvoiced receipts account) is credited the
same amount. Run the Import Journal
process with a source of Purchasing to create unposted journals in the general
ledger.
Deliver and cost (3)
After delivering to the
final destination, the Receiving Inventory Account is cleared and the
Material account is debited. If you
use standard costing, the Material account is debited with the standard cost
of the item and any difference is charged to the Purchase Price Variance
account.
Period end accrual (4)
When items are accrued on
receipt, no period-end accrual is generated by the Receipt Accruals -
Period-End process. The receipt accrual
is automatically generated when the receipt is processed.
Invoice and match (5)
Entering an invoice and
matching creates a debit to the Inventory AP Accrual account to clear the
liability for the uninvoiced receipt (you now have an invoice). The credit is to
the AP Liability account that defaults from the supplier site if the invoice
unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice
Price Variance account. For items
with destination type of Inventory, the Invoice Price Variance account will be
the Invoice Price Variance account specified when you defined Inventory
Information for your inventory organizations in the Other Accounts tab. The AP Liability account is cleared when the
invoice is paid.
Enter purchase order (1)
When you enter a purchase
order, accounts are created and stored with the purchase order
distribution. The accounts will
eventually be used as a basis for creating accounting that is sent to the
general ledger. Creating a purchase
order in and of itself generates no accounting that is sent to the general
ledger.
Receive (2)
When you process a receipt,
no accounting is created for period end accruals. Receipts that are accrued at period end will
always be for a destination type of expense.
Deliver and cost (3)
When you deliver a receipt
to its final destination, no accounting is created. The expense will be recorded after matching
to the purchase order, running the Create Accounting process and subsequently
running the Transfer Journal Entries to GL process.
Period end accrual (4)
If an invoice is not entered
by period end, the Receipt Accruals - Period End process will generate accruals
and transfer the accounting for them to the GL Interface. Use the Import Journal program to create
unposted journals. This journal is
created with a reversal date in a subsequent period. The journal must be reversed so your receipt
liability is not overstated.
Reverse accrual in the
general ledger (5)
In the subsequent period,
reverse the prior period accrual.
Invoice and match (6)
Entering an invoice and
matching creates a debit to the Inventory AP Accrual account to clear
the liability for the uninvoiced receipt (you now have an invoice). The entire credit is to the AP Liability
account that defaults from the supplier site if the invoice unit price is
the same as the purchase order line unit price.
Any difference is charged to the Invoice Price Variance account. For items with destination type of Expense,
the Invoice Price Variance account will be the same as the charge account. The AP Liability account is cleared when a
payment is processed.
The Post Mass Additions
process places the asset in service.
When the Create Accounting process is run in Assets, the charge account
(the clearing account on the invoice distribution) is relieved and the cost
account associated with the asset category is charged for the cost of the
asset.
Accounting for Payments
without Cash in Transit (Cash Clearing)
Enter invoice (1)
A standard, unmatched
invoice entered into Payables will generate a credit to the AP Liability
account and a debit to the charge account specified on the invoice
distribution. For expenses, this will be
an income statement account; for assets that will be capitalized in Assets and
depreciated, this account will be a balance sheet account (asset clearing
account); for inventory received, the account will be the Inventory AP
Accrual account.
Pay invoice (2)
When not using cash
clearing (cash in transit) account with Cash Management or not using Cash
Management, the AP Liability account is cleared when the payment is issued.
Reports
Accounts Payable Trial
Balance
Use the Accounts Payable
Trial Balance Report to verify that total accounts payable liabilities in
Payables equal those in the general ledger. To reconcile these balances you can
compare the cumulative total liability provided by this report with the total
liability provided by your general ledger.
Accrual Rebuild
Reconciliation Report
Use the Accrual Rebuild
Reconciliation Report to analyze the balance of the Accounts Payable (A/P)
accrual accounts. You can accrue both expense and inventory purchases as you
receive them. When this happens, you temporarily record an accounts payable
liability to your Expense or Inventory A/P accrual accounts. When Payables creates the accounting for the
matched and validated invoice, Payables clears the A/P accrual accounts and
records the liability from the supplier site.
Run this report at period end.
Accrual Write-Off Report
Use the Accrual Write-Off
Report to provide supporting detail for your write-off journal entries. The
process is as follows. First, you analyze the Accrual Reconciliation Report for
transactions that you should expense out of the accrual accounts. After you
have researched the reported accrual balances, you then use the Accrual
Write-Off window to indicate which entries you wish to remove and write off
from this report. And, after you have written off these entries, you use the
Accrual Write-Off Report as supporting detail for your manual journal entry.
Matched and Modified
Receipts Report
After you automatically
create invoice distributions by matching an invoice for goods to a receipt,
that receipt can be modified in Purchasing. For example, you might need to
adjust a receipt because the quantity received was incorrectly recorded, or the
product was defective and returned to the supplier. Use this report to identify
receipts that have been changed after invoice matching, and for which no users
have seen modifications.
Account Analysis Report
Run the Account Analysis
report to review and analyze subledger accounting entries from Payables. You can use the report parameters to limit
the report to just the accounting information you want to review. The Account Analysis report is helpful when
you reconcile your accounts with your general ledger.
Payables Posted Invoice
Register
Use the Payables Posted
Invoice Register to review accounting lines, summarized by invoice, that have
been transferred to the general ledger. Because it presents amounts that have
been charged to liability accounts, this report is valid only for an accrual
ledger. The Payables Posted Invoice
Register is primarily a reconciliation tool. Use this report along with the
Posted Payment Register and the Accounts Payables Trial Balance Report to
reconcile balances between Payables and your general ledger.
Payables Posted Payment
Register
Use the Posted Payment
Register to review accounting lines, summarized by payments that have been
transferred to the general ledger.
