Accounts Payable r11i Student Guide[1]

Accounts Payable R11i Student Guide

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Accounts Payable R11i Table of Contents i

Table of Contents

Introduction to Oracle Payables - Release 11i ..............................................................................................1-1 Introduction to Oracle Payables - Release 11i ...............................................................................................1-2 Product Integration ........................................................................................................................................1-3 Product Integration ........................................................................................................................................1-3 Course Overview ...........................................................................................................................................1-4 Course Overview ...........................................................................................................................................1-4 Tracing the Flow of Default Values ..............................................................................................................1-5 Tracing the Flow of Default Values ..............................................................................................................1-5

Suppliers - Introduction..................................................................................................................................2-1 Suppliers - Introduction .................................................................................................................................2-2 Setting Up Suppliers......................................................................................................................................2-3 Setting Up Suppliers......................................................................................................................................2-3 Using Supplier Information ...........................................................................................................................2-4 Using Supplier Information ...........................................................................................................................2-4

Setting Up Suppliers........................................................................................................................................3-1 Setting Up Suppliers......................................................................................................................................3-2 Tracing the Flow of Default Values ..............................................................................................................3-3 Setting Up Suppliers and Supplier Sites ........................................................................................................3-4 Avoiding Duplicate Suppliers........................................................................................................................3-6

Entering Basic Supplier Information .........................................................................................................3-7 Entering Detailed Supplier Information: General Region .........................................................................3-9 Entering Detailed Supplier Information: Classification Region ................................................................3-11 Entering Detailed Supplier Information: Accounting Region ...................................................................3-13 Entering Detailed Supplier Information: Control Region..........................................................................3-14 Entering Detailed Supplier Information: Payment Region ........................................................................3-16 Entering Detailed Supplier Information: Bank Accounts Region..............................................................3-19 Entering Detailed Supplier Information: EDI............................................................................................3-22 Entering Detailed Supplier Information: Invoice Tax Region...................................................................3-24 Entering Detailed Supplier Information: Withholding Tax .......................................................................3-26 Entering Detailed Supplier Information: Tax Reporting Region...............................................................3-28 Entering Detailed Supplier Information: Purchasing Region ....................................................................3-30 Entering Detailed Supplier Information: Receiving Region......................................................................3-32

Entering Information at the Supplier Site Level ............................................................................................3-34 Entering Basic Supplier Site Information: Sites Region............................................................................3-35 Using Flexible Address Format .................................................................................................................3-36 Entering Detailed Supplier Site Information: Site Uses ............................................................................3-37 Entering Detailed Supplier Site Information: General Region ..................................................................3-38 Entering Detailed Supplier Site Information: Contacts Region.................................................................3-39 Entering Detailed Supplier Site Information: Accounting.........................................................................3-40 Entering Employees as Suppliers ..............................................................................................................3-41 Searching and Reviewing Supplier Information Online ............................................................................3-42 Maintaining Supplier and Supplier Site Information.................................................................................3-44

Selecting Supplier Reports ............................................................................................................................3-45 Lab 1: Entering Supplier Information........................................................................................................3-46 Lab 1 Solutions: Entering Supplier Information........................................................................................3-48 Lab 2: Reviewing Supplier Information ....................................................................................................3-52 Lab 2 Solutions: Reviewing Supplier Information ....................................................................................3-53

Summary........................................................................................................................................................3-58 Merging Suppliers ...........................................................................................................................................4-1

Merging Suppliers .........................................................................................................................................4-2 Identifying Duplicate Suppliers .....................................................................................................................4-5


Accounts Payable R11i Table of Contents ii

Merging Suppliers .....................................................................................................................................4-6 Maintaining Reports As an Audit Trail .........................................................................................................4-8 Summary........................................................................................................................................................4-9

Defining Supplier Setup ..................................................................................................................................5-1 Defining Supplier Setup ................................................................................................................................5-2

Entering Options in the Supplier Entry Region .........................................................................................5-4 Entering Options in the Supplier-Payables Region....................................................................................5-6

Invoices - Introduction ....................................................................................................................................6-1 Invoices - Introduction...................................................................................................................................6-2 Entering Invoices...........................................................................................................................................6-3 Using the Workbench Model.........................................................................................................................6-4 Invoices: Integration with Oracle Projects.....................................................................................................6-9 View Currency Details ..................................................................................................................................6-10

Entering Basic Invoices ...................................................................................................................................7-1 Entering Basic Invoices .................................................................................................................................7-2 Entering Invoices...........................................................................................................................................7-3 Assigning a Default GL Date ........................................................................................................................7-4 Entering Batch Invoices.................................................................................................................................7-5 Creating Batch Control Forms.......................................................................................................................7-6

Entering an Invoice Batch .........................................................................................................................7-7 Entering Invoices in Batches .....................................................................................................................7-9

Entering Invoice Information ........................................................................................................................7-10 Oracle Payables Invoice Types......................................................................................................................7-11

Entering Basic Invoice Header Information ..............................................................................................7-12 Using AutoEntry Defaults to Speed Invoice Entry........................................................................................7-14

Lab 1: Entering Invoice Headers with Batches..........................................................................................7-15 Lab 1 Solutions: Entering Invoice Headers with Batches..........................................................................7-16

Entering Invoice Distributions.......................................................................................................................7-18 Entering Invoice Distributions Manually...................................................................................................7-19

Prorating Interest Expense.............................................................................................................................7-21 Enabling Automatically Create Freight Distribution .................................................................................7-22 Entering Freight Distribution for an Invoice .............................................................................................7-24 Prorating Freight, Tax and Miscellaneous Charges ...................................................................................7-26 Defining a Distribution Set ........................................................................................................................7-29 Lab 2: Entering Distributions ....................................................................................................................7-31 Lab 2 Solutions: Entering Distributions ....................................................................................................7-32 Lab 3: Entering an Invoice for the Purchase of Fixed Assets ....................................................................7-34 Lab 3 Solutions: Entering an Invoice for the Purchase of Fixed Assets ....................................................7-35

Reviewing and Maintaining Batch Invoices ..................................................................................................7-37 Lab 4: Creating a Distribution Set .............................................................................................................7-38 Lab 4: Creating a Distribution Set .............................................................................................................7-38 Lab 4 Solutions: Creating a Distribution Set .............................................................................................7-39 Lab 5: Entering and Assigning an Invoice.................................................................................................7-43 Lab 5: Entering and Assigning an Invoice.................................................................................................7-43 Lab 5 Solutions: Entering and Assigning an Invoice Distribution Set ......................................................7-44 Lab 6: Verifying a Batch Control Count and Amount with the Actual Entries.................................7-47 Lab 6: Verifying a Batch Control Count and Amount with the Actual Entries .........................................7-47 Lab 6 Solutions: Verifying a Batch Control Count and Amount with the Actual Entries ................7-48 Lab 6 Solutions: Verifying a Batch Control Count and Amount with the Actual Entries .........................7-48

Summary........................................................................................................................................................7-50 Matching Invoices to Purchase Orders, Receipts and Invoices ...................................................................8-1

Matching Invoices to Purchase Orders, Receipts and Invoices .....................................................................8-2 Matching Invoices to PO or Receipt..............................................................................................................8-3 Purchase Order Structure...............................................................................................................................8-4 Structure of a Purchase Receipt .....................................................................................................................8-5


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Payables Matching Options ...........................................................................................................................8-6 Matching an Invoice to PO Shipments or Distributions ............................................................................8-7 Matching an Invoice to a Receipt ..............................................................................................................8-11 Lab 1: Matching Invoices to Purchase Order Shipments...........................................................................8-15 Lab 1 Solutions: Matching Invoices to Purchase Order Shipments...........................................................8-16 Lab 2: Matching Invoices to Purchase Order Shipments and Distributions ..............................................8-20 Lab 2 Solutions: Matching Invoices to Purchase Order Shipments and Distributions ..............................8-21 Lab 3: Matching All Purchase Order Shipments (QuickMatch)................................................................8-26 Lab 3 Solutions: Matching All Purchase Order Shipments (QuickMatch)................................................8-27 Matching All Purchase Order Shipments (QuickMatch) ...........................................................................8-29 Lab 4: Entering and Assigning a Credit Memo .........................................................................................8-31 Lab 4 Solutions: Entering and Assigning a Credit Memo .........................................................................8-32 Entering Credit and Debit Memos .............................................................................................................8-34 Matching Credit and Debit Memos to Invoices, Purchase Orders & Receipts ..........................................8-36 Matching Credit and Debit Memos to Invoices, Purchase Orders & Receipts ..........................................8-36 Matching Credit and Debit Memos to Invoices .........................................................................................8-38 Lab 5: Entering and Matching a Credit Memo to an Invoice ....................................................................8-41 Lab 5 Solutions: Entering and Matching a Credit Memo to an Invoice ....................................................8-42

Review and Maintain.....................................................................................................................................8-45 Recording Price Corrections......................................................................................................................8-47

Summary........................................................................................................................................................8-49 Processing Expense Reports ...........................................................................................................................9-1

Processing Expense Reports ..........................................................................................................................9-2 Managing the Expense Report Process..........................................................................................................9-3 Setting Up Oracle Payables to Enter Expense Report ...................................................................................9-4

Entering Employees and Locations ...........................................................................................................9-5 Defining Expense Report Templates .........................................................................................................9-6 Entering Expense Report Information .......................................................................................................9-8 Reviewing, Auditing, and Approving Expense Reports ............................................................................9-10 Submitting Payables Invoice Import..........................................................................................................9-13 Importing Invoices from Oracle Projects...................................................................................................9-15 Importing Invoices from Other Accounting Systems ................................................................................9-16

Summary........................................................................................................................................................9-17 Lab 1: Entering an Expense Report ...........................................................................................................9-18 Lab 1 Solutions: Entering an Expense Report ...........................................................................................9-19

Entering Recurring Invoices...........................................................................................................................10-1 Entering Recurring Invoices ..........................................................................................................................10-2 Recurring Invoices Overview........................................................................................................................10-3

Defining Special Calendar Names .............................................................................................................10-4 Defining Recurring Invoice Templates......................................................................................................10-6 Entering Recurring Invoice Amounts ........................................................................................................10-8 Creating Recurring Invoices ......................................................................................................................10-10

Summary........................................................................................................................................................10-12 Lab 1: Defining and Creating Recurring Invoices .....................................................................................10-13 Lab 1 Solutions: Defining and Creating Recurring Invoices .....................................................................10-14

Processing Other Invoice Functions...............................................................................................................11-1 Processing Other Invoice Functions ..............................................................................................................11-2 Applying Holds .............................................................................................................................................11-3

Applying Holds to Supplier Site Invoices .................................................................................................11-5 Applying Holds to Selected Invoices.........................................................................................................11-7 Applying Holds to Scheduled Payments....................................................................................................11-8

Releasing Holds.............................................................................................................................................11-9 Manually Releasing Holds.............................................................................................................................11-10

Releasing Holds for One Invoice or Group of Invoices.............................................................................11-11 Approving Invoices .......................................................................................................................................11-13


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Validating and Approving Invoices...............................................................................................................11-14 Submitting Batch Validation .....................................................................................................................11-15 Validating Invoices Online ........................................................................................................................11-17 Validating Invoice Batches Online ............................................................................................................11-19 Canceling Invoices ....................................................................................................................................11-20 Adjusting Invoice Amounts.......................................................................................................................11-22

Summary........................................................................................................................................................11-24 Lab 1: Adjusting Invoice Distributions......................................................................................................11-25 Lab 1 Solutions: Adjusting Invoice Distributions......................................................................................11-26 Lab 2: Changing Payments Schedules.......................................................................................................11-28 Lab 2 Solutions: Changing Payments Schedules.......................................................................................11-29 Lab 3: Canceling an Invoice ......................................................................................................................11-30 Lab 3 Solutions: Canceling an Invoice ......................................................................................................11-31 Lab 4: Approving an Invoice at Entry Time..............................................................................................11-33 Lab 4 Solutions: Validating an Invoice at Entry Time ..............................................................................11-34 Lab 4 Solutions: Approving an Invoice at Entry Time..............................................................................11-35 Lab 5: Placing a Hold on an Invoice..........................................................................................................11-36 Lab 5 Solutions: Placing a Hold on an Invoice..........................................................................................11-37 Lab 6: Validating Invoices by Batch .........................................................................................................11-39 Lab 6: Validating Invoices by Batch .........................................................................................................11-39 Lab 6 Solutions: Validating Invoices.........................................................................................................11-40 Lab 7: Releasing a Hold on an Invoice......................................................................................................11-42 Lab 7 Solutions: Releasing a Hold on an Invoice......................................................................................11-43 Lab 7 Solutions: Releasing a Hold on an Invoice......................................................................................11-43

Performing Invoice Inquiry ............................................................................................................................12-1 Performing Invoice Inquiry ...........................................................................................................................12-2 Invoice Inquiry ..............................................................................................................................................12-3

Finding Invoices ........................................................................................................................................12-4 Using the Invoice Overview to Review High-Level Information..............................................................12-5 Using the Invoice Overview to Review Supplier Information...................................................................12-8 Using the Invoice Overview to Review PO Information ...........................................................................12-9 Using the Invoice Overview to Review PO Receipt Information..............................................................12-10 Using the Invoice Overview to Review Payment Information ..................................................................12-11 Calculating Supplier Balances ...................................................................................................................12-12

Summary........................................................................................................................................................12-14 Lab 1: Calculating the Balance Owed to A Specific Supplier ...................................................................12-15 Lab 1 Solutions: Calculating the Balance Owed to A Specific Supplier ...................................................12-16

Loading Invoices Electronically .....................................................................................................................13-1 Loading Invoices Electronically ....................................................................................................................13-2 Invoice Gateway Overview ...........................................................................................................................13-3 Integration with Oracle eCommerce Gateway and Oracle Workflow ...........................................................13-4 Oracle eCommerce Gateway Prerequisites....................................................................................................13-6 Oracle eCommerce Gateway Prerequisites....................................................................................................13-6

Importing Invoices to Oracle eCommerce Gateway..................................................................................13-7 Importing Invoices to Oracle eCommerce Gateway..................................................................................13-7 Importing Invoices from Oracle eCommerce Gateway .............................................................................13-8 Importing Invoices from Oracle eCommerce Gateway: Parameters .........................................................13-9 Correcting Importing Errors ......................................................................................................................13-11 Notifying Suppliers of the Status of Their Invoices ..................................................................................13-12

Oracle XML Gateway Integration .................................................................................................................13-13 iSupplier Portal Invoices ...............................................................................................................................13-14 Summary........................................................................................................................................................13-15

Processing Procurement Card Transactions.................................................................................................14-1 Processing Procurement Card Transactions...................................................................................................14-2 Overview .......................................................................................................................................................14-3


Accounts Payable R11i Table of Contents v

Setting Up Credit Card Programs in Oracle Payables ...................................................................................14-4 Creating Credit Card Code Sets.................................................................................................................14-5 Defining a Credit Card Program................................................................................................................14-7 Defining Credit Card GL Account Sets .....................................................................................................14-9 Defining Credit Card Profiles ....................................................................................................................14-11 Assigning Credit Cards to Card Holders ...................................................................................................14-14

Importing Transactions from the Credit Card Issuer .....................................................................................14-16 Verifying Transactions by Employees and Managers ...................................................................................14-17 Setting Up the Credit Card Transaction Employee Workflow ......................................................................14-18 Setting Up the Credit Card Transaction Manager Workflow ........................................................................14-19

Reviewing and Updating Transaction Distributions..................................................................................14-20 Creating Invoices .......................................................................................................................................14-21

Creating Invoices...........................................................................................................................................14-21 Creating Invoices...........................................................................................................................................14-22 Summary........................................................................................................................................................14-23

Invoices Setup ..................................................................................................................................................15-1 Invoices Setup ...............................................................................................................................................15-2 Setting Up Oracle Payables to Enter Expense Reports..................................................................................15-3

Defining Invoice Tolerances......................................................................................................................15-4 Entering Employee and Locations.............................................................................................................15-7 Using Expense Report Templates..............................................................................................................15-8

Setting Up Oracle Web Employees Expense Reporting Overview ...............................................................15-10 Setting Up Oracle Web Employees Expense Reporting................................................................................15-11

Setting Up Web Expense Reporting: Financials Options ..........................................................................15-12 Setting Up Web Expense Reporting: Option Currencies...........................................................................15-13 Setting Up Web Expense Reporting: Payable Options..............................................................................15-14 Setting Up Invoice Defaults.......................................................................................................................15-16 Setting Up Invoice Tax Defaults ...............................................................................................................15-19 Setting Up Matching Defaults ...................................................................................................................15-21

Payments - Introduction .................................................................................................................................16-1 Payments - Introduction.................................................................................................................................16-2 Invoice Payment Overview............................................................................................................................16-3 Oracle Payables Payment Methods................................................................................................................16-4 Using the Workbench Model Overview ........................................................................................................16-5

Entering Manual Payments ............................................................................................................................17-1 Entering Manual Payments............................................................................................................................17-2 Entering Manual Payments Overview ...........................................................................................................17-3 Entering Manual Payments Overview ...........................................................................................................17-3

Recording a Manual Payment....................................................................................................................17-4 Selecting Invoices......................................................................................................................................17-6 Selecting Invoices from the Invoice Workbench.......................................................................................17-7 Paying Invoices from the Invoice Workbench: Payment...........................................................................17-9 Scheduling Payments from the Invoice Workbench..................................................................................17-11 Paying Suppliers with Future Dated Payments..........................................................................................17-13 Adjusting Selected Invoices for Manual Payments ...................................................................................17-15

Summary........................................................................................................................................................17-17 Lab 1: Recording Manual Payment ...........................................................................................................17-18 Lab 1 Solutions: Recording Manual Payment ...........................................................................................17-19

Processing Computer-Generated Single Payments ......................................................................................18-1 Processing Computer-Generated Single Payments........................................................................................18-2 Computer-Generated Payments .....................................................................................................................18-3

Processing a Quick Check .........................................................................................................................18-4 Paying Invoices from the Invoice Workbench...........................................................................................18-7 Creating and Maintaining Computer-Generated Payments .......................................................................18-9

Summary........................................................................................................................................................18-11


Accounts Payable R11i Table of Contents vi

Lab 1: Entering an Invoice and Recording a Single Payment ...................................................................18-12 Lab 1 Solutions: Entering an Invoice and Recording a Single Payment ...................................................18-13

Processing Payment Batches...........................................................................................................................19-1 Processing Payment Batches .........................................................................................................................19-2 Payment Batches Overview...........................................................................................................................19-3 Payment Batch Enhancements.......................................................................................................................19-4

Initiating New Payment Batches................................................................................................................19-6 Lab 1: Paying Invoices in a Payment Batch ..............................................................................................19-11 Lab 1 Solutions: Paying Invoices in a Payment Batch ..............................................................................19-12 Finding Payment Batch Templates ............................................................................................................19-14 Modifying Payment Batches......................................................................................................................19-15 Lab 2: Modifying Invoice Selection in a Payment Batch ..........................................................................19-17 Lab 2 Solutions: Modifying Invoice Selection in a Payment Batch ..........................................................19-18 Formatting Payment Batches .....................................................................................................................19-20 Lab 3: Formatting a Payment Batch ..........................................................................................................19-22 Lab 3 Solutions: Formatting a Payment Batch ..........................................................................................19-23

Confirming Payment Batches Overview .......................................................................................................19-25 Confirming Complete Payment Batches....................................................................................................19-26 Lab 4: Creating a Payment Batch ..............................................................................................................19-28 Lab 4 Solutions: Creating a Payment Batch ..............................................................................................19-29 Finding High-Level Payment Information.................................................................................................19-31 Finding Payments in the Payment Workbench..........................................................................................19-33

Processing EDI Payments Overview .............................................................................................................19-35 Creating an EDI Outbound Format Payment Document ...........................................................................19-37 Creating EDI Payments .............................................................................................................................19-39

Processing Flexible Payments Overview.......................................................................................................19-40 Processing Flexible Payments: Suppliers ..................................................................................................19-41 Setting Up Supplier Bank Accounts ..........................................................................................................19-42 Verifying Supplier Bank Assignments ......................................................................................................19-44 Processing Flexible Payments ...................................................................................................................19-45

Summary........................................................................................................................................................19-47 Entering Prepayments.....................................................................................................................................20-1

Entering Prepayments....................................................................................................................................20-2 Prepayments Overview..................................................................................................................................20-3

Entering Prepayments................................................................................................................................20-5 Entering Prepayment Distributions............................................................................................................20-7 Applying Prepayments to Invoices ............................................................................................................20-8 Apply/Unapply Prepayments from Invoices..............................................................................................20-10 Unapplying Prepayments from Invoices....................................................................................................20-11

Approving and Paying Prepayments..............................................................................................................20-13 Applying Advances to Expense Reports....................................................................................................20-14

Identify and Review Available Prepayments.................................................................................................20-16 Controlling Availability of Prepayments .......................................................................................................20-17 Canceling Prepayments .................................................................................................................................20-18

Lab 1: Processing and Generating a Prepayment.......................................................................................20-19 Lab 1: Processing and Generating a Prepayment.......................................................................................20-19 Lab 1 Solutions: Processing and Generating a Prepayment.......................................................................20-20 Lab 1 Solutions: Processing and Generating a Prepayment.......................................................................20-20 Lab 2: Entering an Invoice and Applying a Prepayment ...........................................................................20-23 Lab 2: Entering an Invoice and Applying a Prepayment ...........................................................................20-23 Lab 2 Solutions: Entering an Invoice and Applying a Prepayment ...........................................................20-24 Lab 2 Solutions: Entering an Invoice and Applying a Prepayment ...........................................................20-24

Summary........................................................................................................................................................20-28 Recording Stop and Void Payments...............................................................................................................21-1

Recording Stop and Void Payments ..............................................................................................................21-2


Accounts Payable R11i Table of Contents vii

Stop and Void Payments: Overview..............................................................................................................21-3 Recording Stop Payments..........................................................................................................................21-4 Releasing Stop Payments...........................................................................................................................21-5 Voiding Payments......................................................................................................................................21-6 Voiding Unused Payment Documents .......................................................................................................21-8 Lab 1: Issuing a Stop Payment ..................................................................................................................21-9 Lab 1 Solutions: Issuing a Stop Payment ..................................................................................................21-10 Lab 2: Voiding a Payment .........................................................................................................................21-12 Lab 2 Solutions: Voiding a Payment .........................................................................................................21-13

Summary........................................................................................................................................................21-15 Setting Up Cash-Control Features .................................................................................................................22-1

Setting Up Cash-Control Features .................................................................................................................22-2 Oracle Payables Cash Control Features.........................................................................................................22-3

Defining Pay Groups .................................................................................................................................22-4 Defining Payment Priorities ......................................................................................................................22-6 Entering Payment Terms ...........................................................................................................................22-7 Lab 1: Defining Payment Terms................................................................................................................22-9 Lab 1 Solutions: Defining Payment Terms................................................................................................22-10 Defining Pay Date Basis............................................................................................................................22-12 Taking Invoice Discounts ..........................................................................................................................22-13

Available Discount Reports...........................................................................................................................22-14 Applying Credit and Debit Invoices ..............................................................................................................22-15 Cash Requirements Report ............................................................................................................................22-16

Assigning Pay Alone .................................................................................................................................22-17 Lab 2: Entering an Invoice and Applying Payment Terms........................................................................22-18 Lab 2 Solutions: Entering an Invoice and Applying Payment Terms........................................................22-19

Summary........................................................................................................................................................22-21 Defining Payments Setup ................................................................................................................................23-1

Defining Payments Setup ..............................................................................................................................23-2 Setting Up Oracle Financials Payment Defaults........................................................................................23-3 Setting Up Payment Defaults.....................................................................................................................23-5 Setting Up Supplier Defaults .....................................................................................................................23-8 Defining Banks ..........................................................................................................................................23-10 Defining Banks: Bank Accounts................................................................................................................23-12 Defining Banks: Payment Documents .......................................................................................................23-14 Entering Pay Group Information ...............................................................................................................23-18 Defining Payment Terms...........................................................................................................................23-19 Setting Up Future-Dated Payments ...........................................................................................................23-22 Setting Up Payables Options to Work with Cash Management ................................................................23-24

Tax Types - Introduction ................................................................................................................................24-1 Tax Types - Introduction ...............................................................................................................................24-2 Tax Types ......................................................................................................................................................24-3 Tax Enhancements.........................................................................................................................................24-4

Setting Up Tax Requirements.........................................................................................................................25-1 Setting Up Tax Requirements........................................................................................................................25-2 Defining Tax Types .......................................................................................................................................25-3 Selecting Tax Defaulting ...............................................................................................................................25-4

Entering Tax Defaults in the Payables Options Window...........................................................................25-5 Entering Tax Defaults in the Financials Options Window ........................................................................25-6 Entering Tax Defaults in Suppliers............................................................................................................25-8 Entering Tax Defaults in the Supplier Sites Window ................................................................................25-9 Entering Tax Defaults in the Invoice Window ..........................................................................................25-10 Entering Tax Defaults in the Tax Options Window ..................................................................................25-11 Entering Tax Defaults in the Distribution Sets Window ...........................................................................25-12 Defining Tax Codes...................................................................................................................................25-13


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Defining Tax Names for Withholding Taxes.............................................................................................25-15 Defining Tax Codes for Withholding Taxes..............................................................................................25-16 Lab 1: Defining Tax Codes........................................................................................................................25-18 Lab 1: Defining Tax Codes........................................................................................................................25-18 Lab 1 Solutions: Defining Tax Codes........................................................................................................25-19 Lab 1 Solutions: Defining Tax Codes........................................................................................................25-19 Defining Withholding Tax Groups ............................................................................................................25-20

Summary........................................................................................................................................................25-21 Prorating Freight, Sales Tax, and Miscellaneous Charges ..........................................................................26-1

Prorating Freight, Sales Tax, and Miscellaneous Charges.............................................................................26-2 Recording Freight Charges ............................................................................................................................26-3

Enabling Automatically Create Freight Distribution .................................................................................26-4 Entering Prorated Freight and Miscellaneous Charges..............................................................................26-5 Entering Freight Distribution Information.................................................................................................26-7 Prorating Taxes Across Invoice Distributions ...........................................................................................26-9 Lab 1: Entering an Invoice ........................................................................................................................26-11 Lab 1 Solutions: Entering an Invoice ........................................................................................................26-12

Summary........................................................................................................................................................26-15 Managing Automatic Tax Calculation...........................................................................................................27-1

Managing Automatic Tax Calculation...........................................................................................................27-2 Setting Up Automatic Tax Calculation......................................................................................................27-3 Setting Up Suppliers and Supplier Sites ....................................................................................................27-5 Using Automatic Tax Calculation .............................................................................................................27-6 Lab 1: Entering an Invoice for Automatic Sales Tax Calculation .............................................................27-8 Lab 1 Solutions: Entering an Invoice for Automatic Sales Tax Calculation .............................................27-9 Lab 2: Entering Invoice Distribution Lines ...............................................................................................27-11 Lab 2 Solutions: Entering Invoice Distribution Lines ...............................................................................27-12 Lab 3: Entering an Invoice Distribution Line ............................................................................................27-14 Lab 3 Solutions: Entering an Invoice Distribution Line ............................................................................27-15 Lab 4: Entering an Invoice with Prorated Tax and Freight........................................................................27-17 Lab 4 Solutions: Entering an Invoice with Prorated Tax and Freight........................................................27-18

Summary........................................................................................................................................................27-21 Setting Up Value Added Tax Requirements .................................................................................................28-1

Setting Up Value Added Tax Requirements..................................................................................................28-2 Tax Types ......................................................................................................................................................28-3 Setting Up Value Added Tax.........................................................................................................................28-4

Defining VAT Tax Names.........................................................................................................................28-5 Defining EU Suppliers...............................................................................................................................28-7

Recording VAT Charges for an Invoice ........................................................................................................28-8 Reviewing VAT Charges...............................................................................................................................28-9 Summary........................................................................................................................................................28-10

Setting Up Automatic Tax Withholding Requirements ...............................................................................29-1 Setting Up Automatic Tax Withholding Requirements.................................................................................29-2 Automatic Withholding Tax ..........................................................................................................................29-3

Enabling the Use Withholding Tax Function ............................................................................................29-4 Creating Withholding Tax Invoices...........................................................................................................29-6 Review Withheld Amounts Online............................................................................................................29-8 Reviewing Projected Withholding Tax......................................................................................................29-9 Submitting Withholding Tax Reports........................................................................................................29-10

Summary........................................................................................................................................................29-11 Setting Up 1099 Requirements .......................................................................................................................30-1

Setting Up 1099 Requirements......................................................................................................................30-2 1099 Reporting: Overview ............................................................................................................................30-3 Setting Up Oracle Payables for 1099 Reporting............................................................................................30-4


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Enabling the Combined Filing Program ....................................................................................................30-5 Defining Income Tax Regions...................................................................................................................30-7 Defining Reporting Entities That Produce 1099 Reports ..........................................................................30-9 Entering 1099 Suppliers ............................................................................................................................30-10 Creating 1099 Payment Information..........................................................................................................30-11

Identifying and Correcting 1099 Exceptions .................................................................................................30-12 Submitting the Update Income Tax Details Utility ...................................................................................30-13 Submitting 1099 Forms .............................................................................................................................30-15 Submitting 1099 Tape................................................................................................................................30-17 Submitting 1099 Electronic Media ............................................................................................................30-18 Submitting 1096 Forms .............................................................................................................................30-19

Summary........................................................................................................................................................30-20 Taxes Setup ......................................................................................................................................................31-1

Taxes Setup ...................................................................................................................................................31-2 Defining Reporting Entities (1099 Reporting) ..........................................................................................31-4

Submitting Reports..........................................................................................................................................32-1 Submitting Reports ........................................................................................................................................32-2 Defining Reports and Requests Sets..............................................................................................................32-3

Submitting Requests (Reports or Programs)..............................................................................................32-4 Defining Submission Schedules ................................................................................................................32-6 Defining Completion Options....................................................................................................................32-7 Submitting Request Sets ............................................................................................................................32-9

Summary........................................................................................................................................................32-11 Completing the AP Cycle ................................................................................................................................33-1

Completing the AP Cycle ..............................................................................................................................33-2 AP Close Cycle..............................................................................................................................................33-3 Submitting Mass Additions ...........................................................................................................................33-6

Recording Asset Information in Oracle Payables ......................................................................................33-9 Submitting Mass Additions Create Program .............................................................................................33-11 Transferring Accounting Details to General Ledger..................................................................................33-13 Moving Unresolved Exceptions to the Next Period...................................................................................33-15 Controlling AP Accounting Periods (Closing the Period) .........................................................................33-16

Reconciling Accounts Payable Activity for the Period .................................................................................33-18 Purging Records ............................................................................................................................................33-19 Summary........................................................................................................................................................33-21

Using Optional Accounting Features .............................................................................................................34-1 Using Optional Accounting Features.............................................................................................................34-2 Using Intercompany Accounting...................................................................................................................34-3 Setting Up Euro Settlements in Oracle Payables...........................................................................................34-4

Setting Up Euro Settlement Fixed Rate Currencies...................................................................................34-5 Entering Euro Settlements Daily Rates......................................................................................................34-7 Entering Euro Settlements Conversion Rate Types...................................................................................34-8 Entering Euro Settlements Rounding Accounts.........................................................................................34-9 Entering Euro Settlements Supplier Sites ..................................................................................................34-11 Entering Processing Invoices for Euro Settlements...................................................................................34-12

Using Multiple Currencies: Overview...........................................................................................................34-14 Entering Exchange Rate Information for Invoices ....................................................................................34-15 Paying Foreign-Currency Invoices ............................................................................................................34-17 Reviewing Unrealized Gains and Losses...................................................................................................34-19

Using Automatic Offsets ...............................................................................................................................34-20 Using Automatic Offsets ...........................................................................................................................34-21 Creating a Pooled Account ........................................................................................................................34-24

Implementing Sequential Numbering............................................................................................................34-26 Using Sequential Numbering.........................................................................................................................34-27 Summary........................................................................................................................................................34-28


Accounts Payable R11i Table of Contents x

Reporting, Accounting, and Auditing Setup .................................................................................................35-1 Reporting, Accounting, and Auditing Setup..................................................................................................35-2

Selecting a Set of Books ............................................................................................................................35-4 Setting Up Oracle Payables to Use Multiple Currencies ...........................................................................35-5 Setting Up Foreign-Currency Bank Accounts ...........................................................................................35-7 Defining Accounting and Audit Levels .....................................................................................................35-9

System and Profile Options.............................................................................................................................36-1 System and Profile Options ...........................................................................................................................36-2 Profile Options in Oracle Payables................................................................................................................36-3

Payables Reports..............................................................................................................................................37-1 Payables Reports ...........................................................................................................................................37-2 Payables Programs.........................................................................................................................................37-3 Supplier Reports ............................................................................................................................................37-4 Income Tax Forms and Reports.....................................................................................................................37-8 Invoice Reports..............................................................................................................................................37-9 Invoice Tax Reports.......................................................................................................................................37-18 Payment Reports............................................................................................................................................37-20 Accounting and Reconciliation Reports ........................................................................................................37-27 Key Indicators Reports ..................................................................................................................................37-32 Notices...........................................................................................................................................................37-33 Listings ..........................................................................................................................................................37-35 Suppliers Report ............................................................................................................................................37-36 New Supplier/New Supplier Site Listing.......................................................................................................37-37 Supplier Payment History Report ..................................................................................................................37-38 Supplier Paid Invoice History........................................................................................................................37-39 Supplier Audit Report....................................................................................................................................37-40 Supplier Merge Report ..................................................................................................................................37-41 Matching Hold Detail Report ........................................................................................................................37-42 Batch Control Report by Batch Name ...........................................................................................................37-43 Prepayments Status Report ............................................................................................................................37-44 Invoice Aging Report ....................................................................................................................................37-45 Cash Requirement Report..............................................................................................................................37-46 Posting Hold Report ......................................................................................................................................37-47 Distribution Set Listing .................................................................................................................................37-48 Discounts Taken and Lost Report..................................................................................................................37-49 Unrealized Gain/Loss Report ........................................................................................................................37-50 Mass Additions Create Report.......................................................................................................................37-51 Use Tax Liability Report ...............................................................................................................................37-52 Intra-EU VAT Audit Trail .............................................................................................................................37-53 Tax Information Verification Letter ..............................................................................................................37-54 1099 Invoice Exceptions Report....................................................................................................................37-55 1099 Supplier Exceptions Report ..................................................................................................................37-56 1099 Payments Report...................................................................................................................................37-57 Withholding Tax By Invoice Report .............................................................................................................37-58 Withholding Tax By Payment Report ...........................................................................................................37-59

11.5.10 New Features.......................................................................................................................................38-1 11.5.10 New Features ....................................................................................................................................38-2 Invoice Processing Enhancements.................................................................................................................38-3 User Interface Enhancement..........................................................................................................................38-5

User Interface Enhancement......................................................................................................................38-6 User Interface Enhancement......................................................................................................................38-7

Suppliers Enhancements................................................................................................................................38-8 Reports and Programs Enhancements............................................................................................................38-10 Summary........................................................................................................................................................38-11 Summary........................................................................................................................................................38-11

Copyright Oracle, 2006. All rights reserved. IT Convergence - Oracle Certified Advantage Partner.

Introduction to Oracle Payables - Release 11i Chapter 1 - Page 1

Introduction to Oracle Payables - Release 11i Chapter 1



Introduction to Oracle Payables - Release 11i

Section Objectives

At the end of this section, you should be able to:

• Set up and manage suppliers

• Enter, review, and approve invoices

• Pay invoices and reconcile payments to bank records

• Enter and apply prepayments

• Create journal entries for posting to the general ledger

• Use advanced features of Oracle Payables



Product Integration

Oracle Payables fully integrates with:

• Oracle Human Resources

• Oracle Projects

• Oracle Cash Management

• Oracle EDI

• Oracle General Ledger and other general ledger systems

• Oracle Assets and other fixed assets systems

• Oracle Purchasing and other purchasing systems

• Oracle Workflow



Course Overview

Oracle Payables is a high-productivity accounting solution that helps you maintain strong financial controls. You can maximize supplier discounts, prevent duplicate payments, and pay for only the goods and services you order and receive.

Oracle Payables helps you resolve business issues quickly by providing accurate responses to your inquiries.

Oracle Payables contains four major processes:

• Set up Suppliers: Before entering invoices for a new supplier (vendor), you need to setup the supplier in Oracle Payables or Oracle Purchasing.

• Enter and approve invoices: You can enter and approve invoices individually or in batches.

• Pay invoices: You can also pay approved invoices individually or in batches by check or electronically.

• Post transactions to the general ledger: You can transfer the invoice and payment accounting distributions and audit information to the general ledger interface. You can then use your general ledger system to import this information and create journal entries



Tracing the Flow of Default Values

Oracle Payables contains a hierarchy of options and defaults to expedite and control data entry. Options and defaults set at one level automatically cascade down to all lower levels in the hierarchy. Although you need to define these options and defaults only once, you can update them at any time to change controls and defaults for future transactions.

You can override options and defaults at lower levels in the hierarchy.


Suppliers - Introduction Chapter 2 - Page 1

Suppliers - Introduction Chapter 2



Suppliers - Introduction

Section Objectives


• Discuss the basic concepts of suppliers within Oracle Payables.



Setting Up Suppliers

• Set up suppliers in the Suppliers windows to record information about individuals and companies from whom you purchase goods and services.

• When you enter a supplier that does business from multiple locations, you store supplier information only once, and you enter supplier sites for each location.

• Most supplier information automatically defaults to all supplier sites. However, you can override these defaults and enter unique information for each site.

• When you enter a supplier, you can also record information for your own reference, such as the names of contacts or the name of the supplier’s parent company if the supplier is a franchise or subsidiary. The parent company must also be defined as a supplier in the system.



Using Supplier Information

Three Oracle financial applications use the Supplier windows: Oracle Payables, Oracle Purchasing, and Oracle Assets. If you use more than one of these products, supplier information is shared with the other products.

To enter a purchase order, Oracle Purchasing needs at least one purchasing site. Oracle Purchasing uses supplier and supplier site information to enter default values such as freight terms and shipment methods for all of the supplier’s purchase orders. By defining receiving control options, you can ensure that products you receive are within the tolerance you specify and the guidelines you choose.

Oracle Assets uses only the supplier name, supplier number, and inactive date information from the Supplier windows.

By enabling the Create Employee as Supplier Payables option when you import the employee’s expenses from Oracle Projects, Oracle Payables creates a supplier site with the appropriate address depending on the information you entered in the Enter Person window of Oracle Human Resources.



Using Supplier Information

Employee Update Program

This new program synchronizes your employee and associated supplier records. When employee records are updated, the system does not automatically update the corresponding supplier record. The Payables Invoice Import program updates address information when importing expense reports for employees, but this new program handles name and address changes and makes supplier records inactive if the associated employee record is terminated. In addition, the program can be set to run periodically or before any payment run to ensure that employee type supplier records are accurate.

Negative Supplier Balance Identification

Oracle Payables provides a standard way to identify any suppliers that have negative balances. This can help you with business processes such as identifying and recovering credits from your suppliers. The Accounts Payable Trial Balance report now has a new option to allow the report to be run only for negative balances.

Supplier Bank Account Update Enhancements

Payables has enhanced Supplier Bank Account functionality with the following new features:

• When a user makes a supplier bank account inactive, Payables can now optionally replace that account on any unpaid or partially paid scheduled payments with the supplier’s primary bank account.

• A new function controls the display of the Bank Accounts and Supplier Assignments tabs in the Suppliers and Banks windows. If a user’s responsibility does not have access to this function, then the user cannot see the following:

• Bank Accounts tab in Suppliers window

• Bank Accounts tab in Supplier Sites window

• Supplier Assignments tab in Bank Accounts window

Bank Account Function Security Enhancements

Three new functions allow you to control each user’s access to the three bank account types; Internal, Customer and Supplier. For example, you can grant a clerk who manages suppliers full access to supplier bank accounts but deny that user access to customer and internal bank accounts.

These new functions control bank account access in Oracle Payables windows and reports.



Supplier Site Contact Enhancements

Users can now record additional details for supplier site contacts in new fields created in the Contact tab of the Supplier Sites window: E-mail, URL, Alternate Phone, and Fax.

Supplier Site Attachments

Oracle Payables now supports the attachment of supplemental files at the supplier site level. This feature's functionality is identical to that currently available at the supplier level.

According to the attachments functionality user can choose the Attachments icon to open the Attachments window to either add an attachment to the current record or review an existing attachment for the record.

Supplier Open Interface

Oracle Payables has added new open interface tables and concurrent programs to support the automated import of supplier records from external sources.

Supplier Open Interfaces emulate the entry of Suppliers, Sites, and Contacts through the Supplier Entry form as closely as possible. As such, there are many values that will be automatically defaulted if not provided by the user. The validations performed by the Open Interface programs performs several controls at the database level for correct data types, as well as validations performed against existing lookup values or values derived from other tables.

If an invalid value is encountered when the concurrent process is evaluating each row, a REJECTED MESSAGE column is populated with the relevant rejection message and the STATUS is updated to ’REJECTED’. Processing on that row then stops and the program moves on to the next row.

The Suppliers Open Interface, include the following independent programs:

• Supplier Open Interface Import – for Suppliers Headers

• Supplier Sites Open Interface Import – for Suppliers Sites

• Supplier Site Contacts Open Interface Import – for Supplier Contacts

Copyright © Oracle Corporation, 2005. All rights reserved. IT Convergence-Oracle Certified Advantage Partner

Setting Up Suppliers Chapter 3 - Page 1

Setting Up Suppliers Chapter 3



Setting Up Suppliers

Section Objectives


• Discuss the basic concepts of setting up suppliers within Oracle Payables.