Because it presents amounts that have been charged to liability
accounts, this report is valid only for an accrual ledger. You can submit the
Posted Payment Register for one payment journal entry batch or all payment
journal entry batches. The Posted
Payment Register is primarily a reconciliation tool. Use this report along with
the Payables Posted Invoice Register and the Accounts Payables Trial Balance
Report to reconcile balances between Payables and your general ledger.
Receipt Accruals -
Period End
Use the Receipt Accruals -
Period-End process to create period-end accruals for your uninvoiced receipts
for expense distributions. Purchasing
creates an accrual journal entry in your general ledger for each uninvoiced
receipt you choose using this window.
Receiving Account
Distribution Report
The Receiving Account
Distribution Report lists the accounting distributions for your receiving
transactions. This report supports the distributions created for the following
transactions:
*
Purchase Order
Receipts
*
Purchase Order Receipt
Adjustments
*
Purchase Order Returns
to Supplier
*
Deliver to Expense
Destinations
*
Return to Receiving
from Expense Destinations
*
Match Unordered
Receipts
This report helps you
reconcile your receiving accounting to your general ledger.
Unaccounted Transactions
Report
Use this report to identify
and review all unaccounted invoice and payment transactions and see the reason
that Payables cannot account for a transaction.
Run this report after you have run the Create Accounting process. The report will then show only transactions
that had problems that prevented accounting. You can then correct the problems
and resubmit the accounting process. Note that this report does not include
invoices that have no distributions.
Uninvoiced Receipts
Report
The Uninvoiced Receipts
Report should be run before the Receipt Accrual - Period-End process. With this
report, you can review all or specific uninvoiced receipts for both period end
and online accruals. Uninvoiced receipts
are goods and services you have received that your supplier did not invoice
yet. This report indicates exactly what you have to accrue and for what amount,
and helps you analyze your receipt accrual entries. The accrual amount is the
difference between the quantity received and the quantity billed multiplied by
the unit price of the item.
Tell me about invoices workbench?
Invoices workbench used for to adjust or pay invoices after
search. Also, It’s used for either apply or release holds to invoices and
approve or cancel invoices.
To approve invoices online, you must enable Allow Online Approval. You can select
one or more invoices online to be approved online in the Invoice Workbench. You
can use the Approve Related Invoices
option to approve debit/credit memos together with their associated invoices.
You can approve the entire invoice if you allow online approval and you enter
invoices by batch.
Sometimes,
you can make adjustments to invoice
distribution, scheduled payments, or invoice details even though the
transactions have been paid and posted to the General Ledger. All changes can
be made from the Invoice Workbench. You can change the invoice amount and
change the distribution amounts and scheduled payments to match the adjusted
amount. If you are using PO matching, you can reverse the matching and rematch
to correct an error.
To cancel an invoice, use the Invoice Workbench and select
the Actions button. The Invoice
Actions form will give you several options to choose from. Select Cancel Invoice and the invoice
distributions will be reversed. The invoice amounts and scheduled payments will
be set to zero. Once the invoice is cancelled, you cannot make any more changes
to it.
From the Invoice Workbench, select the invoice or invoices
you wish to pay and choose the Actions
button. The Invoice Actions form will display. Select the Pay in Full checkbox and then click on the OK button. The Payment Workbench will be invoked and you can create
either a quick payment or manual payment. Also, if you do not want to pay in
full, you can select scheduled payment(s) to be paid as a quick payment or a
manual payment.
After you enter invoice records
in the Quick Invoices window, you can submit a customized workflow program to
automate your processes for managing invoices. For example, you can customize
the workflow program to validate the cost center on all invoices before you
import them.
You then submit the Payables
Open Interface Import Program to validate the values you entered, provide any
default values, and then create invoices with distributions and scheduled
payments in the regular Payables tables. After import, Payables provides a
report that lists invoice records that were successfully imported and any that
could not be imported because they had invalid or missing information. You can
query the rejected invoice records in the Quick Invoices window, correct them,
and then resubmit them for import. When you import invoice records
successfully, Payables creates regular invoices that you can view, modify, and
validate in the Invoice Workbench.
Describe the close process in
Payables:
1. Validate all invoices.
2. Confirm or cancel all
incomplete payment batches.
3. If you use future dated
payments, submit the Update Matured Future Dated Payment Status Program. This
will update the status of matured future dated payments to Negotiable so you
can account for them.
4. Resolve all unaccounted
transactions. Submit the Payables
Accounting Process to account for all unaccounted transactions. Review the
Unaccounted Transactions Report. Review any unaccounted transactions and
correct data as necessary.
Then
resubmit the Payables Accounting Process to account for transactions you
corrected. Or move any unresolved accounting
transaction exceptions to another period (optional).
5. Transfer invoices and
payments to the General Ledger and resolve any problems
6. In the Control Payables
Periods window, close the period in Payables.
7. Reconcile Payables
activity for the period. See: Reconciling Payables Activity,
• Accounts Payable Trial Balance
Report, (this period and last period).
• Posted Invoice Register,
• Posted Payment Register,.
8. If you use Oracle
Purchasing, accrue uninvoiced receipts.
9. If you use Oracle Assets,
run the Mass Additions Create Program transfer capital invoice line
distributions from Oracle Payables to Oracle Assets.
10. Post journal entries to
the general ledger and reconcile the trial balance to the General Ledger.
Bank Account Model
Payables leverages Oracle
Trading Community Architecture and Oracle Cash Management to set up the bank
accounts that you use to do business (internal bank accounts). Banks and Bank
Branches are created as parties in Trading Community Architecture via the user
interface in Oracle Cash Management. Bank Accounts are defined in Oracle Cash
Management. Each bank can have multiple branches and each branch can have
multiple accounts.