Tracing the Flow of Default Values

Financials

Payables

Supplier

Supplier site

Invoice

Invoice distribution line Invoice payment schedule line

Overview

Oracle Payables contains a hierarchy of options and defaults to expedite and control data entry. Options and defaults set at one level automatically cascade down to all lower levels in the hierarchy. Although you need to define these options and defaults only once, you can update them at any time to change controls and defaults for future transactions. You can override options and defaults at lower levels in the hierarchy.



Setting Up Suppliers and Supplier Sites

Contacts Contacts

Pay sitePurchasing siteRFQ only site

Tokyo New York

Purchasing sitepay site

Contacts

Supplier

Paris

• For every supplier, you can create an unlimited number of sites with different addresses and contacts. For example, for a single supplier, you can buy from several different sites and send the payments to only one site.

• You can designate supplier sites as one of the following types: − Pay Site: You can only enter an invoice for a supplier site that is designated as

Pay Site. − Purchasing Site: You can only create purchase orders in a Purchasing Site. − RFQ Only Site: In Oracle Purchasing you can only create request for

quotations from a Request for Quotations (RFQ) Only Site. You cannot create purchase orders in an RFQ Only Site.

− Primary Pay. Default pay site. This pay site defaults as the pay site value in the Invoices window.

− Procurement Card. Supplier site that accepts the credit card brands of your procurement cards.

• For every supplier site, you can enter contact information (name, address, and telephone number) specific to that site. Contact information is for your reference only and is not used by the system.

Primary Pay Site

Oracle Payables now provides a primary pay site option for supplier records. If a supplier has multiple pay sites, one can be designated as the primary. The primary pay site defaults



in the Invoices window, helping to speed the invoice entry process. Also, Payables Open Interface Import uses this site when it imports an external invoice with no specified site.



Avoiding Duplicate Suppliers

Before setting up a new supplier, verify that the supplier does not already exist in the system. The verification eliminates the possibility of having duplicate suppliers and invoices in the system and improves the system performance.

• Perform a Find or Query on the supplier name.

• Submit a Suppliers Report.

• Submit a Supplier Audit Report to obtain a listing of suppliers whose names are the same up to a specific number of characters.

• Compare the supplier name with the names on these reports to ensure that the supplier does not already exist in the system.



Entering Basic Supplier Information Oracle Payables N → Suppliers → Entry Suppliers Summary

Suppliers Summary

How to Enter Basic Supplier Information

1. After verifying that a supplier does not already exist, set up a new supplier with a unique name in the Suppliers Summary or the Suppliers window. Use a naming convention to prevent future duplications (for example, use all CAPS and no abbreviations - ORACLE CORPORATION, not Oracle Corp.).

2. If you do not enable the Automatic Supplier Numbering option in the Financials Options window, enter a unique supplier number.

3. Optionally, enter the Taxpayer ID, usually the tax identification number (TIN) for a company or the social security number for an individual.



Entering Basic Supplier Information

4. If you are entering a value-added tax (VAT) supplier, optionally enter the VAT registration number in the Tax Registration Num field.

5. To prevent invoice or purchase order entry for this supplier after a certain date, enter the inactive date in the Inactive After field.



Entering Detailed Supplier Information: General Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: General Region

How to Enter Supplier Information in the General Region

Define parent/subsidiary relationships in the General region.

1. In the Parent Supplier Name field, enter the name of the supplier’s parent company if the supplier is a franchise or subsidiary. The parent company must be defined as a supplier in the system first.

In the Number field, the system displays the parent supplier number.



Entering Detailed Supplier Information: General Region

2. In the Customer Number field, enter the number that your supplier uses to identify your company or organization. This number appears on the Oracle Purchasing standard purchase orders.



Entering Detailed Supplier Information: Classification Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Classification Region

How to Enter Supplier Information in the Classification Region

Except for Type and Employee name, classification information is for your reference only.

In the United States, customers often use this region to classify their suppliers for government reporting purposes. For example, some customers receive certain government contracts only if a percentage of their suppliers are classified in certain categories.



Entering Detailed Supplier Information: Classification Region

1. In the Type field, select the category that best describes the supplier, I.E Vendor, Contractor, Employee etc.

2. In the Employee Name field, enter the name of the employee that this supplier is associated with. This is only used is you select a supplier Type of Employee.

3. Check the One Time checkbox if this supplier will only be used once. Marking this option does not prevent you from using the supplier more than once.

3. In the SIC field, enter the standard industry code (SIC) for your supplier.

2. In the Minority Owned field, select the type of minority-owned business from the list of values.

3. If you want to track your business with small companies, select the Small Business check box.

4. If you want to track your business with companies owned by women, select the Woman Owned check box.



Entering Detailed Supplier Information: Accounting Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Accounting Region

The Accounting region of the Suppliers window is grayed out. Information for this region is entered at the Site (address) level only.



Entering Detailed Supplier Information: Control Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Control Region

How to Enter Supplier Information in the Control Region

You can prevent payment of multiple supplier invoices by applying a hold to the supplier rather than on each individual invoice. There are several types of supplier related holds that you can select for a supplier.

1. Invoice Amount Limit: If you enter an invoice that exceeds the invoice amount limit specified in this field, Oracle Payables applies an Amount hold to the invoice during approval.



Entering Detailed Supplier Information: Control Region

2. Marking the Hold All Payments check box prevents the supplier from being selected for payment during a payment batch or for a Quick payment.

3. Marking the Hold Unmatched Invoices check box, places a Matching Required hold on the invoices you enter that you do not match to a purchase order (and instead enter distributions manually or with a distribution set).

4. Marking the Hold Unapproved Invoices check box automatically applies a Supplier hold to any unapproved invoices entered for the supplier. However, you can pay invoices that were entered before selecting this option.

5. Use the Hold Reason field to specify the reason that you are applying an invoice hold to invoices.



Entering Detailed Supplier Information: Payment Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Payment Region

How to Enter Supplier Information in the Payment Region

The defaults in the Payment region come from the defaults that you enter in the Financials Options window, except for the default for Pay Group, which comes from the Payables Options window.

1. In the Terms field, select a payment term for the supplier. Oracle Payables uses payment terms to calculate due dates, discount dates, and discount amounts for each invoice. (Payment Terms must be setup prior to being selected from the List of Values.)



Entering Detailed Supplier Information: Payment Region

2. In the Pay Group field, assign a Pay Group to the supplier. When you create a payment batch, you choose a Pay Group to pay a category of suppliers or invoices at the same time.

3. In the Payment Priority field, enter a number between 1 (high) and 99 (low) that represents the priority of payment. The default value is 99.

4. In the Remittance E-Mail field, enter the destination e–mail address for remittance information. After a Supplier has been set up to receive this information, remittance e-mails are automatically generated during the payment process.

5. In the Invoice Currency field, select the invoice currency for the supplier. The invoice currency is used as a default for the Purchasing documents and Oracle Payables transactions that you enter for a supplier.

6. In the Payment Currency field, select the default currency for payments to the supplier.

7. In the Terms Date Basis field, select the date from which Oracle Payables calculates a scheduled payment for a supplier.

• If you select Current, Oracle Payables defaults the current date as the terms date on the invoice.

• If you select Goods Received, Oracle Payables prompts you to enter the date on which you received the goods for an invoice as the terms date.

• If you select Invoice, Oracle Payables defaults the invoice date as the terms date on the invoice.

• If you select Invoice Received, Oracle Payables prompts you to enter the date on which you received an invoice as the terms date.

8. In the Pay Date Basis field, select Due or Discount as the pay date basis for the supplier. The pay date basis determines the pay date for the supplier's invoices. Select Discount to take advantage of discount terms offered by the supplier.



Entering Detailed Supplier Information: Payment Region

9. In the Payment Method field, select the method you use most frequently to pay the supplier’s invoices:

• If you select Check, you can pay with a manual payment, a Quick payment, or in a payment batch.

• If you select Electronic, you pay electronic payments either through the EDI Gateway or by delivering a payment batch file to your bank.

• If you select Wire, you can manually record an external wire transfer of funds between your bank and your supplier’s bank.

• If you select Clearing, you can record invoice payments to internal suppliers.

• If you select Future Dated, you can create payments with a future date that instructs your bank when to disburse funds to your supplier’s bank (for example, a bill of exchange).

• If you select Manual Future Dated, you can disburse funds to a supplier who sends an invoice with a payment notice attached. You approve the supplier’s payment notice, which includes a future payment date, and send it to your bank.

10. Always Take Discount: Select this option to have Oracle Payables always take the available discount for a supplier, regardless of when you pay the invoice.

12. Exclude Freight From Discount: If this option is selected, Oracle Payables automatically subtracts the freight amount from the invoice amount when calculating the invoice amount subject to discount.

13. Allow Interest Invoices: If you select this option, Oracle Payables calculates interest for the supplier’s overdue invoices and creates corresponding interest invoices when you pay the overdue invoices. You can select this option, if you have already selected the Allow Interest Invoices check box in the Payables Options window.

14. Pay Alone: If you select this option, Oracle Payables creates a separate payment for each invoice. If the Pay Alone option is not selected, all invoices for the same supplier site are paid on a single payment.



Entering Detailed Supplier Information: Bank Accounts Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Bank Accounts Region

How to Enter Supplier Information in the Bank Accounts Region

Use the Bank Accounts region to record the supplier bank accounts information that you use for making electronic payment transactions.

Prerequisite: In the Bank Accounts window, define the bank accounts for which your supplier is the account holder.



Entering Detailed Supplier Information: Bank Accounts Region




• A new function controls the display of the Bank Accounts and Supplier Assignments tabs in the Suppliers and Banks windows. If a user’s responsibility does not have access to this function, then the user cannot see the following:

Bank Accounts tab in Suppliers window

Bank Accounts tab in Supplier Sites window

Supplier Assignments tab in Bank Accounts window






Entering Detailed Supplier Information: Bank Accounts Region

1. In the Name field, select the name of the bank account.

Note: In the Number field, Oracle Payables displays the bank account number.

2. In the Cur field, Oracle Payables displays the currency for the bank account.

3. Select the Primary check box if you want to use this bank account as a default when you pay this supplier electronically.

4. In the Effective Dates From and To fields, enter dates to limit the time during which a supplier site uses this bank account as the primary bank account for receiving electronic payments.

Note: Oracle Payables displays the supplier’s bank and branch information in the Bank and Branch fields.



Entering Detailed Supplier Information: EDI Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Electronic Data Interchange

How to Enter Supplier Information in the Electronic Data Interchange Region

This region is accessible only when you select Electronic as the payment method in the Payment Region of this window.

1. In the Payment Method field, indicate how the electronic payment is to be made.

2. In the Payment Format field, indicate the type of information that is transmitted with the funds if the Payment Method is ACH.



Entering Detailed Supplier Information: EDI

3. In the Remittance Method field, indicate which party is responsible for sending the remittance advice to the payee.

4. In the Remittance Instruction field, you can enter the specific wire or other electronic payment instructions for an intermediary or recipient financial institution.

5. In the Transaction Handling field, select one of standard EDI transaction codes.



Entering Detailed Supplier Information: Invoice Tax Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Invoice Tax Region

The Invoice Tax Region is populated in the Invoice Tax Region of the Site.

How to Enter Supplier Information in the Invoice Tax Region

1. In the Invoice Tax Name field, select the tax name that represents the tax charges you generally receive on invoices from the supplier.

2. In the Offset Tax Name field, select a tax name that is used in conjunction with a value added taxes (VAT) invoice tax name for reporting intra-EU VAT charges on invoices.



Entering Detailed Supplier Information: Invoice Tax Region

Note: If you use the Multiple Organization feature, you can enter values in the Invoice Tax Name and Offset Tax Name fields only at the supplier site level.

3. Select the appropriate Calculation Level at which you want Oracle Payables to automatically calculate taxes.

• Header: Automatically create tax distributions based on the invoice amount and tax name.

• Line: Automatically create tax distributions based on the distribution amount, tax name.

4. Select the Allow Calculation Level Override check box if you want to allow updates of the default value of the Calculation Level option for the supplier sites.

5. In the Rounding Rule field, select the method that you want the system to use to round the tax amount. You can select Up to round up, or round Down to round down, or round Nearest to round to the nearest.

6. Select the Distribution Amounts Include Tax check box, if you have selected Line as your Calculation Level, and if you want Oracle Payables to make an inclusive tax calculation where the calculated tax amount is subtracted from the item distribution lines.



Entering Detailed Supplier Information: Withholding Tax Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Withholding Tax Region

How to Enter Supplier Information in the Withholding Tax Region

Use this region to enter withholding tax information for a supplier and supplier site. You have access to this region only if you selected the Use Withholding Tax check box in the Payables Option window. The options that you select for a supplier default to the new supplier sites that you enter and then default to invoices that you enter for the site.



Entering Detailed Supplier Information: Withholding Tax

1. Select the Allow Withholding Tax check box to allow withholding taxes for the supplier and supplier site. If you do not allow withholding tax for a supplier, you cannot allow withholding tax for any of the supplier’s sites. As a result, you cannot withhold taxes for any invoices entered for this supplier site.

2. In the Withholding Tax Group field, select a default withholding tax group to assign to all invoices for the supplier site.



Entering Detailed Supplier Information: Tax Reporting Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Tax Reporting Region

How to Enter Supplier Information in the Tax Reporting Region

1. Identify a supplier as Federal and State reportable by selecting the appropriate check box.

2. In the Income Tax Type field, select the appropriate tax type for the supplier.



Entering Detailed Supplier Information: Tax Reporting Region

Note: In the Reporting Site field, Oracle Payables displays the supplier site that you chose as the income tax reporting site. For income tax reporting purposes, Oracle Payables requires a tax reporting site for each 1099 supplier. You can only choose one supplier site as the income tax reporting site for a supplier.

3. Reporting Name: This field is required only if the tax reporting name for the supplier differs from the supplier name. Oracle Payables prints this name, instead of the supplier name, on all 1099 reports for the supplier.

4. Name Control: Enter the first four characters of the last name of the 1099 supplier in this field. Oracle Payables displays the Name Control you enter here when you create the 1099 Tape for federally reportable suppliers.

5. In the Verification Date field, enter the date on which you received tax verification from the supplier. In Oracle Payables you can submit Tax Information Verification Letters for your suppliers. Oracle Payables prevents the generation of any further letters to a supplier after the verification date.

6. In the Organization Type field, select the type of organization for this supplier. The United States Internal Revenue Service (IRS) requires this information if you use magnetic media to file your 1099 tax information.



Entering Detailed Supplier Information: Purchasing Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Purchasing Region

The default information in this window will come from the Purchasing defaults setup in the Purchasing module.

How to Enter Supplier Information in the Purchasing Region

1. Select the default Ship-To Location from the list of Values where purchases will be delivered by the supplier.

2. Select the default Bill-To Location from the List of Values where the supplier will send their invoices.

3. Select the default shipper that will deliver the goods from the supplier in the Ship Via field.



Entering Detailed Supplier Information: Purchasing Region

4. Select the appropriate default FOB method from the List of Values.

5. Select the default Freight Terms from the List of Values for the supplier.

6. To automatically create a Debit Memo when purchases are returned to a supplier, mark the Create Debit Memo from RTS Transaction checkbox. A Return to Supplier transaction is created on the purchasing receipt in the Purchasing module.

7. To place all Purchase Orders on hold for this supplier, Mark the Purchase Order Hold checkbox. Marking this box here will affect all Purchase Orders for the supplier regardless of the site.

8. Optionally, enter a reason for placing the Purchase Orders on hold.



Entering Detailed Supplier Information: Receiving Region Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Receiving Region

How to Enter Supplier Information in the Receiving Region

1. In the Enforce Ship-To Location field, select an option from the drop-down list:

• Warning – Receive a message when the Ship-To Location is different

• Reject – Reject the receipt when the Ship-To Location is different

• None – No action when the Ship-To Location is different



Entering Detailed Supplier Information: Receiving Region

2. In the Receipt Routing field, select the appropriate default receiving method:

• Standard Receipt – Requires a Standard Receipt and a Delivery transaction

• Inspection Required – Requires, a Standard Receipt, Deliver Transactions, and Inspection

• Direct Delivery – Requires a Direct Delivery receipt

3. Indicate the Match Approval level:

• 2- Way – requires a PO and an Invoice for payment

• 3-Way – requires a PO, Receipt, and an Invoice for Payment

• 4-Way – requires a PO, Receipt, Inspection, and an Invoice for Payment

4. Enter the percentage of allowable Qty Received Tolerance.

5. Select the appropriate Qty Received Exception action:

• Warning – Receive a message when the Qty Received is different

• Reject – Reject the receipt when the Qty Received is different

• None – No action when the Qty Received is different

6. Enter the number of days early that you will accept a delivery.

7. Enter the number of days late that you will accept a delivery.

8. Select the appropriate Receipt Date Exception action:

• Warning – Receive a message when the Receipt Date is different

• Reject – Reject the receipt when the Receipt Date is different

• None – No action when the Receipt Date is different

9. Indicate whether you will Allow Substitute Receipts.

10. Indicate whether you will Allow Unordered Receipts.



Entering Information at the Supplier Site Level

Oracle Payables Supplier InformationInformation Enter at Enter atType Supplier Supplier SitePurchasing Yes Yes

Receiving Yes NoPayment Yes YesControl Yes Yes

Bank Yes YesAccounting No YesTax Yes YesClassification Yes NoGeneral Yes NoWithholding Tax Yes YesSites Yes No

Supplier Information

Overview

Except for Receiving, Classification, General, and Sites categories, all categories of information that are entered at the supplier level can also be entered at the supplier site level. The information that you enter at the supplier level cascades down to all supplier sites. Note that Accounting and Invoice Tax information is entered only at the supplier site level.






Entering Basic Supplier Site Information: Sites Region Oracle Payables N → Suppliers → Entry B → New Suppliers

Suppliers: Sites Window

How to Enter Basic Supplier Site Information

1. Enter the supplier site names. To distinguish between a supplier’s sites, the site names should be unique (for example, city name or branch name). The site name is for your reference when you select a supplier site from a list of values during transaction entry and will not appear on documents that you send to the supplier. If a Supplier has more than one site in a city, create a site naming convention that will allow users to easily identify which site to place on transactions.

2. You can enter alternate names for your supplier site contacts, if you enable the AP:Enter Alternate Fields profile option.



Using Flexible Address Format

How to Enter Addresses

Oracle applications enable you to enter customer, supplier, bank, check, and remit-to addresses in country-specific formats. For example, if you have customers in the United Kingdom, you can enter British addresses in the format recommended by the Royal Mail.

Use descriptive flexfields to enter and display address information in the appropriate formats. The flexfield window is then displayed if the country you enter has a flexible address style assigned to it, enabling you to enter an address in the layout associated with that country.

If no address style is associated with the country, the standard format is used.

1. In the Country field, enter the name of the country. To determine whether an address is to be entered using the standard layout or a flexible address format, you must enter the Country field first.

• If you enter the name of a country that does not have an address style assigned to it, the address is entered using the standard layout.

• If you enter a country that has an address style assigned to it, a window opens containing the address elements defined for the address style associated with the country.

2. Enter the address and choose OK. The system displays the concatenated address in the standard address fields. Whenever you move the cursor into any of the address fields, the flexfield window opens.



Entering Detailed Supplier Site Information: Site Uses Oracle Payables N → Suppliers → Entry B → New Supplier Sites

Supplier Sites: General Region

How to Enter Detailed Supplier Site General Region Information

1. Select the appropriate Site Uses check boxes to indicate which specific business functions are performed at each site.



Entering Detailed Supplier Site Information: General Region

• A Pay Site is a supplier site to which you send payment for an invoice. You cannot enter an invoice for a supplier site that is not defined as a Pay Site.

• A Purchasing Site is a supplier site from which you create a purchase order for goods and services. A site can be both a Pay Site and a Purchasing Site.

• An RFQ Only Site is a supplier site from which you enter a request for quotations. This should be selected only if you do not allow entering purchase orders for a supplier site.

• A Primary Pay site is the default pay site for the supplier. This will help quicken the entry of Invoices for the supplier.

• A Procurement Card site is one that uses a defined credit card.

2. Optionally, select the Shipping network Location. This is the Physical location of the supplier site. The location that you enter in this field appears on the list of values for the Ship To Location field in Oracle Purchasing's Purchase Order window. Purchasing uses this information when it receives outside processing items. In Work in Process, when you have two consecutive outside processing operations on a routing, you can use the Ship To Location to specify that the supplier for the first outside processing operation is to ship the completed assemblies directly to the supplier for the next outside processing operation.

3. Optionally, select a Supplier Notification Method from the drop-down list. This is primary way you send purchase orders to the supplier. Oracle Purchasing uses this value to provide a default value in the Oracle Purchasing Approve Document Window.

• E-mail

• Printed Document

• Fax

3. In the Communications Region, enter telephone, fax and email contact information specific to that site. This information is for your reference only and is not used by the system.



Entering Detailed Supplier Site Information: Contacts Region Oracle Payables N → Suppliers → Entry B → New Supplier Sites

Supplier Sites: Contacts Region

How to Enter Detailed Supplier Site Contacts Region Information

1. Enter Contact information for this site. This is for informational use only.





Entering Detailed Supplier Site Information: Accounting Oracle Payables N → Suppliers → Entry B → Open Supplier Sites

Supplier Sites: Accounting Region

Entering Supplier Site Information in the Accounting Region

1. In the Distribution Set field, select the default distribution set for all invoices entered for the supplier site.

2. In the GL Account region allow the default information that was established during the Payables module setup or change the default information for this supplier site.

• Liability field: accept or change the default liability account number. Oracle Payables displays the description for the account number.

• In the Prepayment field: accept or change the default prepayment account number for recording any prepayment to the supplier site. Oracle Payables displays the account description.



• Future Dated Payment field: accept or change the default account number established in the setup of the Payables module. Payables displays the account description.



Entering Employees as Suppliers Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Classification Region

How to Enter Employees as Suppliers

You must enter an employee as a supplier before you can pay the employee’s expense reports. You can enable the Automatic Create Employee as Supplier Payables option to automatically enter an employee as a supplier during Invoice Import, or you can enter the employee manually as a supplier in the Suppliers window.

To enter an employee as a supplier manually:

1. In the Classification region of the Suppliers window, select Employee as the supplier type.

2. Enter the employee name and employee number in the appropriate fields.



Searching and Reviewing Supplier Information Online Oracle Payables N → Suppliers → Inquiry M → Query → Find Find Suppliers

Find Suppliers

How to Search and Review Supplier and Supplier Site Information

You can find suppliers by using the Find Suppliers window or by entering a query directly into the Suppliers Summary window or the Suppliers window.

In the Find Suppliers window, you can enter a variety of search criteria, including tax status, parent supplier, and payment priority range. You can use the Find feature to initiate a query for one supplier or for a group of suppliers.



Searching and Reviewing Supplier Information Online

1. Open the Find Suppliers window from the Suppliers Summary or the Suppliers Detail window, either by selecting the Find icon on the toolbar or by selecting Find from the Query menu. Enter the criteria directly into the fields. You can enter complex criteria by entering information in several fields.

2. Choose Find to navigate to the Suppliers Summary window, where Oracle Payables displays all suppliers that match your criteria.

3. Review all information about a supplier from the Suppliers Summary window including:

• Basic information and defaults for suppliers retrieved by the query

• Basic information and defaults for a selected supplier site and details for a selected supplier site



Maintaining Supplier and Supplier Site Information Oracle Payables N → Suppliers → Entry M → Query → Find B → Find Suppliers

Suppliers

How to Maintain Supplier and Supplier Site Information

When you make changes to values that default to Oracle Payables documents, the changed value defaults only to new documents that you subsequently enter or create. For example, if you change the Pay Group for a supplier site, the new Pay Group defaults to new invoices that you enter, but the change does not affect existing invoices. Also, if you change a supplier value that defaults to supplier sites, the change affects only new supplier sites that you create, not existing supplier sites. Therefore, the change does not affect documents that you subsequently create for existing supplier sites. If you want a change to affect documents that you enter or create for an existing supplier site, be sure to make the changes at the supplier site level. To update supplier and supplier site information:

1. Find the supplier.

2. In the Suppliers Summary or the Suppliers window, make any changes in the appropriate fields; and save your work.



Selecting Supplier Reports

Oracle Payables Supplier Reports

Report Name Description

Suppliers Report Review supplier, supplier site, and supplier site contracts information

Suppliers Audit Report Review supplier names whose name are similar up to a specified number of characters

New Supplier/New Supplier Site Listing Review new supplier sites

Supplier Payment for a History Report Review the payment history, including void payments, supplier or a group of suppliers

Supplier Payment Invoice History Report Review the Payment history, including discount and partial payment information, for a supplier or group of suppliers



Lab 1: Entering Supplier Information

Instructions

Your supervisor has notified you that the company will be purchasing materials and services from three new suppliers. Supplier #1 provides materials, Supplier #2 provides services, and Supplier #3 provides both materials and services.

XXX = Your Initials

Supplier #1

Name = XXX MATERIALS SUPPLIER (You decide)

Type = Manufacturing

Payment Terms = Immediate

Payment Priority = 99

Invoice Matching = 3 way

Site Name = Your home town

Site Address: Enter a fictional address

Site Uses = Pay and purchasing site

Contact = Yourself

Terms Date Basis = Invoice

Supplier # 2

Name = XXX SERVICES SUPPLIER

Type = Vendor

Invoice Amount Limit = $15,000.00



Lab 1: Entering Supplier Information

Payment Terms = Immediate


Site 1 = The name of your favorite vacation spot

Site Address = Make one up

Site Uses = Pay and purchasing site

Contact = Your favorite person in the whole world

Site 2 = You make it up and enter address and contact information


Supplier #3

Name = XXX SUBCONTRACTOR SUPPLIER (You decide)

Type = Subcontractor

Tax Reporting = Federal and state reportable

Taxpayer ID = Enter a ficticious social security number in the format XXX-XX-XXXX

Income Tax Type = MISC7

Verification Date = Today

Organization Type = Individual


Payment Terms = 30 Net


Select Pay Alone.

Create two sites and add contacts for each site.

One is a Pay Only Site.

Change the Payment terms on one site to Immediate.



Lab 1 Solutions: Entering Supplier Information

1. Navigate to the Suppliers Summary window.

N → Supplier → Entry

2. Enter your supplier name and the payment term

3. Validate that your window appears similar to the one displayed below:

4. Choose New. Oracle Payables displays the Suppliers window.

5. In the Classification region, enter the supplier type.





7. In the Payments region, enter the payment term for your supplier.

8. Validate that your window appears similar to the one displayed above:

9. In other alternate regions of the Suppliers window, enter all other information about your supplier.




10. Navigate to the Supplier Sites window

B → Sites

11. Enter your supplier site name and address.

12. In the Contact region, enter the contact information.


14. Save your work.

15. Repeat the above steps to create suppliers #2 and #3.

16. To set the Invoice limit amount for supplier #2, in the Control region of the Suppliers window, enter the limit amount.





18. Set up the tax reporting requirements for supplier #3 in the Tax Reporting region of the Suppliers window.




Lab 2: Reviewing Supplier Information

Instructions

You have just created three new suppliers and want to review and change some of supplier and supplier site information:

• Search for your first supplier and add a second site.

• Search for your second supplier and inactivate the second site.

• Search for your third supplier and change the terms for both sites to Immediate and add a contact name.

• Submit the New Supplier/New Supplier Site Listing Report.



Lab 2 Solutions: Reviewing Supplier Information

Step 1: Search for the First Supplier and Add a New Site



2. Click on the Find icon from the Toolbar or choose Find from the Query menu.

3. Enter your search criteria for the supplier name that you entered in a previous lab.


5. Choose the Find button in the Find Supplier window.

6. To add a new site, navigate to the Supplier Sites window

B → Sites




7. Enter your new supplier site name and address.


9. In the Contact region, enter the contact information.

10. Review the information in the other alternate regions of the Supplier Sites window.

Step 2: Search for the Second Supplier and Inactivate the Second Site



2. Click on the Find icon from the Toolbar or choose Find from the Query menu.




3. Enter your search criteria for the second supplier that you entered in a previous lab.

4. Choose the Find button in the Find Supplier window.

5. To inactivate the second site, navigate the Sites region and the Supplier window, select the site, and choose Open.

Oracle Payables opens the Supplier Sites window

6. In the Inactive On field, enter today’s date.


8. Save your work.




Step 3: Search for the Third Supplier and Change the Term for One of the Sites and Add a Contact Name

1. Follow above steps to search for the third supplier.

2. Select one of the sites and open the Supplier Sites window.

3. Make the necessary changes.

4. Save your work.

Step 4: Submit the New Supplier/New Supplier Site Listing Report

1. Navigate to the Submit Requests Window

N → Other → Request → Run → Submit a New Request

B → OK

2. In the Name field, enter New Supplier/New Supplier Site Listing.

3. In the Parameters window, enter:

• Start Date: Today’s date (DD-MON-YR)

• List Suppliers or Sites: New Suppliers

• Order By: Supplier Name





5. Choose OK.

6. Choose Submit Request

7. Review the report.



Summary

In this lesson you should have learned how to do the following:

• Enter supplier information

• Enter supplier site information

• Enter employees as suppliers

• Review supplier information online

• Change supplier information

• Add or change supplier sites

Copyright Oracle Corporation. All rights reserved. IT Convergence-Oracle Certified Advantage Partner

Merging Suppliers Chapter 4 - Page 1

Merging Suppliers Chapter 4



Merging Suppliers

Section Objectives


• Identify duplicate suppliers

• Merge suppliers

• Review the merge results



Merging Suppliers

Run supplieraudit report

ABCCorp

ABCCorporation

Review mergeresults

ABCCorporation

Merge suppliers

Identify duplicatesuppliers

Maintain audittrail

Overview

• Although the system prevents you from entering duplicate supplier names, you may inadvertently define the same supplier by using two different names. For example, you might enter ABC Corporation and ABC Corp, or you might enter a contractor under his name and his company name. You might also create duplicate suppliers if you import suppliers from another accounts payable system.

• Use Supplier Merge to combine two or more suppliers that you identify as duplicates. You can update purchase orders and invoices for the old supplier to refer to the new supplier. The Supplier Merge window also enables you to merge supplier sites so that any sites assigned to an old supplier can be reassigned to the new supplier.



Merging Suppliers

• When you merge suppliers, you transfer invoices, purchase orders, or both from one supplier and site to another supplier and site. You can transfer to a new supplier and site unpaid invoices only or all invoices (including paid and partially paid invoices). Oracle Payables will not merge invoices if the merge would create a duplicate invoice for a supplier.

• For best auditing results, transfer both paid and unpaid invoices to a new supplier and site so you can identify duplicate payments easily. Also, transfer both purchase orders and invoices to a new supplier and site so all invoice and purchase order information refers to the same supplier.

• After you have merged suppliers, Oracle Payables automatically prints the Purchase Order Header Updates Report and the Supplier Merge Report as an audit trail of your supplier merge activity. The Supplier Merge Report also lists any duplicate invoices that it did not merge. Research the duplicated invoice. You can then update the invoice number if the invoice has not been paid or posted.



Identifying Duplicate Suppliers

• Review supplier records periodically to achieve the following: − To prevent duplicate invoices − To improve system performance − To provide accurate supplier reporting

• Use the Suppliers Report and the Supplier Audit Report to help identify duplicate suppliers.



Merging Suppliers Oracle Payables N → Suppliers → Supplier Merge Supplier Merge

Supplier Merge

How to Merge Suppliers

1. Select which invoices to transfer from the Old Supplier to the New Supplier: All, Unpaid, or None. Also make sure the New Supplier site is a Pay Site, because you can only enter an invoice for a supplier that is defined as Pay site.

2. Select the PO check box if you want to transfer purchase orders. The New Supplier Site must be a Purchasing Site, because you can only enter purchase orders for a Purchasing Site.

3. Enter the Old Supplier Name and Site and the New Supplier Name in the appropriate fields.



Merging Suppliers

• To copy the Old Supplier Site to the new Supplier, select Copy Site; do not enter a New Supplier Site. During the merge, Oracle Payables enters the merge date as the inactive date for the Old Supplier Site and creates a new site for the New Supplier with the information you selected to transfer.

• To merge the Old Supplier Site information with the New Supplier Site information, do not select Copy Site; enter one of the New Supplier's existing sites in the Site field. During the merge, Oracle Payables enters the merge date as the inactive date for the Old Supplier site and combines all of the information you selected with the New Supplier Site.

4. Check Merge to transfer the information from the Old Supplier to the New Supplier.



Maintaining Reports As an Audit Trail

• Oracle Payables does not maintain an online audit trail for merged supplier records.

• To review merged records, Oracle Payables automatically prints the Purchase Order Header Updates Report and Supplier Merge Report.

• Keep these reports as an audit trail.



Summary

Summary


• Identify duplicate suppliers

• Merge suppliers

• Review the merge results


Defining Supplier Setup Chapter 5 - Page 1

Defining Supplier Setup Chapter 5



Defining Supplier Setup

Section Objectives

At the end of this section, you should be able to define:

• Discuss the basic concepts of defining supplier setup within Oracle Payables.



Defining Supplier Setup

Overview

Financials Options

Use the Financials Options window to define the options and defaults that you use for your Oracle Financial Applications. Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice entry, and automatic payments. Depending on your application, you may not be required to enter all fields.

• Financials Options window − Supplier Entry region − Supplier-Payables region

Payables Options

Use the Payables Options window to set control options and defaults used throughout Payables. You can set defaults in this window that will simplify supplier entry, invoice entry, and automatic payment processing. Although you only need to define these options and defaults once, you can update them at any time to change controls and defaults for future transactions.

• Payables Options window − Supplier region



Entering Options in the Supplier Entry Region Oracle Payables N → Setup → Options → Financials Financials Options

Financials Options: Supplier Entry Region

How to Enter Options in the Supplier Entry Region

The options you define in this region are used to control supplier entry and purchase order matching.

1. Select the RFQ Only Site check box if you want RFQ Only Site to be the default value for all new suppliers.

2. Select the Hold Unmatched Invoices check box if you want to place a hold on all invoices that are not matched to a purchase order.

3. In Supplier Number Entry field, select Automatic if you want the system to automatically assign a unique sequential number to each new supplier. Select Manual if you want to enter the supplier number manually.



Entering Options in the Supplier Entry Region

4. If you select the Automatic Supplier Number Entry method, select Numeric for the type of supplier number you want Oracle Payables to use for supplier number entry.

5. If you select the Automatic Supplier Number Entry method, enter the starting value you want the system to use for generating sequential supplier numbers.



Entering Options in the Supplier-Payables Region Oracle Payables N → Setup → Options → Financials Financials Options

Financials Options: Supplier-Payables Region

How to Enter Options in the Supplier-Payables Region

The information you define in the region, except for Receipt Acceptance Days, are used as default values for the Payment region of the Suppliers window. The supplier values default to new supplier sites for the supplier, which default to new invoices for the supplier site. You can override these values during entry of the supplier, supplier site, and invoice.

1. Select a payment term that you use most frequently from the Payment Terms list.

2. Select a payment method that you use most frequently from the Payment Method list.



Entering Options in the Supplier-Payables Region

3. If you want Oracle Payables to create interest invoices for late payment, enter the number of days in the Receipt Acceptance Days field. If you enable the Recalculate Scheduled Payment Payables option, Approval recalculates your invoice due date based on this value.

4. Select the Always Take Discount check box to have Oracle Payables always take an available discount for a supplier, regardless of when you pay the invoice.

5. Select the Pay Alone check box to have Oracle Payables create a separate payment for each invoice. If the Pay Alone option is not enabled for an invoice, the invoice will be paid with other invoices for the same supplier site on a single payment.


Invoices - Introduction Chapter 6 - Page 1

Invoices - Introduction Chapter 6



Invoices - Introduction

Section Objectives


• Discuss the basic concepts of invoices within Oracle Payables.



Entering Invoices

Enter supplier

Enter requisition

Create PO

Enter invoicesor batches

Approveinvoices

Pay invoices

Create journalentries

Reconcile payments

Match to PO

Overview

You can enter invoices in the Invoices window, or you can enter invoices in batches in the Invoice Batches window. You can also use the Recurring Invoices window to create recurring invoices or use the Payables Invoice Import Program to create invoices from expense reports or to import invoices from other systems.



Using the Workbench Model

Invoice batches

Invoice(Workbench)

Invoiceoverview

Payment batches

Payment(Workbench)

Paymentoverview

Payment

Invoices

PaymentWorkbench

InvoiceWorkbench

Overview

Oracle Payables includes two fully integrated workbenches: the Invoice Workbench and the Payment Workbench. You enter, adjust, or review invoices in the Invoice Workbench. You create, adjust, and review payments in the Payments Workbench.

Use the Invoice Overview and the Payment Overview windows to review information from either workbench. These windows also act as bridges between the two workbenches. For example, from the Invoices Overview, you can choose Payments to navigate to the Payments window.




Hierarchy of the Invoice Workbench

• Find Invoice Batches − Invoice Batches Summary (folder)

• Find Invoices − Calculate Balance Owed

• Invoices Summary (folder) − Invoice Holds − Payments − PO Match − Scheduled Payments

• Distribution Summary (folder) − Prorate − Invoice Actions − Apply/Unapply Prepayments − Approve and Pay Invoices − Release Holds − Cancel Invoices

Invoice Approval Workflow

The optional new Invoice Approval Workflow feature subjects Payables invoices to a new approval process. This workflow approval process integrates with Oracle Approvals Management (OAM), which is used to define business rules that govern who must approve payment of invoices and how invoices are routed for approval.

Oracle Workflow sequentially sends notifications to specified approvers who review the invoice details and confirm online whether the invoice is accurate and should be paid. Approvals are obtained until OAM rules determine that no further approvals are required. The invoice is then eligible for payment, assuming that it has passed other system validation.

The existing Payables Approval process is renamed Invoice Validation, to more accurately reflect its use and to prevent confusion with this new feature. The functionality of this validation process has not changed, and invoices must still be validated before they can be paid.




You must complete the following before you can use the Invoice Approval Workflow feature*:

1. Apply Payables Mini-pack 11i.AP.I

2. Install Oracle Approvals Management (OAM). Apply patch 2198768 for the lastest OAM full install. After applying this patch, apply the following bugfix patches: 2220334, 2228792, 2257526, 2271164, 2274701.

3. Upgrade to Oracle Workflow 2.6. Oracle Workflow 2.6 is distributed as patch 2032040. Also, download Oracle Workflow Builder Release 2.6.1.

The builder is distributed as patch 1782821.

In addition, this feature has been further enhanced in Oracle Payables Mini-pack AP.11i.J.

*Note: If customers implement this feature on a version later than Oracle Payables Mini-pack 11i.AP.I, they should check with Oracle Support to be sure they are applying the appropriate patches for their version of Oracle Payables.

Invoice Approval Workflow Enhancement

Invoice Approval Workflow was added in Oracle Payables Mini-pack 11i.AP.I. A key enhancement to this feature in Oracle Payables Mini-pack 11i.AP.J is the addition of a new field called Requester to invoices. This new header level field allows users more flexibility in using HR hierarchies to generate lists of approvers in Oracle Approvals Management.

Also, the Oracle Payables Open Interface Import was enhanced to handle this field.

Retroactive Pricing of Purchase Orders Support

If your enterprise uses Oracle Purchasing’s Retroactive Pricing feature, then your purchasing department can retroactively adjust the price of a previously invoiced item.

Oracle Payables supports Oracle Purchasing’s new Retroactive Pricing of Purchase Orders feature. When using this feature, after a Purchasing user updates the price of a purchase order item, the system creates adjustments in Payables for any existing invoices matched to that item. The net effect is as if each original invoice had been matched at the new price.

When an Oracle Purchasing user updates the price on an item that has already been invoiced, and then the user submits the Create Adjustment Documents in Payables program, the program automatically creates adjustment documents in Payables to adjust the total invoiced amount to the final negotiated purchasing price.




If the Create Adjustment Documents in Payables program cannot generate an adjustment invoice for some reason, then the program produces the PO Price Adjustment Invoice Creation Exception report.

Attention: In certain countries, unless you receive special dispensation from the fiscal authorities, this feature may not be appropriate because it automatically generates invoices without first receiving a corresponding invoice document from a supplier.

Invoice Approval Workflow Resubmission

The Invoice Approval Workflow automates your invoice approval process. Based on rules you define, the workflow determines if an invoice needs approval, who are the approvers, and in what order approvers should approve payment of the invoice.

Oracle Payables has enhanced the Invoice Approval Workflow feature to automatically resubmit invoices to the workflow process. If an invoice amount is changed after the invoice is approved or if the invoice is in the process of being approved, it will be resubmitted to the workflow approval process.

Gapless Invoice Numbering for Self-Billing Invoices

Oracle Payables can now automatically assign gapless, sequential invoice numbers to all self-billing invoices for a supplier site. This feature meets certain country-specific invoice numbering requirements for invoices created using the ERS feature, the Automatic Debit Memo from Return to Supplier Transaction feature, and the Retroactive Pricing of Purchase Orders feature.

User Interface Enhancements

Oracle Payables improved the invoice and payment windows to streamline transaction entry and management. These windows are now larger, display more information, have enhanced functionality, and are more intuitive. Some windows were consolidated so users can review and manage transactions using fewer windows. The major changes are as follows:

• The Invoices window has new tabs so without opening additional windows you can manage holds and scheduled payments, as well as review payments and prepayments for an invoice.

• The Invoice Gateway window has been renamed to Quick Invoices.

• Both the Payments window and Payment Batches window have a new button to allow you to easily monitor your payment concurrent programs.




• The Payments window has a new Invoices region that displays the invoices paid by each payment, all in a single window.

Hierarchy of the Payment Workbench

The window hierarchy in the Payment workbench is as follows:

• Find Payment Batches

• Copy To

• Payment Batch Actions − Modify Payment Batches − Confirm Payment Batches

• Find Payments

• Select Invoices

• View Invoices

• Payment Actions



Invoices: Integration with Oracle Projects

Invoices Expense reports

Oracle Payables

Oracle Projects

Importing Expenses from Oracle Projects and Creating Invoices

Oracle Payables integrates with Oracle Projects so that you can create Payables invoices based on expense reports entered in Oracle Projects. Submit a streamlined process from the Submit Processes window in Oracle Projects to combine the following processes in one step:

1. Transfer expense reports to Oracle Payables.

2. Submit Invoice Import.

3. Verify invoices from Oracle Payables.

When you enter expense reports in Oracle Projects, you enter the same types of information that you enter for Payables expense reports (such as employee name, week ending date, project, task expenditure type, and amounts). Oracle Projects generates the general ledger account for each expense report expense item by using the AutoAccounting rules you have defined. After you transfer the expense report to the Payables Invoice Import Interface Tables, you can submit Invoice Import to create an invoice from the expense report.

If you enable the Automatically Create Employee As Supplier Payables option, Oracle Payables automatically creates suppliers and supplier sites for employees who are not already suppliers.



View Currency Details

The View Currency Details feature enables users to view a transaction in multiple currencies side-by-side. Users can see the entered currency, primary functional currency, and all reporting functional currencies for a transaction in one window without having to switch user responsibilities.


Entering Basic Invoices Chapter 7 - Page 1

Entering Basic Invoices Chapter 7



Entering Basic Invoices

Section Objectives


• Enter invoices in a batch

• Track batch variances

• Review and maintain batch invoices

• Enter invoice header information

• Enter invoice distribution information

• Enter freight and miscellaneous charges

• Enter Distribution Sets

• Maintain audit information



Entering Invoices

Receive invoices Enter invoice

Approve invoice

Match to PO

File invoicePost invoice

View invoice

Pay invoice

Overview

You can enter invoices in the Invoices window, or you can enter invoices in batches in the Invoice Batches window. You can also use the Recurring Invoices window to create recurring invoices, or you can use the Payables Invoice Import Program to create invoices from expense reports or to import invoices from other systems.



Assigning a Default GL Date

Payable Options(GL date)

Invoiced

Assign a default GL date to each invoice andinvoice distribution.

Determines

Invoice date,system date, orinvoice received

date

Defaults to

GL date

Invoice distributions

Defaults to

Oracle Payables determines in which accounting period an invoice or payment will be included by comparing the invoice or payment GL Date to the ranges of dates you have defined for your accounting periods.

You can enter the GL date of an invoice in the Invoices window. When you enter an invoice GL date, Oracle Payables automatically defaults this GL date to all the invoice distributions. You can then change the GL date for an invoice distribution in the Distributions window. You can define your GL date Basis Payables option so that the GL date for each invoice defaults from either the invoice date, system date, or invoice receipt date. Oracle Payables uses the payment date as the GL date for your payments.



Entering Batch Invoices

Batch invoices Enter a batchof invoices

File by batch

Receive invoicesin the mail

Prepare a batchcontrol form

Review batchcontrol reports

Update the batchcontrol form

Use invoice batches to proactively manage invoice entry. You can use batches to do the following:

• Optionally, enter invoice defaults at the batch level that override system or supplier site defaults for all invoices in the batch.

• Maximize accuracy by tracking variances between the control invoice count and total and the actual invoice count and total resulting from your invoice entry.

• Easily locate a batch online and review the name of the person who created the batch and the date it was created.

• To enter invoices in batches, you must first enable the Use Batch Controls Payables option.

Store Accounting Date in Invoice Header

Now the GL date is stored at the invoice header and invoice batch level rather than being a system default field for creation of new invoice distribution lines. This provides greater control for users who may want to make adjustments to an invoice within a few days of the original entry, but who want to ensure that the GL date on the new distribution lines is the same as the original lines.



Creating Batch Control Forms

Batch Control FormBatch Name : JS03041998 Date:

Control Invoice Count: 20 Control Invoice Total: $2,600.78

Actual Invoice Count: 19 Actual Invoice Total:

Count Difference: 1 Total Difference : $

Entered by: John Smith Entry Time (elapsed): 15 minutes

Notes: Invoice #300941 for supplier ABC Corporation was a

Prior to entering a batch of invoices, prepare a Batch Control form similar to the one shown above.

• Enter the number of invoices that are expected to be entered in Control Invoice Count field.

• Enter the total dollar amount for the above invoices in Control Invoice Total field.

After a batch of invoices is entered to Oracle Payables, complete the Batch Control form.

• Enter the actual number of invoices.

• Enter the actual invoice total.

• Explain the reason for the difference.

Note: Preparing the Batch Control form is optional and is not an Oracle Payables function.



Entering an Invoice Batch Oracle Payables

N → Invoices → Entry → Invoice Batches

Invoice Batches

Invoice Batches

How to Enter an Invoice Batch

1. In the Invoice Batches window, enter a unique batch name in the Batch Name field. This name will appear on your reports and will help you locate the batch online.

2. Enter the number of invoices in the batch in the Control Count field.

3. Enter the sum of invoice amounts in the batch in the Control Amount field.

Payables tracks variances between the Control Count and Control Amount and the Actual Count and Actual Amount totals as you enter invoices.

Warning: If there is a discrepancy between the Actual Amount and the Control Amount entered for the batch, Payables warns you when you exit a batch but it does not prevent approval and payment of the individual invoices within a batch. You can make a correction immediately, or you can adjust the invoice batch later.



Entering an Invoice Batch

4. Enter any invoice defaults you want for the invoices. Defaults include: Invoice and Payment Currency, Invoice Type, Document Category, Hold Name and Hold Release, Liability Account, Payment Terms, Pay Group, Payment Priority, and GL Date. These defaults override system and supplier site defaults. Of course, you can override these defaults as you enter individual invoices.

Note: The Invoice Batch window is a folder window. Use the Folder tools to hide or reorganize the order or any of the fields in this window.

5. Save the Batch.

6. Choose the Invoices button and enter the invoices.



Entering Invoices in Batches Oracle Payables N → Invoices → Entry → Invoice Batches B → Invoices Invoices

Invoices

How to Enter Invoices using Invoice Batches

1. Enter an Invoice Batch.

2. Click the Invoices button on the Invoice Batches window.

3. Enter the invoices.

4. Save your work.



Entering Invoice Information

DETAIL

Default information

BASIC

Invoice

Supplier information

Invoice information

Scheduled payments

Invoice distribution

Overview

At a very basic level, invoices are entered, approved, paid, and posted. Therefore, basic invoice processing requires the following actions:

• Entry of header information including invoice type, supplier name, supplier site, invoice number, invoice date, and invoice amount

• Entry of invoice payment details

• Entry of invoice accounting details, including the GL date of the invoice and the GL accounts to which the invoice is charged



Oracle Payables Invoice Types

The following is a list of the various Invoice Types and how they are used. Type Description

Standard An invoice from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a PO or not matched.

Credit memo

A memo from a supplier representing a credit amount toward goods or services for which you have already been invoiced

Debit memo An invoice you enter to record a credit for a supplier who does not send you a credit memo

Expense Reports

An invoice representing an amount due to an employee for business-related expenses

PO Default An invoice you enter for matching to a purchase order. You enter a PO number, and Oracle Payables automatically provides supplier information.

Prepayments

A type of invoice you enter to pay an advance payment for expenses to a supplier or employee

QuickMatch An invoice you enter for matching to a purchase order. You enter a PO number, and Oracle Payables automatically provides supplier information and matches to each shipment on the purchase order.

Withholding Tax

An invoice you enter to remit taxes withheld to the appropriate tax authority

Mixed An invoice you enter for matching to both purchase orders and invoices. You can enter either a positive or a negative amount for a Mixed Invoice.



Entering Basic Invoice Header Information Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Basic Invoice Information

Enter invoice header information including type, supplier name, supplier site, invoice date, invoice number, and, optionally, an invoice description.

1. To enter a basic invoice, choose Standard or Mixed.

2. Enter the Supplier name or Supplier Number.

3. Select the Supplier Site to which you will send payment of the invoice. Oracle Payables will print the address for this site on the payment document. If a supplier site has been identified as the Primary Pay site, it will default into this field. Override this default if necessary.



Entering Basic Invoice Header Information

4. Enter the Invoice Date.

5. Enter the Invoice Number from the supplier’s invoice, or accept the default (today’s date) by using the [Tab] key to move to the next field. Oracle Payables will not accept duplicate invoice numbers for the same supplier.

6. Enter the total for the invoice in the Invoice Amount field.

7. Tab to the Description field and enter a description that will print on the payment document.

8. Verify that the Payment Terms and Payment Method that default from the Supplier Site are correct for the invoice.

Note: If the Batching option is turned on, you must first navigate to the Invoice batches window and enter a batch before invoices can be entered in the Invoices window.



Using AutoEntry Defaults to Speed Invoice Entry

Remember that defaults follow a specific order from setup to the supplier and then down to the invoice.

• Oracle Payables assigns Financials and Payables defaults to suppliers.

• Oracle Payables assigns supplier defaults to all the sites for a supplier.

• Oracle Payables assigns supplier site defaults to all the invoices for a supplier site.

• Batch defaults override any supplier site or Payables default.

• Within the Invoice, you can override most of the default values.



Lab 1: Entering Invoice Headers with Batches

Instructions

You have received a number of transactions from the suppliers you created in the previous lab. In this lab you will be entering the invoice into the Oracle Payables system using the Invoice Batch method. All of the invoice use the USD currency.

1. Create a new invoice batch named XXX Ch7 Invoices Lab. (XXX represents your initials.) There will be three transactions in this batch for a total of $52,567.89.

2. Begin entering the invoices.

INVOICE #1

Invoice Type: Standard

Supplier Name: Your 1st Supplier from the Enter Suppliers lab (XXX Materials Supplier)

Invoice # 1000

Invoice Date: Today

PO#: N/A

Terms: Immediate

Description: Promotional Giveaway Items (Advertising Items)

Total Due: $10,000

Save your work.



Lab 1 Solutions: Entering Invoice Headers with Batches

Step 1: Enter a Batch Header for the Transactions

1. Navigate to the Invoice Batches window.

N →Invoices → Entry → Invoice Batches

2. In the Batch Name field, enter the batch name. Use your initials in the first positions to ensure the name is unique for this class.

3. Accept the default Date.

4. Enter the number of transactions, which is 3, in the Control Count field

5. Enter 52,567.89 in the Control Amount field.

6. Tab to the Payment Terms field and enter the term Immediate.

7. Validate that your Invoice Batch appears similar to the one displayed above.

8. Save your work and click the Invoices button.



Lab 1 Solutions: Entering Invoice Headers with Batches

Step 2: Enter Invoice #1000

1. From Invoice Batches window, click the Invoices button to open the Invoices window.

2. Accept the default for Invoice Type. This invoice is a standard type invoice.

3. Enter your supplier name.

4. Select the second site for your supplier.

5. Since the invoice is dated today, enter today’s date in the Invoice date field.

6. Enter the invoice number.

7. Enter 10000 (the total amount due) in the Invoice Amount field.

8. Tab to the Description field and enter the description for this invoice. Remember that this will print on the payment document.

9. Save your work.



Entering Invoice Distributions

Entering Distributions

Invoice Distributions are the details associated with the items charged on the invoice. There are three ways to enter invoice distributions.

Manually – Using the invoice Distributions window

Note: Enter the GL account to determine where the invoice gets charged; for example, the company, cost center, and expense or asset account. If you enter an asset type account, Oracle Payables automatically selects the Track as Asset check box, and you cannot change it. If you enter an expense account and want to import this distribution to Oracle Assets, select the Track as Asset check box. The Track as Asset check box must be displayed using the Folder menu’s Show Field option.

Using a Distribution Set – Selected in the Distribution Set window on the Invoice Header window

Matching – Using the matching function available on the Invoice Header window. You can match an invoice to a Purchase Order, Receipt or another Invoice.



Entering Invoice Distributions Manually Oracle Payables N → Invoices → Entry → Invoices B → Distributions Distributions

Distributions

How to Enter Invoice Accounting Details

1. Select a distribution type. Select Item for goods or services you ordered. Select Miscellaneous for other expenses on an invoice that are not freight or tax expenses.

Type Description

Item Records the amount a supplier charges for goods or services purchased

Tax Records the sales or other tax amount due on goods or services purchased

Freight Records the amount a supplier charges for shipping and handling

Miscellaneous Records the amount for miscellaneous expenses on an invoice

Withholding Records the amount of taxes withheld from an invoice



Entering Invoice Distributions Manually

2. Enter the Amount of the Distribution line.

3. If this distribution line is subject to sales tax, select the appropriate Tax Code from the list of values. (you’ll need to click the Calculate Tax button on the window for Oracle Payables to complete the tax entry. When the tax code is created, it can be designated as recoverable. This information will populate automatically in most cases.

4. Optionally, change the GL date. The distribution GL date determines the accounting period to which the distribution will post in the general ledger.

5. Enter the Account combination that is used to distribution the line to the General Ledger. This is the Accounting Flexfield.

6. If you entered a tax code for the line and the total amount of the line includes the sales tax, select the Includes Tax check box.

7. Optionally, enter a description for the line that will appear in the General Ledger. The description that you entered on the Invoice Header will default to this field. It is recommended that you enter a description in the Distributions window that will identify what the line is referencing. For example, if the line is for office supplies, enter a description of the office supplies in the Description field.

8. Complete each of these steps for each separate line on the invoice.

The total of the Distributions must equal the Invoice Amount that you entered on the Invoice Header window.

During the Validation process (invoice approval), Oracle Payables places an invoice on hold if the distribution total does not equal the invoice amount. This distribution variance hold prevents payment of the invoice and transfer of the distributions to the general ledger.



Prorating Interest Expense

Interest Expense Prorating

Oracle Payables expanded the flexibility of generating charge accounts for interest expenses. In prior releases of Oracle you charged interest expense to a single interest GL account set up in Payables Options. Now, you can have the system build each account on an interest invoice by overlaying the charge account from the corresponding line on the overdue invoice with the natural account segment from the interest GL account.

Recording Freight Charges

You can record the freight on the invoice in two separate ways. First, you can enable the option to automatically Create Freight Distribution to have the system allocate the total freight on an invoice to each distribution line on the invoice. Secondly, you can manually enter the freight on the distributions window.

In this section, you will learn how to enable the automatic freight allocation function and how to enter the freight automatically on the invoice.



Enabling Automatically Create Freight Distribution Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Invoice Region

Automatically Create Freight Distribution

• By selecting the Automatically Create Freight Distribution check box, the Create Freight Distribution check box in the Invoices window is automatically selected and as the result, a single freight distribution (using the Freight Amount and freight account that you enter for an invoice) is created.

• If you usually prorate freight to invoice distributions or enter freight distributions manually, do not enable this option.



Enabling Automatically Create Freight Distribution

• If you enable the Automatically Create Freight Distribution Payables option, you must enter a freight account in the Freight Account field.. Oracle Payables uses this account as the default freight account for an invoice. You can override this account during invoice entry.



Entering Freight Distribution for an Invoice Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Freight Distribution for an Invoice

1. In the Invoices window, enter all basic invoice header information.



Entering Freight Distribution for an Invoice

2. Tab to the Freight Amount field and enter the total of the freight cost shown on the invoice.

If the Automatically Create Freight Distribution Payables option is selected and you have entered a default freight account, Oracle Payables selects the Create Freight Distribution check box and displays the freight account in the Freight window. In this window, you can, optionally, override the freight account, record tax on the freight amount, and add a description for the freight distribution. Based on this information, Oracle Payables automatically creates a freight distribution for the invoice.

If the Automatically Create Freight Distribution Payables option is not selected, you can select the Create Freight Distribution check box and enter the freight account in the Freight window Oracle Payables displays after you select the check box. Based on this information, Oracle Payables automatically creates a freight distribution for the invoice.

3. Alternatively, you can manually enter a freight distribution directly in the Distributions window.

4. Complete the invoice entry by selecting the Distributions button and entering the distribution lines for the invoice.

5 Save your work.



Prorating Freight, Tax and Miscellaneous Charges Oracle Payables N → Invoices → Entry → Invoices B → Distributions B → Allocate Charge Allocations

Prorate

You can prorate Freight, and Miscellaneous charges based on the amount of each distribution line by using the Allocate button on the invoice Distributions window.

How to Prorate Freight and Miscellaneous Charges

1. In the Invoices window, enter all basic invoice information.

2. Do not select the Create Freight Distribution check box.



Prorating Freight, Tax and Miscellaneous Charges

3. Enter invoice distributions using the method of your choice: Purchase Order Match, Distribution Set, or by manual entry.

4. Click the Distributions Button to open the Distributions Summary window.

5. Click the Allocate button to open the Charge Allocations window.

6. In the Allocate Charges window, select Freight, Tax or Miscellaneous in the Type field.

7. Select the Prorate check box.

8. Enter the total amount to be allocated in the Amount field.

9 Enter a description for the charges being allocated in the Description field.

10. In the Allocations region, select the check box next to each line that you want to allocate the costs against.

11. Click the OK button to have Oracle Payables automatically creates the distributions.



Prorating Freight, Tax and Miscellaneous Charges

12. Open the Distributions window to review the invoice distribution.



Defining a Distribution Set Oracle Payables N → Setup → Invoice → Distribution Sets Distribution Sets

Distribution Sets

Defining a Distribution Set

1. Use a distribution set to automatically enter distributions for an invoice when you are not matching to a purchase order.

2. Assign a default distribution set to a supplier site so that Oracle Payables will use it for every invoice you enter for that supplier site, or assign a distribution set to an invoice when you enter it.

3. Enter a name that describes the use of the Distribution Set, and identify the distribution set as either full (with all percent amounts totaling 100%) or skeleton (with all percent amounts equaling 0%).



Defining a Distribution Set

4. If you create a skeleton distribution set, include skeleton in the name to remind you during invoice entry to enter the amounts on the invoice distributions.

5. Define an unlimited number of distribution lines for a distribution set.

6. Optionally, assign an Income tax type or an invoice tax name to distribution sets.



Lab 2: Entering Distributions

Instructions

In this lab, you will complete the invoice you began entering earlier. The Invoice you entered in a previous lab is to be distributed to two cost centers in your company.

Use the following amounts and charge accounts to enter the distributions manually.

Distribution 1: $4,000 account number 01-402-7110-0000-000

Distribution 2: $6000 account number 01-404-7110-0000-000.



Lab 2 Solutions: Entering Distributions

1. Query your Invoice batch

2. Click the Invoices button to open the Invoices window.

3. With your cursor in the first invoice line, click the Distributions button.



Lab 2 Solutions: Entering Distributions

4. Accept the Items default.

5. Enter $4,000.00 in the Amount field.

6. As no taxes were charged on this invoice, leave the tax name blank.

7. The GL date defaults from the invoice and should be accepted.

8. In the Account field, enter the account number 01-402-7110-0000-000.

9 Use the down arrow on your keyboard to move to the second the second distribution line.

10. In the Amount field, enter $6,000.00.

11. In the Account field, enter 01-404-7110-0000-000.

12. Save your work.

13. Close the Distributions window.



Lab 3: Entering an Invoice for the Purchase of Fixed Assets

Instructions

You have received invoice #2000 for the purchase of fixed assets. Enter the invoice into Oracle Payables.

INVOICE

Supplier Name: Your Supplier #1 from a previous lab

Invoice # 2000

Date: Today

PO#: N/A

Terms: Net 30

Description: Purchased a Red Corvette - Convertible

Total Due: $40,000

Charge to GL Account # 01-000-1570-0000-00



Lab 3 Solutions: Entering an Invoice for the Purchase of Fixed Assets

1. Navigate to the Invoice Batches window and query the batch name that you created in a previous lab.

N → Invoices → Entry → Invoice Batches B → Open

2. From Invoice Batches window, choose Invoices.

3. Accept the default for Invoice Type. This invoice is a standard type invoice.



Lab 3 Solutions: Entering an Invoice for the Purchase of Fixed Assets

14. In the Distributions window, accept all the default fields.

15. Enter 40,000 in the Amount field.

16. As no taxes were charged on this invoice, leave the tax name blank.

17. The GL date defaults from the invoice header and should be accepted.

18. The accounting for this distribution line is 01-000-1570-0000-000. Enter the account number in the Account field.

19. Use the Folder menu’s Show field option to add the Track as Asset field to the window. Note that because you entered an asset type account, the check box is selected.

20. Validate that your window appears similar to the one displayed above.

21. Save your work.




Reviewing and Maintaining Batch Invoices

Submit the batch control reports toreview processing accuracy andproductivity.

Review the number of batchesentered by an employee and anyvariance between batch actualtotals and control totals.

Overview

There are two reports that can be used to review invoice batches. You can run either report to review invoice entry and to identify and resolve batch variances.

The report you select determines the order in which the invoice batches are listed.

• Batch Control Report by Batch Name: This report lists invoice batches in order of batch name and batch date, and it sorts by entry name.

• Batch Control Report by Batch Entered By: Lists invoice batches in order of entry person, and it sorts by batch name.

Each report displays the following information:

• The user ID of the person who entered a batch (this makes research and employee performance review easier)

• The control count and the control total of invoices for all batches

• The difference between the total control count and the actual control count, as well as the difference between the total control amount and the total of actual invoice amounts.



Lab 4: Creating a Distribution Set

Instructions

Often you receive invoices for which the accounting is generally the same. Your controller has asked you to create a distribution set to automatically generate the accounting entries for some invoices.

Create a Full distribution set with the following account and percentage breakdown:

• 25% to account number 01-402-7410-0000-000.



If you have enough time, create a Skeleton distribution set. Use the same account numbers that you used for the Full distribution set.



Lab 4 Solutions: Creating a Distribution Set

Step 1: Create a Full Distribution Set

1. Navigate to the Distribution Sets window.

N → Setup → Invoices → Distribution Sets

2. In the Name field, enter a meaningful name for your distribution set. Preface the name with your initials to ensure it is unique for this class.

3. In the Description field, further describe your distribution set.

4. Leave the Type field blank; it will default automatically.

5. Enter 25 in the % field.

6. Enter 01-402-7410-0000-000 in the Account field.

7. Enter a description for the line, but leave the Income Tax Type, and Invoice Tax Name fields blank.

8. In the next line, enter 50 in the % field.





10. Enter a Description but leave the Income Tax Type, and Invoice Tax Name fields blank.





15. Save your work.




Step 2: Create a Skeleton Distribution Set

1. Navigate to the Distribution Sets window.

N → Setup → Invoices → Distribution Sets

2. In the Name field, enter a meaningful name for your distribution set. Preface the name with your initials to ensure it is unique for this class.

3. In the Description field, further describe your distribution set.

4. Leave the Type field blank; it will default automatically.

5. In the % field, enter 0.





10. Leave the Description, Income Tax Type, and Invoice Tax Name fields blank.







14 Validate that your window appears similar to the one displayed below:

15. Save your work.



Lab 5: Entering and Assigning an Invoice

Instructions

You have received the following invoice. Enter it into the system and assign to it the Full distribution set that you created in a previous lab.

INVOICE

Invoice # 3000

Date: Today

PO#: N/A

Terms: Immediate

Supplier Name: Your Services Supplier from a previous lab

Description: Utility Charges

Total Due: $2,567.59



Lab 5 Solutions: Entering and Assigning an Invoice Distribution Set



2. From Invoice Batches window, click Invoices.

3. Accept the default for invoice type. This invoice is a standard type invoice.


5. Select the first site for your supplier.

6. Since the invoice is dated today, use the [Tab] key to accept the default date.





8. Enter 2,567.89 (the total amount due) in the Invoice Amount field.

9. In the Distribution Set field, enter the full distribution set name you defined in a previous lab.




10. In the Description field, enter the description for this invoice.

11. In the Terms field, select the appropriate terms (Immediate).

12 Save your work.

13. Click Distributions.

14. In the Distributions window, verify that the distribution total is equal to the invoice amount.


17. Save your work.



Lab 6: Verifying a Batch Control Count and Amount with the Actual Entries

Instructions

Verify that your batch control count and amount that you entered in a previous lab are equal to the actual invoices that you entered in subsequent labs. Also approve invoices in the batch.



Lab 6 Solutions: Verifying a Batch Control Count and Amount with the Actual Entries



2. Verify that the displayed number in the Invoice Count Difference field is zero

3. Verify that the displayed amount in the Invoice Total Difference field is zero.


5. Save your work.

6. Approve all three invoices in the batch by Clicking the Validate 1 button. Validate is the button that replaces the Aprrove button from prior releases. The process is the same.

7. Oracle Payables displays a concurrent request number. Note the number.

8. View the status of the concurrent request manager by choosing View My Requests from the Help menu.

9. After your report has a phase of Completed with status of Normal, query your batch and view the status of all the invoices in the batch. All invoices should be at a status of Approved with no holds.



Flexible Accounting Entries

Oracle Payables improves its current accounting functionality by providing more clarity and control with flexible accounting entries. You can create accounting entries within Oracle Payables prior to transferring them to your general ledger. You are able to view complete accounting information for your payables transactions within the subledger and make any required corrections or adjustments. Use the Create Accounting button to create the accounting entries for a batch.



Summary


• Enter invoices in a batch

• Track batch variances

• Review and maintain batch invoices

• Enter basic invoice information

• Enter detail invoice information

• Enter freight and miscellaneous charges

• Create Distribution Sets to automate the accounting on your invoices

• Maintain audit information


Matching Invoices to Purchase Orders, Receipts and Invoices Chapter 8 - Page 1

Matching Invoices to Purchase Orders, Receipts and Invoices Chapter 8



Matching Invoices to Purchase Orders, Receipts and Invoices

Section Objectives


• Match an Invoice to a PO shipment or distribution

• Match all PO shipments (QuickMatch)

• Enter debit and credit memos

• Match debit and credit memos to invoices

• Record price corrections

• Review matching exceptions

• Adjust PO-matched invoices



Matching Invoices to PO or Receipt

Overview

Oracle Payables shares purchase order and receipt information with your purchasing system to enable online matching with invoices. Match your billed (invoiced) items to the original purchase orders to ensure that you pay only for the goods or services you ordered. If you are billed for an item over the amount and quantity tolerances you define in the Invoice Tolerance window, during approval, Oracle Payables applies a hold to the invoice, which prevents payment.

Match your billed (invoiced) items to the original receipt to ensure that you pay only for the goods or services that were received. If you are billed for an item over the amount and quantity tolerances you define in the Invoice Tolerance window, during approval, Oracle Payables applies a hold to the invoice, which prevents payment.

You can match a single invoice to multiple purchase order shipments or receipts, or you can match multiple invoices to a single purchase order shipment or receipt. Oracle Payables ensures that you match only to purchase orders and receipts for the supplier on the invoice and that the purchase order or receipt and invoice currencies match.

Oracle Payables prevents matches to finally closed purchase order shipments. Such matches would later cause Invoice Validation to apply the Finally Closed PO hold to the invoice.

Also, Oracle Payables has added a new profile option that can prevent finally closed purchase orders from being available in the matching windows.



Purchase Order Structure

Detail

Purchase Order Header

Item line

Item line

Item line

Shipment line

Shipment line

PO information Supplier information

Shipment line Distribution line Distribution line Distribution line

Purchase Order Structure

A purchase order (PO) structure is designed with a header and a detail region.

The header region of the PO contains the information about the type of purchase order, the supplier name and site, and the contact information for the supplier. In addition, the header region also contains the information that tells the supplier where to ship the order and where to send the invoice.

The detail region contains the purchased item information which includes the total quantity purchased, the unit of measure, and the price per unit purchased. For each line on a PO, the buyer can indicate information related to the shipment. Each line can have multiple shipments that specify to the supplier where to ship specific quantities of the items ordered on the line. Each shipment then indicates how that shipment should be distributed (charged) for accounting purposes.

In Summary, a Purchase Order can be used to order multiple lines of materials or services. Each line on the purchase order can then be separated into multiple shipments based on quantity, date of shipment, and location of shipment. Each shipment for a PO line has one or many distribution lines that tell Oracle where to charge the purchase.



Structure of a Purchase Receipt

Purchase Receipt Structure

For each shipment of goods or services procured with a purchase order, a receipt is entered into Oracle to indicate the details of what was delivered for that PO Shipment line. The Receipt has two parts; the header and the detail regions

The receipt header contains the summary information about the delivery of the materials. This includes the date of shipment from the supplier, the date the receipt was received at the company, the name of the freight company, and any specific numbers related to Bills of Lading, Waybills, etc.

The receipt detail region contains a summary of the PO shipment details. These details include a description of the item expected, the PO Number, and supplier information. The person creating the receipt in the system will enter additional information about the quantity of items and units of measure for the items received. They can also verify that the location of the delivery is appropriate.



Payables Matching Options

Payables Matching Options

The Payables matching options can be divided into three types.

For Option A, you will select an invoice type of Standard, Expense Report, Mixed, Prepayment, Credit Memo or Debit Memo. With this option you need to specify all the basic invoice information related to the invoice including the supplier name and site, date of the invoice, invoice number and invoice amount.

For Option B, you will select PO Default as the invoice type. Then you will enter the PO number associated with the purchase order. The invoice will automatically complete the supplier information based on the information on the PO. You will then complete the remaining invoice header information.

For Option C, you will select the QuickMatch invoice type and enter a PO number. This option assumes that you are matching to all shipments on the purchase order.



Matching an Invoice to PO Shipments or Distributions Oracle Payables N → Invoices → Entry → Invoices B → Match Match to Purchase Orders

Invoice Matching to Purchase Orders

When you enter an invoice and match it to a purchase order, Oracle Payables automatically creates distributions for you and checks that your match is within the tolerances you define. After you save the match, Oracle Payables updates the quantity billed for each matched shipment and its corresponding distributions by the amount you enter in the Quantity Invoiced field. Oracle Payables also updates the amount billed on the purchase order distributions.

Invoice Matching to Receipts

When you enter an invoice and match it to one or more receipt transactions, you can more accurately record costs in your inventory, assets, and projects systems. You can also associate freight, tax, and miscellaneous charges with the related material item charges. You can now more precisely apply and release invoice matching holds. This also gives you greater precision in your allowable receiving variances.



Matching an Invoice to PO Shipments or Distributions

Prerequisites:

• Your purchasing information must be generated in Oracle Purchasing or transferred to Oracle Purchasing tables from an external purchasing system.

• A purchase order for the same supplier, supplier site, and currency as the invoice you are entering must be approved and open.

1. Select either the Standard or the PO Default invoice type in the Invoices window.

2. If you select PO Default, you are prompted to enter the PO Number; then Oracle Payables automatically provides the supplier, supplier number, site, and currency.

3. Click Match to open the Find Purchase Orders to Match window.




4. Enter search criteria to locate the purchase order to which you want to match the invoice.

5. Click the Find button to open the Match to PO window.




5. For each shipment you want to match, enter two of the following pieces of information: quantity invoiced, unit price, or match amount. Oracle Payables automatically calculates the remaining fields.

6. If you want to match in further detail, you can match to purchase order distributions by clicking the Distribute button. If the Distribute button is enabled, then there are multiple distributions for the shipment.

7. Close the Match to Purchase Orders window and click the Distributions button on the Invoices window to verify the distributions created by the match.

8. Save your work.



Matching an Invoice to a Receipt

Prerequisites:

• Your purchasing information must be generated in Oracle Purchasing or transferred to Oracle Purchasing tables from an external purchasing system.

• A purchase order for the same supplier, supplier site, and currency as the invoice you are entering must be approved and open.

• The Match option on the Purchase Order must be set to Receipt. This option cannot be changed on a purchase order shipment unless no receiving or invoicing has occurred against the shipment line.

• The receipt transaction must be in the system prior to matching the invoice.

1. Select either the Standard or the PO Default invoice type in the Invoices window.

2. If you select PO Default, you are prompted to enter the PO Number; then Oracle Payables automatically provides the supplier, supplier number, site, and currency.

3. Select Receipt in the drop-down box next to the Match button and then click Match to open the Find Receipts to Match window.




4. Enter search criteria to locate the receipt to which you want to match the invoice.

5. Click the Find button to open the Match to Receipt window.




5. For each receipt you want to match, enter two of the following pieces of information: quantity invoiced, unit price, or match amount. Oracle Payables automatically calculates the remaining fields.

6. If you want to match in further detail, you can match to receipt distributions by clicking the Distribute button. If the Distribute button is enabled, then there are multiple distributions for the shipment. When there are multiple distributions on a receipt, Oracle will prorate the quantity invoiced for that receipt across the distributions unless you manually allocate the invoiced quantity to the appropriate distributions.




7. Close the Match to Receipts window and click the Distributions button on the Invoices window to verify the distributions that were automatically created by the match.

8. Save your work.

Exchange Rate Based on Receipt Date

You will now be able to record a more precise exchange rate variance when conducting business in regions with large currency fluctuations. Oracle Purchasing will automatically capture and store the exchange rate at the time of receipt. When you use Oracle Payables to match invoices to purchase order receipts, the exchange rate at the time of receipt will be used to calculate the exchange rate variance.



Lab 1: Matching Invoices to Purchase Order Shipments

Instructions

Your supplier has shipped 26 units of the item you ordered (in a previous lab) and therefore has billed you for them. The shipments were for the first and second shipment lines. The rest of the purchase order is on back order and will be shipped and billed at a later date. You have received the following invoice with notes written on it indicating how it should be allocated against the PO. Enter the invoice in the Accounts Payable system.

INVOICE

Invoice # 5000

Date: Today

PO#: N/A

Terms: Immediate

Supplier Name: Your Supplier from a previous lab

Description: 26 items @ $100 each

Total Due:$2,600

Shipments:

18 units towards shipment 1




Lab 1 Solutions: Matching Invoices to Purchase Order Shipments

1. Navigate to the Invoices window

N → Invoice → Entry → Invoices

2. In the Type field, select PO Default as the invoice type.

3. When the system prompts you for a PO number, enter your PO number from a previous lab.

Oracle Payables displays the supplier and supplier site.

4. As the invoice is dated Today, tab through the invoice date field allowing the current date to be the default.

5. Enter the Invoice number.

6. In the Amount field, enter the total due of the invoice.





9. Click the Match button located at the bottom of the Invoices window.

10. Oracle Payables Displays the Find Purchase Orders to Match window. Enter your search criteria.

11. Click the Find button to open the Match to PO Shipments window.




17. Verify that the distribution total equals to the invoice amount.

18. Save your work.



Lab 2: Matching Invoices to Purchase Order Shipments and Distributions

Instructions

Your supplier has shipped 5 more units of the item you ordered and therefore has billed you for them. The shipments were for the second and third shipment lines. The remainder of the purchase order is on back order and will be shipped and billed at a later date. You have received the following invoice with notes written on it indicating how it should be allocated against the PO. Enter the invoice in the Accounts Payable system.

INVOICE

Invoice # 6000

Date: Today

PO#: N/A

Terms: Immediate



Total Due: $500

Shipments:


3 units towards shipment 3 (2 units to cost center 402 and 1 unit to cost center 404)



Lab 2 Solutions: Matching Invoices to Purchase Order Shipments and Distributions

1. Navigate to the Invoices window.

N → Invoices → Entry → Invoices

2. This is a standard invoice. Accept the default invoice type.

3. Enter the supplier name.

4. Select the supplier site.

5. Accept the default current date.


7. Enter the total due of the invoice in the Amount field.





9. Click the Match button to open the Find Purchase Orders to Match window.

10. In the Find window enter your PO number and click Find.

11. In the second shipment line, select the appropriate check box.

12. Enter the Quantity Invoiced as 2.

13. In the third shipment line, select the appropriate check box.

14. Enter the Quantity Invoiced as 3.




15. Note that the Distribute button is enabled, because the third shipment line had multiple distributions.

16. Click the Distribute button to open the Match to PO Distributions window.




17. In the Match to PO Distributions window, select the first distribution line and enter the quantity invoiced as 2 (noted on the invoice for cost center 402).

18. In the second distribution line, again select the appropriate check box. Enter the quantity invoiced as 1 to cost center 404.


20. Click the Match button to match to the PO shipment distribution lines.

21. Save your work and close the match windows to return to the Invoices window.

22. Click the Distributions button on the Invoices window to verify that the Distributions are correct and that invoice total and the distribution total are the same.




Note: Your Invoices window should have an invoice number 6000 for $500 with a Distirbution total of $500 displayed in the Summary region at the bottom of the window.



Lab 3: Matching All Purchase Order Shipments (QuickMatch)

Instructions

Your supplier has finally shipped the remaining 19 units and therefore has billed you for them. The shipment was for the balance of the second and third shipment lines. You have received the following invoice with notes written on it indicating how it should be allocated against the PO. Enter the invoice in the accounts payable system.

INVOICE

Invoice # 7000

Date: Today

PO#: N/A

Terms: Immediate



Total Due:$1,900

Shipments:


17 units towards shipment 3 − 10 units to cost center 402 − 7 units to cost center 404



Lab 3 Solutions: Matching All Purchase Order Shipments (QuickMatch)



2. In the Type field, select QuickMatch as the invoice type.

3. When prompted for a PO number, enter your PO number. Oracle Payables displays the supplier and supplier site.



6. Enter the total amount of the invoice in the Amount field.

7. Click Match.

8. In the Match to PO Shipments window, notice how the system defaults the match to be for the remaining quantity to be billed for the unit price on the purchase order.

9. Verify the quantity invoiced agrees with the invoice you received.




Lab 3 Solutions: Matching All Purchase Order Shipments (QuickMatch)

11. Click Match.

12. Save your work.



Matching All Purchase Order Shipments (QuickMatch) Oracle Payables N → Invoices → Entry → Invoices B → Match Match to PO

Match to PO

How to Match All Purchase Orders Shipments (QuickMatch)

1. Enter QuickMatch as the invoice type in the Invoices window and enter PO Number in the window that displays.

2. Enter the remaining invoice information except for the distributions.



Matching All Purchase Order Shipments (QuickMatch)

3. Select Purchase Order from the Match button drop-down list, then choose the Match button. Payables opens the Match to Purchase Orders window. Payables automatically selects all purchase order shipments for the purchase order you entered that have the Match Option set to Purchase Order and that have an unbilled quantity. Payables fully matches the invoice to the distributions of the matched shipments and automatically creates invoice distributions. You can adjust any of the selected shipments by overriding the defaults, including deselecting a shipment.

4. Save your work.



Lab 4: Entering and Assigning a Credit Memo

Instructions

Your supplier has notified you that since you have been their best customer, they are sending you a $1000.00 credit memo. Your controller has asked you to enter the credit memo and use your Full distribution set (created in a previous lab) to apply this credit accordingly.

Hint: The process for recording a credit memo is the same as entering an invoice but the Type must be credit memo and the amount must be negative.

Credit Memo

Invoice # CM1000

Date: Today

PO#: N/A

Terms: Immediate

Supplier Name: Your Services Supplier from a previous lab

Description: Best Customer Reward

Total Due: ($1,000)



Lab 4 Solutions: Entering and Assigning a Credit Memo



2. In the Type field, enter Credit Memo.



5. As the credit memo is dated today, accept the default date.

6. Enter the credit memo number.

7. Enter -1000.00 (the total amount) in the Invoice Amount field. Make sure to enter the amount as a negative value.


9. In the Distribution Set field, enter the full distribution set name you defined in a previous lab.



Lab 4 Solutions: Entering and Assigning a Credit Memo

10. In the Terms field, make sure the terms are immediate; if they are not, select Immediate.

11. Validate that your window appears similar to the one displayed above and select the Distributions Button.



Entering Credit and Debit Memos Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Debit and Credit Memos

Enter the invoice header information.

1. Navigate to the Invoice window and select Debit Memo or Credit Memo from the Type drop-down list.

2. Enter the supplier or supplier number in the corresponding fields.

3. Select the supplier site from the Site drop-down list.



Entering Credit and Debit Memos

4. Enter the memo date, or accept the default (today’s date) by using the [Tab] key to move through the Invoice Date field.

5. Enter the memo number, or accept the default (today’s date) by using the [Tab] key to move through the Invoice Number field; Oracle Payables does not accept duplicate numbers for the same supplier.

6. Enter the amount of the memo as a negative number. (For example, enter -100 if the memo is a credit for $100.

7. Click the Distributions button, to manually enter distributions for the memo.

8. Save your work.



Matching Credit and Debit Memos to Invoices, Purchase Orders & Receipts

When you enter a credit/debit memo, you can match it to existing invoice(s), purchase orders, or receipts to have Payables automatically copy the accounting information and create invoice distributions for the credit/debit memo.

For example, if you receive a credit for items you returned to a supplier, you can enter a credit memo and match it to the original invoice you entered to ensure that the credit memo distributes the credit to the same accounts originally charged. Payables calculates discounts on credit and debit memos if you match them to invoices you paid using a discount.

You can match to an invoice even if it is paid and posted. You can match the credit memo to multiple invoices, and at different levels of detail. Your available choices depend on whether the originating invoice was purchase order matched or not.

If the original invoice is not purchase order matched (basic invoice), you can:

• Match to an invoice. Payables prorates your credit amount based on the invoice distribution amounts of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the distributions of the original invoice.