When you enable a bank
account for use with Payables, you can associate the account with multiple
payment documents.
When you set up your
suppliers in Oracle iSupplier, you can also set up supplier bank accounts
(external bank accounts).
Entering Bank and Bank
Branch Information
Cash Management, Vision
Operations (USA) Responsibility
(N) Setup > Banks
Entering Banks
You can create a new bank
or add bank details to an existing party defined in your Trading Community.
For each bank, define the
country in which the bank operates, the name of the bank, the bank address(es),
and contacts. Optionally, you can define additional bank information:
Alternative Bank Name, Short Bank Name, Bank Number, Description, Taxpayer ID,
Tax Registration Number, XML Messages Email, Inactive Date, and Context Value.
Entering Bank Branches
(N) Setup > Banks : (T)
Branches
Each Bank can have more
than one bank branch. When you create a bank branch, you can create a new
branch or add branch details to an existing party defined in your Trading
Community.
For each bank branch,
define the country in which the bank operates, the bank the branch belongs to,
the branch name, the branch type, address(es), and contacts.
In addition to defining the
branch type, you can define additional bank branch details: Alternate Branch
Name, Routing Transit Number, BIC, Bank Code, EDI Location, EFT Number,
Description, RFC Identifier, Inactive Date, and Context Value.
Entering Bank Account
Information
Cash Management, Vision
Operations (USA) Responsibility
(N) Setup: Banks > Bank
Accounts > Create > Create Bank Account page > Create Bank Account:
Account Owner and Use page > Create Bank Account: Account Information page
Bank Account Owner. The bank account owner is the legal entity that owns the
account.
Account Use. Account use refers to the applications that are going to
use this internal bank account: Payables, Payroll, Receivables, and/or
Treasury. If the Treasury option is enabled, you must link this bank branch to
the counterparty in Treasury.
Information. You enter the name of the account, account number,
currency, and description. You should
have the name of the account match the name on the bank’s records and then use
the description field to indicate how the account is used, for example, main
disbursement account. The account type
is a free-form field that you might use to indicate whether the account is a
savings or checking account or whether it’s a corporate or division account.
Optionally, enter or select
the Alternate Account Name, Short Account Name, Check Digit, Multiple
Currencies Allowed, International Bank Account Number (IBAN), Account Type,
Account Suffix, EFT Number, Secondary Account Reference, Account Holder,
Alternate Account Holder, Description, Start Date, and End Date.
Entering Bank Account
Information
Cash Management, Vision
Operations (USA) Responsibility
(N) Setup: Banks > Bank
Accounts > Create > Create Bank Account page > Create Bank Account:
Account Owner and Use page > Create Bank Account: Account Information page
> Create Bank Account: Account Controls page
General Controls Region
Enter the cash account
number that should be charged for payments made from this bank account. You can
also enter accounts for cash clearing, bank charges, bank errors, foreign
exchange charges, and agency location code that will be used when you reconcile
with Oracle Cash Management. If you specify these codes in the General Controls
region, the accounts you specify will be used as the default accounts for all
applications that use this account. You can also specify whether the bank
account you are creating is a netting account. Note that you can specify
Payables-specific accounts later on.
Payables Controls Region
Multiple Currency
Payments. If you have enabled the Use
Multiple Currencies Payables option and you want to use this bank account to
pay invoices entered in multiple currencies, enable this option.
Pooled Account. If you use Automatic Offsets and you want to associate
multiple companies with this bank account, then enable this option. When you enable the Automatic Offsets
Payables option, Payables creates one offsetting liability distribution for
each invoice distribution. If you pay an
invoice from a pooled bank account, then when Payables accounts for the invoice
payment, Payables creates one corresponding cash accounting entry for each
liability distribution.
*
In addition, Payables
builds the cash account based on the Cash Account defined for the bank account
and the account segments of the liability lines.
*
If you do not use
a pooled account, then when the payment is accounted, a single accounting entry
is created for the Cash account, using the Cash Account that is defined for the
bank account without modifying any account segments.
Minimum/Maximum Payment.
Minimum/Maximum payment refers to the
smallest and largest payment amounts that you allow in a pay run. When you
initiate a pay run using the bank account, Payables uses the bank account’s
Maximum Payment as a default. You can
override this default.
Allow Zero Payments. If you allow zero-amount payments from this bank account,
enable this option.
Maximum Outlay. Maximum outlay is the largest currency outlay that you
allow for a pay run for this bank account.
If the total outlay of a pay run exceeds the maximum outlay for the pay
run, Payables displays a warning, but allows you to continue processing the pay
run. The Maximum Outlay for a bank account defaults from the Payables Options
window. When you initiate a pay run
using the bank account, Payables uses the bank account’s Maximum Outlay as a
default. You can override this default.
Entering Bank Account
Information
Cash Management, Vision
Operations (USA) Responsibility
Account Use. Select the types of functions that this internal bank
account is going to be used for: Payables, Payroll, Receivables, and/or
Treasury. Internal banks are the bank accounts for which you are the account
holder. Receivables uses internal bank accounts to receive payments from
customers. Payables uses internal bank accounts to disburse funds to suppliers.
Organization. Enter or select the Organization that can access the
account.
Accounts. For each payables document category and payment method
combination you can update the following accounts that default from the bank
account: cash clearing, bank charges,
bank errors, realized gain, loss accounts, and future dated payments.
Defining Payment
Documents and Payment Methods. You must
create at least one payment document before you can use a bank account to
create invoice payments. When you define payment documents, you can only select
payment methods that use the same currency as the bank account currency. If the
bank account is a multiple currency bank account, you can choose foreign
currency payment methods or multiple currency payment methods.