• Match to specific invoice distributions. You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the original invoice distribution that you select. For example, you order three chairs for three different departments and return one. You can match a credit/debit invoice to the original distribution for that department to ensure that the credit matches the charge.

If the original invoice is purchase order matched, you can:

• Match to an invoice. Payables prorates your credit amount based on the invoice distribution amounts of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the distributions of the original invoice.

Payables updates the quantity billed for each of the originally matched purchase order shipments and their corresponding distributions by the credit quantity you enter. Payables also updates the amount billed on the purchase order distributions.

• Match to specific invoice distributions. You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automatically creates invoice distributions for the credit/debit memo based on the original invoice distributions that you select. For example, you may order three chairs for three different departments and return one. You can match a credit/debit invoice to the



original distribution for that department to ensure that the credit matches the charge.

Payables updates the quantity billed for each of the originally matched purchase order shipments and their corresponding distributions by the credit quantity you enter. Payables also updates the amount billed on the purchase order distributions.

• Match to purchase order shipments. Payables prorates, based on the quantity billed, your credit amount across all purchase order distributions associated with the purchase order shipment to which you match the credit/debit memo. Payables automatically creates invoice distributions for the credit/debit memo based on the purchase order distributions associated with the purchase order shipment you match to.

Payables updates the quantity billed for each purchase order shipment and its corresponding distributions by the amount of the credit/debit memo. Payables also updates the amount billed on the originally matched purchase order distributions.

• Match to purchase order distributions. Payables automatically creates invoice distributions for the credit/debit memo based on the purchase order distributions.

Payables updates the quantity billed for each purchase order shipment and its corresponding distributions by the amount of the credit/debit memo. Payables also updates the amount billed on the originally matched purchase order distributions.

• Match to a Receipt. Match credit and debit memos to receipts when you return goods to a supplier after you enter an invoice for the goods.

• Automatic Debit Memos. If you enable the supplier site option, Create Debit Memo for RTS Transaction, then when you enter an RTS (Return to Supplier) transaction in Purchasing, the system automatically creates an unapproved Debit Memo in Payables that is matched to the receipt.

• Record a Price Correction. 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 or receipt. You can record a price correction by selecting Price Correction in the Find window when you match a credit/debit memo to a purchase order shipment, purchase order matched invoice distribution, or receipt. When you record a price correction for a credit/debit memo, you are recording a price decrease from the original invoice. You must specify the number of the original invoice in the Find window.

Payables updates the invoiced unit price of previously matched purchase order shipment or distributions without adjusting the quantity billed so you can track price variances; Payables also updates the amount billed on the originally matched purchase order distributions.



Matching Credit and Debit Memos to Invoices Oracle Payables N → Invoices → Entry → Invoices B → Match Match to Invoice

Match to Invoice

How to Match Credit and Debit Memos to Invoices


2. Enter a Credit Memo or Debit Memo as the invoice Type

3. Enter all basic invoice information and a negative invoice amount, but do not manually enter the distributions.



Matching Credit and Debit Memos to Invoices

4. Click Match to Invoice.

5. In the Find Invoices to Match window, query the invoices you want to match and click Find. If the credit or debit memo pertains to an invoice matched to a certain purchase order, query by purchase order number to see all invoices matched to that purchase order. Oracle Payables navigates to the Match to Invoice window.



6. Optionally, click Invoice Overview to review more information about an invoice.

7. Create invoice distributions by matching to one or more invoices. If you are matching to a non purchase-order-matched (basic) invoice, select the invoice and enter a credit amount.

8. Click Match to create invoice distributions for the credit or debit memo based on the matches you made.

If there are multiple distributions, click Distribute to select the distribution accounts.

If the was originally matched to a purchase order shipment and that shipment had multiple distributions, then enter the Quantity credited and the Credit Amount as negative numbers to have Oracle update the PO to show the appropriate number of units received and billed.

9. Save your work.



Lab 5: Entering and Matching a Credit Memo to an Invoice

Instructions

Your Supplier has acknowledged overbilling you for the Advertising Promotional Giveaway items you purchased on invoice #1000 (in a previous lab) and forwarded the following credit. Enter the credit memo in the Accounts Payable system.

Hint: The accounting for this credit is to reverse the original accounting assigned to the invoice. Prorate the credit over both distribution lines that were entered on Invoice #1000.

Credit Memo

Invoice # CM2000

Date: Today

PO#: N/A

Terms: Immediate


Description: Overbilling on Advertising Promotion

Total Due: ($1,000)



Lab 5 Solutions: Entering and Matching a Credit Memo to an Invoice



2. In the Type field, enter Credit Memo.

3. A note is displayed. Choose OK.



6. As the credit memo is dated today, accept the default date.

7. Enter the credit memo number.

8. Enter -1000.00 (the total amount) in the Invoice Amount field. Make sure to enter the amount as a negative value.

9. In the Terms field, make sure the terms are Immediate; if they are not, select Immediate.

10. Select Invoice in the drop-down list for the Match button and click Match.




11. To match this credit memo to the original invoice (Invoice #1000), enter the invoice number.


13. In the Match to Invoice window, select the check box on the left.

14. In the Credit Amount field, enter -1000.


16. Choose Match.

17. Close the window.




18. In the Invoices window, verify that the distribution total is equal to the invoice amount.

19. Choose Distributions to view the distribution line


21. Note how the distribution lines were prorated proportionately.



Review and Maintain

Review and Maintain

• Identifying and resolving Matching issues

• Adjusting purchase order matched invoices

Identifying and Resolving Matching Issues

• Submit the Matching Hold Detail Report for a specified date range. Review detailed purchase order and invoice information on invoices on matching hold or released from matching hold. For example, use this report to identify and resolve invoices on QTY ORD hold. The report provides both the quantity invoiced and the quantity ordered information.

• Submit the Invoice on Hold Report each day to identify which invoices are on hold.



Review and Maintain

Adjusting Purchase Order Matched Invoices

• If you accidentally matched to the wrong purchase order shipments or distributions, you can reverse matched distributions and create new distributions by matching to new purchase order shipments or distributions of the same purchase order or of another purchase order. If you add or reverse invoice distributions you must also change the scheduled payment amounts to match the new invoice total, or Oracle Payables will place holds on the invoice during approval.

• You can adjust the GL Date, Income Tax Type, and Account fields of a purchase order matched invoice distribution. You can change the Account only if you have not yet posted the invoice and if you have selected the Allow Matching Account Override Payables option.

• If a supplier submits a supplementary invoice for a change in unit price for an invoice you have matched to a purchase order, use a price correction to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed.



Recording Price Corrections Oracle Payables N → Invoices → Entry → Invoice B → Match Match to PO

Match to PO

Price Corrections

• Use a price correction to record and update the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed in order to track price variances. Record a price decrease by entering a credit or debit memo invoice and then selecting the Price Correction check box when you perform matching.



Recording Price Corrections

• Record a price increase by entering a Standard or PO Default invoice type and then selecting the Price Correction check box when you perform matching.

• To record a price change for a purchase order shipment, select Price Correction, enter the unit price for the incremental amount of the price correction, and enter information into either Quantity Invoiced or the Match Amount field for each shipment you want to match.



Summary


• Match an Invoice to a PO shipment or distribution

• Match an Invoice to a PO Receipt

• Match all PO shipments (QuickMatch)

• Enter debit and credit memos

• Match debit and credit memos to invoices

• Record price corrections

• Review matching exceptions

• Adjust PO-matched invoices (Price Corrections)


Processing Expense Reports Chapter 9 - Page 1

Processing Expense Reports Chapter 9



Processing Expense Reports

Section Objectives


• Enter employees and locations

• Define employees as suppliers

• Define expense report templates

• Enter basic expense reports

• Set up Oracle Payables to use Oracle Web Employees

• Approve expense reports submitted by using Oracle Web Employees

• Submit Payables Invoice Import



Managing the Expense Report Process

Enter expensereports

Applyadvances

Create invoices bysubmitting payables

invoice import

Payments toemployees

Overview

• You can enter expense reports for your employees in Oracle Payables, or you can enter them in Oracle Projects and transfer them to Oracle Payables for payment.

• You can apply advances to expense reports to reduce the amount you pay. You can also apply a hold to an expense report to prevent payment.

• Before you can pay expense reports, you must submit Payables Invoice Import to have Oracle Payables automatically create invoices from the expense reports.



Setting Up Oracle Payables to Enter Expense Report

Define expensereport templates

Enter employeesand locations

Define employeeas a supplier

Overview

• Enter employees, their locations, and their expense addresses in the People window. If Oracle Human Resources is installed, all employees must be entered in the People window of Oracle Human Resources.

• Define the employee as a supplier by using either of the following methods: − Enable the Create Employee as Supplier Payables option to automatically create

suppliers from employees when you submit Invoice Import. − Enter the employee as a supplier in the Suppliers window before submitting

Invoice Import for expense reports.

• Define expense report templates that model the different expense report formats you receive.



Entering Employees and Locations Oracle HRMS N → People → Enter and Maintain People

People

How to Enter Employees and Locations

In the People window of Oracle Human Resources, enter employees, their locations, and their expense addresses.



Defining Expense Report Templates Oracle Payables N → Setup → Invoice → Expense Report Templates Expense Report Templates

Expense Report Templates

How to Define Expense Report Templates

Use the Expense Report Templates window to define templates based on the expense report forms you regularly use in your company. You can define default values for expense items that can be chosen from a list of values when you or an employee enters expense reports. During Invoice Import, Payables uses the expense item information to create invoice distributions.

1. In the Expense Report Templates window, enter a template name and description. You choose this template name when you enter an expense report. You can set a default for the expense report template value in the Expense Reports window.



Defining Expense Report Templates

2. Enter each expense item you want to have on the list of values when you enter an expense report with this template. Use the name of an expense item as it appears on an expense report; for example, Airfare or Meals.

3. When you submit Invoice Import, Oracle Payables enters this value in the invoice distribution Type field, which indicates the type of distribution associated with an expense item

4. To indicate the amount will be inclusive of tax, select the Includes Tax check box.

5. Enter the tax name associated with the expense item.

6. Enter the GL account associated with an expense item. You can enter fewer segments of an account than necessary for a complete GL account. The blank segments will need to be entered at Expense Report entry.

7. Save your work.



Entering Expense Report Information Oracle Payables N → Invoices → Entry → Expense Reports Expense Report

Expense Report

How to Enter Expense Report Information

1. Choose the employee from a list of values.

2. Enter or modify the GL account for an employee.

3. Optionally, change the default expense check address in the Send To field.

4. Either enter an invoice number or the period ending date as the Invoice Number field.



Entering Expense Report Information

5. Enter the expense report amount; Oracle Payables prevents an expense report from being saved if the total amount entered in the Item field does not equal the control amount.

6. If the Apply Advances Payables option is selected, you can apply an outstanding advance against an expense report to reduce the amount you pay.

7. Select the expense report template you want to use in the Template field. The template determines which items you can select. Enter the amount for each item selected. During Payables Invoice Import, Payables creates invoice distributions for the line items.

8. Enter expense report items and amounts.

9. Oracle Payables uses the default GL account for the employee and overwrites any segment of the GL account defined as the default for an expense item.

10. When entering an expense report in a foreign currency, first select the appropriate currency, and then enter the relevant exchange rate information.



Reviewing, Auditing, and Approving Expense Reports Oracle Payables N → Invoices → Entry → Expense Reports Expense Report

Expense Report: Expense Audit Region

How to Review, Audit, and Approve Expense Reports Submitted Using Oracle Web Employees

1. Query an expense report in the Expense Reports window. If receipts or justification are required, an accounts payable processor must review, audit, and approve the Web Employee-entered expense report.



Reviewing, Auditing, and Approving Expense Reports

2. For each expense item, navigate to the fields in the Expense Audit region, and indicate if the receipt has been verified. If the expense item requires receipt and the receipt is not verified, the item is subject to short-pay.

3. After verifying receipts and auditing a Web Employee expense report, select the Reviewed By Payables check box.

4. If an expense item is not reimbursable under your policy guidelines, you can adjust the amount of the expense item to zero or to an amount lower than the original expense item amount and include an adjustment reason. If you adjust an expense item, you must also adjust the expense report total. The employee will automatically be notified of an adjustment to the expense report.

5. If an employee does not provide sufficient information for an expense item, you can perform a Policy Violation Short Payment by selecting the appropriate check box.

6. Save your work.

7. Once an expense report is approved by accounts payables and management, you can import it to Oracle Payables for payment.

Running the Oracle Workflow Background Process

• After an accounting review has been performed, you must run the Workflow Background Process to restart the Workflow process from deferred status. If the Workflow background process determines that accounting review has been performed, the Workflow process can continue towards completion. If the Workflow process for an expense report does not complete, the expense report cannot be imported using the Payables Invoice Import program.



Reviewing, Auditing, and Approving Expense Reports

• Oracle Workflow, in its standard configuration, requires accounting review for a Web Employee-entered expense report that includes expense items that require receipt or justification. If an accounting review is not performed, the Oracle Workflow process cannot complete. If the Oracle Workflow process does not complete for a Web Employee-entered expense report, it cannot be imported using the Payables Invoice Import program.

• For a Web Employee-entered expense report that includes only expense items that do not require receipts, and do not require justification, an accounting review is not required. The Payables Reviewed check box will automatically be checked. Once management approves an expense report that only includes expense items that do not require receipts and do not require justification, the Oracle Workflow process completes automatically without accounting review. After the Oracle Workflow process completes, the expense report can be imported using the Payables Invoice Import program.

Expense Report Import

• Effective with Oracle Payables mini-pack 11i.AP.I, all invoices from external sources should be loaded into Payables via the open interface. In order to more accurately reflect the program's use, the Payables Invoice Import program was renamed Expense Report Import since it now imports only expense report information.



Submitting Payables Invoice Import Oracle Payables N → Other → Requests → Run B → OK Submit Request

Submit Request

How to Submit Payables Invoice Import

1. Use Expense Report to create invoices from expense reports you enter in Oracle Payables, Oracle Web Employees, or Project Accounting.

2. If the Payables option for Use Batching is selected, create a batch name for the expense reports that will be created as invoices.

3. Review detailed or summary information for imported expense reports including Invoice Import exceptions.



Submitting Payables Invoice Import

• Answer Yes in the Summarize Report field to submit the Invoice Import Report in summary; a summary report shows the total number and dollar amount of invoices created from expense reports or imported invoices and the total number and dollar amount of advances applied to expense reports.

• Answer No in the Summarize Report field to submit the Invoice Import Report in detail; a detailed report shows information about each of the expense reports or invoices from which Invoice Import created the invoices as well as the total number and dollar amount of the invoices. The detailed report also shows all the advances you applied to each expense report.

How to Import Invoices from Oracle Payables

• When you enter expense reports using the Expense Reports window in Oracle Payables, the expense information is automatically saved in the Invoice Import interface table to allow for immediate submission of Invoice Import.

• When you submit the Expense Report Import, enter Payables Expense Report as the source.

• Enable the Create Employee as Supplier Payables option to have Oracle Payables automatically create suppliers and supplier sites for employees who are not already suppliers. If you do not enable this option, you must manually enter the employee as a supplier before submitting Expense Report Import.



Importing Invoices from Oracle Projects Oracle Payables N → Other → Requests → Run B → OK Parameters

Parameters

How to Import Invoices from Oracle Projects

1. Enter Oracle Projects as the source.

2. Oracle Payables validates expense report details received from Oracle Projects so that invoices are created for active employees and valid GL accounts only.

3. After Oracle Payables creates an invoice from an Oracle Projects expense report, Oracle Projects links the invoice to a project.

4. An expense report imported from Oracle Projects becomes purgeable only after the invoice is created for the expense report and the invoice is tied back to the original expense report in Oracle Projects.



Importing Invoices from Other Accounting Systems Oracle Payables N → Other → Requests → Run B → OK Parameters

Parameters

How to Import Invoices from Other Accounting Systems

1. Define a Payables QuickCode to create a source name and to easily identify any invoices imported from another accounting system.

2. Enter the defined Payables QuickCode as the source when submitting Payables Invoice Import.

3. Imported information must include valid supplier name, supplier site, and invoice distributions.



Summary


• Enter employees and locations



• Enter basic expense reports

• Set up Oracle Payables to use Oracle Web Employees

• Approve expense reports submitted using Oracle Web Employees

• Submit Payables Invoice Import



Lab 1: Entering an Expense Report

Instructions

One of your employees has just returned from a business trip to Colorado and completed the following expense report. Enter the expenses in the accounts payable system.

** Travel Expense Report**

Employee Name: (Ask your instructor)

Date: Today

Invoice # Week ending Date <XXX-Mth-Year> (where XXX is your initials)

Description: Weekly Total

Airfare $ 1,805.78

Meals 194.22

Car Rental 185.00

Total Due Employee $ 2,185.00



Lab 1 Solutions: Entering an Expense Report

1. Navigate to the Expense Report Window

N → Invoices → Entry → Expense Reports

2. Enter the Employee name.

3. In the Date field, enter today’s date.

4. You want the week ending date to always be the invoice number for expense reports. Enter the week endingdate as noted. (XXX-MTH-YR)

5. Enter the description.

6. In the Amount field, enter the total amount to be reimbursed to the employee.

7. In the Template field, choose Travel.

8. Choose the appropriate types of items and enter the amounts as noted on expense report.

9. Accept the default accounting flexfield information.



Lab 1 Solutions: Entering an Expense Report


11. Save your expense report.


Entering Recurring Invoices Chapter 10 - Page 1

Entering Recurring Invoices Chapter 10



Entering Recurring Invoices

Section Objectives


• Define special calendar names

• Define recurring invoice templates

• Enter recurring invoice information

• Create recurring invoices

• Review recurring invoices



Recurring Invoices Overview

You can enter invoices for periodic business expenses for which you may not receive invoices (such as rent).

To enter recurring invoices:

• Define a special calendar

• Define a recurring invoice template

• Create invoices based on the template

With a recurring invoice template, you can:

• Specify the intervals for which invoices will be created.

• Create up to two special one-time invoice amounts of a nonstandard amount, such as a deposit or balloon payment

• Define recurring invoices to increase or decrease by a fixed percentage from period to period

Enhanced Payment Terms

Now the special calendar functionality in Oracle Payables is extended to payment terms. You can now specify due dates for each period in a special calendar. This helps you control due dates so that they do not fall on certain days, such as weekends and holidays. Once you have set up a special calendar you can associate it with any payment terms line. You can associate a different special calendar with each payment term line you set up, giving you added flexibility.



Defining Special Calendar Names Oracle Payables N → Setup → Calendar → Special Calendar Special Calendar

Special Calendar

How to Define Special Calendar Names

Use the Special Calendar window to define periods that Oracle Payables uses for automatic withholding tax, recurring invoices, and for the Key Indicators Report.

1. In the Special Calendar window, select the type of calendar you want to define.

2. Enter a calendar name and description. Select the name from a list of values when you assign a special calendar to a key indicator report, recurring invoice template, special payment terms, or a withholding tax type tax name.



Defining Special Calendar Names

3. Enter the number of periods per year. For example, if you use a 12 month period calendar, enter 12.

4. In the Period field, enter a period name.

5. In the Year field, enter the calendar year in which a period occurs.

6. In the Seq fields, enter numbers to indicate the order in which the periods occur. The sequence numbers of a period should represent the sequence of the period in a regular calendar. Therefore, May through December 2006 should be sequenced 5 through 12.

7. Enter the start dates and the end dates for the period. Periods within a year cannot overlap and can have no gaps between them. For example, if your first period ends on 31-JAN-2006, the next period must start on 01-FEB-2006. In the System Name field, the system name for the period is displayed.

8. Save your work.



Defining Recurring Invoice Templates Oracle Payables N → Invoices → Entry → Recurring Invoices Recurring Invoices

Recurring Invoices

How to Define Recurring Invoice Templates

1. Enter the supplier information.

2. Enter the period information. Select a period type that determines the frequency of the recurring invoice (for example, Month or Quarter). If the period you want has not yet been defined, navigate to the Special Calendar window and define it. Save the new period, and Payables will add it to the list of values in the Recurring Invoices window.

3. In the Number of Periods field, enter the total number of invoices you want to create over the life of the template.



Defining Recurring Invoice Templates

4. In the First field, enter the first period for which you want to create an invoice. The period must be an open or future period.

5. In the Number field of the Template Definition region, enter a unique template definition number that helps identify the source of the recurring payment. For example, if the recurring payment is for an auto lease, assign the license number as the payment number. Oracle Payables appends the invoice date to the template definition number to create a unique invoice number for each recurring invoice.

6. Define a distribution set for the invoices created for the recurring payment or match to a purchase order shipment.

7. Unless you want all payments to be posted within one period, do not fill in the GL Date field.

8. Optionally, add or modify default values in the Recurring Invoice Template.

9. Navigate to the Amounts region to define the invoice amounts.



Entering Recurring Invoice Amounts Oracle Payables N → Invoices → Entry → Recurring Invoices Recurring Invoices

Recurring Invoices: Amounts Region

How to Enter Recurring Invoice Amounts

1. If you know the total of the recurring invoices you will create, enter the control amount, and Oracle Payables will calculate and enter the first amount.

2. If you know what the periodic recurring invoice amount will be, enter the amount of your first invoice in the First Amount field. Oracle Payables will calculate and enter the amount in the Control Total field.



Entering Recurring Invoice Amounts

3. If you want the invoices to increase or decrease by a set percentage from period to period, enter the percentage in the Change field, and Oracle Payables will recalculate the control amount.

4. Enter up to two special payment amounts for one-time balloon payments or deposits.

5. Oracle Payables calculates invoice amounts by reducing the control amount by the amount of the special payment and divides the remaining control amount by the number of remaining periods.



Creating Recurring Invoices Oracle Payables N → Invoices → Entry → Recurring Invoices B → Create Invoices Create Invoices

Create Invoices

How to Create and Review Recurring Invoices

1. Determine how many invoices to create.

2. Enter the number of invoices, and click Create Invoices.

A period must be an open or future period for Oracle Payables to create an invoice.

3. Optionally, create recurring invoices into an existing batch of similar invoices; for example, group all recurring rent invoices into one batch, and then add to the batch on a quarterly basis.



Creating Recurring Invoices

4. Use the Create Invoices window to view summary information about the invoices created.

Oracle Payables appends the payment number with the period name in which an invoice is created to create invoice numbers for recurring payments.

5. Use the Invoices Summary window to review invoices created by the Create Recurring Payment form.



Summary

Summary


• Define special calendar names

• Define recurring invoice templates

• Enter recurring invoice information

• Create recurring invoices

• Review recurring invoices



Lab 1: Defining and Creating Recurring Invoices

Instructions

You have signed a six month lease for a total of $12,000 for the entire period with “Your Supplier.” You are required to pay the same amount each month but do not receive an invoice for the rent. Define a recurring payment to handle the creation of all the invoices for $2000 for this supplier starting with the first of the next month.

Hint: It is not necessary to create all invoices at once.



Lab 1 Solutions: Defining and Creating Recurring Invoices

1. Navigate to the Recurring Invoices window.

N → Invoices → Entry → Recurring Invoices

2. Enter the following supplier information:

Name: Your Services supplier name

Site: Second site

3. Enter the following calendar information:

Name: Rent

Number of Periods: 6

First: Next Month

4. Enter the following Template Definition information:

Number: Rent

Description: Monthly Rent

Payment Method: Check

Accept the default values for the remainder of the fields.

5. In the Distribution Origin section, select the Set check box.

Name: Enter the full distribution set that you created in a previous lab.





7. In the Amount region, enter the following information:

• First Month: 2,000

• Number of Invoices: 6

• Accept the default values for the remainder of the fields.





9. Save your work

10. Choose Create Invoices. Oracle Payables displays the Create Invoices window.


12. Choose OK.


Processing Other Invoice Functions Chapter 11 - Page 1

Processing Other Invoice Functions Chapter 11



Processing Other Invoice Functions

Section Objectives


• Apply holds to supplier site invoices

• Apply holds to selected invoices

• Apply holds to schedule payments

• Release holds

• Approve invoices

• Cancel invoices

• Adjust invoices



Applying Holds

Acct Hold Reason No

Funds Hold Reason Mixed

Insufficient Information No

Invoice Hold Reason Yes

Matching Hold Reason Mixed

Period Hold Type No

PO Req Hold Reason No

Variance Hold Reason Mixed

Hold Types

Review the hold types that Oracle Payables automaticallyplaces during approval

User Manually Hold Types Predefined Definable Releasable

Overview

You can prevent payment and, optionally, prevent posting of an invoice by manually applying one or more holds to it. Oracle Payables provides some generic invoice holds for you, and you can define your own holds based on your invoice Validation needs. You can also prevent payment of supplier invoices by placing a hold on the supplier or the supplier site instead of on each individual invoice.



Applying Holds

There are three types of holds you can use to prevent payment of an invoice:

• Invoice Hold: You can manually apply one or more Invoice Hold Reason holds to an invoice using the Holds tab on the Invoice Workbench.

• Scheduled Payment Hold: You can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments tab on the Invoice Workbench.

• Supplier Hold: In the Supplier Sites window, you can enable the Hold All Payments, Hold Unvalidated Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an invoice amount limit for a supplier site.



Applying Holds to Supplier Site Invoices Oracle Payables N → Suppliers → Entry M → Query → Find B → Open → Sites Supplier Sites

Supplier Sites

How to Apply Holds to Supplier Site Invoices

You can prevent payment of multiple supplier invoices by applying a hold to the supplier site instead of on each individual invoice. The options that you can enable are as follows:

1. Select the Hold All Payments check box to prevent Oracle Payables from paying any invoices for a supplier site.



Applying Holds to Supplier Site Invoices

2. Enter an invoice amount limit to have Oracle Payables apply an amount hold to an invoice of a supplier site if the invoice exceeds the amount limit.

3. Select the Hold Unvalidated Invoices check box to have Oracle Payables apply a supplier hold on all unvalidated (unapproved) invoices entered for a supplier site.

4. Select the Hold Unmatched Invoices check box to have Oracle Payables apply a matching required hold on all supplier site invoices that have not been matched to a purchase order.



Applying Holds to Selected Invoices Oracle Payables N → Invoices → Entry → Invoices B → Find Holds Tabbed Region

Invoice Holds

How to Apply Holds to Selected Invoices

1. Find the invoice by using the Invoice window and select the Holds tab.

2. Apply a hold by selecting a hold name. You can select from all Invoice Validations defined with the type Invoice Hold Reason. You can apply as many holds to an invoice as you require. Oracle Payables prevents manual entry of those hold names that are automatically placed during Validation.

3. Save your work.



Applying Holds to Scheduled Payments Oracle Payables N → Invoices → Entry → Invoices B → Find Scheduled Payments Tabbed Region

Scheduled Payments

How to Apply Holds to Scheduled Payments

1. Find the invoice by using the Invoices window, and click the Scheduled Payment button.

2. Select the Hold check box, to place a hold on a scheduled payment.

3. Place a hold on a scheduled payment to prevent payment for only a portion of an invoice (create multiple scheduled payments if necessary).

4. Payment schedule holds prevent payment of only that portion of the invoice.



Releasing Holds

Acct Release Reason

Funds Release Reason

Sufficient Information

Invoice Release Reason

Matching Release Reason

Period Release Type

Variance Release Reason

Hold Quick Release Reason

Invoice Quick Release Reason

Review the predefined release types that Oracle Payables provides.

Approval UserRelease Types Predefined Definable

Overview

Release holds from invoices to resume payment and posting of the invoices. You can view the holds on an invoice in either the Invoice Overview or the Holds tabbed region on the Invoice Workbench. You can see the number of holds on an invoice in the Display Only region of the Invoices Summary window. Identify invoices on hold with the Invoice On Hold report and the Matching Hold Detail report. These reports aid you in managing holds.



Manually Releasing Holds

Acct Hold Reason No

Funds Hold Reason Mixed

Insufficient Information No

Invoice Hold Reason Yes

Matching Hold Reason Mixed

Period Hold Type No

PO Req Hold Reason No

Variance Hold Reason Mixed

Review the hold types that are manually releasable.User Manually

Hold Types Predefined Definable Releasable

Overview

Oracle Payables applies some holds that you cannot release. You can use the Invoice Holds window to view invoices with these holds, but you cannot manually release these holds. You must correct the exception that caused Validation to place the hold on the invoice, and then resubmit Validation to release the holds. You can correct exceptions by updating the invoice or the purchase order or by changing your invoice tolerances.

There are three types of holds you can manually release:

• Supplier Site Hold

• Invoice Hold

• Scheduled Payment Hold

If you manually release a hold that Oracle Payables applied during Validation, the next time you submit Validation, Oracle Payables will not reapply the same hold.



Releasing Holds for One Invoice or Group of Invoices Oracle Payables N → Invoices → Entry → Invoices M → Query → Find Holds Tabbed Region

Invoice Holds

How to Release Holds for One Invoice or Group of Invoices

1. Using the Find Invoices window, search for invoices for a selected supplier or for all invoices with a selected Hold name or hold type.

2. Optionally, include invoices that are not on hold.

3. Review all invoices that meet the search criteria.

4. Select the Scheduled Payments tab to place or release any scheduled payment line holds.



Releasing Holds for One Invoice or Group of Invoices

5. Initiate a QuickRelease for invoices that meet search criteria. Select from all invoice Validations defined with the type Hold Quick Release Reason. Oracle Payables assigns the release name to all releasable holds for all invoices.

6. Optionally, enter a release name that will be displayed whenever hold information is reviewed for any of the invoices; apply any release name to any hold that can be released manually. Oracle Payables initiates a concurrent request to release all invoices displayed in the Invoices zone.



Approving Invoices

Batch invoices Enter invoice

Approve Invoice

Match to PO

File invoice

View Invoice

Pay invoice

Receive invoicesin the mail Post invoice

Overview

Before you can pay or post an invoice (including prepayments), you must submit the invoice validation in one of three ways:

• Online by using the Actions window of the Invoice Workbench

• Online by using the Validate button in the Invoice Batches Summary

• Batch by submitting the Payables Invoice Validation program from the Submit Requests window



Validating and Approving Invoices

Invoice Validation checks the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices.

If an invoice has a hold, you can release the hold by correcting the exception that caused Invoice Validation to apply the hold by updating the invoice or the purchase order, or changing the invoice tolerances. Then resubmit Invoice Validation to release the hold. In the Invoice Holds tab, you can manually release certain invoice holds, even if you have not resolved the matching error condition.

A new Invoice Approval Workflow feature for Payables invoices has been introduce in Oracle Payables, to give the user a new approval process. This workflow approval process integrates with Oracle Approvals Management (OAM) and is used to define business rules governing who must approve payment of invoices and how invoices are routed for approval.

Oracle Workflow sequentially sends notifications to specified approvers who review the invoice details and confirm online whether the invoice is accurate and should be paid. Approvals are obtained until OAM rules determine that no further approvals are required. The invoice is then eligible for payment, assuming that it has passed other system validation.

If you use the 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 on the Invoices window to Required.

The Invoice Validation process and Invoice Approval Workflow Program can be submitted in any order for an invoice, unless you enable the Payables option: Require Validation Before Approval.



Submitting Batch Validation Oracle Payables N → Other → Requests → Run Submit Request

Submit Requests

How to Submit Batch Validation

You can automate your validation cycle through automatic validation resubmission. Define your submission options for the Invoice Validation program in the Submit Requests window. You can specify the intervals in which you want to submit Validation, and Payables will process the request using the parameters you specify up until the date you specify to end resubmission.

1. In the Submit Requests window, select Invoice Validation, and enter the parameters of your choice.

2. Enter All in the Option field to submit validation for all invoices; otherwise, validation reviews only those invoice distributions that have not already been reviewed by validation.



Submitting Batch Validation

3. Optionally, define other criteria to submit validation for specific groups of invoices.

4. Define resubmission options using the Schedule button in the At These Times… region of the Request window.to resubmit validation automatically on a daily basis.

5. Click the Submit Request button, to submit your request.



Validating Invoices Online Oracle Payables N → Invoices → Entry → Invoices M → Query → Find B → Actions Invoice Actions

Invoice Actions

How to Validate Invoices Online

1. Submit online Validation for individual invoices when an invoice must be approved and paid immediately.

2. Enable the Payables option to allow online Validation.



Validating Invoices Online

3. In the Invoices window, find the invoices for which you want to submit Validation.

4. Select the invoices.

5. Click the Actions 1… button.

6. Select Validate.

7. If you are approving a credit or debit memo, select Validate Related Invoices to submit online Validation for invoices associated with the credit or debit memo.

8. Click the OK button to initiate the validation process.



Validating Invoice Batches Online Oracle Payables N → Invoices → Entry → Invoice Batches M → Query → Find B → Validate Invoice Batches

Invoice Batches

How to Validate Invoice Batches Online

1. Submit Validation for entire batches from the Invoice Batches window.

2. Use the multi-row selection feature to select several batches to approve at the same time.



Canceling Invoices Oracle Payables N → Invoices → Entry → Invoices M → Query → Find B → Actions 1 Invoice Actions

Invoice Actions

Canceling Invoices

You can only cancel unpaid invoices. You can cancel any unapproved invoice or an approved invoice that does not have any effective payments or posting holds. If an invoice has a hold that prevents posting, you must release the hold before you cancel the invoice. You cannot cancel an invoice that has been selected for payment in a payment batch.



Canceling Invoices

How to Cancel an Invoice

1. In the Invoices window, select the invoice you want to cancel, and click the Actions 1 button.

2. In the Invoice Actions window, select Cancel Invoices, and click OK to have Oracle Payables cancel the invoice.

3. Save your work.



Adjusting Invoice Amounts Oracle Payables N → Invoices → Entry → Invoices M → Query → Find Invoices

Invoices

How to Adjust Invoice Amounts

There are two prerequisites for adjusting the invoice amount:

• The invoice is not fully paid.

• The invoice has at least one unposted or unapproved distribution.

1. Find the invoice in the Invoices window.



Adjusting Invoice Amounts

2. Change the invoice amount.

3. Click Distributions to navigate to the Distributions window.

4. Adjust the distributions to match the new invoice amount.

• If the invoice is not purchase order matched, you can add, reverse, and adjust distributions. Choose OK.

• If the invoice is purchase-order matched, you can reverse, rematch, or match distributions to purchase order shipments and purchase order distributions. Click OK.

5. Click Scheduled Payments to navigate to the Scheduled Payments window.

6. Adjust the scheduled payments to match the new invoice amount. Click OK.

7. You must submit Validation again before you can pay the invoice.



Summary


• Apply holds to a supplier site invoices

• Apply holds to selected invoices

• Apply holds to schedule payments

• Release holds

• Approve invoices

• Cancel invoices

• Adjust invoices



Lab 1: Adjusting Invoice Distributions

Instructions

You have discovered that Invoice #1000 was entered with incorrect accounting information. $4,000 should have been charged to Department number 420 instead of 402. Adjust the accounting distribution on this invoice.

Hint: You can change or reverse distribution lines before they have been posted to the general ledger.



Lab 1 Solutions: Adjusting Invoice Distributions

1. Navigate to the Find Invoices Window

N → Invoices → Entry → Invoices M → View → Find

2. Enter Your Supplier Name from a previous lab.

3. In the Invoice Number field, enter 1000.


5. Choose Find.

Oracle Payables displays the Invoices window for invoice number 1000.

6. Choose Distributions.



Lab 1 Solutions: Adjusting Invoice Distributions

7. With your courser on the first line, Choose Reverse.

A third line is created to reverse line number one for the original amount.

8. Move your courser to the fourth line.

9. In the Amount field, enter 4,000.


11. Verify that the distribution total is equal to the invoice amount and remember to add a description comment clarify why the reversal was made. This will help when reviewing the account later.

12. Validate that your window appears similar to the one displayed above

13. Save your work.




Lab 2: Changing Payments Schedules

Instructions

Your supplier has sent you invoice #8000. The AP supervisor has asked you to record the invoice and amend thepayment schedule as follows:

First scheduled payment = $600 on the default date.

Second scheduled payment = $400 one month after the first scheduled payment.

INVOICE

Invoice # 8000

Date: Today

PO#: N/A

Terms: Immediate



Total Due:$1,000

GL Account: 01-402-7410-0000-000



Lab 2 Solutions: Changing Payments Schedules

1. Enter Invoice # 8000 by following the steps 1 through 8 in a previous lab.

2. From the Invoices window, choose Scheduled Payment.

Oracle Payables displays Schedule Payments window.

3. In the Due Date field, accept the default date.

4. Amend the dollar amount in the Gross Amount field to 600.

5 Choose Split Schedule to create a second scheduled payment.

6. In the Due Date filed, change the date to 30 days after the first scheduled payment.

7. Verify that the Gross Amount Total is equal to the Invoice Amount.


9. Save your work.



Lab 3: Canceling an Invoice

Instructions

Your supplier just called you to let you know that Invoice # 7000 was issued in error. Cancel Invoice #7000 that you entered in a previous lab.



Lab 3 Solutions: Canceling an Invoice





4. Choose Find.

Oracle Payables displays Invoices window.

5. Choose Actions 1.

Oracle Payables displays Invoice Actions window.

6. Select the Cancel Invoices check box.




Lab 3 Solutions: Canceling an Invoice

8. Choose OK.



Lab 4: Approving an Invoice at Entry Time

Instructions

Your system is set up to allow the Validation of invoices at entry time. Request Validation for invoice number 5000 that you entered in a previous lab.



Lab 4 Solutions: Validating an Invoice at Entry Time

1. Navigate to the Find Invoices window


2. Enter your supplier name from a previous lab.



5. Click Find.

Oracle Payables displays the Invoices window for invoice # 5000.



Lab 4 Solutions: Approving an Invoice at Entry Time

6. Choose Actions 1.

Oracle Payables displays the Invoice Actions window.

7. Select the Approve check box.


9. Choose OK

10. The note the status line for saved transactions.

11. In the Invoices window, verify that the status of the invoice is Approved with zero Holds.



Lab 5: Placing a Hold on an Invoice

Instructions

It is your company policy that all car purchases over $35,000 requires management Validation. Place an Amounthold on the invoice #2000 for purchase of a red Corvette that you entered in a previous lab.



Lab 5 Solutions: Placing a Hold on an Invoice






5. Choose Find to display the invoice in the Invoices window.

6. Click the Holds tab on the Invoices window to display the Holds tabbed region.



Lab 5 Solutions: Placing a Hold on an Invoice

7. In the Hold Name filed, select Amount.

Oracle Payables displays the Hold Reason.


9. Save your work.



Lab 6: Validating Invoices by Batch

Instructions

You are required to approve all invoices you entered at end of the day. Submit Invoice Validation for your supplinvoices.



Lab 6 Solutions: Validating Invoices

Instructions

1. Navigate to the Submit Request window

N → Other → Requests → Run → Single Request B → OK

2. In the Request Name field, enter Invoice Validation.

Oracle Payables displays the Parameters window.

3. In the Option field, select All.

4. In the Supplier Name field, enter your supplier’s name.

5. Complete any other valid parameters.

6. Choose OK to display the Submit Request window.



Lab 6 Solutions: Validating Invoices

7. Choose Submit Request.

Oracle Payables displays below window that includes your Request ID number.

8. Since you do not want to submit another request, choose No.

9. To view your request, navigate to Find Request window.

M → Help → View My Requests.

10. Choose Find to display the status of your request in the requests window.

Oracle Payables displays the status of your request in the Requests window.

11. Choose View Output to review the report online.



Lab 7: Releasing a Hold on an Invoice

Instructions

You have received formal Validation from the management to release invoice number 2000 that you placed an Amount hold in a previous lab.



Lab 7 Solutions: Releasing a Hold on an Invoice





5. Choose Find to display the invoice in the Invoices window.

6. Click the Holds tab to display the Holds region.

7. In the Release Hold field, select Approved.

Oracle Payables displays the Release Reason.

8. Save your work.

9. Click the Actions…1 button to revalidate the invoice.


Performing Invoice Inquiry Chapter 12 - Page 1

Performing Invoice Inquiry Chapter 12



Performing Invoice Inquiry

Section Objectives


• Find invoices

• Find invoice distributions

• Calculate supplier balances



Invoice Inquiry

Batch invoices Enter invoice

Approve invoice

Match to PO

File invoice

View invoice

Pay invoicePay invoice

Receive invoicesin the mail Post invoice

Overview

You can find invoices to respond to supplier inquiries including questions about invoice payment status, invoice payment date, reasons an invoice has not been paid, and total balance due for a supplier or supplier site. You can also find invoices to make adjustments to them or to perform actions on them such as approval or cancellation.

You can find invoices in the Invoice Workbench by using either the Find Invoices window or by entering search criteria directly into the Invoices Summary window or the Invoices window. Using the Find Invoices window, you can enter a greater variety of criteria including invoice status and ranges for invoice amounts, invoice dates, and voucher numbers. After you enter your search criteria, click the Find button to open the Invoices Summary window. Payables displays all invoices that match your criteria.



Finding Invoices Oracle Payables N → Invoices → Inquiry → Invoices M → View → Find Find Invoices

Find Invoices

How to Find Invoices Using the Find Invoices Window

1. Access the Find Invoices window either by choosing the Find icon ( ) on the toolbar or by selecting the Find option from the View menu.

2. Enter multiple search criteria by entering information in one or more fields.

3. Click the Find button located at the bottom of the window to display all the invoices that meet your criteria.



Using the Invoice Overview to Review High-Level Information Oracle Payables N → Invoices → Inquiry → Invoice Overview Invoice Overview

Invoice Overview

How to Review High-Level Invoice Information

1. Use the Invoice Overview window to review information quickly when a supplier calls you to inquire about the status of an invoice.