Contact
You can enter the prefix,
name, title, and telephone for a contact specific to this bank account.
Defining Payment
Documents
To define payments
documents:
1. Query the bank account.
2. Click the Manage Payment Documents button.
3. Click Create.
4. In the Name field, enter a name for the
payment documents.
5. In the Paper Stock Type field, select Blank
Stock for non-numbered check stock or Prenumbered Stock from the drop-down
list.
6. If your check stock has an attached
remittance stub, select the Attached Remittance Stub check box.
7. If your check stock has an attached
remittance stub, specify the number of lines per remittance stub in the Number
of Lines per Remittance Stub field.
8. In the Number of Setup Documents field,
specify the number of checks you want to allow for testing check stock setup.
9. In the Format field, select a check format
from the list of values.
10. In the Payment Document Category field, select
the type of payment document from the list of values.
11. If your check stock is prenumbered, enter the
first and last document numbers in the fields under the Document Numbers
region.
12. If your organization uses a company checkbook,
enter the appropriate information in the Checkbooks region.
Tell me about online approving invoices?
The workflow begins by finding
the first approver on the ordered list of approvers. If the invoice requires no
approvers to approve it, then the invoice’s approval status is set to Not
Required and the workflow program ends.
If the invoice has a first approver,
then the workflow program sends an invoice approval request to the approver’s
e-mail or Oracle Workflow Notifications Worklist web page (or both). If that
approver approves the invoice, the workflow program then looks for the next
approver on the ordered list. If there is another approver, the workflow
requests approval from that person. The workflow completes when all persons on
the ordered list approve the invoice, or if an approver rejects the invoice.
If an approver does not respond
within the specified time period, the workflow removes the original
notification from the approver’s Notifications Worklist and sends a reminder
notification to the approver. If the approver still does not respond, then the
workflow removes the reminder notification from that approver’s Notifications
Worklist and sends that person’s manager an escalation notification.
Whenever an invoice is approved
or rejected, Payables updates the approval record of the invoice, which you can
review in the Invoice Approval History window or the Invoice Approval History
Status Report. See: Invoice Approval History Window. The invoice approval
status is updated when the workflow completes. You can initiate the Invoice
Approval Workflow Program in the following ways:
• Schedule regular submission of
the Invoice Approval Workflow concurrent program
• Initiate the Invoice Approval
Workflow Program from the Submit Request window
• Manually initiate the workflow
by selecting one or more invoices in the Invoices window and then from the
Invoice Actions window selecting Initiate Approval
Tell me about Payment batches?
A payment batch set groups
several payment batches together so you can simultaneously submit the
selection, build, or format process for each payment batch in the set. With a
payment batch set you can submit several payment batches with different payment
currencies simultaneously.
You define a payment batch set
by entering invoice selection criteria for one or more payment batches in the
Payment Batch Sets window. Once you define a payment batch set you can use it
as a template to regularly manage and submit similar groups of payment batches.
You can also set up payment batch sets to automatically submit at regular
intervals. For example, you can set up a payment batch set and schedule it to
automatically run every Friday.
• Select/Build: If you
want to review and modify the invoices selected in the payment batch before you
format payments, choose Select Invoices and Build
Payments to have Payables select
invoices and build payments. (Payable automatically builds payments when you
initiate invoice selection.) After the
build process is complete, you continue to process the individual payment
batches in the Payment Batches window.
• Format: If you want to format the
payments without modifying them, also select Format Payments to have Payables
automatically format payments. After formatting is complete, continue to
process the individual payment batches in the Payment Batches window. or, if
you are creating electronic payments, proceed with Confirming Payment Batches.
• Confirm: Select Confirm Payment Batch
to confirm electronic payments. You cannot select this option if any payment
batches in the set use payment documents set up for checks. Confirming is the
final step in processing a payment batch. This step is very important because
it updates the payment history of invoices paid in a payment batch and
associates payment document numbers with the invoices and invoice payments.
Also, if you have any unconfirmed payment batches, you cannot close a period or
use the same payment document for any other payments until you confirm the
payment batch. If all the documents in a payment batch are damaged, you cannot
confirm the batch and must cancel the entire payment batch. You will assign one
of four status types to each document:
• Setup. Payable
automatically displays the setup checks used to align your printer. Payable
automatically voids these checks when you confirm a payment batch. You control
the number of setup checks in the Payment Document region of the Bank Accounts
window.
• Printed. Either the
checks printed properly or the Electronic payments formatted correctly. Ranges
of Printed documents must end on a negotiable document.
• Skipped. The printer
skipped over these checks and nothing printed on them. You can reuse these
documents.
• Spoiled. These
documents are ruined and you cannot reuse them. For example, the printer
malfunctioned and ruined the documents. Payable automatically voids these
documents when you record them as spoiled.
You may have check overflow, a
situation where there are more invoices paid by a check than can fit on the
remittance stub of one check. If you use the check overflow method Void except
Last, Payables voids all checks except the last one for the supplier site. You
should record the status of all the checks as Printed.
How to void payment after print and send a
check?
Stopping Payments
After you call your bank to
initiate a stop payment on a payment document, you can record the stop payment
status in Payables. You can then either void the payment to reverse the
accounting and payment records, or you can release the stop payment to reset
the invoice status to negotiable. You can review all current stop payments in
the Stopped Payments
Voiding Payments
When you void a payment,
Payables automatically reverses the accounting and payment records so your
general ledger will have the correct information, and so the status of the paid
invoices is reset to Unpaid. Payable also reverses any realized gains or losses
on foreign currency invoices recorded as paid by the payment.
When you void a payment, you can
select the action you want Payables to take on the invoices paid by the void
payment. You can choose to place the invoices on hold, cancel the invoices, or
do nothing with the invoices, leaving them available for payment. If you enable
the Allow Interest Invoices option for a supplier site, Payables automatically
reverses all related interest invoices when you void a past-due payment for the
supplier site. If you withhold taxes at payment time and you void a payment
that paid an invoice with an associated withholding tax invoice, then Payables
automatically creates a negative (reversing) invoice for the tax authority
supplier to offset the amount of the tax withholding invoice. You
Void Payment Restrictions:
INVOICES PAID BY ANOTHER
PAYMENT: When you void a payment, you
cannot cancel a related invoice if it was partially paid by a second payment.
Instead, when you choose Cancel Invoice, the system applies an "Invoice
Cancel" hold to the invoice for your reference. You can release the hold
manually in the Invoice Holds tab.
CANCELLING ASSOCIATED
INVOICES. If you attempt to cancel an
invoice that has been partially paid by another payment by using the Cancel
Invoice Action, instead of canceling the invoice, Payables applies an Invoice
Cancel hold to the invoice. This hold is manually releasable.
CLEARED PAYMENTS: You cannot void a payment that the bank has already
cleared.
PREPAYMENTS: You cannot void payment on a payment document that pays a
prepayment that you have applied to an invoice. You must first unapply any
prepayments, and then you can void the payment.
What is payment / payable document?
Payable or Payment document is a
order to pay amounts to supplier like Cheques, Demand Draft, Electronic Payment
etc. Use the Payment Documents window to define payment documents for an
internal bank account. Examples of payment documents are checks or electronic
payments. You must create at least one payment document before you can use a
bank account to create invoice payments. You can create an unlimited number of
payment documents for an internal bank account.
When you define payment
documents, you can only select payment formats that use the same currency as
the bank account currency. If the bank account is a multiple currency bank
account, you can choose foreign currency payment formats or multiple currency
payment formats.
GL Accounts Region of the
Bank Accounts Window
You cannot enter GL Account
information for Supplier bank accounts.
Cash. Enter the cash account you are associating with a bank
account. This account must be an asset account.
When you create a payment,
Payables creates accounting entries to credit this cash account. For future
dated payments, on the payment’s maturity date, Payables credits the cash account and debits either the future dated
payment account or the clearing account (depending on how you account for
payments).
If you set up Payables to
account for payments at clearing time, then Payables creates accounting entries
for your unreconciled invoice payments to credit your cash clearing account,
instead of your cash account, using the cash clearing account defined in the
next field. After you reconcile your payments using Oracle Cash Management, when
you create accounting entries for the reconciled invoice payments, you debit your cash clearing account and
credit the cash account you enter here.
If you enable the Automatic
Offsets Payables option and enable the Pooled Account option in the Payables Options
region of the Bank Accounts window, then when you create a payment, Payables
creates a corresponding cash accounting entry for each liability distribution
that you pay using this bank account. Payable uses the cash account you define
here together with the Automatic Offset Method you choose in the Payables
Options window to create the cash accounting entry.
Cash Clearing. If you set up Payables to account for payments at clearing
time, enter the cash clearing account you are associating with a bank account.
When you create accounting entries for your unreconciled invoice payments, you
credit your cash clearing account using this account. After you reconcile your
invoice payments using Oracle Cash Management, when you create accounting
entries for the cleared payments, you debit this cash clearing account and
credit this bank account’s cash account. The account you enter here defaults to
the Cash Clearing Account field in the GL Accounts region of the Payment
Documents window.
Confirmed Receipts. If you use Automatic Receipts in Receivables and are
required to send receipt information to your customer before applying the
receipt, the receivable is maintained in the Accounts Receivable account until
it is confirmed by the customer. Upon confirmation, it is reversed from the
Accounts Receivable account and placed into the Confirmed Receipts account. If
you are not required to send receipt information to your customer, the
receivable is automatically reversed from Accounts Receivable and placed into
Confirmed Receipts.
Future Dated Payment. If you will use this bank account to disburse future dated
payments, enter the default value for the future dated payment account. This
value will default to payment documents you enter for this bank account. When
Payables accounts for future dated payments, it uses the future dated payment
account from either the payment document or supplier site, depending on how the
Use Future Dated Payment Account Payables option is set.
Multiple Currency Payments. Enable this option if you want to use this bank account to
pay invoices entered in multiple currencies. You can select this option only if
the Use Multiple Currencies Payables option is enabled and if the bank account
is in your functional currency.
Prepayments Overview
A supplier might send an
invoice that references a prepayment. If a supplier reduces the invoice amount
by the amount of the prepayment and associated tax, you can use the Prepayment
on Invoice feature to enter the invoice.
You can enter two types of
prepayments: Temporary and Permanent.
Temporary Prepayments
Temporary prepayments can
be applied to invoices or expense reports you receive. For example, you use a
Temporary prepayment to pay a hotel a catering deposit. When the hotel’s
invoice arrives, apply the prepayment to the invoice to reduce the invoice
amount you pay.
Permanent Prepayments
Permanent prepayments
cannot be applied to invoices. For example, you use a Permanent prepayment to
pay a lease deposit for which you do not expect to be invoiced.
Key Processes
Create Accounting
Process
The parameters you use when
you submit the Create Accounting program determine how accounting entries are
transferred to the ledgers in your general ledger. Accounting can be created in draft or final
mode. You can transfer subledger accounting entries in summary or detail.
Regardless of the option you choose, you can always drill down to the subledger
to view the details that build the general ledger balances.
Create Accounting –
Draft
If you submit the Create
Accounting in Draft mode, you can review the subledger accounting entries
generated for your Payables transactions. If any accounting is incorrect, you
can update the transaction in Payables to correct the accounting before you
create final accounting.