2. This window is a summary of the following information:

• Supplier information

• Invoice information

• Active holds



Using the Invoice Overview to Review High-Level Information

• Scheduled payments

• Actual payments

Note: This is a display-only window. To adjust invoices you will need to naviagate to the invoices window using the Entry grouping on the Navigator window.

The Invoices Overview window gives you inquiry access to many other windows related to the invoice displayed.



Using the Invoice Overview to Review High-Level Information

Invoices button – opens the Invoices Summary window allowing you to see the invoice header, invoice tabbed regions, and the invoice distributions.

Use this window to review all invoice information located in each of the tabbed regions and to review the account distributions. Simply close the window to return to the Invoice Overview.



Using the Invoice Overview to Review Supplier Information

Supplier button – opens the Supplier window allowing your to see how the supplier was setup and access contact information that you may need.

Use the Suppliers window to access the supplier’s site information and to review all the tabbed regions for the supplier.



Using the Invoice Overview to Review PO Information

View PO button – is enabled when the invoice has been matched to a purchase order or receipt. This will open the PO Shipments summary window to allow you to further view Purchase Order information.

Use the Purchase Order Summary window to review the shipment information for the PO. This will show you’re the quantity ordered, quantity due, quantity billed (invoiced) and quantity received as well other information. Remember that you can use the Inquire Menu function to review other information related to this purchase order. Drill-down to the distributions for each shipment using the Distributions button.



Using the Invoice Overview to Review PO Receipt Information

View Receipt button – opens the Receiving Transaction Summary window to allow you see the activity related to the purchasing receipt associated with the invoice (when applicable).

The Receipt Transaction Summary window will display all the information related to the receipt transaction. If the items are placed into an inventory location, then you will see where the items are located in the warehouse. If there were any corrections made to the receipt, you will see those transactions and well as if the materials were returned to the supplier using an RTS transactions. You can view the information related to the shipment by clicking the Header button.



Using the Invoice Overview to Review Payment Information

Payment button – is enabled when you click in the Check number field for a payment made on the invoice. It opens the Payment summary window allowing you to see the other invoices that were paid on the same check that you placed your cursor in.

Using the Payment Overview window, you can view the high-level information about the actual check sent to the supplier. The status field will tell you if the check has cleared the bank and the Cleared Date will tell you when. More importantly, you have the information about what other invoices were paid at the same time. Use the Payments, Supplier, and Bank button to review additional information.



Calculating Supplier Balances Oracle Payables N → Invoices → Inquiry → Invoice M → View → Find B → Calculate Balance Owed Calculate Balance

Calculate Balance Owed

How to Calculate Supplier Balances

1. Use the Calculate Balance Owed window to see how much you owe a supplier and how many unpaid invoices you have in the system for the supplier. Oracle Payables calculates the balance based on the combination of criteria you enter in the Find Invoices window.

2. Enter a default exchange rate for Oracle Payables to use to convert (into your functional currency) the foreign currency invoices that do not yet have an exchange rate.

3. Click Invoices to have all supporting invoices displayed in the Invoices Summary window.



Calculating Supplier Balances

3. Click Invoices to have all supporting invoices displayed in the Invoices Summary window.



Summary

Summary

In this lesson you should have learned how to the following:

• Find invoices

• Find invoice distributions

• Calculate supplier balances



Lab 1: Calculating the Balance Owed to A Specific Supplier

Instructions

The director of corporate purchasing wants to know how much is the balance due to your supplier.



Lab 1 Solutions: Calculating the Balance Owed to A Specific Supplier


N → Invoices → Entry → Invoices M → Query → Find

2. In the Supplier Name field, enter Your Supplier Name from a previous lab.

3. Choose Calculate Balance Owed.

Oracle Payables displays the Calculate Balance Owed window.

4. Choose Calculate.


6. Choose Done.


Loading Invoices Electronically Chapter 13 - Page 1

Loading Invoices Electronically Chapter 13



Loading Invoices Electronically

Section Objectives


• Electronically load supplier invoices from the following sources: − Oracle eCommerce Gateway − Oracle XLM Gateway − Legacy Systems − Other Electronic sources

• Initiate an electronic invoice status notification

• Submit an Open Interface Purge program

• Utilize Oracle Workflow to help automate verification and validation of data in Open Interface tables



Invoice Gateway Overview

Invoice Gateway

The new Oracle Payables Invoice Gateway was designed to help you quickly process large volumes of invoices that do not require extensive online validation or extensive online defaulting of values. When you enter invoice records in the Invoice Gateway window, you enter invoice header and line information. This invoice information is stored in the Payables Open Interface tables which were new in Release 11.0. You then submit the Payables Open Interface Import program to validate your invoice records, and to create invoices with distributions and scheduled payments in the Payables system. Since most validation and defaulting of invoice values occur during the import process, invoice entry is quick and simple.

The Invoice Gateway window incorporates Oracle’s flexible folder forms technology so that users can easily customize the window to best support their own process flows. Fields that are not needed for input can be hidden so that the user can accomplish heads down data entry.

The Invoice Gateway is available for Release 10.7, Release 11.0, and Release 11i.



Integration with Oracle eCommerce Gateway and Oracle Workflow

Integration with Oracle eCommerce Gateway

You can use Oracle Payables and Oracle eCommerce Gateway to import invoice data from your suppliers.

• Through the eCommerce translator of your choice, Oracle eCommerce Gateway receives invoice information from suppliers and creates an inbound invoice data file (ASC X12 810/EDIFACT INVOIC).

• Oracle eCommerce Gateway uploads the supplier’s invoice information directly into Oracle Payables in the Payables Invoice Open Interface. You can then import the invoices using the Payables Open Interface Import program. Invoices are then ready for approval and payment.

• Oracle Payables and Oracle eCommerceGateway notify your suppliers of problem invoices. For example, if your supplier transmits a duplicate invoice or an invoice that does not reference a valid purchase order, Oracle Payables and Oracle eCommerce Gateway create an outbound application error acknowledgment that notifies the supplier that you have not accepted the invoice.



Integration with Oracle eCommerce Gateway and Oracle Workflow

Integration with Oracle Workflow

Oracle Payables has integrated Oracle Workflow into the Payables Open Interface to help automate verification and validation of data in the Open Interface tables.

• Oracle Payables Open Interface Import workflow (a standard workflow) can be used as needed for this purpose.

• You can modify this workflow to validate all accounting code combinations in the Open Interface tables.

• You can send a notification for any invalid code combinations to a specified user for correction.

• Optionally, you can set up the workflow to override any invalid code combinations with a designated default value.

• Using Oracle Workflow, you can add workflow rules that meet the specific requirements of your business.

• Once an invoice has successfully passed Oracle Workflow, you can import it into the Oracle Payables application tables.



Oracle eCommerce Gateway Prerequisites

Oracle eCommerce Gateway Prerequisites

• Define the trading partner

• Select the Inbound Invoice Transaction option

• Select the Outbound Application Advice option

• Define any code conversions for the transaction

Setting Up Oracle eCommerce Gateway

• Create a record in the eCommerce Gateway for each supplier from which you want to receive invoices.

• Link this record to the supplier record in Oracle Payables.

• Select all EDI transactions you want to use with a supplier.

• In the case of the inbound invoice, select that transaction as well as the outbound application advice (824/APERAK) to notify suppliers of invoice status.



Importing Invoices to Oracle eCommerce Gateway Oracle eCommerce Gateway N → Import Programs → Request Set Run eCommerce Import Inbound Program Set

Run eCommerce Import Inbound Inbound Program Set

Importing Invoices to Oracle eCommerce Gateway

1. From the Oracle eCommerce Gateway main menu, navigate to the Import Programs window.

2. In the Name field, select eCommerce Invoice Inbound.

3. In the Parameters window, enter the input file name. The eCommerce Gateway program uses the default input file name of ECEINI.dat. You can override the default.

4. Schedule the import request for processing.



Importing Invoices from Oracle eCommerce Gateway Oracle Payables N → Other → Requests → Run → Single Request Submit Request

Submit Request

How to Import Invoices from Oracle eCommerce Gateway

Use the Payables Open Interface Import program to import supplier invoices from the eCommerce Gateway.

1. The Payables Open Interface Import program validates the data and populates the Oracle Payables database tables with the valid data.

2. Validation is based on the same business rules that are applied to the data entered interactively. Validation is done at the transaction, header, and detail levels to ensure document integrity before importing the data into the Oracle Payables system.

3. If no value is provided in the flat file, the Payables Open Interface Import program adds the default values based on standard value rule sets established for required fields.



Importing Invoices from Oracle eCommerce Gateway: Parameters

Oracle Payables N → Other → Requests → Run → Single Request → Source Parameters

Parameters

Identify the Payables Open Interface Import program parameters:

1. In the Source field, select eCommerce Gateway for EDI invoices or another source name you have populated for your data.

2. If you are importing data from another source, enter the appropriate value in the Group field.

3. The batch name is required if you are using Batch Control.

4. Enter a hold name if you want to place all invoices on hold. Oracle Payables displays the hold name description.

5. If you want to assign a specific GL date to all invoices, enter it in the GL Date field.



Importing Invoices from Oracle eCommerce Gateway: Parameters

6. Enter Yes in the Purge field if you want Oracle Payables to delete all successfully imported invoices.

7. Click Submit.

8. Oracle Payables generates the Payables Open Interface report with two sections:

• Payables Open Interface Audit Report: Shows all data successfully imported

• Payables Open Interface Rejections Report: Shows all data import errors and the reason codes



Correcting Importing Errors Oracle Payables N → Invoices → Entry → Open Interface Invoices Open Interface Invoices

Open Interface Invoices

Use the Open Interface Invoices window to correct the data that failed the Payables Open Interface Import process. The window has a field for each column in the open interface tables.

1. Query the data you want to correct.

2. Make the necessary changes.

3. Resubmit the Payables Open Interface Import program to load the corrected data.



Notifying Suppliers of the Status of Their Invoices Oracle Payables N → Other → Requests → Run → Single Request → Source Parameters

Parameters

Notifying Suppliers of the Status of Their Invoices

Use the Payables Open Interface Outbound Advice program to notify your suppliers, who are set up as EDI trading partners, of the status of invoices they sent to you. This program supports the (ASC X12 824/EDIFACT APERAK) standards.

1. Submit this process from Oracle Payables for the source of eCommerce Gateway.

2. In the Invoice Status field, you can choose to create notification for invoices that were:

• Accepted (successfully imported into Oracle Payables)

• Rejected (failed import: supplier needs to take corrective action and resend)

• All (all Invoices)

3. After this process is completed, navigate to the Extract Programs window of Oracle eCommerce Gateway and submit the Application Advice Outbound program to send the data to your EDI translator.



Oracle XML Gateway Integration

Oracle Payables integrates with Oracle XML Gateway to receive invoices from suppliers using XML messaging standards. This new feature has certain limitations. Please review the user documentation for complete details of how the integration works in this release.

XML Invoices

Oracle Payables integrates with Oracle XML Gateway to receive invoices from suppliers using XML messaging standards.



iSupplier Portal Invoices

Oracle Payables integrates with Oracle's iSupplier Portal to offer a new invoice entry feature. Authorized suppliers can enter their invoices against approved purchase orders and submit the invoices online, over the Internet. A simple, guided interface allows suppliers to view their authorized purchase orders, choose the quantities to invoice, and enter only minimal required information such as an invoice number. Online validation ensures that your suppliers can invoice you only for valid amounts, eliminating back-end payment holds and reconciliation issues.

Suppliers can review their submitted invoices and payment status via the existing inquiry functionality of the iSupplier Portal.



Summary

In this lesson, you should have learned how to do the following:

• Electronically load supplier invoices from − eCommerce Gateway − Legacy systems − Other electronic sources

• Initiate an electronic invoice status notification

• Submit an Open Interface Purge program

• Utilize Oracle Workflow to help automate verification and validation of data in Open Interface tables


Processing Procurement Card Transactions Chapter 14 - Page 1

Processing Procurement Card Transactions Chapter 14



Processing Procurement Card Transactions

Section Objectives


• Set up an Oracle Payables Credit Card program

• Import procurement card transactions

• Validate procurement card transactions

• Notify employees and managers of procurement card transactions

• Create card issuer invoices



Overview

Overview

You can streamline your procure-to-pay process by implementing a procurement card program:

• Your employees purchase items directly from suppliers using a credit card.

• The credit card issuer sends a detailed transactions file directly to you (the employer).

• Import the transactions file from your card issuer directly into Oracle Payables.

• Validate and automatically generate accounting distributions for transactions.

• Notify employees and managers of transactions, and request verification and approval.

• Automatically create invoices to pay the credit card issuer.



Setting Up Credit Card Programs in Oracle Payables

• Define credit card code sets

• Define your credit card program

• Define credit card GL account sets

• Define credit card profiles

• Assign credit cards to card holders

• Set up the Credit Card Transaction Employee Workflow

• Set up the Credit Card Transaction Manager Workflow

• Assign Web Employees Credit Cards responsibility



Creating Credit Card Code Sets Oracle Payables N → Setup → Credit Cards →Procurement Card → Code Sets Credit Card Code Sets

Credit Card Code Sets

How to Create Credit Card Code Sets

Use this window to define sets of credit card codes that can be used to create default accounting distributions for transactions that you import from your credit card issuer.

• 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. The credit card provider sends you the list of card codes it uses.



Creating Credit Card Code Sets

• 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.

• Assign credit card code sets to credit card profiles. You then assign credit card profiles to credit cards.

1. In the Code Set Name field, enter the code set name.

2. In the Description field, enter the description for the code set name.

3. Select the Blocking Group check box, if the card code value is a group card code.

4. In the Value field, enter the card code value.

5. In the Description field, enter a description for the card code.

6. In the Account field, if you want to assign a default account to the card code value, enter the account. You cannot enter an account if you select the Blocking Group check box.

7. Enter an inactive date if you want to limit the time during which the card code appears on the list of values.

8. Save your work.



Defining a Credit Card Program Oracle Payables N → Setup → Credit Cards → Credit Card Programs Credit Card Programs

Credit Card Programs

How to Define a Credit Card Program

1. In the Card Program Name field, enter the name of credit card program.

2. In the Description field, enter the description of the credit card program.

3. In the Supplier field, select the name of card issuer from the list of values.

4. In the Card Code Set, select a card code set that you defined in the Credit Card Code Sets window.

In the Card Program Currency field, Oracle Payables displays the currency in which the card issuer invoice is created. This defaults from the supplier currency.

5. In the Exception Clearing Account field, enter the account to which Oracle Payables charges exceptions when the Credit Card Transaction Validation and Exception Report tries to create a transaction distribution for an invalid GL account.



Defining a Credit Card Program

6. In the Inactive Date field, enter the date after which you can no longer create a credit card profile with this credit card program.

7. Payment Due From. For use with the card type Travel only. Indicates whether payment for corporate credit card transactions is due from the employee, the company, or from both the employee and the company. Enter one of these values:

• Both. The employee is billed and pays the credit card issuer only for personal transactions. The employee then creates an expense report for the remaining business-related expenses. When the expense report is imported into Payables as an invoice, the company pays the credit card issuer for the employee's business expenses.

• Company. The company is billed and pays the credit card issuer for all transactions. The employee then creates an expense report and marks each item as either Business or Personal. If the total amount of personal transactions processed on an expense report exceeds the total amount of cash and other business expenses for that expense report, the employee will owe the company for these personal transactions. Therefore, the employee may be required to reimburse the company for the difference (depending upon the company corporate card policy).

• Individual. The employee is billed and pays the credit card issuer for all transactions. The employee then creates an expense report to request reimbursement for the business-related transactions.

8. In the Card Type field, select the card type for your reference. You can select Procurement or Travel and Entertainment.

9. In the Supplier Site field, select the card issuer's payment supplier site.

10. In the Administrator field, select the employee name of the administrator for the credit card program.

The Exposure Limit field will be used by a future version of Oracle Payables. You can use this field for your reference to record the program's credit limit.

11. Do Not Pay If Status Is: If you want the Credit Card Invoice Interface Summary program to exclude any transaction accounting distributions with the following statuses, select each check box status you want to exclude from invoice creation. For example, if you do not want to pay transactions with a status of Unverified or Hold, select those check boxes. If you select the Unapproved check box, the Credit Card Invoice Interface Summary program does not select those transactions for which manager approval is required and manager approval has not yet been obtained, or for those transactions that managers have rejected.



Defining Credit Card GL Account Sets Oracle Payables N → Setup → Credit Cards → Procurement Card→GL Account Sets Credit Card GL Account Sets

Credit Card GL Account Sets

How to Define Credit Card GL Account Sets

Use the Credit Card GL Account Sets window to create a list of values of GL accounts that your employees can use to correct account information for their credit card transactions, if your credit card holders update transaction accounts. Each card holder’s credit card is assigned a credit card profile. Each credit card profile can be assigned one credit card GL set. This list is displayed for the users who have access to the Credit Card responsibility in Oracle Web Employees.

1. In the GL Account Set Name field, enter a set name.



Defining Credit Card GL Account Sets

2. In the Description field, enter the description for the set name.

3. In the Accounts fields, enter the GL accounts that are included in the set.

4. In the Description field, enter the account name that credit card holders see when they use Oracle Web Employees to change the account for a transaction.

5. Save your work.



Defining Credit Card Profiles Oracle Payables N → Setup → Credit Cards →Procurement Card→ Profiles Credit Card Profiles

Credit Card Profiles

How to Define Credit Card Profiles

Use this window to define how to build detailed accounting distributions for transactions and to define the level of notification you require for managers and employees.

1. In the Profile Name field, enter the name of the credit card profile.

2. In the Description field, enter a description of the credit card profile. This value appears on the list of values when you select a profile in the Credit Cards window.

3. In the Administrator field, select the employee name of the administrator for the credit card profile.



Defining Credit Card Profiles

4. In the Default Acct Template field, if you want to default account segments to the transactions you import for this card program, enter the account segments. If you want to skip an account segment, then leave the segment blank.

The Default Acct Template can contain a skeleton GL account.

5. In the Exception Clearing Acct field, enter the account to which you charge exceptions that occur when the Oracle Payables Credit Card Transaction Validation Exception Report executes.

In the Program Currency field, Oracle Payables displays the currency of the credit card program (defaults from supplier site).

6. In the Acct Set Name field, select the credit card GL accounts set you are assigning to the credit card profile.

7. Select the Allow Status “Personal” check box if you want to allow employees to change the status of their transactions to Personal during verification. If you do not enable this option, then the Personal status does not appear as an option in Oracle Web Employees.

8. Select the Allow Direct Account Entry check box if you want to allow Oracle Web Employees users to enter account numbers directly in the Account field of the Credit Card Transaction Verification page of Oracle Web Employees during transaction verification. This allows users to enter account numbers in Oracle Web Employees rather than selecting the GL account description you defined in the Credit Card GL Account Sets window.

9. If you select the Build Acct From Code check box, when Oracle Payables builds the default accounting distribution for a transaction, it uses the account associated with the card code to overlay the account values from the default employee expense GL account and the profile Default Account Template. You associate accounts with card codes in the Credit Card Code Sets window.



Defining Credit Card Profiles

10. In the Manager Notifications field, select the level of notification or approval that you want Oracle Workflow to enforce for transactions to which this profile has been assigned when Workflow processes a transaction for a manager's direct reports.

11. In the Employee Notifications field, select the level of card holder notification or verification that you want Workflow to enforce for transactions to which this profile has been assigned when Workflow processes a transaction for the card holder.

12. Values in the Card Code region will be used in a future release of Oracle Payables.



Assigning Credit Cards to Card Holders Oracle Payables N → Credit Cards → Credit Cards Credit Cards

Credit Cards

How to Assign Credit Cards to Card Holders

In the Credit Cards window, assign a card to a card holder and assign a credit card profile to the card.

1. In the Card Program field, select the credit card program you want to assign to the credit card.

2. In the Card Member Name field, enter the card holder’s name, as it appears on the credit card.

3. In the Employee Name field, select the employee’s name from the list of values.

4. In the Profile field, assign a profile to each credit card to control creation of default accounting distributions and the notification level for employees and managers.



Assigning Credit Cards to Card Holders

5. In the Card Number field, enter the number on the credit card.

6. The remaining fields are for your reference only. Optionally, enter the relevant information in these fields.

7. Save your work.



Importing Transactions from the Credit Card Issuer

Importing Transactions from the Credit Card Issuer

The card issuer sends you a file with the card transactions and charges.

• Load this data into the AP_EXPENSE_FEED_LINES table.

• Submit the Credit Card Transaction Validation and Exception Report from the Submit Requests window. This report creates default accounting distributions for transactions. This report 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)

• Submit the following programs for verification and approval: − Distribute Employee Card Transaction Verifications − Distribute Manager Card Transactions Approvals



Verifying Transactions by Employees and Managers

Notification and Verification of Transactions by Employees

Submit the Distribute Employee Card Transaction Verifications program from the Submit Requests window. 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).

Notification and Approval of Transactions by Managers

Submit the Distribute Manager Card Transactions Approvals program from the Submit Requests window. 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).



Setting Up the Credit Card Transaction Employee Workflow

A predefined sample Credit Card Transaction Employee Workflow is included with Oracle Applications.

1. In the Credit Card Profiles window, select the employee notification method.

2. Install Oracle Workflow.

3. Install and set up Oracle Web Employees to allow verification of transactions using Oracle Web Employees.

4. Install the Oracle Workflow Builder client component program.

The Credit Card Transaction Employee Workflow definition file is automatically loaded into the database under the APPS account when you install Oracle Web Employees. Using the Oracle Workflow Builder program, you can open the Credit Card Transaction Employee Workflow definition file.

5. Define the time-out value for the Request Employee To Review Incurred Procurement Card Transactions activity.

6. Use the Workflow Builder program to customize Procurement Card Transaction Employee Verification Workflow messages.



Setting Up the Credit Card Transaction Manager Workflow

1. In the Credit Card Profiles window, select the manager notification method.

2. Install and configure Oracle Workflow.

3. Employees verify credit card transactions. If at the Credit Card Profile level, the Employee Notification Method is Notification Only or Verification Required, verification can occur during the Credit Card Transaction Employee Workflow. If at the Credit Card Profile level the Employee Notification Method is None, the Credit Card Transaction Validation and Exception Report automatically sets the status to Verified.

4. Install the Oracle Workflow Builder client component program.

5. The Credit Card Transaction Manager Workflow definition file is automatically loaded into the database under the APPS account when you install Oracle Web Employees.

6. Define the time-out value for the Request Manager Approval of Employee Incurred Procurement Card Transactions activities.

7. Optionally (recommended), customize Workflow Messages.



Reviewing and Updating Transaction Distributions Oracle Payables N → Credit Cards → Procurement Card Trans Credit Card Transactions

Credit Card Transactions

Reviewing and Updating Transaction Distributions

You can use the Credit Card Transactions window and the Transaction Distributions window to review or adjust transaction distributions and statuses prior to creating the card issuer invoice.

During Payables Open Interface Import, Payables converts transaction distributions into invoices with distributions. When you load transactions from the card issuer, each transaction has one distribution. You can use this window to split a transaction distribution into multiple distributions, which you can then process separately. For example, an employee receives a bill for a hotel room. Instead of charging the $100 corporate rate, the hotel charged $130. You can create two distributions for the transaction, one for $100, and one for $30. You can assign a status of Disputed for the $30 transaction and process the $100 distribution as usual.



Creating Invoices

1. Submit the Credit Card Invoice Interface Summary program to move the transaction data from the AP_EXPENSE_FEED_DISTS table to the AP_INVOICE_HEADERS and AP_INVOICE_DISTRIBUTIONS tables.

2. Submit the Payables Open Interface Import program, for the source Credit Card, to create invoices in Oracle Payables from the invoice data in the Payables Open Interface table



Creating Invoices

1. Submit the Credit Card Invoice Interface Summary program to move the transaction data from the AP_EXPENSE_FEED_DISTS table to the AP_INVOICE_HEADERS and AP_INVOICE_DISTRIBUTIONS tables.

2. Submit the Payables Open Interface Import program, for the source Credit Card, to create invoices in Oracle Payables from the invoice data in the Payables Open Interface tables.



Summary


• Set Up an Oracle Payables Credit Card program

• Import procurement card transactions

• Validate procurement card transactions

• Notify employees and managers of procurement card transactions

• Create card issuer invoices


Invoices Setup Chapter 15 - Page 1

Invoices Setup Chapter 15



Invoices Setup

Section Objectives


• Discuss the basic concepts of invoices setup within Oracle Payables.



Setting Up Oracle Payables to Enter Expense Reports

Enter employees and locations

Define employee as a supplier

Define expense report templates

How to Set Up Oracle Payables to Enter Expense Reports

1. Enter employees, their locations, and their expense addresses in the Enter Person window or Oracle Human Resources. (If you do not have Oracle Human Resources installed, enter the employees as suppliers in the Suppliers window.)

2. Define the employee as a supplier by using either of the following methods: − Enable the Create Employee as Supplier Payables option to automatically

create suppliers from employees when you submit Invoice Import. − Enter the employee as a supplier in the Suppliers window before submitting

Invoice Import for expense reports.

3. Define expense report templates that model the different expense report formats you receive.



Defining Invoice Tolerances Oracle Payables N → Setup → Invoice → Tolerances Invoice Tolerances

Invoice Tolerances

Defining Invoice Tolerances

• Use the Invoice Tolerances window to define the matching and tax tolerances you want to enforce. Tolerances are variances between invoice, purchase order, receipt, and tax information. You can define both percentage-based and amount-based tolerances.

• Tolerances determine the margin of error Oracle Payables accepts before placing matching or tax holds on an invoice. When you submit approval for an invoice you have matched to a purchase order, Oracle Payables checks that the invoice matches the purchase order within the matching tolerances you define. When you submit approval for an invoice with a tax amount, Oracle Payables checks that the actual invoice tax amount is equal to the calculated tax amount within the tolerances you define.

• If the variance exceeds the tolerance you define, Oracle Payables displays the name of the hold next to the tolerance field. Oracle Payables places the hold on the invoice during approval.




How to Set Tolerance Levels for PO Matching

1. In the Invoice Tolerances window, enable the check box for each tolerance you want to enforce.

2. Enter tolerance levels for your purchase order matching transactions and your invoice taxes.

3. In the Maximum Quantity Ordered field, enter either the percent tolerance or the allowed quantity difference between the quantity ordered and the suppliers’ invoice.

4. In the Maximum Quantity Received field, enter either the percent tolerance or the allowed quantity difference between quantity received and the suppliers’ invoice.

5. In the Price field, enter the allowed percent tolerance between the purchase order shipment line unit price and the shipment line unit price on the invoice.

6. In the Exchange Rate Amount field, enter the amount of variance you allow between an invoice amount and the amount of the purchase order shipment to which it is matched. Enter a value in this field only if you enter foreign currency invoices in Oracle Payables.

7. In the Shipment Amount field, enter the maximum allowable variance between an invoiced amount and the amount of the purchase order shipment. Oracle Payables will take this into account during the matching process.

8. In the Total Amount field, enter the total amount of variance you allow for both the exchange rate amount variance and the shipment amount combined. If you do not use foreign currency, do not enter a value in this field. For the greatest control over your foreign currency invoices, you may choose to enter a Total amount tolerance that is less than the total of your shipment amount and exchange rate amount tolerances. For example, if your foreign currency invoice match is within the individual exchange rate amount and shipment amount tolerances, you still may want Oracle Payables to prevent payment of the invoice because the exchange rate variance combined with the shipment amount variance, while within their individual tolerances, exceed your desired total amount tolerance.




How to Set Tolerance Levels for Invoice Taxes

1. Enter the tax rate in the Tax % field. Oracle Payables validates the tax amount you enter on invoice distributions for a particular tax name against the sum of the item distributions that have the same tax name. If the implied rate of the tax distributions you enter is different from the rate you enter for a particular tax name, including the tax tolerance you define, approval places a tax variance hold on the invoice.

2. In the Tax Amount Range field, enter the amount of variance you allow between the actual invoice tax amount and the invoice calculated tax amount.



Entering Employee and Locations Oracle HRMS N → People → Enter and Maintain People

People

Entering Employee and Locations

In the People window of Oracle Human Resources, enter employees, their locations, and their expense addresses.



Using Expense Report Templates Oracle Payables N → Setup → Invoice → Expense Report Templates Expense Report Templates

Expense Report Templates

How to Define Expense Report Templates

Use the Expense Report Templates window to define templates based on the expense report forms you regularly use in your company. You can define default values for expense items that can be chosen from a list of values when you or an employee enters expense reports. During Invoice Import, Oracle Payables uses the expense item information to create invoice distributions.

1. In the Expense Report Templates window, enter a template name and description. You choose this template name when you enter an expense report.



Using Expense Report Templates

2. Enter each expense item you want to have on the list of values when you enter an expense report with this template. Use the name of an expense item as it appears on an expense report; for example, Airfare or Meals.

3. Enter information for each expense item you want to have on the list of values when you enter an expense report with this template.

4. If you want to define a label for an expense item that will be displayed in Oracle Web Employees in place of the value entered for an expense item, enter that value in the Friendly Prompt field.

5. Select the type of invoice distribution associated with an expense item from the list of values in the Type field. When you submit Invoice Import, Oracle Payables enters this value in the invoice distribution Type field. For certain types of tax reporting, such as Value Added Tax, Oracle Payables uses the type to relate tax distributions to the invoice item lines which were taxed. You can enter the following types:

− Freight

− Item: Goods or services

− Miscellaneous

− Tax: Tax amount associated with taxable expense items

6. Indicate whether the amount will be inclusive of tax by selecting the Includes Tax check box.

7. Enter the tax name associated with the expense item.

8. Enter the GL account associated with an expense item. You can enter fewer segments of an account than necessary for a complete GL account. The blank segments will need to be entered when the expense report is entered.

9. Save your work.



Setting Up Oracle Web Employees Expense Reporting Overview

Setting Up Oracle Web Employees Expense Reporting Overview

• Set up the default expense address

• Enable the currencies you plan to use

• Set up Oracle Payables expense report options


• Choose profile values


If you install Oracle Self-Service Web Applications, your organization’s employees can enter their own expense reports in Oracle Web Employees using a Web browser. The system automatically maintains the expense report data in Oracle Payables. You can use Oracle Payables to view and audit these expense reports. You can then create invoices from the expense reports and approve and pay the invoices.

This section, describes the steps that are required in Oracle Payables to set up and use the Oracle Web Employees Expense Reporting feature. The steps described in this section, comprise a partial list of all the steps required to set up and use this feature. For a complete list and description of all steps to set up and use the Oracle Web Employees Expense Reporting, please see Oracle Payables user’s guide.



Setting Up Oracle Web Employees Expense Reporting

• An employee enters and submits an expense report using either the Create New Expense Report function or the Upload Expense Spreadsheet function of Oracle Web Employees. The system automatically populates the Payables Invoice Import Interface tables.

• Once the employee submits an expense report, the Workflow process begins. Workflow requests approval from the employee's manager by the method defined during Workflow setup, for example, e-mail. If the manager rejects the expense report, the employee is notified and has the option to restore the expense report, edit it, and resubmit the expense report.

• Using the Expense Reports window in Oracle Payables, review, audit, adjust and approve the expense report.

• Submit the Payables Invoice Import program to import the expense report as an invoice. A Web Employees-entered expense report is not eligible for Invoice Import until both the manager approves and, if required, the accounts payable department reviews and approves the expense report.

• In Oracle Payables, approve and pay the invoice.



Setting Up Web Expense Reporting: Financials Options Oracle Payables N → Setup → Options → Financials Financials Options

Financials Options

Setting Up the Default Expense Address in the Financials Options Window

1. Navigate to the Human Resources region of the Financials Options window.

2. In the Expense Check Address field, select the default mailing address for each new employee you enter in the Enter Person window. This defines the default expense check address for every new employee you enter.

3. Save your work.



Setting Up Web Expense Reporting: Option Currencies Oracle Payables N → Setup → Currency → Define Currencies

Option Currencies

Enabling the Currencies You Plan to Use

If you do not use multiple currencies with Oracle Applications, and you plan to use multiple reimbursement currencies or multiple receipt currencies with expense reporting, you must enable the currencies you plan to use with expense reporting.

Navigate to the Currencies window to enable the currencies that you plan to use.

To allow reimbursement in a currency other than your functional currency, you must enable the Web Expense: Allow Non-Base Pay System Profile option in the System Profile Values window.

To use multiple currencies, you must also enable the Use Multiple Currencies Payables option.



Setting Up Web Expense Reporting: Payable Options Oracle Payables N → Setup → Options → Payables T →.Expense Report Payables Options

Payables Options

How to SetUp Expense Report Defaults

1. Navigate to the Payables Options window and click the Expense Report tab.

2. In the Terms field, select the payment term you want to assign to any suppliers that you create from employees during Invoice Import.

2. In the Pay Group field, select the pay group you want to assign to any suppliers that you create from employees during Invoice Import.

3. In the Payment Priority field, assign a priority number, between 1 and 99, to any suppliers that you create from employees during Invoice Import.



Setting Up Web Expense Reporting: Payable Options

4. In the Settlement Days field, enter the number of days you want Oracle Payables to add to the system date to calculate a default settlement date for an employee advance.

5. If you select the Apply Advances option, Oracle Payables applies advances to employee expense reports if the employee has any outstanding, paid advances.

6. In the Automatically Create Employee as Supplier: If you select the Automatically Create Employee as a Supplier option, when you import expense reports, the system automatically creates a supplier for any employee that does not already exist as a supplier.

7. The Hold Unmatched Expense Report Invoices option defaults to the Hold Unmatched Invoices option for the supplier and supplier site for any suppliers that Oracle Payables creates during Invoice Import.

Defining Employees as Suppliers

Define the employee as a supplier by using either of the following methods:

• Enable the Create Employee as Supplier Payables option to automatically create suppliers from employees when you submit Invoice Import.

• Enter the employee as a supplier in the Suppliers window before submitting Invoice Import for expense reports. Link the employee number to the supplier you define for the employee.



Setting Up Invoice Defaults Oracle Payables N → Setup → Options → Payables T → Expense Report Payables Options


Setting Up Invoice Defaults

• Use Invoice Approval Workflow. Enable this option if you want to use the Invoice Approval Workflow feature to automate your invoice approval process. The workflow determines if an invoice needs any individuals to approve payment of the invoice, and if so, automatically routes the invoice to designated approvers who then approve or reject the invoice. When you enable this option, almost all invoices must be processed by the Invoice Approval Workflow.




• Allow Force Approval. Enable this option if you use the Invoice Approval Workflow Program and want to allow accounts payable processors to override the workflow and manually approve invoices by using the Force Approval option in the Invoice Actions window. You might want to force approve an invoice if the Invoice Approval Workflow does not complete for an invoice, or if you have authority to pay an invoice without using the workflow process. See: Invoice Approval Workflow Overview.

• Require Validation Before Approval. If you enable this option, then Invoice Approval Workflow does not select any invoice for processing unless the invoice status is Validated. You might want to enable this option if you need the Invoice Validation process to create tax distributions for an invoice before approvers review it. See: Invoice Validation and Invoice Approval Workflow Overview. You cannot enable this option unless you first enable the Use Invoice Approval Workflow Payables option.

• Confirm Date as Invoice Number: If you select this option, during invoice entry when you accept the invoice date as the default for invoice number, Oracle Payables displays a window that reads, “Use the Invoice Date as the Invoice Number?”

• Allow Online Validation: Select this option if you want to allow users to submit Payables Approval from the Actions window.

• Allow Adjustments to Paid Invoices: Select this option if you want to allow users to update the distributions of a paid invoice. This means you can create a distribution variance on a paid invoice if you do not ensure the distributions total is equal to the invoice amount when you do your invoice adjustments. You would discover this possible error when you submitted approval, because approval would place a distribution variance hold on the invoice and prevent you from posting the invoice. You can select this option only if you use accrual as your primary accounting method and you do not use automatic offsets.

• Allow Document Category Override: Select this option if you want to allow users to override the default document category assigned to an invoice by Oracle Payables.




• Automatically Create Freight Distribution: If you select this option, Oracle Payables selects the Create Freight Distribution check box in the Invoices Summary and automatically creates a single freight distribution using the freight amount you enter for an invoice and the Freight Account field, which is defaulted from the Payables Options window. If you usually prorate freight to invoice distributions or enter freight distributions manually, do not select this option.

• Freight Account: If you select the Automatically Create Freight Distribution Payables option, you must enter a freight account. Oracle Payables uses this account as the default freight account for an invoice, but it can be overridden at invoice entry.

• GL Date Basis: Select the type of date you want Oracle Payables to use as the default accounting date during invoice entry.



Setting Up Invoice Tax Defaults Oracle Payables N → Setup → Options → Payables (Invoice Tax Region) Payables Options

Payables Options: Invoice Tax Region

Setting Up Invoice Tax Defaults

You can control taxes at the system level in the Payables Options window.

• Exclude Tax from Discount Calculation: This option excludes amounts for tax type distributions when the discountable amount of an invoice is calculated. If you select this option, you cannot select Prorate Tax for the Discount Distribution Method Payables option.

• Require Tax Entry at Header: If you select this option, you must enter a tax name and tax amount for each invoice you enter. Do not enable this option if you plan to enter use taxes or prorating taxes.



Setting Up Invoice Tax Defaults

• Use Automatic Tax Calculation: If this option is selected, Oracle Payables automatically calculates the invoice tax amount when you enter a sales tax name on an invoice. Oracle Payables calculates the tax amount based on the gross amount of the invoice and the tax rate you define for the tax name. This option is useful for entering invoices without an itemized tax amount.



Setting Up Matching Defaults Oracle Payables N → Setup → Options → Payables (Matching Region) Payables Options

Payables Options

Setting Up Matching Defaults

• Allow Final Matching: Select this option to allow final matching of purchase order matched invoices. You can indicate a final match when you match an invoice to a purchase order during invoice entry or when you adjust a matched invoice distribution. Select this option only if you want to allow the option of permanently closing purchase orders. Once a purchase order is permanently closed, you cannot reopen the purchase order.

• Allow Distribution Level Matching: Select this option if you want to allow matching to purchase order distributions. If you select this option, you can match an invoice to one or more purchase order distributions. If you do not select this option, you can match an invoice to a purchase order shipment.



Setting Up Matching Defaults

• Allow Matching Account Override: Select this option if you want to allow override of the account for an invoice distribution created from matching to a purchase order. You can override the account for a matched invoice distribution in the Distributions window. You cannot override the account for a matched invoice distribution if you use encumbrance accounting or perpetual receipt accrual.

• Transfer PO Descriptive Flexfield Information: Select this option if you want to automatically transfer the descriptive flexfield information from the purchase order distribution to the invoice distribution when you match an invoice to a purchase order.

• Recalculate Scheduled Payment: If you select this option Oracle Payables calculates scheduled payments using a start date and payment terms. For example, if the start date is 01-JAN-98 and the payment terms are Net 30, the invoice will be payable in full on 30-JAN-98.


Payments - Introduction Chapter 16 - Page 1

Payments - Introduction Chapter 16



Payments - Introduction

Section Objectives


• Discuss the basic concepts of payments within Oracle Payables.



Invoice Payment Overview

Enter supplier

Create PO

Enter invoice Approve invoice

Pay invoice

Create journalentries

Match toPO

Enter requisitionReconcile payments

Oracle Payables provides a variety of features for fast, controlled payment processing.

With Oracle Payables you can do the following:

• Distribute funds by using multiple payment methods

• Ensure that duplicate invoice payments never occur

• Pay only invoices that are due, and automatically take the maximum discount available

• Select invoices for payment, using a wide variety of criteria, and create payments automatically

• Print checks online

• Choose from different payment method options including checks, EDI, electronic funds transfer (EFT), and wire

• Record stop payments

• Void payments

• Review information online on the result and status of every payment



Oracle Payables Payment Methods

Payment Methods:

The following table defines the types of payment methods available through the Oracle Payables module: Payment Method

Definition

Check A paper check to print and send to a supplier

Clearing A payment for invoices transferred from another entity within the company without creating a payment document

Electronic An electronic funds transfer to the bank of a supplier

Future dated

A payment document that requests a bank to distribute funds to a supplier on a specified future date

Manual future dated

A supplier-generated payment document that requests a bank to disburse funds to a supplier on a specified future date

Wire A funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier

Payment Disbursement Types

The following table is a list of the disbursement types used within Oracle Payables: Disbursement Type

Description

Recorded Records payments made outside Oracle Payables, for example, a handwritten check or a wire

Computer-generated

Creates immediate, single-check payments Pays invoices in a payment batch, for example, a check run or an electronic payment batch

Combined Can be used for either manual or computer-generated payments



Using the Workbench Model Overview

Oracle Payables includes two fully integrated workbenches: the Invoice Workbench and the Payment Workbench. You enter, adjust, or review invoices in the Invoice Workbench. You create, adjust, and review payments in the Payments Workbench.

Use the Invoice Overview and the Payment Overview windows to review information from either workbench. These windows also act as bridges between the two workbenches. For example, from the Invoices Overview, you can click Payments to navigate to the Payments window.