Create Accounting –
Final
Run the Create Accounting
process in Final mode to generate your final subledger accounting entries. Once
you generate final accounting, you cannot correct the accounting. Instead, you
must enter correcting transactions in Payables.
Integration with Other
Applications
Other applications that
integrate with Oracle Payables such as Oracle Assets, Oracle Procurement,
Oracle Projects, and Oracle Inventory now provide Payables-related accounting
information to Oracle Subledger Accounting. Invoice Lines and Distribution
details continue to be provided to Payables directly.
Transfer Journal Entries
to GL
Submit the Transfer Journal
Entries to GL process to transfer accounting information from Oracle Subledger
Accounting to the GL Interface. The Transfer Journal Entries to GL process
transfers summary or detail accounting activity for any open period into the
general ledger interface. When more than one period is open, the transfer
selects transactions from the first open period up to the entered transfer
date, and passes the correct accounting date and financial information into the
general ledger interface.
Journal Import
Once subledger accounting
entries are transferred to the GL Interface table, use the Journal Import
process to import accounting information from the GL Interface to the general
ledger.
Posting Journals
Use the post journals
process to update the account balances of your detail and summary accounts. You
can post actual, budget, or encumbrance journal batches.
Setting Up Taxes in
E-Business Tax
(N) Setup > Tax >
E-Business Tax Home > (L) Tax Configuration
Set up taxes for Payables
by defining the basic tax configuration in E-Business Tax.
The basic Tax Configuration
is the regime-to-rate flow for each tax regime.
Tax Authority
A government entity that
regulates tax law, administers, or audits one or more taxes.
Tax Regime
The set of tax regulations
that determine the treatment of one or more taxes administered by a tax
authority.
Examples of a tax regime
include:
*
A sales and use tax in
the United States includes rules for state, county, and city sales and use
taxes.
*
An excise tax regime
in India includes rules for excise tax and additional excise tax.
*
A VAT tax regime in
Argentina includes rules for standard VAT, additional VAT, and perception VAT.
Tax
A distinct charge imposed
through a fiscal or tax authority.
Examples of a tax include
VAT for the United Kingdom and TVA for France.
Tax Jurisdiction
A geographical area where a
tax is levied by a specific tax authority or where a specific tax rate applies.
Examples of tax
jurisdictions include:
*
The tax jurisdiction
for VAT in Germany is the country of Germany.
*
The tax jurisdiction
for a San Jose city tax is the City of San Jose, California.
*
The tax jurisdiction
for Provincial Goods and Services tax (PST) in Canada is a particular Province,
such as Ontario or British Columbia.
Tax Status
The taxable nature of a
product or service in the context of a transaction for a tax type.
Examples of a tax status
include taxable standard rate, zero rated, exempt, and non-taxable. A tax
status is similar to the concept of the tax type definition used within
Payables and Receivables in releases prior to Release 12.
Tax Rate
The rate specified for a
tax status in effect for a period of time. You can express the tax rate as a
percentage or as a value per unit quantity.
An example of a tax rate is
7.5% for a state sales and use tax.
Recovery Rate
The rate of input tax that
is allowed to be recovered or offset against output tax.
The recovery rate is applicable
to VAT taxes. For example, organizations that only produce VAT applicable goods
and services can use 100% recovery rate on most purchases. Organizations that
produce VAT exempt goods and services, for example, financial institutions,
have a 0% recovery rate.
Operating Unit Tax
Accounts
The tax accounts that the
system uses to post the tax amounts derived from your transactions. The tax
accounts you define serve as default accounting information for taxes, tax
rates, tax jurisdictions, and tax recovery rates.
How many types of accounting methods in
Payable?
When you set up Payables you
choose a primary accounting method. In the Payables Options window you can also
choose a secondary accounting method. The accounting method determines the
types of accounting entries Payables creates. For each accounting method, cash
or accrual, you choose a Ledger in which you will account for transactions.
You account only for payments, and do not
record liability information for invoices. The payment accounting entries
typically debit your expense or asset account and credit your cash or cash
clearing account. When you create accounting entries, Payables might also
create entries for discount taken and foreign currency exchange gain or loss.
You create accounting entries
for invoices and payments. The invoice accounting entries generally debit your
expense or asset account and credit your liability account. For prepayments,
Payables creates accounting entries that debit your prepayment account and
credit your liability account. For prepayment applications, Payables creates
accounting entries that debit your liability account and credit your prepayment
account.
Payment accounting entries
typically debit the liability account and credit the cash or cash clearing
account. Payables might also create accounting entries for discount taken and
foreign currency exchange gain or loss.
When you reconcile payments
using Oracle Cash Management, Payables might also create accounting entries for
cash clearing, bank charges, bank errors, and foreign currency exchange gain or
loss between payment and reconciliation time. You maintain one Ledger for cash
accounting and one Ledger for accrual accounting. You choose which will be your
primary and your secondary Ledger. Invoice accounting entries are recorded for
your accrual Ledger, and payment accounting entries are recorded in both your
cash Ledger and accrual Ledger.
Combined basis accounting allows
you to produce financial reports for either your cash or accrual Ledger. For
example, you may want to manage your company on an accrual basis, but require
cash basis accounting information for certain regulatory reporting on a
periodic basis.
How
many accounting options in Financials Options in AP?
Liability. Payable assigns this account as the default Liability
Account for all new suppliers you enter. You can override this value during
supplier entry. If you use Accrual Basis accounting, then the Liability Account
for an invoice determines the liability account(s) charged when you create accounting
entries for invoices.
Prepayment. The Prepayment account and description for a supplier
site’s invoices. The Financials option value defaults to new suppliers, and the
supplier value defaults to new supplier sites.
Future Dated Payment. If you use future dated payments, then enter a value for
Future Dated Payment account. This value defaults to all new suppliers and new
bank accounts. The supplier value defaults to all new supplier sites. The bank
account value defaults to new payment documents.
When Payables accounts for
future dated payments, it uses the Future Dated Payment Account from either the
supplier site or the payment document, depending on the option you select in
the Payment Accounting region of the Payables Options window. If you relieve liability payment time, this
should be an asset account. If you relieve liability at future dated payment
maturity, then this should be a liability account.
Discount Taken. If you choose to distribute your discounts to the system
Discount Taken Account, Payables uses this account to record the discounts you
take on payments. Use the Payables Options window to select your method for
distributing discounts for your invoices.
PO Rate Variance Gain/Loss. Payable uses these accounts to record the exchange rate
variance gains/losses for your inventory items. The variance is calculated
between the invoice and either the purchase order or the receipt, depending on
how you matched the invoice. These accounts are not used to record variances
for your expense items. Any exchange rate variance for your expense items is
recorded to the charge account of the purchase order. Payable calculates these
amounts during Payables Invoice Validation.
Expenses Clearing. This account is optional when you use the Company Pay payment
option of Oracle Internet Expenses. Payable uses this as a temporary account to
record credit card transaction activity. Payable debits this account when you
create an invoice to pay a credit card issuer for credit card transactions.
Payables credits this account with offsets to the original debit entries when
you submit Expense Report Import for an employee expense report entered in
Internet Expenses that has credit card transactions on it. If you enter an
expenses clearing account in this field and in the Expenses Clearing Account
field of the Card Programs window, the account entered in the Expenses Clearing
Account field of the Card Programs window takes precedence
Foreign Currency Transactions
You can enter all types of
invoices, including prepayments, expense
reports, and recurring invoices, in a foreign currency and then pay them in that currency.
When you enter an invoice, Payables uses the exchange rate you select to
convert the invoice distributions into functional currency. You define your
functional currency during setup for your Ledger. When you create a payment for
a foreign currency invoice, Payables uses the exchange rate you enter at that
time to convert the payment lines into your functional currency. Any difference
in functional currency between invoice entry and invoice payment is recorded as
realized Gain/Loss.
When you reconcile your payments
using Oracle Cash Management, Payables also creates Gain/Loss accounting
entries to record differences between the original payment amount and the
cleared payment amount due to exchange rate fluctuations. Transactions must
have any necessary exchange rates before you can account for them. Payables
creates accounting entries for your invoices and payments in both the
functional and foreign currency. To make a foreign currency payment, use a bank
account with a payment document that
uses a payment format that is either multi–currency or defined for the foreign
currency. The following diagram shows the general steps you follow to enter and
pay a foreign currency invoice.
System Setup for Multiple
Currency
* In the Currencies window,
enable the foreign currencies you want to use.
* Choose your functional
currency in the Ledger window.
* Define your Payables options
in the Payables Options window.
Enable the Allow Multiple
Currency Payables option. Enable the Require Exchange Rate Entry Payables
option for foreign currency invoice entry. (optional) Define a default
exchange rate type which defaults to all foreign currency invoices. (optional) Define
a default invoice and payment currency which defaults to all supplier sites you
enter. (optional) Select one or both options for Account for Gain/Loss: When
Payment is Issued, When Payment Clears. (optional) Select an option for
Calculate Gain/Loss: For Each Invoice or For Total Payment.* Define PO Rate
Variance Gain/Loss Accounts when you define Financials Options or during bank
setup.* Define Conversion Rate Types. See: Defining Conversion Rate Types (Oracle
General Ledger User Guide).q Enter Daily Exchange Rates. See: Entering
Daily Rates (Oracle General Ledger User Guide) (optional)* Define
foreign currency bank accounts and payment documents.
Defining Foreign Currency
Bank Accounts
Prerequisites
* Enable the Use Multiple
Currencies Payables option. * Enable the currencies you need in the Currencies
window. See:
To define a foreign currency
bank account:
1. Define a basic bank account
for receipts or disbursements. If you are defining a bank account for
disbursements, in the Payables Options tabbed region, enter Realized Gain and
Realized Loss Accounts. Proceed with Defining and Maintaining Payables
Payment . Choose a payment document that
uses a payment format with the same foreign currency as the bank account.
2. Save your work.
Defining and Maintaining
Payables Payment Documents
Use the Payment Documents window
to define payment documents for an internal bank account. Examples of payment
documents are checks or electronic payments. You must create at least one
payment document before you can use a bank account to create invoice
Defining Multiple Currency
Bank Accounts
A multiple currency bank account
is an account that accepts payments in more than one currency. If you define a
multiple currency bank account for payments, the currency of the bank account
must be the same as your functional currency.
Prerequisites
* Enable the Use Multiple
Currencies Payables option. (Oracle Payables) * Enable the currencies you need
in the Currencies window.
To define a multiple currency
bank account:
1. Define a basic bank account
for receipts or disbursements.
If you are defining a bank
account for receipts, in the Receivables Options region, enable the Multiple
Currency Receipts option. If you are defining a bank account for
disbursements, in the Payables Options region, enable the Multiple Currency
Payments option and enter Realized Gain and Realized Loss accounts. Proceed
with Defining and Maintaining Payables Payment
. You can define payment documents that use a payment format with any
currency.
2. Save your work.
Monthly Pay Integration with
banks to credit salary
If you use a third party or
custom positive pay program to notify your bank of negotiable and
non–negotiable checks, you can submit the Positive Pay Report in Payables to
create a flat file that contains information for checks you specify. You can
then use your positive pay program to format the payment data in the format
required by your bank and transmit the data electronically to your bank. You
set up your positive pay program to periodically dial up your bank and download
a list of exceptions. An exception is a check that is listed on the file you
submitted to your bank that is presented to the bank for cashing twice, or is
not on the list, or has an amount different from the amount listed.