Hierarchy of the Invoice Workbench

The window hierarchy in the Invoice Workbench is as follows:

• Find Invoice Batches − Invoice Batches Summary (folder)

• Find Invoices − Calculate Balance Owed

• Invoices Summary (folder) − Invoice Holds − Payments − PO Match − Scheduled Payments

• Distribution Summary (folder) − Prorate − Invoice Actions − Apply/Unapply Prepayments − Approve and Pay Invoices − Release Holds − Cancel Invoices

• Find Payment Batches

• Copy To

• Payment Batch Actions − Modify Payment Batches − Confirm Payment Batches

• Find Payments

• Select Invoices

• View Invoices

• Payment Actions




XML Payment Processing

Users have the ability to submit XML payments which comply with industry standards set by the OAG. Complete automated business cycle is now enabled via a set of predefined XML messages and a series of workflows that notify the user of payment acceptance, error processing and auto-confirmation of the payment batch.


Entering Manual Payments Chapter 17 - Page 1

Entering Manual Payments Chapter 17



Entering Manual Payments

Section Objectives


• Select invoices to pay

• Pay from the Invoice Workbench

• Pay suppliers with future-dated payments

• Override payment controls



Entering Manual Payments Overview

What Is a Manual Payment?

A manual payment is a payment that you create outside of Oracle Payables. The following are examples of manual payments:

• Handwritten checks

• Wire

• Refunds

Overview

When you create a payment outside of Oracle Payables, for example, using a typed check or wire transfer, you can record the payment within Oracle Payables and update the invoices that you paid. With a manual payment, you can override some payment controls within Oracle Payables. You can record a single payment for multiple pay alone invoices. You can record payment for invoices that are associated with any payment method type except EFT.

Record Refunds

Oracle Payables now offers you a standard way to record refunds received from your suppliers. You can record refunds received from suppliers and employees, and accurately link them to invoices, credit memos, and debit memos associated with the refunds.

Refund transactions will appear in the supplier transaction history and will be reflected in the supplier balance.

Prerequisites

Prerequisites for processing manual payments in Oracle Payables are:

• Create the payment outside of Payables.

• The invoice you paid must be approved, uncancelled, without holds, and must have the same currency as the payment.

• The bank account must have at least one payment document that uses the recorded or combined disbursement type.



Recording a Manual Payment Oracle Payables N → Payments → Entry → Payments Payments

Payments

How to Initiate a Manual Payment

1. In the Type field, select Manual.

2. Select the bank account you use for the payment.

3. Select a payment document name.

4. Enter the payment document number.

5. Enter the payment date.

6. Enter the payment amount.

7. If you are using a multiple currency bank account with a multiple currency payment document, optionally, change the payment currency.



Recording a Manual Payment

8. Enter either the supplier name or number.

9. Enter the supplier site.

10. If necessary, enter or adjust other information.



Selecting Invoices Oracle Payables N → Payments → Entry → Payments B → Enter/Adjust Invoices Select Invoices

Select Invoices

How to Select Invoices to Pay

1. From the Payments window, click the Enter/Adjust Invoices button to select approved invoices that are not on hold.

2. Select as many approved invoices as will fit on a single check stub.

3. To record a manual payment, save your work at this point and you are done.

4. To create a computer-generated payment, from the Payment window, click Actions to navigate to the Payment Actions window; format and print the check. Optionally, create a check, save it, and print it later.



Selecting Invoices from the Invoice Workbench Oracle Payables N → Invoices → Entry → Invoices B → Actions Invoices

Invoice Actions

How to Select Invoices for Payments from the Invoice Workbench

You can initiate payment of one or more invoices by selecting the invoices in the Invoices window and using the Pay in Full option in the Invoice Actions window. When you pay using this method, you can generate a manual payment or a Quick payment. Oracle Payables automatically enters most of the payment information for you, and you omit the invoice selection step you would perform if you were to create the payment in the Payment Workbench.



Selecting Invoices from the Invoice Workbench

To pay an invoice or scheduled payment from the Invoice Workbench:

1. Make certain the invoices that you want to pay are fully approved.

2. To pay one or more invoices in full, select the relevant invoices from the Invoices window; click the Actions 1 button to open the Invoice Actions window.

3. Select the Pay in Full check box and click the OK button to open the Payments—Pay in Full window.

4. To pay a portion of an invoice, select the invoice from the Invoices window; click Scheduled Payments, and select one or more scheduled payments. Click the Pay 1 button to pay the selected payments.

5. Flexible payments for a single invoice, you can make electronic payments to different bank accounts. You specify which supplier bank account will receive payment for a scheduled payment. At the supplier site level you can set a default primary bank account for a supplier site to use. This value defaults to the scheduled payment, and you can change this default any time before payment.



Paying Invoices from the Invoice Workbench: Payment Oracle Payables N → Invoices → Entry → Invoices B → Payments Payments

Payment—Pay in Full

How to Pay Invoices from the Invoice Workbench

1. In the Payments window, choose Quick or Manual for the payment type. Enter the bank account from which you want to make the payment, and enter the payment document you want to use. Oracle Payables automatically enters the remaining fields for you.

2. If necessary, enter or adjust other information in the Payments window.

3. If you are creating a manual payment, save your work to complete the payment. Oracle Payables records the payment and updates the invoices as paid. If you are creating a quick payment, continue with the next step.



Paying Invoices from the Invoice Workbench: Payment

4. Click the Actions button to display to the Payment Actions window.

5. Select the Format check box and, optionally, select the Print checkbox. If printing the check, select the appropriate printer.

5. Save your work.

Oracle Payables records the payment and updates the invoices as paid.



Scheduling Payments from the Invoice Workbench Oracle Payables N → Invoices → Entry → Invoices B → Scheduled Payments Scheduled Payments

Scheduled Payments

How to Schedule Payments from the Invoice Workbench


2. To pay a portion of an invoice, select the invoice from the Invoices window.

3. Click Scheduled Payments tab.



Scheduling Payments from the Invoice Workbench

4. Make any updates to unpaid scheduled payments, and create any new scheduled payments.

5. To split a scheduled payment, update the amount, and then click Split Schedule. Oracle Payables creates an additional scheduled payment with the net amount due.

6. Adjust the dates as appropriate and, optionally, apply a hold to the scheduled payment.

7. Save your work.



Paying Suppliers with Future Dated Payments Oracle Payables N → Payments → Entry → Payments Payments

Payments

How to Pay Suppliers with Future Dated Payments

1. Make certain the invoice that you want to pay is fully approved.

2. In the Payments window, record the invoice payment as a manual payment.

• If you use the payment document your supplier sent you and do not create a payment document, enter Manual Future Dated in the Payment Method field.

• If you manually created a future dated payment that you want to record, enter Future Dated in the Payment Method field.

3. Enter a maturity date. During setup you can enable the use of a Future dated payment account along with a cash clearing.



Paying Suppliers with Future Dated Payments

4. Return the payment notice to the supplier.

5. The supplier submits the payment request to the bank.

6. The bank disburses funds on the maturity date the supplier specified on the payment notice.

7. Your bank sends you payment reconciliation information.



Adjusting Selected Invoices for Manual Payments Oracle Payables N → Payments → Entry → Payments Payments

Payments

Adjusting Selected Invoices for Manual Payments

You can change the invoices you select for a manual payment at any time before posting:

1. Find the payment online by using the Payments Overview window, or by opening the Payments window in entry mode and querying the payment.

2. In the Payments window, select the payment, and click the Enter/Adjust Invoices button to navigate to the Select Invoices window.



Adjusting Selected Invoices for Manual Payments

3. Select the invoices you had associated with the payment by mistake, and click the Reverse Payment button. Oracle Payables creates a negative line for each invoice you selected.

4. Enter each invoice you want to pay with the manual payment in a new row. The sum of the invoice payment amounts must equal the payment amount you entered for the manual payment. To see detailed information about an invoice, select the invoice, and choose Invoice Overview.

5. Save your work to have Oracle Payables reset the status of the reversed invoices to Unpaid and set the selected invoices as Paid by the manual payment.



Summary




• Pay suppliers with future-dated payments

• Override payment controls



Lab 1: Recording Manual Payment

Instructions

It has been brought to your attention that “Your Supplier” required immediate payment of invoice number 3000. The buyer is on the way to visit the supplier. Record a manual check to pay this invoice as you have typed a check for the amount due.



Lab 1 Solutions: Recording Manual Payment

1. Navigate to the Payments window.

N → Payments → Entry → Payments

2. In the Payment Type field, select Manual from the list of values.

3. Select your Bank Account as directed by your instructor.

4. In the Document Name field, select the Computer/Manual from the list of values.

5. The System will provide you with a message that it is reserving the payment document. Choose OK.

6. Accept the defaults for the remaining fields.

7. In the Payment Amount field, enter 2,567.89.

8. In the Supplier Name field, Enter “Your Supplier.”


10. Choose Enter/Adjust Invoices, to open the Select Invoices window.



Lab 1 Solutions: Recording Manual Payment

11. In the Invoice Number field, enter 3000 and press the Tab key.


13. Save your payment.


Processing Computer-Generated Single Payments Chapter 18 - Page 1

Processing Computer-Generated Single Payments Chapter 18



Processing Computer-Generated Single Payments

Section Objectives




• Specify computer-generated payment

• Change payment currency

• Predate payments



Computer-Generated 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, and then print it later.

If you use the EDI Outbound payment format and you use the Oracle e-Commerce Gateway, then you can create electronic Quick payments.

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

• Enable the Allow Print Payables option.

• The invoice(s) must be approved, un-cancelled, and without holds.

• The invoice(s) must have either the same currency or an associated fixed-rate currency as the payment currency.

• If you are creating an electronic payment, you must assign supplier banks to your supplier. The scheduled payment(s) must have the Remit-to supplier bank specified.

• The bank account must have at least one payment document that uses Computer Generated or Combined disbursement type.

Examples of Computer-Generated Single Payments

• Quick-Check (single supplier with one or more invoices)

• Electronic Funds Transfer (EFT)



Processing a Quick Check Oracle Payables N → Payments → Entry → Payments Payments

Processing a Quick Check

How to Select Invoices to Pay

1. Navigate to the Payments window and the Bank Name, Document Type and Document Date.

2. Tab to the Supplier Name field and enter the supplier’s name and site.

3. Optionally, type in an override remittance address for the check.

4. Click the Enter/Adjust Invoices button to select approved invoices that are not on hold.




5. Select the invoices that you want to pay by using the List of Values in the Invoices field. The invoices must have Check as their payment method and must have the same currency as the payment.

6. Save your work and close the Select Invoices window.

7. To create a computer-generated payment, click Actions to navigate to the Payment Actions window; format and print the check. Optionally, create a check, save it, and print it later. The bank account must have at least one payment document that uses computer-generated or combined disbursement type.




8. Click the OK button on the Payment Actions window to print the check.



Paying Invoices from the Invoice Workbench Oracle Payables N → Invoices → Entry → Invoices B → Actions Invoices

Invoice Actions

How to Pay Invoices from the Invoice Workbench

You can initiate payment of one or more invoices by selecting the invoices in the Invoices window and using the Pay in Full option in the Invoice Actions window. When you pay using this method, you can generate a manual payment or a quick payment. Oracle Payables automatically enters most of the payment information for you, and you omit the invoice selection step you would perform if you were to create the payment in the Payment Workbench.



Paying Invoices from the Invoice Workbench

To pay an invoice or scheduled payment from the Invoice Workbench:


2. To pay one or more invoices in full, select the relevant invoices from the Invoices window; click Actions to navigate to the Actions window, and select the Pay in Full check box to open the Payments—Pay in Full window.

3. To pay a portion of an invoice, select the invoice from the Invoices window; click Scheduled Payments, and select one or more scheduled payments. Choose Pay to pay the selected payments.

4. In the Payments window, select Quick or Manual for the payment type. Enter the bank account from which you want to make the payment, and enter the payment document you want to use. Oracle Payables automatically enters the remaining fields for you.

5. If necessary, enter or adjust other information in the Payments window.

6. If you are creating a manual payment, save your work to complete the payment. Oracle Payables records the payment and updates the invoices as paid. If you are creating a quick payment, continue with Step 7.

7. Click Actions to navigate to the Payment Actions window. Format and, optionally, print the check.

8. Save your work. Oracle Payables records the payment and updates the invoices as paid.



Creating and Maintaining Computer-Generated Payments Oracle Payables N → Payments → Entry → Payments Payments

Payments

Creating and Maintaining Computer-Generated Payments

To create a computer-generated check, you must enable the Allow Online Print Payables option; the invoices must be approved, uncanceled, and without holds; the invoices must have check as their payment method and have the same currency as the payment; and the bank account must have at least one payment document that uses computer-generated or combined disbursement type.

In the Payments window:

• You can, optionally, change the payment document number, which defaults to the next available number.

• You can, optionally, change the payment currency if you are using a multicurrency bank account with a multicurrency payment document.



Creating and Maintaining Computer-Generated Payments

• The payment date must be in an open or future period.

• Unless you enable the Allow Pre-Date Payables option, you cannot predate a computer-generated payment.



Summary

Summary


• Select Invoices to pay


• Specify computer-generated payment

• Change payment currency

• Predate payments



Lab 1: Entering an Invoice and Recording a Single Payment

Instructions

Your Facilities Manager just realized that they did not pay the utility charges for a remote storage facility. Enter Invoice # 9000 for “Your Supplier” in the system, using the Full Distribution set you created in a previous lab, approve the invoice, and Generate a Payment Immediately.

INVOICE

Invoice # 9000

Date: Today

PO#: N/A

Terms: Immediate


Description: Utility Charges for Storage Facility

Total Due: $10,000



Lab 1 Solutions: Entering an Invoice and Recording a Single Payment


N → Invoices → Entry → Invoices B → Open


3. Enter the Supplier Name.


5. As the invoice is dated today, accept the default date.


7. Enter the total due of the invoice in the amount field.

8. In the Distribution Set field, select your distribution set name that you defined in a previous lab.

9. Save your work.

10. Verify that your window appears similar to the one displayed below:




11. Choose Distributions to review or modify the accounting distribution lines.

12. Check that the distribution total and the invoice total are equal to each other.




13. Verify that your window appears similar to the one displayed above.

14. Save your work and close the Distributions window.

15. Validate the invoice by choosing the Actions button and selecting the Validate check box.

16. Click the OK button to close the window and then choose Actions again.

17. This time select the Pay in Full check box.

18. Click the OK button. Oracle Payables displays the Payments window.

19. Since you need to issue a Quick Check, accept the default for payment type, Quick

20. Enter your bank account name in the Bank Account field





22. Click the Actions button to open the Payment Actions window.

23. Select the Format check box.





25. Click OK. The system displays a Concurrent Request ID number.

26. View your check online.

M → Help → View My Requests


Processing Payment Batches Chapter 19 - Page 1

Processing Payment Batches Chapter 19



Processing Payment Batches

Section Objectives


• Initiate new payment batches

• Create and find payment batch templates

• Modify payment batches

• Format payment batches

• Confirm payment batches

• Find payment information

• Process EDI payments

• Make electronic payments to different supplier bank accounts (Flexible Payments)



Payment Batches Overview

Select invoices--------------------------(Build payments)

Formatpayments

Confirmpayments

Print checks orcreate electronic

payments

Use payment batches to create payments for multiple invoices that meet selection criteria you specify. In addition to controlling which invoices Oracle Payables selects for payment in the batch, you can also set limits on payment amounts and decide whether to take applicable discounts.

You follow a series of steps to create your payment batch payments, and you initiate each step from the Payment Batch Actions window.

1. Initiate the payment batch by entering criteria for invoices you want to pay. Oracle Payables selects invoices and from the list builds the payments; it determines which invoices will be paid on each payment document and lists this information for you on the Preliminary Payment Register.

2. Format payments to have Oracle Payables produce an output file.

3. Print checks from the output file, or create electronic payments.

4. Confirm the payment batch by recording the document numbers associated with each payment. During this step, Oracle Payables updates the invoice status to Paid and associates a payment number with the invoice and invoice payment.



Payment Batch Enhancements

Oracle Payables improves its payment processing functionality by streamlining the process of submitting multiple payment batches for your bank accounts. This enhancement provides you better support for your multiple-currency payment needs. Each payment output file continues to be for payments of a single currency. However, now all of your payment batches for your bank accounts can be initiated with a single payment batch submission.

Support for electronic payments is enhanced by providing additional flexibility when grouping invoices into payments.

Payment Batch Scheduling

Oracle Payables now supports scheduling of payment batches for automatic submission at regular intervals. You can define a payment batch set and then use the Schedule Batch Set window to schedule its recurring submission. When the system automatically submits a payment batch on a schedule, the system updates the pay through date, payment date, and exchange date of each payment batch in the set based on the time interval you have specified.

Automatic Bank Transmission

Oracle Payables integrates with Workflow to automate the transmission of electronic payment files to your bank and the retrieval of payment confirmation messages from your bank. When you format a payment batch or Quick payment that uses a transmittable payment document, Oracle Payables automatically sends the payment file to your bank. Workflow notifies the designated users of transmission status, and the new transmissions window allows you to view details of files transmitted by this feature. Setup for this feature requires you to implement a custom java class to provide transmission logic.

Invoice Selection Criteria

Payables now has two new invoice selection criteria fields for payment batch processing: supplier name and invoice batch name. These new criteria work together with other invoice selection criteria to provide more granular selection of invoices for payment.

Refresh Payment Batch Status

During payment processing, users can more easily monitor the status of a payment batch using the new Requery Batch button on the Payment Batches window. This new button requeries the current payment batch more easily than having to perform a manual query, which helps to streamline the payment batch process.



Payment Batch Enhancements

Selected for Payment Invoice Status

When an invoice is selected for payment and the invoice is queried in the invoices window or Invoice Overview window, Payables now shows the status of the invoice as "Selected for Payment". This provides more immediate information about the actual status of the invoice.

Folderized Payment Batch Sets

Folder functionality is enabled for the Payment Batch Sets window to improve usability.

Separate Concurrent Program for Cancel Payment Batch

During payment batch cancellation the concurrent process name displayed in the Requests window is now Cancel Payment Batch.

Improved Handling of Spoiled and Skipped Payment Documents

Oracle Payables has improved the efficiency of payment batch processing by allowing users to record spoiled and skipped payment documents while they are still processing a payment batch rather than needing to restart the batch or cancel the remaining payment documents.



Initiating New Payment Batches Oracle Payables N → Payments → Entry → Payment Batches Payment Batches

Payment Batches

How to Initiate New Payment Batches

1. Navigate to the Payment Batches window.

2. Enter a unique name in the Batch Name field.

This name will appear on reports and helps to locate the batch online.

3. Tab to the Payment Date field and enter or change the date that payables needs to print on the payment or remittance advice.

4. Optionally, select an Invoice Batch Name to limit the payment batch to only invoices included in the batch.

5. Optionally, select a Supplier Name to only pay invoices for a specific vendor.



Initiating New Payment Batches

6. Optionally, enter the Pay Group to be included in the payment batch. Selecting only the Pay Group tells Payables to include all invoices assigned to the pay group for payment.

7. Tab to the Bank Account field and change this if needed.

8. Select a payment document from the List of Values in the Document field. The payment document cannot be in use in another payment batch. The Payment Method value will default based on the Document selected.

9. Optionally, select the checkbox in the Future Dated Payment field to pay invoices using a future date.

10. Enter or verify the pay through date. Oracle Payables will select invoices with a discount or due date on or before this date.




11. Optionally, select the Template check box to use this payment batch as a template for future payment batches.

For example, if you regularly create payment batches with the same criteria, save the payment batch as a template. To use it later, copy it, change the batch name, enter a new payment date and pay through date.

12. Optionally, change the payment Priorities.

13. Optionally, select Allow Zero Invoices to include zero amount invoices in the batch. This should be performed periodically to remove zero amount invoices from the open payables lists.

14. Optionally, select the Include Only Due checkbox to override the pay date basis for the supplier site and only pay invoices with due dates on or before the pay through date.

15. Optionally, change the default value in the Payment Currency field. If you change to a foreign currency, you will need to verify all the rate related fields for the payment batch.




16. Optionally, review or adjust document information in the Document region. Oracle Payables displays the first document number, including any setup checks, to use for printing payments in a payment batch. Oracle Payables displays the last available document number for the payment document.

If the Sequential Numbering profile option is not enabled, (optionally) enter a beginning voucher number.

17. Select the Document Order method from the drop-down list to indicate order in which payables prints the payment documents and the manner used to review your Preliminary Payment Register: The options are Ascending Postal Code, Descending Postal Code, Supplier Name, or Supplier Number.

18. Optionally, review or adjust payment limits in the Limits region. (These fields are not shown in the default view of the Payment Batches window. Add them to the folder by using the Folder Tool menu – Show Fields option.

The Maximum/ Minimum Payments field defines the range of payment amounts allowed for a single payment in a payment batch. If Payables selects invoices for a supplier site and the total of the invoices is more or less than the maximum/minimum payment, Oracle Payables pays no invoices for that supplier site.

The maximum outlay is the maximum Oracle Payables will pay for this payment batch. If the batch total exceeds this number, you will get a warning, but you can continue processing the payment batch.




19. Click Actions. Depending on whether you want to be able to review and modify the payment batch before formatting, complete one of the following options:

• To format the payments without modifying them, select Format Payments to have Oracle Payables automatically select and perform the required prerequisite actions, which are Select Invoices and build payments. Oracle Payables then formats the payments. After formatting is complete, continue with printing payment batch checks, or, if you are creating electronic payments, proceed with confirming payment batches.

• To review and modify the invoices selected in the payment batch before you format payments, choose Select Invoices and Build Payments to have Oracle Payables select invoices and build payments. After the build process is complete, you have the option to proceed with Modifying Payment Batches or with formatting payments.

20. Click OK to save your work.

You can streamline the process of submitting multiple payment batches for your bank accounts. This will support your multiple-currency payment needs. Each payment output file continues to be for payments of a single currency. However, now all of



your payment batches for your bank accounts can be initiated with a single payment batch submission.



Lab 1: Paying Invoices in a Payment Batch

Instructions

You have the responsibility for your bank account and supplier to produce checks each week. Rather than manually selecting all of the invoices and suppliers, you use the Autoselect feature of Oracle Payables. Begin the selection process for a Computer Check Run.



Lab 1 Solutions: Paying Invoices in a Payment Batch

1. Navigate to the Payment Batch window.

N → Payments → Entry → Payment Batches

2. In the Batch Name field, use your initials and the current date to enter a unique batch name.

3. In the Payment Date field, accept the default date.

4. In the Bank Account field, select your bank account.

5. In the Pay Through Date field, enter the date for 7 days from today.

6. In the Hi Payment Priority field, enter the payment priority that you assigned to your supplier in a previous lab (it should be the same as your terminal ID number).

7. In the Low Payment Priority field, enter the same terminal ID number, as you want to only pay those invoices with your payment priority in this check run.


9. Accept the remaining defaults.

10. Click Actions.



Lab 1 Solutions: Paying Invoices in a Payment Batch

11. In the Payment Batch Actions window select the following check boxes:

• Select Invoices

• Build Payments

• Print Preliminary Register


13. Choose OK.

14. Oracle Payables displays three concurrent ID numbers. Monitor your concurrent requests until they have been successfully completed by choosing View My Requests from the Help menu.



Finding Payment Batch Templates Oracle Payables N → Payments → Entry → Payment Batches M → View → Find Find Payment Batches

Find Payment Batches

How to Find Payment Batch Templates

1. Enter search criteria to find the payment batch template you want to use. Click Find.

2. Select the payment batch you want to copy from the Payment Batches window and click Copy To to open the Copy To window.

3. Enter either a prefix or suffix to precede or append to the template payment batch name to create the new payment batch name. Enter a Payment Date and a Pay Through Date for the new payment batch.

4. Click OK to save, and Oracle Payables automatically queries the new payment batch in the Payment Batches window.



Modifying Payment Batches Oracle Payables N → Payments → Entry → Payment Batches M → View → Find B → Payments Modify Payment Batch

Modify Payment Batch

How to Modify Payment Batches

After selecting invoices and building payments (and prior to formatting payments), you can review and modify a payment batch.

1. Navigate to the Find Payment Batches window and enter search criteria to find the payment batch you want to use. Click Find to open the Payment Batch window.



Modifying Payment Batches

2. In the Payment Batches window, select the payment batch, and click Payments to open the Modify Payment Batches window. Then modify the payment batch. You can:

• Modify the payment amount of an invoice

• Prevent payment to a supplier

• Prevent payment of a particular invoice

• Add an invoice that Oracle Payables did not originally select

3. If you change invoices to a payment batch, Oracle Payables automatically rebuilds payments after you modify the payment batch. After you complete your modifications, you can review your changes on a new Preliminary Payment Register and modify the payment batch again or continue with formatting payments.



Lab 2: Modifying Invoice Selection in a Payment Batch

Instructions

Review all the invoices and suppliers selected for a payment batch prior to formatting your checks. After reviewing the Preliminary Register, you decide not to pay invoice number 6000. Modify your payment batch to deselect this invoice.



Lab 2 Solutions: Modifying Invoice Selection in a Payment Batch



2. Open the Find Payment Batches window.

M → View→ Find

3. In the Batch Name field, enter your batch name from a previous lab.

4. Choose Find. In the Payment Batch window Oracle Payables displays your batch.

5. Choose Payments to open the Modify Payments window.




Lab 2 Solutions: Modifying Invoice Selection in a Payment Batch

10. Oracle Payables displays the Modify Payment Batch window. Locate invoice number 6000 that you do not want to pay.

11. In the Pay field for invoice number 6000, select No.

12. Note how the total payment amount to the supplier is decreased.

14. Click Build to have Oracle rebuild the payment batch.

15. Oracle Payables displays a concurrent ID number. Monitor your concurrent request until it is successfully completed by choosing View My Requests from the Help menu

16. Click the Requery Batch button to refresh the batch status in the Payment Batches window.

17. Click Actions, to reprint the preliminary payment register.



Formatting Payment Batches Oracle Payables N → Payments → Inquiry → Payment Batches B → Actions Payment Batch Actions

Payment Batch Actions

How to Format Payment Batches

When Oracle Payables formats payments, it creates an output file that you can use to print checks or handle electronic payments.

1. In the Find Payment Batches window, enter criteria to find the payment batch you want to format. Click Find.



Formatting Payment Batches

2. In the Payment Batches Summary window, select the payment batch you want to format, and click Actions.

3. In the Payment Batch Actions window, select Format Payments.

4. Click OK.



Lab 3: Formatting a Payment Batch

Instructions

Your payment batch that you entered and modified in previous labs is now ready to be formatted and printed.



Lab 3 Solutions: Formatting a Payment Batch




M → View → Find



5. Choose Actions to open the Payment Batch Actions window.

6. Note that the Format check box is already selected.




Lab 3 Solutions: Formatting a Payment Batch

8. Choose OK.

9. Oracle Payables displays a concurrent ID number. Monitor your concurrent request until it is successfully completed by choosing M > View > Requests.

10. View the checks online and write down the last check number. You will need this number for confirming the payment.



Confirming Payment Batches Overview

Select invoices--------------------------(Build payments)

Formatpayments

Confirmpayments

Print checks orcreate electronic

payments

Confirmation is the final step in processing a payment batch. During payment confirmation, Oracle Payables performs the following tasks:

• Updates the payment history of invoices paid in a payment batch

• Creates one payment distribution for each invoice in the payment batch and credits it to the asset account for the bank account

• Creates a single payment distribution for each balancing segment of an invoice, if the Automatic Offsets Payables option is enabled and a pooled bank account for the payment batch is used

During confirmation, you assign one of four status types to each document:

• Setup: Oracle Payables displays the setup checks used to align the printer.

• Printed: Either the checks printed properly or the electronic payments formatted correctly.

• Skipped: The printer skipped over these checks and nothing printed on them.

• Spoiled: The printer malfunctioned and ruined these documents, so you cannot reuse them. Oracle Payables automatically voids these documents and sets the status of corresponding invoices to unpaid. To pay these invoices, include them in a new batch.



Confirming Complete Payment Batches Oracle Payables N → Payments → Entry → Payment Batches M → View → Find B → Actions B → OK Confirm Payment Batch

Confirm Payment Batch

How to Confirm Complete Payment Batches

1. In the Find Payment Batches window, enter criteria to find the payment batch you want to confirm.

2. Click Find.

3. In the Payment Batches window, select the payment batch, and click Actions. Select Confirm Payment Batch, and click OK.



Confirming Complete Payment Batches

4. If you select Create Positive Pay File, Oracle Payables creates a flat file for custom or third-party check verification.

5. In the Confirm Payment Batch window, enter the document number range of the successfully printed checks or the successfully formatted electronic payments, and select the status Printed. Enter the document number of the spoiled, skipped, or setup checks and select the appropriate status.

6. Click Confirm. Oracle Payables updates the status of the invoices paid with the Printed checks to Paid status and prints the Final Payment Register.



Lab 4: Creating a Payment Batch

Instructions

You have reviewed your checks and they all have been successfully printed. Record them as printed, and complete the payment batch process.



Lab 4 Solutions: Creating a Payment Batch




M → View → Find



5. Choose Actions to open the Payment Batch Actions window.

6. Note that the Confirm check box is already selected.




Lab 4 Solutions: Creating a Payment Batch

8. Choose OK.

9. Choose OK again to confirm the payment batch.

Oracle Payables displays the Confirm Payment Batch window.

10. In the Status filed, select Printed.

11. In the To filed, enter the last check number that printed successfully and you wrote it down in a previous lab.


13. Choose Confirm.



Finding High-Level Payment Information Oracle Payables N → Payments → Inquiry → Payment Overview B → Find Payment Overview

Payment Overview

Finding High-Level Payment Information

Use the Payment Overview window to review the status of a payment and its related high-level information. Review information quickly when a supplier calls to inquire about the status of a payment. Since the Payment Overview window is a display-only window, click Payments to navigate to the Payments window to view additional details or to make any necessary adjustments. This window displays summary information for:



Finding High-Level Payment Information

• Payment status

• Payment information

• Supplier information

• Invoice information

• Bank information



Finding Payments in the Payment Workbench Oracle Payables N → Payments → Inquiry → Payment M → View → Find Find Payments

Find Payments

Finding Payments in the Payment Workbench

• Find payments in the Payment Workbench either by using the Find Payments window or by entering query criteria directly into the Payments window.

• Use the Payment Batches window to find the payment batch.



Finding Payments in the Payment Workbench

• In the Find Payments window, you can enter a variety of criteria including status and ranges for payment amounts, payment dates, and payment numbers. Click Find to navigate to the Payments Summary window, where all of the payments that match your criteria are displayed. If your query retrieves more than one payment, Oracle Payables orders and displays queried payments in numerical order based on the payment number. To see the next queried payment, click Next Screen.



Processing EDI Payments Overview

Select invoices

Build

Confirm

Format

Select invoices

Build

Confirm

EDI 820

Payments without EDI Payments with EDI

To create an electronic payment file that Oracle EDI Gateway formats and transfers to your bank, you follow nearly the same steps as in creating checks in a payment batch.

• Invoices are selected for payment based on the criteria you specify in the Payment Workbench. Payments are then built based on other criteria such as pay site.

• Instead of the format process which creates the check layout, the EDI 820 program runs and extracts the payment data to the Oracle EDI Gateway.

• The payment data is automatically sent to your EDI translator and then to the bank.

• Once you have verified that the data has been received by your bank, you can confirm your payments and Oracle Payables marks the invoices as paid.



Processing EDI Payments Overview

Oracle Payables Prerequisites

Oracle Payables prerequisites for processing EDI Payments are as follows:

• Set up suppliers for EDI transactions

− Assign Electronic as the method of payment

− Assign EDI payment formats

• Set up supplier bank accounts

• Define a unique pay group

• Create a bank account for your EDI payments

• Create a payment document with the Payment format of EDI Outbound

Oracle EDI Gateway Prerequisites

Oracle EDI Gateway prerequisites for processing EDI Payments are as follows:

• Define the trading partners

• Enable the Outbound Payment Transaction order for the bank branch

• Define any code conversions for transactions

• Create a record in the EDI Gateway for each supplier that you want to send EDI payments.

• Link this record to the supplier record in Oracle Payables.



Creating an EDI Outbound Format Payment Document Oracle Payables N → Setup → Payments → Banks B → Bank Accounts B → Payables Documents Payment Documents

Payment Documents

How to Create a Payment Document with the Payment Format of EDI Outbound

A seeded payment format of EDI Outbound is provided to support the outbound payment transaction. Define a payment document that uses the EDI Outbound Program payment format, and assign this payment document to the bank account from which you will disburse payment.

1. In the Bank Accounts window, query a disbursement bank account for EDI payments.



Creating an EDI Outbound Format Payment Document

2. Click Payables Documents to navigate to the Payment Documents window.

3. Enter a name for the payment document that is unique for the bank account.

4. Select Computer Generated as the disbursement type.

5. Select the EDI Outbound Program as the payment format.

6. In the Document Number fields, enter the first and the last payment document numbers.

7. Save your work.



Creating EDI Payments Oracle Payables N → Payments → Entry → Payment Batches Payment Batches

Payment Batches

How to Create EDI Payments

1. Initiate a payment batch using a payment document associated with the EDI Outbound Program payment format.

2. Format the payment batch. During formatting, Oracle EDI Gateway automatically formats the payment batch and creates a flat file in your EDI Gateway output directory.

Oracle EDI Gateway sends the file to your EDI translator, then to your bank.

3. Verify that your bank has received the file.

4. Confirm the payment batch.



Processing Flexible Payments Overview

The prerequisites for making electronic payments to different supplier bank accounts are as follows:

• Create supplier records

• Define supplier bank accounts

• Verify supplier bank account assignments

For a single invoice, you can make electronic payments to different bank accounts. You specify which supplier bank account will receive payment for a scheduled payment. At the supplier site level you can set a default primary bank account for a supplier site to use. This value defaults to the scheduled payment. You can change this default any time before payment.



Processing Flexible Payments: Suppliers Oracle Payables N → Suppliers → Entry B → Sites Supplier Sites

Supplier Sites

How to Set Up Suppliers

Define the suppliers and supplier sites that use the bank account to receive electronic payments.

1. Enter the data about the supplier in the Suppliers and Supplier Sites windows.

2. In the Payment region, choose Electronic Payments as the payment method.



Setting Up Supplier Bank Accounts Oracle Payables N → Setup → Payments → Banks B → Bank Accounts, T → Supplier Assignments Bank Accounts

Bank Accounts

How to Define Supplier Bank Accounts

In the Bank Accounts window, enter information about the bank accounts for which your supplier is the account holder and assign these accounts to the supplier or its sites.

1. In the Banks window query an existing Bank or create a bank record.

2. Choose Bank Account. Oracle Payables displays the Bank Accounts window.

3. Enter the bank account name, number, and currency.



Setting Up Supplier Bank Accounts

4. In the Account Use field, choose Supplier.

5. Check the Allow Assignment to Multiple Suppliers check box to allow related suppliers to use the same bank information.

6. In the Supplier Assignments region, enter the supplier, and, optionally, the supplier site that use the bank account to receive electronic payments.

7. Select the Primary check box, if the bank account is the primary bank account for the supplier. For each supplier and supplier site that has bank account assignments, you must designate one bank account as the primary bank account per currency.

8. Repeat the above process to define additional bank accounts for your supplier.



Verifying Supplier Bank Assignments Oracle Payables N → Suppliers → Entry B → Sites, T → Bank Accounts Supplier Sites

Supplier Sites

How to Verify Supplier Bank Assignments

1. In the Bank Accounts region of the Suppliers or Supplier Sites window, verify that all appropriate bank accounts are listed.

2. For suppliers and supplier sites with multiple bank accounts, verify that one bank account is designated as the primary bank account.



Processing Flexible Payments Oracle Payables N → Invoices → Entry → Invoices B → Scheduled Payments Scheduled Payments

Scheduled Payments

How to Schedule Payments

1. In the Invoices window, select the invoice that you want to pay. The invoice must be approved, uncancelled, and without any holds.

2. Click Schedule Payments. Oracle Payables displays the Schedule Payments window.

3. In the Remit To Bank region, Oracle Payables displays the invoice amount and the primary bank account for the supplier or supplier site.



Processing Flexible Payments

4. In the Gross Amount field, overwrite the amount of payment to the primary bank account.

5. Click Split Schedule.

6. In the next row, enter the payment amount to another bank account and select the appropriate bank count.

7. Save your work.



Summary

In this lesson you should have learned the following:

• Initiate new payment batches

• Create and find payment batch templates

• Modify payment batches

• Format payment batches

• Confirm payment batches

• Find payment information

• Process EDI payments

• Make electronic payments to different supplier bank accounts (Flexible Payments)


Entering Prepayments Chapter 20 - Page 1

Entering Prepayments Chapter 20



Entering Prepayments

Section Objectives


• Identify when to use prepayments

• Enter prepayments

• Enter prepayment distributions

• Apply and unapply a prepayment to an invoice

• Approve and pay a prepayment

• Apply advances against expense reports



Prepayments Overview

Enter prepaymentStatus = Unapproved

Approve prepaymentStatus = Unpaid

Pay prepaymentStatus = Available

Select invoice andapplyone or more

prepayments

Select prepaymentand apply to oneor more invoices

A prepayment is a type of invoice you enter to pay an advance payment for expenses to a supplier or employee. For example, you may need to pay a deposit on a lease, or you may need to pay an employee an advance for travel expenses.

You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.

You can enter either a temporary or a permanent prepayment type.

• Temporary prepayments can be applied to invoices or expense reports.

• 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.

To apply a temporary prepayment to one or more invoices, you must first approve and pay the prepayment. You control when a prepayment is available by the settlement date you enter and by, optionally, applying a hold to the prepayment.



Prepayments Overview

When you enter an invoice for a supplier that has outstanding temporary prepayments, Oracle Payables notifies you that there are prepayments available that can, optionally, be applied. Use the Prepayment Status Report to check the status of all prepayments in the system.

If necessary, change the type of the prepayment from permanent to temporary.

Withholding tax functionality can also be used with prepayments to more easily comply with tax rules. Other enhancements include allowing multiple taxes on a prepayment and having a choice of the payment terms used for a prepayment.

Oracle Payables has expanded the flexibility of generating charge accounts on prepayment invoices matched to purchase orders. Now the system can build accounts on the prepayment invoice by using the natural account segment from the prepayment account on the supplier site and all other account segments from each corresponding PO distribution. Or, you can continue to charge the prepayment invoice distributions to the prepayment account of the supplier site.



Entering Prepayments Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Prepayments

With the exception of choosing prepayment as the Invoice type and selecting either temporary or permanent as the prepayment type, entry of a prepayment is identical to the process for entering invoices.

1. Navigate to the Invoice window. Select Prepayment in the Type field.

2. Enter all other Invoice Header information for a standard invoice.

3. Tab to the Prepayment Type field and select either temporary or permanent.

Oracle Payables calculates a default settlement date for employee advances by adding the Settlement Days Payables option to the system date.

4. Optionally, associate the prepayment to a purchase order to restrict the prepayment of an application to invoices matched to the associated purchase order.



Entering Prepayments

The Invoice Payables option - Build Prepayment Accounts When Matching – must be enabled to match a prepayment to a purchase order or receipt, Payables builds the account on each prepayment Item distribution using:

• the natural (charge) account segment from the supplier site's prepayment account, and

• all other account segments from the corresponding purchase order or receipt distribution.

Payables validates the built account, and if the resulting GL account is not valid and active, then Payables instead defaults the supplier site's prepayment account. Therefore, if you use this option, you might have some Item distributions that use a built account and some that use the supplier site's prepayment account, even on the same invoice.

If you do not enable this option then Payables always defaults the supplier site's prepayment account to prepayment Item distributions.



Entering Prepayment Distributions Oracle Payables N → Invoices → Entry → Invoices B → Distribution Distributions

Distributions

How to Enter Prepayment Distributions

1. Automatically create a prepayment distribution by using the default prepayment account from the supplier site.

2. Optionally, enter other distribution details, including a description and 1099 information.

3. Automatically create, as an option, one tax distribution using the tax name entered for the prepayment.

4. Review or modify the scheduled payments, and review or apply holds by choosing the appropriate button.



Applying Prepayments to Invoices Oracle Payables N → Invoices → Entry → Invoices B → Actions Invoice Actions

Invoice Actions

How to Apply Prepayments to Invoices

To apply a prepayment to an invoice, the prepayment type should be Temporary, paid, approved, not canceled, and not already fully applied. Also the invoice to which the prepayment is to be applied should be should be approved, without active holds, and with an amount remaining for payment.

1. In the Invoices window, query either the prepayment or the invoice to which to the prepayment should be applied.



Applying Prepayments to Invoices

2. Click Actions, and select Apply/Unapply Prepayments.

If you initially queried an invoice, Payables displays all available prepayments that you can apply to the invoice. Select each prepayment you want to apply. Enter the amount to apply to the invoice.

If you initially queried a prepayment, Payables displays all approved and not fully-paid invoices to which you can apply the prepayment. Select each invoice that you want to apply the prepayment. Enter the amount to apply to each invoice.

3. Click the Apply/Unapply button to apply the prepayment amount to the invoice.



Apply/Unapply Prepayments from Invoices Oracle Payables N → Invoices → Entry → Invoices → Actions Invoice Actions

Invoice Actions

How to Unapply Prepayments from Invoices

If a prepayment is applied to an invoice in error, it can be unapplied.. Oracle Payables automatically creates a reversal distribution and a new scheduled payment for the prepayment in the amount that you unapply. It also increases the amount available for the prepayment by the unapplied amount and updates the status of the invoice to Unpaid or Partially Paid.



Unapplying Prepayments from Invoices Oracle Payables N → Invoices → Entry → Invoices → Actions B → OK Apply/Unapply Prepayments

Apply/Unapply Prepayments

How to Unapply Prepayments from Invoices (continued)

1. In the Invoices window, query either the prepayment or the invoice to which it is matched.

2. Click Actions, and select Apply/Unapply Prepayments.



Unapplying Prepayments from Invoices

If you initially queried an invoice, Oracle Payables displays in the Existing Applications region of the Apply Prepayments window all existing prepayments that have been applied to it. Select each prepayment you want to unapply. You cannot modify the amount, because you must unapply the complete amount that you previously applied.

If you initially queried a prepayment, Oracle Payables displays in the Existing Applications region of the Apply Prepayments window all invoices that have had the prepayment applied. Select each invoice from which you want to unapply the prepayment. You cannot modify the Amount, because you must unapply the complete amount that you previously applied.

3. Click the Apply/Unapply button to unapply the prepayment amount to the invoice and save your work.



Approving and Paying Prepayments

Enter prepaymentStatus = Unapproved

Approve prepaymentStatus = Unpaid

Pay prepaymentStatus = Available

Select invoice andapply one or more

prepayments

Select prepaymentand apply to oneor more invoices

Overview

• You must fully pay a prepayment before you can apply it to an invoice.

• Pay a prepayment just as you would any other invoice. You cannot partially pay a prepayment.

• Apply a prepayment on or after the settlement date.

• Approve online in the Actions window, or submit approval in a batch from the Submit Requests window.

• Submit AutoApproval for the prepayment.

• Apply a prepayment to an invoice by clicking Actions and selecting Prepayments.



Applying Advances to Expense Reports Oracle Payables N → Invoices → Entry → Expense Reports Expense Report

Expense Report

How to Apply Advances to Expense Reports

1. Pay an employee advance and later apply the advance against an expense report to reduce the amount you pay for an expense report.

2. Check that the Apply Advances Payables option is enabled and that the advance has a settlement date on or before the system date, is fully paid, has the same currency as the report, and has not been fully applied.

Oracle Payables notifies you if the employee has outstanding advances.



Applying Advances to Expense Reports

3. Apply an advance at any time before submitting Invoice Import for an expense report.

4. To apply a single advance, enter the invoice number of the advance. If you do not want to apply the full available advance to this expense report, reduce the amount.

5. To apply multiple advances, leave the Number field empty. Oracle Payables applies all outstanding advances in chronological order, starting with the oldest advance first, up to the amount of the expense report, unless you specify a maximum amount in the Amount field.

6. To apply multiple advances, starting with a specific advance, enter the number of the advance in the Number field, then override the advance’s amount to a greater number. Oracle Payables will first apply the specified advance, then apply remaining advances (oldest first) up to the amount you specify.



Identify and Review Available Prepayments

• Use the Prepayment Status Report to review details for outstanding prepayments.

• Include invoices to compare outstanding prepayments to outstanding invoices for a supplier.

• Submit the report for prepayments only to obtain a listing and a balance for all outstanding prepayments.

• Submit the report for a supplier type, a single supplier, and a date range.



Controlling Availability of Prepayments

• Enter a settlement date in the future.

• Place a hold on a prepayment to prevent payment.

• Place a hold on a prepayment payment schedule.



Canceling Prepayments

• Cancel a prepayment, as you do any invoice, in the Actions window of the Invoice Workbench.

• If a prepayment has been paid, the payment document that paid the prepayment must be voided before the prepayment can be canceled.

• You cannot void a payment document that paid a prepayment unless the prepayment is fully unapplied.

• Review cancellation information in the Invoices Summary window.



Lab 1: Processing and Generating a Prepayment

Instructions

You are required to pay $2,500, in advance, for a banquet your company is planning. Your supplier has sent the following invoice for the deposit. Enter a prepayment for the deposit required.

INVOICE

Invoice # PP-11000

Date: Today

PO#: N/A

Terms: Immediate


Site: Site 2

Description: Deposit for Sales/Customer Banquet

Total Due: $2,500



Lab 1 Solutions: Processing and Generating a Prepayment



2. In the Type field, select Prepayment.





7. In the Amount field, enter the total due of the invoice.


9. In the Prepayment Type filed, since this prepayment will be applied to an invoice, accept the default type of Temporary.

10. In the Settlement Date field, since the invoice for the balance of the banquet could be received at any time, accept the default date of today’s date.





12. Save your work.

13. Choose Distributions.

14. Note how the distribution line is automatically generated to the Prepayment account.

15. Close the Distributions window and return to the Invoices window, choose Actions.

16. Select Approve check box.

17. Choose OK.

18. Note that the status of your invoice is Unpaid.

19. Choose Actions again.

20. Select Pay in Full check box.




21. Choose OK.

Oracle Payables displays the Payments window.

22. Accept the default for payment type Quick.

23. In the Bank Account field, enter your bank account name.

Oracle Payables displays the Document Name and Document Number.


25. Choose Actions.

26. In the Payment Actions window, select the Format and Print Now check boxes.

27. Choose OK.

28. Oracle Payables displays a concurrent ID number. Monitor your concurrent request until it is successfully completed by choosing View My Requests from the Help menu.

29. Once your concurrent request is completed normally, view the check by choosing Reports.



Lab 2: Entering an Invoice and Applying a Prepayment

Instructions

Your have received the final invoice for the banquet that you had planned. Enter the invoice and apply the prepayment from a previous lab to the invoice.

INVOICE

Invoice # PP-12000

Date: Today

PO#: N/A

Terms: Immediate


Site: Site 2

Description: Banquet for Sales Promotion


Charge the invoice to: 01-402-7695-0000-000



Lab 2 Solutions: Entering an Invoice and Applying a Prepayment





4. Oracle Payables reminds you that there is a prepayment available for your supplier. Choose OK.









10. Save your work.

11. To enter the distribution for this invoice, choose Distributions.

12. Accept the Items default.

13. In the Amount field, enter 6,001.59.

14. As no taxes were charged on this invoice, leave the Tax Name field blank.

15. Accept the GL Date default.


17. Verify that the Distribution Total is equal to the Invoice Amount.






20. Validate the invoice online from the Invoices window. Choose Actions.

21. In the Invoice Actions window, select the Validate check box.

22. Choose OK.

23. To apply the prepayment to the invoice, from the Invoices window choose Actions again.

24. In the Invoice Actions window, select Apply/Unapply check box.

25. Choose OK.

Oracle Payables displays the Apply/Unapply window.




26. On the left side of the window, select the appropriate check box.

27. In the Amount to Apply field, enter 2,500.


29. Choose Apply/Unapply.

30. Close the Apply/Unapply window.

31. Note that in the Invoices window the Amount Paid is updated.

32. Choose the Payment Schedule tab to view the payment schedule. Verify it looks similar to the above screen shot.



Summary


• Identify when to use prepayments

• Enter prepayments

• Enter prepayment distributions

• Apply and unapply a prepayment to an invoice

• Approve and pay a prepayment

• Apply advances against expense reports


Recording Stop and Void Payments Chapter 21 - Page 1

Recording Stop and Void Payments Chapter 21



Recording Stop and Void Payments

Section Objectives


• Place stop payments

• Release stop payments

• Void payments

• Void unused payment documents



Stop and Void Payments: Overview

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 Report. You can query all Stop Initiated payments by selecting that status in the Find Payments window.

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 until it has been formatted.

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. Payables 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.



Recording Stop Payments Oracle Payables N → Payments → Entry → Payments B → Actions Payment Actions

Payment Actions

How to Record Stop Payments

1. Find the payment online. In the Payments window, select the payment, and click Actions.

2. In the Payment Actions window, select Initiate Stop.

3. Click OK to have Oracle Payables update the payment status to Stop Initiated.

4. Save your work.

5. Use the Stop Payments Report to review all current stop payments. Oracle Payables does not list any stop payments that were initiated but then released or voided at a later



time. Oracle Payables sorts the report by bank, bank account, payment document, and document number.



Releasing Stop Payments Oracle Payables N → Payments → Entry → Payments B → Actions Payment Actions

Payment Actions

How to Release Stop Payments

1. Find the payment online. In the Payments window, select the payment and click Actions.

2. In the Payment Actions window, select the Initiate/Release Stop checkbox.

3. Click OK to have Oracle Payables release the stop on the payment and reset the status to Negotiable.

4. Save your work.



Voiding Payments Oracle Payables N → Payments → Entry → Payments B → Actions Payment Actions

Payment Actions

How to Void Payments

When you void a payment, Oracle Payables automatically reverses the following:

• The accounting and payment records. Your general ledger will then have the correct information, and the status of the paid invoices is then reset to Unpaid.

• Any realized gains or losses on foreign currency invoices recorded as paid by the payment

• All related interest invoices when you void a past-due payment for the supplier site (if you enable the Allow Interest Invoices option for a supplier site)



Voiding Payments

A Voided payment cannot be reversed.. Therefore, prior to voiding a payment have the un-cashed payment document in your possession, or have proof that the payment did not clear the bank and that the bank was able to stop payment

Always review the invoices paid by that payment before voiding it to make sure that the correct payment document is voided. Review these invoices in the Invoice Workbench.

1. Navigate to the Payments window and use the Find function to locate the correct payment. Click the Actions button to open the Payment Actions Window.

2. Select the Void checkbox. Review and, optionally, change the void date and the GL date you want Oracle Payables to use for the accounting distributions.

• Select None for the Invoice Action to change to Unpaid the status of the related invoices. The invoices will be available for payment on a new payment document. Click OK to have Oracle Payables void the payment document.

• Select Hold for the invoice action, and select a Hold Name in the Hold window to apply a hold to the related invoices. Click Hold, then click OK to have Oracle Payables void the payment document, reset the status of the related invoices to Unpaid, and apply the hold you selected to the related invoices.

• Select Cancel for the invoice action to cancel all related invoices and reset their amounts to zero. Click OK to have Oracle Payables void the payment document and cancel the related invoices.

3. Save your work.



Voiding Unused Payment Documents Oracle Payables N → Setup → Payment → Banks B → Bank Accounts B → Payables Documents Payment Documents

Payment Documents: Additional Information Region

How to Void Unused Payment Documents

You can do a mass void of unused check stock in the Document Information region of the Payment Documents window.

Oracle Payables prevents you from voiding negotiable payments using this window.

1. To query the bank, choose Bank Accounts, and query the bank account in the Bank Accounts window.

2. Click Payment Documents to navigate to the Payment Documents window.

3. In the Additional Information region, choose Void Unused Documents.

4. Enter the range of documents you want to void, and enter a void date. These documents will no longer be available for use.

5. Save your work.



Lab 1: Issuing a Stop Payment

Instructions

Your supplier has notified you that they have not received payment for invoice number 3000. You have determined this invoice was paid and the check was mailed. You have contacted the bank and asked them to place a stop payment on the check. Record this information in the system.



Lab 1 Solutions: Issuing a Stop Payment


N → Payments → Entry → Payment

2. Open the Find Payment window

M → View → Find

3. Enter the search criteria for the payment in appropriate fields.


5. Choose Find.

6. Oracle Payables displays the search result in the Payments window. Verify that the information is related to your supplier and the payment.

7. Choose Actions.

8. In the Payment Actions window, select the Initiate Stop check box.



Lab 1 Solutions: Issuing a Stop Payment


10. Choose OK.



Lab 2: Voiding a Payment

Instructions

Your bank has confirmed that the check related to invoice number 3000 has not cleared and the stop payment has been issued. Void the check in the system.



Lab 2 Solutions: Voiding a Payment


N → Payments → Entry → Payment

2. Open the Find Payment window

M → View → Find

3. Enter the search criteria for the payment in appropriate fields.


5. Choose Find.

6. Oracle Payables displays the search result in the Payments window. Verify that the information is related to your supplier and the payment.

7. Choose Actions.



Lab 2 Solutions: Voiding a Payment

8. In the Payment Actions window, select the Void check box.

9. In the Invoice Action field, since you plan to generate another check, select the No Action option.


11. Choose OK.



Summary


• Place stop payments

• Release stop payments

• Void payments

• Void unused payment documents


Setting Up Cash-Control Features Chapter 22 - Page 1

Setting Up Cash-Control Features Chapter 22



Setting Up Cash-Control Features

Section Objectives


• Discuss the basic concepts of setting up cash-control features within Oracle Payables.



Oracle Payables Cash Control Features

Business Needs Features

Prioritize and categorize payments Pay Group Payment Priority AutoSelect

Reduce cash outlays Discount Credit and debit invoices

Forecast cash needs Cash Requirements Report

Require special handling for an invoice payment

Pay Alone

The table above indicates the cash control Business Needs and the Feature that relates to that control.



Defining Pay Groups Oracle Purchasing N → Setup → Lookups→ Payables Oracle Purchasing Lookups

Lookups

How to Define Pay Groups

Pay Groups are defined in the Oracle Purchasing Lookup windows.

1. Navigate to the Purchasing Lookup window and enter Pay Group in the Type field.

2. Enter the name of the lookup that you are defining in the User Name field.

3. Select Purchasing as the application the lookup applies to in the Application field.

4. Enter a description for the lookup type.

5. Select the Access Level to which this lookup applies.

6. Enter a code name in the Code field.

• Define a pay group name that is descriptive; for example, Utilities or Employees.

• Define a default pay group for all suppliers, for an individual supplier, or for a supplier site.



Defining Pay Groups

7. Enter a Meaning for the code name.

8. Enter a description for the pay group. The name and description will appear on a list of values when you need to enter the name.

9. To inactivate this name on and after a certain date, enter an inactive date.

10. Save your work.



Defining Payment Priorities Oracle Payables N → Supplier → Entry B → Open Suppliers

Suppliers

How to Define Payment Priorities

Define and use default payment priorities to prioritize payments.

• In the Payment Priority field, assign a default payment priority, numbered from 1 (high) to 99 (low).

• Oracle Payables assigns a supplier site’s default payment priority to all of the invoices for the supplier site, and the invoice assigns its default payment priority to all of its payment schedule lines.



Entering Payment Terms Oracle Payables N → Setup → Invoice → Payment Terms Payment Terms

Payment Terms

How to Define Payment Terms

Define discount payment terms to take discounts.

• Assign default payment terms to all suppliers, to individual suppliers, or to supplier sites.

• Assign a payment term name that helps identify the term.

• Assign up to three discounts for each payment line.



Entering Payment Terms

To define payment terms:

1. In the Payment Terms window, enter a unique payment term name and a description.

• If you are entering Day of Month terms, enter a cutoff day (the day of the month after which the due and discount dates of the scheduled payment will be in a future month).

• If you enable Automatic Interest, enter a unique value in the Rank field.

• To invalidate this payment term after a certain date, enter that date in the Effective Dates To field.

2. Enter information in each payment term line.

• Enter percent due or amount to determine the portion of an invoice due on the scheduled payment date.

• In the Due region, enter one of the following to determine the due date on the scheduled payment line:

Fixed date

Days

Day of month, and months ahead.

3. If you are using discount terms, define payment term lines in the First Discount, and (optionally) Second Discount, and Third Discount regions. Define your 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.

4. The special calendar functionality in Payables extends payment terms. Specify due dates for each period in a special calendar and associate it with any payment terms line. You can associate a different special calendar with each payment terms line.

5. Save your work.



Lab 1: Defining Payment Terms

Instructions

Your supplier has just notified you that they are going to offer 5% discount if you pay their invoices in 45 days. The entire invoice amount will be due in 60 days. Set up the payment terms in the system.



Lab 1 Solutions: Defining Payment Terms

1. Navigate to the Define Payment Terms window.

N → Setup → Invoice → Payment Terms

2. In the Name filed, enter a unique name for your payment terms (preface it with your initials).

3. In the Description filed, enter a description for your payment terms (for example 5/45, Net 60).

4. In the % Due field, enter 100.

5. In the Days field, enter 60.


7. Select the First Discount tabbed region.



Lab 1 Solutions: Defining Payment Terms

8. In the % Discount field, enter 5.

9. In the Days field, enter 45.


11. Save your work.



Defining Pay Date Basis Oracle Payables N → Setup → Options → Payables (Supplier Region) Payables Options

Payable Options

How to Define Pay Date Basis

• The information in the Pay Date Basis field defaults to each new supplier you enter. The Pay Date Basis for a supplier defaults to the new supplier sites you enter for the supplier. You can override the default for each supplier and supplier site.

• Define the Pay Date Basis to determine whether invoices of a supplier are paid on the discount date or the due date. − Discount: Oracle Payables selects invoices for payment based on the scheduled

payment discount date, if any. − Due: Oracle Payables selects invoices for payment based on the scheduled

payment due date, regardless of any available discounts. − Define the Pay Date Basis as discount to take discounts when a supplier offers

them.

• Define the Pay Date Basis as discount to take discounts when a supplier offers them.



Taking Invoice Discounts Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers

How to Take Invoice Discounts

• Enable the Always Take Discount option for all suppliers, for an individual supplier, or for a supplier site. If this option is enabled, Oracle Payables will always take invoice discounts, regardless of when invoice payments are made.

• Select Discount as the Pay Date Basis for the Supplier or the supplier Site.



Available Discount Reports

Discount Reports

Oracle Payables Discount Reports

Name Description

Discounts Available Report

Review invoice discount details for a supplier or group of suppliers (you can define a minimum discount amount and a minimum invoice amount as report parameters)

Discounts Taken and Lost Report

Review discounts taken and lost for a supplier or a group of suppliers for a specified period of time Review this report to determine whether to modify system and supplier defaults to ensure that discounts are taken



Applying Credit and Debit Invoices

• Enter credit and debit invoices with immediate payment terms

• Match credit and debit invoices to specific invoice distributions and specific purchase order distributions, or prorate credit and debit invoices across all purchase order distributions

• Oracle Payables automatically applies credit and debit invoices against regular invoices to reduce or eliminate the total payment due for a supplier site

• Allow zero amount payments in a payment batch to pay credit and debit invoices and regular invoices where no amount is due or an outstanding credit remains for a supplier site



Cash Requirements Report

Forecast cash needs for invoice payments by submitting a Cash Requirements Report

• Determine cash requirements for unpaid and partially paid invoices due to pay through a specified date.

• Choose to include invoices on hold.

• Submit the report for one Pay Group or all Pay Groups and a range of payment priorities.

• Review the total amount due for a supplier in summary or detail. The detail report displays invoice information.



Assigning Pay Alone Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers

How to Assign Pay Alone

Use Pay Alone for greater control over specific invoices.

• Select the Pay Alone option as a default for all suppliers, a single supplier, or a supplier site.

• Use Pay Alone to pay an invoice on its own payment document.

• Override the Pay Alone default at the invoice level.



Lab 2: Entering an Invoice and Applying Payment Terms

Instructions

You have received the following invoice from your supplier. It is your company policy to take advantage of all discounts offered by suppliers. Enter the invoice in Oracle Payables, use the distribution set that you defined in a previous lab, and apply the payment terms that you defined in a later lab.

INVOICE

Invoice # 10000

Date: Today

PO#: N/A

Terms: Discount 5% in 45 Days, Due 60 Days

Supplier Name: Your Supplier fom a previous lab

Description: Utility Charges

Total Due: $15,000.00



Lab 2 Solutions: Entering an Invoice and Applying Payment Terms









8. In the Distribution Set field, enter the distribution set name you defined in a previous lab.

9. In the Terms field, enter the payment terms you defined in a previous lab.




Lab 2 Solutions: Entering an Invoice and Applying Payment Terms

11. Save your work.

12. Choose Scheduled Payment.

13. Review the schedule payment information. Note that if you pay the invoice within the specified number of days, the discount on this invoice is calculated.


15. Save your work.



Summary

In this lesson you should have learned how to do the following

• Define pay group

• Assign payment priorities

• Define payment terms

• Assign a pay date basis

• Take invoice discounts

• Apply credit and debit invoices

• Assign Pay Alone


Defining Payments Setup Chapter 23 - Page 1

Defining Payments Setup Chapter 23



Defining Payments Setup

Section Objectives


• Discuss the basic concepts of defining payments setup within Oracle Payables.

NACHA Payment Format

Oracle Payables now provides the NACHA (National Automated Clearing House Association) payment format as one of the standard payment formats in the product.

E-mail Remittance Advice

A new E-mail Remittance Advice program can be used to send remittance advice information to suppliers who receive electronic payments. Once a supplier has been set up to receive this information, remittance e-mails are automatically generated during the payment process.



Setting Up Oracle Financials Payment Defaults Oracle Payables

N → Setup → Options → Financials

Financials Options

Financials Options: Supplier—Payables Region

How to Set Up Oracle Financial Payment Defaults

The options you define in the region, except for Receipt Acceptance Days, are used as default values for the Payment region of the Suppliers window. The supplier values default to new supplier sites for the supplier. The supplier site values default to new invoices for the supplier site.The default values can be overridden during entry of the supplier, supplier site, and invoice.

1. Payment Terms: Oracle Payables uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter.



Setting Up Oracle Financials Payment Defaults

2. Payment Method: Select of one following invoice payment methods that you use most frequently:

• Check: You can pay with a manual payment, a Quick payment, or in a payment batch.

• Electronic: You generate an electronic funds transfer file that you deliver to your bank to create payments.

• Wire: Wire transfer of funds between your bank and your supplier’s bank.

• Clearing: Record invoice payments to internal suppliers.

• Future-Dated: Create payments with a future date that instructs your bank when to disburse funds to your supplier’s bank (for example, a bill of exchange).

• Manual Future-Dated: Disburse funds to a supplier who sends you an invoice with a payment notice attached.

3. Receipt Acceptance Days: If you create interest invoices for late payments, enter the number of days in your receipt acceptance period. If you select the Recalculate Scheduled Payment Payables option, approval recalculates your invoice due date based on this value.

4. Always Take Discount: Select this option to have Oracle Payables always take an available discount for a supplier, regardless of when you pay the invoice.

5. Pay Alone: If an invoice has the Pay Alone option selected, Oracle Payables creates a separate payment for that invoice. If the Pay Alone option is not selected for an invoice, the invoice will be paid with other invoices for the same supplier site on a single payment.



Setting Up Payment Defaults Oracle Payables

N → Setup → Options → Payables

Payables Options

Payables Options: Payment Region

1. Bank Account: Enter the bank account that Oracle Payables provides as a default in the Payment Batches Summary window, Payment Summary window, or Detail window.

2. Payment Batch Limit: Enter the default maximum outlay amount Oracle Payables will pay for each payment batch. If a payment batch exceeds the maximum outlay, Oracle Payables enables you to proceed with the payment batch by allowing you to force the payment in the Modify Payments window.

3. EFT User Number: Enter the number that identifies you as a user of electronic funds transfer services to your bank or clearing organization. Oracle Payables includes this information in some electronic payment formats.



Setting Up Payment Defaults

4. Discount Distribution Method: Select the method you want Oracle Payables to use for distributing the discounts you take when making payments. If you leave this field blank, Oracle Payables uses the System Account method for distributing your discounts.

• Prorate Expense: Oracle Payables automatically prorates any discounts across all the invoice distributions. You cannot select Prorate Expense if the Exclude Tax For Discount Payables option is selected in the Invoice Tax region of this window.

• Prorate Tax: Oracle Payables automatically prorates a percentage of the discount amount across the tax distributions. The remaining discount amount is charged to the Discount Taken account as specified in Financials Options window.

5. Additional Pay Through Days: Enter the number of days between your regular payment batches. Oracle Payables uses the additional pay through days to determine the default Pay Through Date when you initiate a payment batch. For example, if you define 5 as the value in this field, Oracle Payables adds five days to the system date to calculate the default pay through date when you initiate a payment batch.

6. Allow Document Category Override: Select this option if you want to allow users to override the default document category assigned to a payment document by Oracle Payables. If your sequential numbering profile option is Partially Used or Always Used, Oracle Payables automatically assigns a document category to a payment document when you define a payment format for the payment document. Oracle Payables predefines a document category for each payment method. Your system administrator can define additional document categories for a payment method. You can then use these additional document categories to override the default document category for a payment document if you select this Payables option.

7. Allow Print: If you select this option, you can create quick payments. If you are going to print quick payments, you may want to have a fast, dedicated concurrent manager queue and a dedicated printer with checks ready to print.



Setting Up Payment Defaults

8. Allow Pre-Date: If you select this option, Oracle Payables enables you to create payments with a payment date before the system date for any payment except a manual payment.

9. Allow Void and Reissue: You may need to reissue a check if it is spoiled during printing. If you select this option, you can reissue a quick payment. When you reissue a check, Oracle Payables voids the old check and creates a replacement check. The checks are identical except that the new check has a new check number, payment date, and payment exchange rate if you are using multiple currencies.

10. Allow Address Change: Select this option if you want to allow users to address a payment to an address other than the invoice's supplier site address.

11. Allow Remit-To Account Override. Select this option if you want to allow users to change the default primary supplier site bank account during quick payment and payment batch creation.

12. Use Bank Charges: Select this option if you want to use the Bank Charge feature.



Setting Up Supplier Defaults Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Supplier Region

Setting Up Supplier Defaults

Use the Supplier region of Payables Options window to enter defaults for the Suppliers window. These values then default to the Supplier Site, and then to the invoice. You can override these defaults at any time.

1. Pay Date Basis: Select the type of date you want the system to use to decide when to pay an invoice.

• Discount: Oracle Payables selects invoices for payment based on the scheduled payment discount date.

• Due: Oracle Payables selects invoices for payment based on the scheduled payment due date, regardless of any available discounts.



Setting Up Supplier Defaults

2. Terms Date Basis: Select the type of date that Oracle Payables uses as the payment terms start date when it calculates the due and discount date for invoice scheduled payments. You can select System, Goods Received, Invoice, or Invoice Received.

3. PayGroup: Select the Pay Group you want to default to any new suppliers you enter. You can use a Pay Group to select only certain types of invoices to pay or query.

4. Invoice Currency: Select the currency that you use as a default for each new supplier you enter.

5. Combined Filing Program: Select this option if you are using 1099 Combined Filing Program reporting. When you submit the 1099 tape, Oracle Payables will produce K records for all tax regions participating in the Combined Filing Program that have qualifying payments. If you use magnetic media to file your tax information with the Internal Revenue Service and you are not participating in the Combined Filing Program, do not select this option. The Internal Revenue Service may return your 1099 magnetic tape if the tape contains K records.

6. Use Pay Site’s Tax Region: You can select this option only if you select the Combined Filing Program Payables option. Select this option if you want to use a 1099 supplier's tax region as the default tax region. If you select this option, Oracle Payables uses the 1099 supplier site’s region as the default tax region for the invoice distributions. Do not select this option if you do not want to use a supplier site’s tax region as the default tax region. You must then enter the default tax region you want to use for all invoices in the next field, the Income Tax Region field.



Defining Banks Oracle Payables N → Setup → Payment → Banks Banks

Banks

Overview

Use the Banks window to enter bank information for bank branches with which you do business. Oracle Financial Applications, including Oracle Receivables and Oracle Payables, share bank definitions, although not every application uses all available bank information. Each bank branch can have multiple accounts, and each account you define can be associated with Payables payment documents and Receivables payment methods.

For Oracle Payables, use the Banks window to define your internal bank accounts from which you disburse payments. For each internal bank account, you can define payment documents for checks, electronic payments (EFT and EDI), wire transfers, and other payment methods. You can also enter supplier bank information for your suppliers to which you send electronic payments.



Defining Banks

How to Enter Basic Bank Information

1. In the Banks window, enter all basic bank information: bank name, branch name, bank number, branch number, and address. Use a bank account name that indicates its usage, for example, “Main Disbursement—USD.”

2. Select Bank as the institution.

3. Optionally, enter the information related to electronic data interchange (EDI) and electronic funds transfer (EFT).

4. Optionally, enter names and information for your bank contacts in the Contact region.

5. Save your work.

6. Proceed with Defining Bank Accounts.



Defining Banks: Bank Accounts Oracle Payables N → Setup → Payment → Banks B → Bank Accounts Bank Accounts

Bank Accounts

How to Define Internal Bank Accounts

1. Enter the bank accounts name and bank accounts number.

2. Enter the IBAN (International Bank Account Number). The IBAN is an international standard that uniquely identifies the account number. The IBAN is validated upon entry.

3. Optionally, enter an account type and description. The currency defaults from your functional currency.

4. To use bank account validation, enter check digits.

5. Select internal account use.



Defining Banks: Bank Accounts

6. In the GL Accounts tabbed region, enter the GL account combinations for each of the functions. These accounts will allow you to also use the Cash Management module to reconcile your bank accounts. At a minimum, you must enter a Cash account.

7. Optionally, enter contact information in the Account Contact tabbed region.

8. Enter default information for your payment batches in the Payables Options tabbed region. Record whether you allow zero-amount payments and whether this is a pooled account.

9. Proceed with Defining and Maintaining Payables Documents.



Defining Banks: Payment Documents Oracle Payables N → Setup → Payment → Banks B → Bank Accounts B → Payment Documents Payment Documents

Payment Documents

How to Define Payment Documents for Internal Bank Accounts

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 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.

1. Enter a name for the payment document that is unique for the bank account.



Defining Banks: Payment Documents

2. Select the appropriate disbursement type.

• Computer Generated. A payment document that you use for payment batches or Quick payments.

• Recorded. A payment document that you use only for manual payments.

• Combined. A payment document that you use for both manual and computer generated payments.

3. Select the payment format you want Oracle Payables to use to format payments for a payment document.

If you enable the Use Multiple Currencies Payables option, select your functional currency as your bank currency, and define your bank account as multiple currency, you can select any of the payment formats you defined, whether they are multiple currency or not. If you do not define your bank account as multiple currency, you can only select formats that are defined in the same currency as your bank account.

Oracle Payables displays the payment method for the payment format you assigned to a payment document. You assign a payment format to a payment document in the Payment Document window.

4. Enter the date to make a payment document invalid for any disbursements in the Inactive Date field.




Additional Information Tabbed Region:

1. In the Last Used field, enter the last payment number you used to create a payment. If you are defining a new payment document, enter the number of the first document less 1. Oracle Payables automatically updates this number when you create payments.

2. In the Last Available field, enter the last payment document number available for a payment document.

3. In the Setup Checks field, enter the number of setup checks you want the system to print at the beginning of each automatic payment batch or quick payment.

4. In the Clearing Days field, enter the number of days it takes for the bank to clear future dated payment documents.

5. If you enable your Sequential Numbering System Profile option, Oracle Payables predefines a document category for each payment method for a payment document. Oracle Payables uses the document category to assign a unique voucher number to a payment, if your system administrator assigns an automatic sequential numbering sequence to the document category. You can only update the document category for a payment document if you enable the Allow Document Category Override Payables option.




GL Accounts Region:

1. Cash Clearing: If you enabled the Allow Reconciliation Accounting Payables option, enter the cash clearing account you are associating with a payment document. When you create a payment, Payables creates accounting entries for your unreconciled invoice payments to credit your cash clearing account using this account. When you reconcile your invoice payments using Oracle Cash Management, Oracle Payables creates accounting entries to debit this cash clearing account and credit this bank account’s cash account.

2. Bank Charges: If you enabled the Allow Reconciliation Accounting Payables option and you are using Oracle Cash Management to reconcile your payments, enter the bank charges account you are associating with a payment document. When you reconcile your invoice payments using Oracle Cash Management, Oracle Payables creates accounting entries to record your bank charges using this account.

3. Bank Errors: If you have enabled the Allow Reconciliation Accounting Payables option and you are using Oracle Cash Management to reconcile your payments, enter the bank errors account you are associating with a payment document. When you reconcile your invoice payments using Oracle Cash Management, Oracle Payables creates accounting entries to record any bank errors using this account.

The accounts you enter in this region override the accounts you entered in the GL Accounts region of the Bank Accounts window.



Entering Pay Group Information Oracle Payables N → Setup → Lookups → Payables Oracle Payables Lookups

Lookups

How to Define Pay Groups

If you are using Oracle Purchasing, the Pay Groups are defined using the Purchasing Lookup window. (Oracle Purchasing N>Setup>Purchasing>Lookups)

1. Select Pay Group in the Type field.

2. In the Name field, enter a name for the pay group that you are defining.

• Define a pay group name that is descriptive; for example, Utilities or Employees.

• Define a default pay group for all suppliers, for an individual supplier, or for a supplier site.

3. Enter a description for the pay group. The name and description will appear on a list of values when you need to enter the name.

4. To inactivate this name on and after a certain date, enter an inactive date.

5. Save your work.



Defining Payment Terms Oracle Payables

N → Setup → Invoices → Payment Terms

Payment Terms

Payment Terms

How to Define Payment Terms

In the Payment Terms window, you define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit approval for the invoice.

1. Enter a unique payment term name and a description which will appear on a list of values whenever you select payment terms.

2. If you are entering Day of Month terms, enter a cutoff day.

3. If you select the Recalculate Scheduled Payment Payable option and you match to a purchase order, enter a unique value in the Rank field.

4. To invalidate this payment term after a certain date, enter that date in the Effective Dates To field.



Defining Payment Terms

5. Enter information into one or more payment term lines starting with the Due tabbed region.

6. Enter the percentage or amount in the % Due or Amount field to determine the portion of an invoice due on the scheduled payment.

7. The special calendar functionality in Payables extends payment terms. Specify due dates for each period in a special calendar and associate it with any payment terms line. You can associate a different special calendar with each payment terms line.

• Calendar

8. Enter one of the following to determine the due date on the scheduled payment line:

• Fixed date

• Days

• Day of month, and months ahead



Defining Payment Terms

8. If you are using discount terms, define payment terms lines in the First Discount, Second Discount, and Third Discount regions. Define your 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:

• % Discount

• Amount

9. In the Discount region, enter the discount percent. Enter one of the following to determine the due date on the scheduled payment line:

• Due days

• Day of month, and months ahead



Setting Up Future-Dated Payments Oracle Payables N → Setup → Options → Payables Payables Options

Payable Options: Payment Accounting Region

How to Set Up Future-Dated Payments

You can use future-dated payments to control the timing of your payments and, therefore, control your cash flow. A future-dated payment instructs your bank to disburse funds to your supplier’s bank on a specific date (the maturity date).

Oracle Payables accounts for future-dated payments differently than for other methods of payment. For future-dated payments, Oracle Payables creates journal entries in two stages: the first to recognize the payment (reduction of liability), and the second to recognize the clearing of the payment (reduction in cash). You can also choose to account for the payment once either at payment issue or at clearing. Oracle Payables uses two kinds of future-dated payments:



Setting Up Future-Dated Payments

• Future-Dated: You generate and send to your supplier a payment that includes instructions to your bank to transfer funds to your supplier's bank on the maturity date you specify. A Bill of Exchange is an example of a future-dated payment document. When you create a payment batch, create a quick payment, or record a manual payment, you select a payment document that uses a future-dated payment format.

• Manual Future-Dated: This method is the same as the Future-Dated method except that your supplier includes with an invoice a payment notice with a maturity date specified by the supplier. You approve the payment notice and return it to the supplier. Because you do not generate a payment document, you use a manual payment with a manual future-dated payment document to record the payment.

1. In the Payables Options window, select the Allow Future Payment Method check box.

2. In the Automatic Payment Programs window, define payment programs to format future-dated payments.

3. In the Payment Formats window, define payment formats for your future-dated payments. Choose either the Future-Dated or Manual Future-Dated payment method. In the Programs region, you can select future-dated payment programs you defined in the Automatic Payment Programs window.

4. In the Payment Documents window, for the bank account from which you want to disburse future-dated payments, define payment documents that use future-dated payment formats you defined in the Payment Formats window. Enter the cash clearing/future dated payment account you want to use.



Setting Up Payables Options to Work with Cash Management Oracle Payables N → Setup → Options → Payables T → Accounting Method Payables Options

Payables Options: Accounting Method

The accounting method region is used to create accounting entries for your transactions in accordance with cash basis, accrual basis, or both (combined basis) accounting methods.

Choose a primary accounting method of:

• Accrual

• Cash



Setting Up Payables Options to Work with Cash Management

Choose a secondary accounting method of:

• Accrual

• Cash

If you want to use combined accounting, select one of the options above, otherwise choose:

• None

Payables Options: Automatic Offset Method

Enable Automatic Offsets by selecting Balancing or Account as your Offset Method if you want Payables to automatically create balancing accounting entries for your invoice and payment transactions.


Tax Types - Introduction Chapter 24 - Page 1

Tax Types - Introduction Chapter 24



Tax Types - Introduction

Section Objectives


• Discuss the basic concepts of tax types within Oracle Payables.



Tax Types

Tax Type Description

Sales Used to record sales tax charges on invoices and taxable invoice distributions

Use A tax you pay directly to a tax authority instead of to a supplier (suppliers do not include use taxes on invoices; and by assigning use taxes to invoices, you can create a record of the taxes you owe to tax authorities)

User Defined (VAT, GST)

In the Define Payables QuickCodes window, you can define as many tax types as you require

Offset A negative-rate tax you use to offset a positive tax to enable you to record and report on zero-rated taxes

Automatic Withholding

A feature you use to withhold taxes from expense reports and supplier invoices



Tax Enhancements

Partially Recoverable Tax

Oracle Payables expands its tax management by allowing you to automatically account for partially recoverable tax. In most cases of goods and services taxes, the business registered for tax purposes is required to collect the tax on the goods and services it provides, and may then reclaim credit for the tax it paid to produce those goods and services. In many cases, however, the tax paid is either not recoverable or is only partially recoverable.

Now Oracle Payables, along with Oracle Purchasing, gives you the ability to reclaim or recover taxes based on a variable recovery rate, lets you automatically recognize the extent to which you are liable for tax, and ensures you are recovering all allowable taxes. If required by your business, you also have the ability to encumber and accrue for the non-recoverable tax.

Enhanced Automatic Offset Accounting

Oracle Payables improves its support of automatic offset accounting by removing the restrictions from previous releases. You can now optionally perform accounting at payment clearing. You can use automatic withholding tax functionality along with automatic offset accounting. And you can make adjustments to paid invoices.


Setting Up Tax Requirements Chapter 25 - Page 1

Setting Up Tax Requirements Chapter 25



Setting Up Tax Requirements

Section Objectives


• Assign the source and hierarchy for tax defaulting

• Define tax codes

• Define withholding tax groups



Defining Tax Types



Use A tax you pay directly to a tax authority instead of to a supplier (suppliers do not include use taxes on invoices, and by assigning use taxes to invoices, you can create a record of the taxes you owe to tax authorities)


In the Define Payables QuickCodes window you can define as many tax types as you require

Offset A negative-rate tax you use to offset a positive tax to enables you to record and report on zero-rated taxes

Automatic Withholding




Selecting Tax Defaulting

You can select the default tax from following sources:

• Financial options

• Suppliers

• Supplier sites

• Invoice header

• Account

• PO for matched invoices

• Templates

Oracle Payables can default tax information from a variety of sources. You can customize the source hierarchy that Oracle Payables uses to default the Tax Code onto documents throughout the application.

You select the sources you want to use in the hierarchy and specify the priority sequence in the hierarchy. When you create a document, for example, an invoice, Oracle Payables searches the source hierarchy you have defined until a source value is found, at which point the search stops.



Entering Tax Defaults in the Payables Options Window Oracle Payables N → Setup → Options → Payables Payables Options – Tax Defaults and Rules

Payables Options: Tax Code Defaults Region

Setting Up a Tax Defaulting Hierarchy

Use the Tax Defaults and Rules tabbed region to set a hierarchy for Oracle Payables to use when it provides default Tax codes. Oracle Payables searches the sources you select, in the order you designate until it finds a Tax code. When it finds a Tax code, it stops the search and defaults the tax code to the document you are creating.

1. Select the Enforce Tax From Account check box to enforce the relationship between the tax code and the expense or asset account used for distributions.

3. Select the Enforce Tax from Purchase Order check box to verify that the tax code assigned to an invoice matches the tax code entered on the purchase order to which it is matched. The primary tax code defaults from the purchase order.

4. In the Tax Code Defaults region, select the checkbox for each source you want to use. For each source, enter a rank using a unique, consecutive number starting with number one.



Entering Tax Defaults in the Financials Options Window Oracle Payables

N → Setup → Options → Financials

Financials Options - Tax

Financial Options: Tax Region

Setting Up the Tax Default in the Financial Options Window

1. Otionally, set a default tax code that can be used by Oracle Payables and Oracle Purchasing in the Default Tax Code field. The tax code that you enter in the Financials Options window, defaults to all new suppliers at the time of supplier entry.

2. Enter the location (country name) of your company or organization in the Member State field. Oracle Payables uses this information to determine if your company or organization is located in a member state of the European Union (EU).

3. Enter the Value-Added Tax (VAT) registration number for your organization in the VAT Registration Number field,. Your organization is assigned a VAT registration number if you register to pay VAT. The first two characters of a VAT registration number are the country code for the country or state where your registered company or organization is located. Oracle Payables prints this number on the header of the Intra-EU VAT Audit Trail Report.



Entering Tax Defaults in the Financials Options Window

4. Optionally, mark the Enable Recovery Tax checkbox to enter a tax recovery default rate and Cash Encumbrance information.

5. Set the Calculation Rules for Rounding, Precision and the Min Accountable Unit.



Entering Tax Defaults in Suppliers Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Income Tax Region

Setting Up the Tax Default in the Suppliers Window

1. You can set an invoice tax code at the supplier level. The tax code defaults to all new supplier sites that you enter for the supplier.

2. You can rank this tax code in your default hierarchy.

Note: For a multi-org installation you cannot enter an invoice tax code in the Suppliers window.



Entering Tax Defaults in the Supplier Sites Window Oracle Payables N → Suppliers → Entry B → New Suppliers Sites

Supplier Sites: Income Tax Region

Setting Up the Tax Default in the Supplier Sites Window

The invoice tax name set on the Suppliers window defaults to the Supplier Sites window unless you have a multi-org installation, then it defaults from the Financials Options window.