If you do not approve or reject
an exception, the bank will pay the check as presented. Future dated payments
are included as negotiable payments even if they have not yet matured.
Setting-Up Your System for
Positive Pay _To set up Payables for integration
with Positive Pay:
1. In your positive pay program,
specify the path for the output of Payables flat file. The file will be in your
ap_out directory.
2. Optionally prevent certain
users from creating positive pay files from the Payment Batches Actions window
by hiding the Create Positive Pay check box for their responsibility.
3. Set your third party or
custom positive pay program to automatically dial the bank at regular intervals
and download exceptions.
4. For each bank account you
will include on positive pay files, confirm that the Bank Account number and
Branch number in the Banks window is correct. The positive pay file must
contain accurate bank information. For U.S. based banks, enter the 9–digit ABA
transit routing code in the Bank Branch Number field.
Prerequisite
In the Banks window, enter the
Branch Number and Bank Account Number for the bank you are using for the
payment batch. The positive pay file must contain accurate bank information.
For U.S. based banks, enter the 9–digit ABA transit routing code in the Bank
Branch Number field.
Mass Additions Create Program
Run the Mass Additions Create
program to transfer capital invoice line distributions from Oracle Payables to
Oracle Assets.
For foreign currency assets,
Payables sends the invoice distribution amount in the converted functional
currency. The mass addition line appears in Oracle Assets with the functional
currency amount. Oracle Assets creates journal entries for the functional
currency amount, so you must clear the foreign currency amount in your general
ledger manually.
After you create mass additions,
you can review them in the Prepare Mass Additions window in Oracle Assets. Prerequisites
* Set up your corporate book in
Oracle Assets.* Set up your asset categories in Oracle Assets for the corporate
book you want to use with mass additions. * Enter invoices in Oracle Payables Create
accounting entries for the invoices. * Transfer accounting entries to general
ledger.* Ensure your invoice line distributions meet the necessary criteria to
be imported from Payables to Oracle Assets.
_ To create mass additions
for Oracle Assets:
1. Navigate to the Submit
Request window.
2. Choose Mass Additions Create
from the request Name list of values.
3. In the Parameters window,
enter a GL Date and Book.
GL Date: Payables creates mass additions from invoice distribution
lines with GL dates that are on or before the date you enter in this field. You
must enter a date on or before the current date. Book: Enter the name of
the Oracle Assets corporate book for which you want to create mass additions.
4. Choose Submit to submit the
concurrent request Payables automatically runs the Mass Additions Create report
so you can review a list of the mass additions created.
5. Review the log files and report
after the request completes.
Automatic Payment Programs
If you use Oracle Payables, use
the Automatic Payment Programs window to define payment programs. If you use
Oracle Receivables, use this window to define additional receipt and remittance
format programs.
Payables users:
Use the Automatic Payment
Programs window to define payment programs that you use to format payment
documents and separate remittance advice. You specify whether each program is
for building payments, formatting payments, or creating a payment remittance
advice.
Payable predefines one program
for building payments and many standard programs for formatting payments.
Payable also predefines a program for creating a separate remittance advice for
payments. You can select these predefined programs when you define a payment
format, or you can use these programs as templates for creating your own custom
payment programs.
Receivables users:
Use the Automatic Payment
Programs window to define additional receipt format programs you use to create
receipt documents such as checks or bills of exchange. You can define as many
receipt programs as you want. Payable already provides sample receipt programs
that you can use to create and format receipt and remittance documents. If you
need a different automatic receipt program, then you should copy the sample
program and modify it. You specify whether each program is for the creation,
printing, or transmission of automatic receipts or remittances.
Defining Payment Programs for
Payables and Defining Receipt and Remittance Programs for Receivables
Payables Prerequisites
* If you are not using Payables
predefined payment programs, define a payment program using Oracle Reports.* Register
your program in the System Administrator’s Concurrent Programs window.
Optionally assign a default printer to the program. If you do not assign a
default printer then when you use the payment program, Payables will use the
printer you defined as your default as the Printer profile option.
Receivables Prerequisites
* Create a receipt program using
Oracle Reports.* Register your program in the System Administrator’s Concurrent
Programs window.
To define payment, receipt,
or remittance programs:
1. In the Automatic Payment
Programs window, enter a unique Name for the program you are defining. This
name will appear on a list of values whenever you need to enter the program
name. Enter a program Type. Enter the Registered Name. The concurrent manager
uses the Registered Name to refer to the payment program.
2. Save your work.
Automatic Payment Programs
Window Reference Name. The name of the
program you are defining. This name will appear on a list of values when you
need to enter the name of the program. If you use Receivables, since you use
both a format receipts and a transmit receipts program with a single receipt
format, you should give both the same name. You can use the same name if the
program type is different.
Payables Types:
Build Payments. A
program Payables uses to build payments for the invoices in a payment batch.
Payables submits this program during payment batch selection to calculate the
payment totals for your payments and determine on which payment documents the
payment appears.
Payables provides a predefined
Build Payments program called the Standard Build Payments Program. Payables
uses this standard build program to group the selected invoices for each
payment, order the payments using the order option you specify in the Payment
Batches window, create any necessary overflow documents, and determine the
total number and amount of payments for a payment batch.
You do not need to define any
additional Build Payment programs. Use the Standard Build Payments Program that
Payables provides.
Format Payments. A
program Payables uses to format your payment documents. During the Format
Payments program, Payables uses your payment format to create the layout of
your checks or electronic payments.
Remittance Advice. A
program Payables uses to format a separate remittance advice document. For
example, you can use a remittance program to create separate remittance advice
documents for your electronic funds transfers.
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