You can enter a different invoice tax code for a supplier site and include it as part of your default hierarchy.



Entering Tax Defaults in the Invoice Window Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

Setting Up the Tax Default in the Invoices Window

The invoice tax code on the invoice header defaults from the invoice tax code set at the Supplier Site. A different invoice tax code can be entered in the Invoices window. Include it as part of your default hierarchy.



Entering Tax Defaults in the Tax Options Window Oracle Payables

N → Setup → Tax → GL Tax Assignments

Tax Options

Tax Options

Setting Up the Tax Default in the Tax Options Window

You can assign tax codes to your accounts in the Tax Options window. This Oracle General Ledger window was added to the Oracle Payables menu.

1. Select or enter and account value in the Account field.

2. Select “Input” from the drop-down list in the Tax Type field.

3. Enter the appropriate tax code in the Tax Code field.

4. Optionally, select the check boxes to Allow Tax Code Override and to indicate that the Amount Includes Tax.



Entering Tax Defaults in the Distribution Sets Window Oracle Payables

N → Setup → Invoice → Distribution Sets

Distribution Sets

Distribution Sets

Setting Up the Tax Default in the Distribution Sets Window

You can enter tax codes in the Invoice Tax Code field for each distribution line you create in a distribution set template.

The tax code defaults based on the Tax Code Defaults hierarchy defined in the Payables Options window. You can change the tax code for each line you create.



Defining Tax Codes Oracle Payables

N → Setup → Tax → Codes

Tax Codes

Tax Codes

How to Define Tax Codes

Tax Codes defined in the Tax Codes window are used on invoices to record invoice taxes paid to suppliers and to tax authorities. Each tax Code has a tax type, tax rate, and account to charge tax amounts.

To define tax Codes for sales, use, offset, and user-defined invoice taxes:

1. Enter a unique tax code name in the Tax Code field.

2. Select the tax type from the list of values in the Tax Type field.

3. Enter the tax rate percentage in the Rate field. For an offset tax, enter a negative rate.

4. Enter an effective date for the new tax code and select the Enable checkbox.

5. Enter the GL Account where the tax will be charged. If this is a VAT tax, enter the Vat Transaction Type.



Defining Tax Codes

6. Click the Recovery Rules tab and enter a Recovery Rate for the tax code. If you have created recovery rules, select the Rule Name to be applied to the tax code.

7. Click the Other tab and enter a description for the tax code, mark the Enable for Internet Expenses checkbox and optionally select the Offset Tax Code to apply when the tax code is used.



Defining Tax Names for Withholding Taxes Oracle Payables N → Setup → Tax → Codes Tax Codes

Tax Codes

How to Define Tax Codes for Withholding Taxes

1. Enter a unique tax code name in the Tax Code field.

2. Select the tax type “Withholding Tax” from the list of values in the Tax Type field.

3. Do not enter a tax rate percentage in the Rate field.

4. Enter an effective date for the new tax code and select the Enable checkbox.

5. Enter the GL Account where the tax will be charged. If this is a VAT tax, enter the Vat Transaction Type.

6. Click the Other tab and enter a Description for the tax code.

7. Click the Withholding Tax Details button to navigate to the Withholding Tax Details window.



Defining Tax Codes for Withholding Taxes Oracle Payables N → Setup → Tax → Codes B → Withholding Tax details Withholding Tax Details

Withholding Tax Details

How to Define Tax Codes for Withholding Taxes

8. Enter a withholding tax period basis to review the period-to-date withheld amounts online for this tax code. The period basis is also used by the period limit to determine which invoices to include in its calculation.

9. To limit the amount withheld for each period, enter a period limit.

10. To enter amount limit ranges in the Tax Rates region, define an amount basis (Gross or Net) and a period basis (Invoice or Period).

11. To automatically create a tax withholding group for this tax code, select the Create Tax Group check box.



Defining Tax Codes for Withholding Taxes

12. In the Tax Rates region, enter the rate type, and enter any effective dates for the rate.

13. Enter one or both Amount Range fields if you want to set upper and lower amount limits for taxable amounts.

14. Enter the rate percentage for the tax code you are defining.

15. Enter any comments for your future reference.

16. Save you work.



Lab 1: Defining Tax Codes

Instructions

The products and services you purchase from suppliers often have sales tax recorded on the invoice. For those invoices that do not include sales tax, you often need to record a use tax. Define a Use tax with a 10% tax rate in accounts payable system.



Lab 1 Solutions: Defining Tax Codes

1. Navigate to the Tax Codes window.

N → Setup → Tax → Codes

2. In the Tax Code field, enter “Your Initials” as a prefix to a state name for example, KAK New York).

3. In the Tax Type field, select Use.

4. In the Rate field, enter 10.

5. In the Description field, enter a description.

6. In the GL Account field, enter 01-000-2520-0000-000.


8. Save your work.



Defining Withholding Tax Groups Oracle Payables N → Setup → Tax → Withholding → Groups Withholding Tax Groups

Withholding Tax groups

How to Define Withholding Tax Groups

Use the Withholding Tax Groups window to define withholding tax groups that include multiple withholding tax type tax codes. You can assign the same tax code to more than one group. When you assign a withholding tax group to an invoice or distribution, Oracle Payables calculates invoice withholding tax based on every tax code in the withholding tax group.

1. In the Withholding Tax Groups window, enter a unique name for your withholding tax group, and enter a description of the group. The name and description will appear on a list of values whenever you need to select a withholding tax group.

2. To inactivate this withholding tax group on a certain date, enter an inactive date.

3. Assign a rank to each tax code in the tax group. The highest rank is 1. You can assign the same rank to more than one tax code.

4. Enter each withholding tax code that you want to assign to this group.

5. Save your work.



Summary


• Assign the source and hierarchy for tax defaulting

• Define tax codes

• Define withholding tax groups


Prorating Freight, Sales Tax, and Miscellaneous Charges Chapter 26 - Page 1

Prorating Freight, Sales Tax, and Miscellaneous Charges Chapter 26



Prorating Freight, Sales Tax, and Miscellaneous Charges

Section Objectives


• Automatically create freight distributions

• Prorate freight charges across invoice distributions

• Enter freight distributions manually

• Automatically prorate sales tax across invoice distributions



Recording Freight Charges

You can record freight charges by using one of the following methods:

• Enable the Automatically Create Freight Distribution option

• Prorate freight across invoice distributions

• Enter freight distributions manually



Enabling Automatically Create Freight Distribution Oracle Payables N → Setup → Options → Payables Payables Options


Enabling Automatically Create Freight Distribution

1. Selecting the Automatically Create Freight Distribution check box will automatically check the Create Freight Distribution check box in the Invoices window. This creates a single freight distribution using the Freight Amount and Freight Account you enter for an invoice.

2. If you usually prorate freight to invoice distributions or enter freight distributions manually, do not enable this option.

3. If you enable the Automatically Create Freight Distribution Payables option, you must enter a freight account. Oracle Payables uses this account as the default freight account for an invoice. You can override this account during invoice entry.



Entering Prorated Freight and Miscellaneous Charges Oracle Payables N → Invoices → Entry → Invoices B → Distributions B → Prorate Prorate

Prorate

How to Prorate Freight and Miscellaneous Charges


2. Do not select the Create Freight Distribution check box.



Entering Prorated Freight and Miscellaneous Charges

3. Enter invoice distributions using the method of your choice: Purchase Order Match, Distribution Set, or manual entry.

4. Optionally, select the lines that are to receive a prorated freight charge by holding down the Shift key and clicking in the line with your mouse or use the Edit menu’s Select option.

5. Click the Allocate button located at the bottom of the Distributions Summary window.

6. Select the Freight or Miscellaneous in the Type field.

7. Enter the amount to be prorated across the lines in the Amount field.

8. Optionally, enter a description prefix; the default description prefix is Created by Proration.

9. Verify that the appropriate lines are selected in the Allocation region and check the Prorate checkbox.

10. Click the OK button to prorate the charges across the lines.

11. Open the Distribution window to review the invoice distribution.



Entering Freight Distribution Information Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Freight Distribution for an Invoice

1. In the Invoices window, enter all basic invoice information including the Freight Amount.

2. If the Automatically Create Freight Distribution Payables option is selected and you have entered a default freight account, Oracle Payables selects the Create Freight Distribution check box and displays the freight account in the Freight window. In this window, you can, optionally, override the freight account, record tax on the freight amount, and add a description for the freight distribution. Based on this information, Oracle Payables automatically creates a freight distribution for the invoice.

3. If the Automatically Create Freight Distribution Payables option is not selected, you can select the Create Freight Distribution check box and enter the freight account in the Freight window Oracle Payables displays after you select the check box. Based on this information, Oracle Payables automatically creates a freight distribution for the invoice.



Entering Freight Distribution Information

4. Alternatively, you can manually enter a freight distribution directly in the Distributions window.

5. Complete the invoice entry.

6. Save your work.



Prorating Taxes Across Invoice Distributions Oracle Payables N → Invoices → Entry → Invoices B → Distributions B → Prorate Prorate

Prorate

How to Prorate Taxes Across Invoice Distributions

To automatically prorate taxes, the Use Automatic Tax Calculation Payables option must not be selected, and the Require Tax Entry at Header Payables option must not be selected.


2. Do not enter a tax name or tax amount in the tax region.



Prorating Taxes Across Invoice Distributions

3. Enter invoice distributions using the method of your choice: Purchase Order Match, Distribution Set, or manual entry. Do not enter tax names for the distributions, and do not enter tax type distributions.

• Purchase Order Match: If you are matching to a purchase order shipment, you have the option of prorating directly in the Match to PO window, without navigating to the Distributions window. In the Match to PO window, select the Prorate check box for the shipments to which you want to prorate tax. When you select the check box, Oracle Payables displays the Prorate window. Oracle Payables does not create the proration distributions until you choose Match. If you are matching to a purchase order distribution, prorate tax directly in the Distributions window.

• Distribution Set or manual entry: Choose Distributions to navigate to the Distributions window. Select all distributions you want to prorate. Click Prorate. Oracle Payables displays the Prorate window.

4. Click the Allocate button located at the bottom of the Distributions summary window and enter Tax in the Type field, enter a tax code and amount.

5. Optionally, enter a description prefix if you want to prefix the tax distribution with text of your choice. Oracle Payables constructs the descriptions of the tax distributions by applying the prefix to the description of each distribution you prorated to. The default description prefix is Created by Proration.

6. Select the distribution lines that you want to prorate the tax across and Click OK to have Payables prorate the tax amount you entered to the distributions. Oracle Payables automatically creates tax distributions for you and assigns the tax name to the invoice distributions to which you prorated the tax.



Lab 1: Entering an Invoice

Instructions

You have received the following invoice from your supplier. Your company has decided, for these types of purchases, to prorate taxes across the expense and distribution lines. Enter the invoice into the system.

INVOICE

Invoice # 14000

Date: Today

PO#: N/A

Terms: Immediate


Description:

6 Laptop Computers $30,000.00

6 Laptop Cases 1,180.00

6 Boxes of Diskettes 72.00

Subtotal 31,252.00

Tax 10% 3125.20

Total Due: $34,377.20

Distributions:

6 Laptop Computers 01-110-1560-0000-000

6 Laptop Cases 01-110-7530-0000-000

6 Boxes of Diskettes 01-110-7740-0000-000



Lab 1 Solutions: Entering an Invoice










9. Save your work.

10. From Invoices window, choose Distributions.

11. As these entries are for computer items, accept the Items default.

12. Assign GL accounts to all three items purchased.

13. Verify that the distribution total is equal to the subtotal amount from the invoice.

14. Validate that the Invoice Total and the Distribution Total have a variance.




15. Click the Allocate button.

16. Choose the Tax Type from the list of values.

17. Click the Prorate check box and enter the Amount to be allocated.

18. Validate that your window appears similar to the one below:

19. Choose OK.

Note that in the Distributions window there are six distribution lines for this invoice, and the sales tax is allocated over the three line items.

20. Verify that the Distribution total is equal to the invoice amount.





28. Save your work.



Summary


• Automatically create freight distributions

• Prorate freight charges across invoice distributions

• Enter freight distribution manually

• Automatically prorate sales tax across invoice distributions


Managing Automatic Tax Calculation Chapter 27 - Page 1

Managing Automatic Tax Calculation Chapter 27



Managing Automatic Tax Calculation

Section Objectives


• Set up Automatic Tax Calculation

• Use Automatic Tax Calculation



Setting Up Automatic Tax Calculation Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Invoice Tax Region

How to Set Up Automatic Tax Calculation

1. Select the Exclude Tax From Discount Calculation check box, if you want Oracle Payables to subtract the tax amount from the invoice amount when calculating the default for the invoice amount applicable to discount. If you enable this option, you cannot select Prorate Tax or Prorate Expense for your Discount Distribution Method Payables option.

2. To use Automatic Tax Calculation, the Use Automatic Tax Calculation check box must be selected. The Calculation Level can be either at the header or line level.

• Header: Oracle Payables calculates the tax, inclusively, based on the gross invoice amount and the tax rate implied by the tax name entered in the Invoices window. It creates a single tax type distribution line automatically with a GL tax account specific to the associated tax name. Only one tax name may be applied to an invoice.

• Line: Oracle Payables calculates at least one tax type distribution line per tax name entered in the Distributions window. It can calculate the tax either inclusively or exclusively, based on whether the distribution amounts include tax options.



Setting Up Automatic Tax Calculation

3. If the calculation level is to be allowed overridden at the supplier level, the Allow Calculation Level Override check box must be selected. This applies to both new and existing suppliers.

4. Rounding Rule: Enter Up, Down, or Nearest.

5. Precision: Optionally, enter the number of decimal figures you want the calculations rounded to, up to the default precession associated with the functional currency. Entering 2 will result in a precision of two places after the decimal point.

6. Minimum Accountable Unit: Optionally, enter the smallest unit which you use for your accounting. Entering 1 will result in rounding based on a whole currency unit. Entering .01 will round based on hundredths of the currency unit. If a minimum accountable unit is entered, the precision is set based on the number of digits entered after the decimal, and the Precision field is disregarded.

7. Select the Distribution Amounts Include Tax check box, if you want Oracle Payables to make an inclusive tax calculation where the calculated tax amount is subtracted from the Item distribution lines. The calculation level must be set at line level in order to enable Distribution Amounts Include Tax. The value of this check box is defaulted to the supplier level, but may be overridden there if the Allow Override check box is enabled. The Distribution Amounts Includes Tax defaults to new suppliers, but the Allow Override applies to all existing suppliers as well.



Setting Up Suppliers and Supplier Sites Oracle Payables N → Suppliers → Entry B → Open Suppliers

Suppliers: Invoice Tax Region

How to Set Up Suppliers and Supplier Site to Use Automatic Tax Calculation

1. If the Allow Calculation Level Override check box was selected at the Payables Option level, you can, optionally, adjust the calculation level at the supplier level. If the Calculation Level Allow Override check box is selected at the Supplier level, you will be able to adjust the calculation level at the site level. If the Calculation Level Allow Override option is selected at the Site level, you will be able to adjust the calculation level at the invoice level.

2. At the supplier level, you can, optionally, adjust the default rounding rule for new sites created for the supplier. At the site level you can, optionally, adjust the rounding rule to be used on new invoices.

3. If the Allow Override for Distribution Amounts Include Tax check box at the Payables Option level was selected, you can, optionally, adjust the Distribution Amounts Include Tax check box at the supplier and the site levels.



Using Automatic Tax Calculation Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Use Automatic Tax Calculation

If Calculation Level Allow Override is on at the supplier site level, a window will be displayed when you enter the Tax Name field in the Invoices window. You have the option to choose Header or Line automatic tax calculation or to choose None, in which case no automatic tax calculation will be done; and you have the option of entering taxes manually or entering no taxes.

Oracle Payables automatically calculates tax at one of two levels, header or line.

• At the header level, Oracle Payables calculates the tax, inclusively, based on the gross invoice amount and the tax rate implied by the tax name entered in the Invoices window. It creates a single Tax type distribution line automatically. Only one tax name may be applied to an invoice.

• At the line level, Oracle Payables calculates at least one tax type distribution line per tax name entered in the Distributions window. It can calculate the tax either inclusively or exclusively based on whether the Includes Tax check box is selected.



Using Automatic Tax Calculation

Oracle Payables calculates taxes inclusively or exclusively at the line level.

• If the Includes Tax check box is not selected, Oracle Payables will do an exclusive calculation. It will multiply that distribution line’s amount by the tax rate implied by the tax name and create a tax type distribution line for that amount. For example, if you have an invoice for a total of $100 comprised of one item of $90.91 and tax of $9.09, you can enter the Item distribution of $90.91 using PO Matching or manual entry, and then click the Calculate Tax button. Oracle Payables will automatically multiply $90.91 by 10 percent and create a tax type distribution line for $9.09.

• If the Includes Tax check box is selected, Oracle Payables will do an inclusive calculation. It will multiply that distribution line’s amount by the tax rate implied by the tax name and create a tax type distribution line for that amount. For example, if you have an invoice for a total of $100 but do not have the tax broken out on the invoice, you can enter the item distribution of $100 using a distribution set or manual entry, and then click the Calculate Tax button. Oracle Payables will automatically multiply $100 by 100/(100 plus the 10% tax rate) and create a tax type distribution line for $9.09. It will then decrease the original item distribution by the amount of the tax type distribution line.

You can include both inclusive and exclusive line calculations on the same invoice. The tax amounts calculated automatically are subject to tax variance limits just as a manually entered tax amount would be. If you do not click the Calculate Tax button to immediately view the results of the tax calculation, Payables will initiate the calculations automatically upon approval. Once the calculation is done on any distribution line, it will never be redone automatically, even if you make manual changes to the line or click the Calculate Tax button again. However, if you enter a new distribution line after having calculated the tax, the new distribution line will be subject to automatic tax calculation. If you have Use Automatic Tax Calculation selected, never enter a tax type line manually.



Lab 1: Entering an Invoice for Automatic Sales Tax Calculation

Instructions

You have received the following invoice from your supplier. Enter the invoice. However, have the system calculate the sales tax automatically. Use the sales tax name that you defined in a previous lab.

INVOICE

Invoice # 13000

Date: Today

PO#: N/A

Terms: Immediate


Description:

1 Perfect Sound Multimedia Monitor $3,800.00

2 Cases of Mouse Pad 200.00

Tax 10% 400.00


Distributions:

Monitor 01-000-1570-0000-000

Mouse Pads 01-110-7530-0000-000



Lab 1 Solutions: Entering an Invoice for Automatic Sales Tax Calculation










9. Use the [Tab] key to move to the Tax Name field.

10. Select Header as the tax calculation level.

11. Enter the sales tax name that you defined in a previous lab.

12. From the Invoices window, click Distributions.



Lab 1 Solutions: Entering an Invoice for Automatic Sales Tax Calculation

13. In the Distributions window a tax distribution line is generated and displayed.

14. As these entries are for computer items, accept the items default.

15. Assign GL accounts to the items purchased.

16. Verify that the distribution total is equal to the invoice amount.


18. Save your work.



Lab 2: Entering Invoice Distribution Lines

Instructions

You have received below invoice from your supplier. Note that the price for the first item includes sales tax. Enter the invoice and update the distribution lines at the invoice level.

INVOICE

Invoice # 15000

Date: Today

PO#: N/A

Terms: Immediate

Supplier Name: Your Supplier From Lab 1

Description:

1 Laptop Case (Sales Tax Included) $100.00

1 Case of Diskettes 100.00

Tax 10% 10.00

Total Due: $210.00

Distributions:

Laptop Case (including sales tax) 01-110-7530-0000-000

Diskettes (excluding sales tax) 01-110-7740-0000-000



Lab 2 Solutions: Entering Invoice Distribution Lines










9. Use the [Tab] key to move to the Tax Name field.

10. Select Line as the tax calculation level.

11. Enter the sales tax name that you defined in a previous lab.

12. Save your work.

13. From the Invoices window, click Distributions.

14. As these entries are for computer items, accept the items default.

15. Assign GL accounts to the items purchased.

16. For the first item (Laptop Case) select the Includes Tax check box.



Lab 2 Solutions: Entering Invoice Distribution Lines


18. Click Calculate Tax.

19. Two tax distribution lines are displayed.

20. Verify the tax associated with line 1 is 9.09.

21. Verify the tax associated with line 2 is 10.00.

22. Verify that line 1 was automatically reduced by the tax amount.

23. Verify that the distribution total is equal to the invoice total.


25. Save your work.



Lab 3: Entering an Invoice Distribution Line

Instructions

You have received the invoice below from your supplier. Enter the invoice in Oracle Payables.

INVOICE

Invoice # 16000

Date: Yesterday

PO#: N/A

Terms: 2/10 Net 45


Description:

1 Personal Computer $2,500.00

Freight 35.00


Distributions:

Personal Computer 01-120-7530-0000-000

Freight 01-120-7220-0000-000



Lab 3 Solutions: Entering an Invoice Distribution Line






5. Enter the invoice date.




9. Enter the freight amount.

10. Select the Create Freight Distribution check box. Oracle Payables displays the Freight window.

11. In the Account field, enter the freight account number.



Lab 3 Solutions: Entering an Invoice Distribution Line

13. Click OK.

14. Click the Distributions button.

15. Note the freight line has been entered.

16. Enter the GL account number for the item purchased.


18. Save your work.



Lab 4: Entering an Invoice with Prorated Tax and Freight

Instructions

You have received the following invoice from your supplier. Your company policy is that each department pays for all tax and freight charges it incurs. Enter the invoice and prorate the tax and freight across the two departments that are being charged for the supplies.

INVOICE

Invoice # 17000

Date: Yesterday

PO#: N/A

Terms: Immediate


Description:

Office Supplies $20,000.00

Freight 500.00

Tax 2,000.00

Total Due: $22,500.00

Distributions:

$12,000 01-120-7530-0000-000

$8,000 01-110-7530-0000-000



Lab 4 Solutions: Entering an Invoice with Prorated Tax and Freight






5. Enter the invoice date.




9. Click Distributions.

10. Enter the two lines of invoice distributions. Do not enter a tax name at this point.

11. Click the Allocate button.





15. From the Prorate window, select Tax in the Type field and enter the tax name you defined in a previous lab.

16. Enter the tax amount in the Amount field.

17. Mark the Prorate checkbox and mark the two Item lines to allocate the tax across those amounts.

18. Click OK to create the tax distribution lines.

19. Click the Allocate checkbox again.

17. Enter Freight in the Type field.

18. Enter the freight amount in the Amount field.

19. Enter a description in for the Freight lines.




20. Mark the Prorate checkbox and the checkboxes for both the lines.

21. Click the OK button to create the Freight distributions and return to the Distributions window.

22. Save your work.



Summary


• Set up Automatic Tax Calculation

• Use Automatic Tax Calculation


Setting Up Value Added Tax Requirements Chapter 28 - Page 1

Setting Up Value Added Tax Requirements Chapter 28



Setting Up Value Added Tax Requirements

Section Objectives


• Define VAT tax names

• Define EU suppliers

• Record VAT charges

• Review VAT charges



Tax Types



Use A tax you pay directly to a tax authority instead of to a supplier (suppliers do not include use taxes on invoices; and by assigning use taxes to invoices, you can create a record of the taxes you owe to tax authorities)


In the Define Payables QuickCodes window, you can define as many tax types as you require

Offset A negative-rate tax you use to offset a positive tax to enable you to record and report on zero-rated taxes

Automatic Withholding Tax


The table above indicates the type of Taxes and how they are used. This chapter will focus on the Value Added Tax (VAT).



Setting Up Value Added Tax

Setting Up VAT: Overview

Tax type Tax nameTax rate


Define EU suppliersand

assign tax names

Define tax names

Enter VAT chargesfor invoice

Review VAT charges

Overview

• When you enter a supplier that is registered to pay Value-Added Tax (VAT) charges, you should enter the VAT registration number and related information during supplier entry. Specify a country as a European Union (EU) member state.

• If your organization is VAT-registered and you receive an invoice from a VAT-registered supplier site, you are required to pay VAT charges to the supplier. However, if your organization is located in an EU member state and the VAT-registered supplier site is located in a different EU member state, you are not required to pay VAT charges on invoices from the supplier, but you are required to report the charges to your tax authorities. You can use offset tax distributions to eliminate your VAT liability while maintaining a record of the charges.

• You can use the Intra-EU VAT Audit Trail Report to review the original VAT charges for your Intra-EU invoices. Oracle Payables includes in this report any charges from supplier sites located in other EU member states.

• If you assign a default VAT tax name and an offsetting tax name to a VAT-registered supplier in a EU member state different from yours, then Oracle Payables can automatically create VAT and offsetting tax distributions for you when you enter invoices for that supplier.



Defining VAT Tax Names Oracle Payables N → Setup → Tax → Codes Tax Codes

Tax Codes

How to Define Tax Codes

1. Use the Tax Codes window to enter all relevant information.

2. Establish a tax code, tax type, and a rate for each type of tax.

3. Enter the appropriate GL account to charge for each tax type.

4. Account to which you will charge this tax if the Enable Recoverable Tax Financials option is not enabled. If it is enabled, then only recoverable tax amounts will be charged to this account.

Note: The VAT Transaction Type field is used only for Belgian VAT tax reporting.



Defining VAT Tax Names

5. If the Enable Recoverable Tax Financials option is enabled, then in the Recovery Rules tabbed region enter either a recovery rule name or any recovery rate.

For Sales or User-defined tax types, the recovery rate will default from the Financials option Default Recovery Rate but can be updated to be any percentage from 0 to 100. For Offset tax types, the recovery rate will default to zero and cannot be updated. If the Enable Recoverable Tax Financials option is not enabled, this value will default to zero and cannot be updated.

6. Save your work



Defining EU Suppliers Oracle Payables N → Suppliers → Entry B → Open B → Open Suppliers Sites

Supplier Sites

How to Define EU Suppliers

1. In the Suppliers window or Supplier Sites window, enter the VAT registration number in the Tax Registration Number field. Oracle Payables automatically assigns the supplier’s VAT numbers to each new supplier site and to all invoices you enter for those supplier sites.

2. In the Invoice Tax Code field, select a VAT default tax name for supplier sites to pay VAT charges on invoices.

3. In the Offset Tax Name field, select a tax name that will be used in conjunction with a VAT invoice tax name for reporting intra-EU VAT charges on invoices. Oracle Payables uses the offset tax name for a supplier site to create a default offsetting tax distribution for each default tax distribution on an invoice. The tax distribution and the offset tax distribution net to zero.



Recording VAT Charges for an Invoice

How to Record VAT Charges for an Invoice

• Use a default VAT tax code for a supplier site to automatically assign the VAT tax code to all invoice distributions.

• Manually create a tax distribution with the VAT tax code, or have Oracle Payables automatically calculate the tax amount and create a tax distribution for the VAT charge.

• Run the Validate process to verify that the total of the tax distributions is based on the total of taxable distributions and the defined rate for the VAT tax code.

Recording Zero-Rated VAT Charges for Intra-EU Invoices

• Use a default VAT tax code and offset tax name for a supplier site to create a tax distribution for the VAT charges and an offset tax distribution to net the VAT charges to zero.

• Manually create a tax distribution with the VAT tax code and a tax distribution for the offset tax, or have Oracle Payables automatically calculate the tax amount and create both a tax distribution for the VAT tax and a tax distribution for the offset tax.

• The Validate process does not verify the tax amounts for offset tax distributions.



Reviewing VAT Charges



Define EU suppliersand

assign tax names

Define tax names

Record VATcharges for invoice

Review VAT charges

How to Review VAT Charges

Use the Financial Tax Register Report to review VAT charges.

• Oracle Payables prints the Financial Tax Register Report for all tax types for a reporting period.

• Review VAT charges for one balancing segment or all balancing segments.

• Review detailed information including supplier name, invoice number, and tax amount.

Use the Intra-EU VAT Audit Trail to review invoice and tax information for Intra-EU invoices.

• Review summary or detailed information for all Intra-EU invoices for a range of invoice dates.

• Oracle Payables automatically converts foreign-currency amounts into functional currency.



Summary


• Define VAT names

• Define EU suppliers

• Record VAT charges

• Review VAT charges


Setting Up Automatic Tax Withholding Requirements Chapter 29 - Page 1

Setting Up Automatic Tax Withholding Requirements Chapter 29



Setting Up Automatic Tax Withholding Requirements

Section Objectives


• Enable the Withholding Tax Payable option

• Automatically withhold taxes

• Create Withholding Tax invoices

• Review withheld amounts online

• Review projected withholding taxes online

• Submit withholding tax reports



Automatic Withholding Tax

Overview

You may be required to withhold taxes from your employee expense reports and supplier invoices. Once you set up Oracle Payables to automatically withhold tax, you can withhold tax either during approval or during payment processing.

• You can control all withholding tax options in the Withholding Tax region of the Payables Options window.

• To perform automatic withholding, assign a withholding tax group to an invoice or invoice distribution. Accept the default withholding tax group from the supplier site, or select another from a list of values.

• To withhold tax, Oracle Payables creates one Withholding Tax type invoice distribution per Withholding Tax type tax code per withholding tax group.

• For each invoice, Oracle Payables automatically updates the invoice amount and scheduled payments to reflect the withholding.

• Review withheld amounts online, or submit standard reports.

• You can also automatically create withholding tax invoices to remit withheld taxes to the appropriate tax authorities.

Withhold Tax Enhancements

Oracle Payables expands its support for withholding tax by allowing withholding on prepayments. Other enhancements include allowing the use of withholding tax functionality and automatic offset accounting together.



Enabling the Use Withholding Tax Function Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Withholding Tax Region

How to Enable the Use Withholding Tax Function

1. Use Withholding Tax: Select this option to enable the automatic withholding tax feature. You cannot enable this option if you use either of the Automatic Offsets Payables options.

2. Allow Manual Withholding: Enable this option to allow manual creation and adjustments of Withholding Tax type distributions for your invoices.

3. Tax Group: Enter the name of the withholding tax group that you want to use as the default withholding tax group for the new suppliers you enter.



Enabling the Use Withholding Tax Function

4. Apply Withholding Tax: Select the time at which you want Oracle Payables to apply withholding taxes to your invoices: Never, At Invoice Approval Time, or At Payment Time.

5. Withholding Amount Basis: Select the Include Discount Amount option if you want Oracle Payables to include the invoice discount amount when it calculates withholding tax amounts for the invoice. Select the Include Tax Amount option if you want Oracle Payables to include the invoice tax amount when it calculates withholding tax amounts for the invoice.

6. Create Withholding Invoice: Select the time at which you want Oracle Payables to automatically create withholding tax invoices: Never, At Invoice Approval Time, or At Payment Time.



Creating Withholding Tax Invoices Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Withholding Tax Region

How to Create Withholding Tax Invoices

Oracle Payables can automatically create withholding tax invoices, or you can perform this task manually. Use the Create Withholding Invoice region to set the option.

1. To automatically create withholding tax invoices, you must choose whether to do this during approval or during payment processing. Indicate this choice in the Withholding Tax region of the Payables Options window.

2. If you choose to create withholding tax invoices during Approval, Oracle Payables creates unapproved withholding tax invoices for tax authority suppliers assigned to tax names.



Creating Withholding Tax Invoices

3. If you choose to create withholding tax invoices during payment processing, Oracle Payables creates unapproved withholding tax invoices (for those invoices where you have applied withholding tax) during the Confirm program of payment batch processing or during processing of a quick payment.

4. To create withholding tax invoices manually, create an invoice for each Withholding Tax type invoice distribution on an invoice. Create the invoice for the tax authority supplier and site assigned to the Withholding Tax type tax code and for the amount of the Withholding Tax type invoice distribution.



Review Withheld Amounts Online Oracle Payables N → Invoices → Inquiry → Withheld Amounts View Period-To-Date Withheld Amounts

View Period-To-Date Withheld Amounts

How to Review Withheld Amounts Online

Use this window to review period-to-date withheld amounts for a Withholding Tax type tax code for a supplier. You can review the amount subject to withholding and the period-to-date withheld amount. To view period-to-date withheld amounts.

1. Open the Period-To-Date Withheld Amounts window.

2. Place the window in Query Mode and enter query criteria directly into the window.

3. Run the query by selecting Run from the Query menu.

Oracle Payables displays the period-to-date withheld amounts. The information in this window is display only.



Reviewing Projected Withholding Tax Oracle Payables N → Invoices → Entry → Invoices M → Tools → Projected Withholding Tax Projected Withholding Tax

Projected Withholding Tax

To view the projected withholding tax window, you must complete the following prerequisites.

Prerequisites:

• The Use Withholding Tax Payables option is enabled.

• The Apply Withholding Tax Payables option is set to At Payment Time.

• The invoice is approved and completely unpaid.

• The invoice has not been selected for payment.

• The invoice has at least one Withholding Tax group assigned.

How to Review Projected Withholding Tax

Use the Projected Withholding Tax window to review projected withholding tax invoice distributions for an invoice. Oracle Payables creates one Withholding Tax type invoice distribution for each Withholding Tax type tax name per withholding tax group assigned to an invoice distribution.

1. Select an invoice in the Invoices Summary window.

2. Choose View Projected Withholding from the Special menu. Oracle Payables displays projected withholding tax invoice distributions for the selected invoice.



Submitting Withholding Tax Reports Oracle Payables N → Other → Requests → Run Submit Request

Submit Requests

Submitting Withholding Tax Reports

Use the Submit Requests window to process the following standard reports to satisfy tax authority, supplier, and management reporting requirements.

• Withholding Tax by Invoice Report

• Withholding Tax by Payment Report

• Withholding Tax by Vendor Report

• Withholding Tax by Tax Authority Report

• Withholding Tax Certificate Listing Report



Summary


• Enable the Withholding Tax Payable option

• Automatically withhold taxes

• Create Withholding Tax invoices

• Review withheld amounts online

• Review projected withholding taxes online

• Submit withholding tax reports


Setting Up 1099 Requirements Chapter 30 - Page 1

Setting Up 1099 Requirements Chapter 30



Setting Up 1099 Requirements

Section Objectives


• Set up 1099 reporting

• Enter 1099 details for suppliers

• Enter and pay 1099 invoices

• Identify and resolve 1099 exceptions

• Submit 1099 forms

• Submit 1099 tapes




1099 Reporting: Overview

In the United States, you must report to the Internal Revenue Service certain types of payments you make to your suppliers.

• In the Supplier window, you can designate suppliers as federally reportable.

• When you enter invoices for the supplier, you classify the invoice distributions by type - 1099 MISC - using the Income Tax Type field.

• Report at year end using standard formats the accumulated 1099 payment information to the Internal Revenue Service, other tax agencies, and your suppliers.



Setting Up Oracle Payables for 1099 Reporting

Setting Up Oracle Payables for 1099 Reporting

• Enable the Combined Filing Program

• Define tax regions

• Define the reporting entities that produce 1099 reports

Overview

• Select the Combined Filing Program Payables option to use the combined federal and state 1099 filings, and to produce K-Records and B-Records,. − K-Records: A summary record of all 1099 payments made to a supplier for a

single tax region that participates in Combined Filing Program − B-Records: A summary record of all 1099 payments made to a supplier for

one tax region

• Define your tax regions if you use combined federal and state filings.



Enabling the Combined Filing Program Oracle Payables N → Setup → Options → Payables Payables Options

Payable Options: Supplier Region

How to Enable the Combined Filing Program

• Combined Filing Program: Select this option if you are using 1099 Combined Filing Program reporting. When you submit the 1099 tape, Oracle Payables will produce K records for all tax regions participating in the Combined Filing Program that have qualifying payments.

• Use Pay Site’s Tax Region: You can select this option only if you select the Combined Filing Program option. Select this option if you want to use a 1099 supplier's tax region as the default tax region. You can override this default region for each invoice distribution in the Distributions window. Do not select this option if you do not want to use a supplier site’s tax region as the default tax region. You must then enter the default tax region you want to use for all invoices in the Income Tax Region Name field.



Enabling the Combined Filing Program

• Income Tax Region: You can enter information in this field only if you select the Combined Filing Program option and do not select the Use Pay Site’s Tax Region option. Enter the tax region you want to use as the default for the invoice distributions of your 1099 suppliers. You can override this default region for each invoice distribution.



Defining Income Tax Regions Oracle Payables N → Setup → Tax → Regions Income Tax Regions

Income Tax Regions

How to Define Income Tax Regions

Enter tax regions only if you are participating in the Combined Filing Program. Consult tax publications for the reporting requirements of each tax region.

1. Enter the region abbreviation you are defining, or locate the region abbreviation you are updating.

2. Enter the region's Internal Revenue Service code.

3. Enter a description for the region if it is not predefined.

4. Enter the minimum amount Oracle Payables uses to determine whether to report on a supplier’s payments in the Reporting Limit region’s Amount field . If you do not enter an amount, Oracle Payables assumes the limit is zero.



Defining Income Tax Regions

5. Select one of the following three methods that Oracle Payables uses to compare actual payments to the reporting limit amount:

• Compare Individually: Compare to the Reporting Limit Amount the sum of payments for each 1099 MISC Income Tax type.

• Compare Sum: Compare to the Reporting Limit Amount the sum of payments for all 1099 MISC Income Tax types.

• Same as Federal: Ignore the region Reporting Limit Amount, and instead use the Federal reporting limit, which Payables has predefined as $600.



Defining Reporting Entities That Produce 1099 Reports Oracle Payables N →Setup → Tax → Reporting Entities Reporting Entity

Reporting Entity

How to Define Reporting Entities That Produce 1099 Reports

Use the Reporting Entity window to define reporting entities for your 1099 tax reporting. A reporting entity is any person or organization that has a unique tax identification number (TIN).

1. Enter the name of the entity you are defining.

2. Select the location of the entity you are defining.

3. Enter the tax ID number.

4. Enter one or more balancing segment values that comprise the reporting entity.

5. Save your work.



Entering 1099 Suppliers Oracle Payables N → Suppliers → Entry B → New Suppliers

Suppliers: Tax Reporting Region

How to Enter 1099 Suppliers

1. Identify a 1099 supplier as federal and state reportable.

2. Select from a list of 1099 miscellaneous tax types in the Income Tax Type field.

3. Enter the date you received tax verification from the supplier in the Verification Date field. In Oracle Payables you can submit Tax Information Verification Letters for your suppliers. Oracle Payables prevents the generation of any further letters to a supplier after the verification date.

4. Enter the Organization Type from the Verification letter (IRS form I-9) in the Organization Type field - Corporation, Partnership, or Individual.



Creating 1099 Payment Information Oracle Payables N → Invoices → Entry → Invoices B → Distributions Distributions

Distributions

How to Create Payment Information

1. Assign, or accept the default for income tax type and income tax region for invoice distributions entered for a 1099 supplier.

• If you are entering distributions by using a distribution set that does not include an Income tax type for any distribution, Oracle Payables automatically enters the supplier’s default Income tax type.

• In the Income Tax Region field, enter a region to identify a distribution as applicable to the United States state 1099 reporting requirements. If you select the Use Pay Site’s Tax Region Payable option, the default for the Region is the state in the address for the supplier site.

2. Approve and pay invoices assigned with 1099 payment information.



Identifying and Correcting 1099 Exceptions

How to Identify and Correct 1099 Exceptions

Submit the following reports to review, identify, and correct 1099 exceptions:

• 1099 Invoice Exception Reports − Use the 1099 Invoice Exceptions Report to review paid invoice distributions

with inaccurate or missing 1099 income tax information. Before you run your 1099 reports, run the 1099 Invoice Exceptions Report for each tax entity to identify any invoice distributions that Oracle Payables will treat as exceptions in your 1099 reports.

− Use the Update Income Tax Details Utility to correct incorrect or missing income tax types or income tax regions. If the supplier's 1099 status is incorrect, you can correct it in the Tax region of the Suppliers window.

− The 1099 Invoice Exceptions Report is divided into three sections: − Invoice distribution lines for 1099 suppliers with no income tax type − Invoice distribution lines for non-1099 suppliers with an income tax type − Invoice distribution lines with null or invalid income tax regions

− For each exception, the report lists invoice and distribution information. This report is sorted by supplier, invoice, and invoice distribution number.

• 1099 Supplier Exception Reports − Use the 1099 Supplier Exceptions Report to review 1099 suppliers with

inaccurate or outdated 1099 income tax information. − Run the 1099 Supplier Exceptions Report before you submit your 1099

reports to identify suppliers that Oracle Payables will treat as exceptions in your 1099 reports.

− You can correct these supplier exceptions in the Suppliers window. − Submit the 1099 Supplier Exceptions Report for each of your tax reporting

entities. − For each exception, Oracle Payables lists the supplier name, supplier number,

tax identification number, tax reporting site, state, and exception condition. The report includes a brief description of each exception type condition it finds.

− Oracle Payables sorts this report by exception condition and supplier name. A supplier is listed once for each exception condition it meets.



Submitting the Update Income Tax Details Utility Oracle Payables N → Other → Requests → Run B → OK Submit Request

How to Submit the Update Income Tax Detail Utility

Submit this utility to report on or update the Income Tax Type and Income Tax Region fields on invoice distributions. These fields are required for all invoice distributions of United States federally reportable suppliers, because the fields are necessary for 1099 reporting.

To correct inaccurate or missing Income Tax Type or Income Tax Region fields for 1099 suppliers:

1. Ensure that the supplier site has accurate 1099 information.

2. Submit the utility.



Submitting the Update Income Tax Details Utility

You can also use this utility to correct invoice distributions of non-1099 suppliers that have income tax types assigned. If the supplier is a non-1099 supplier but you have inadvertently assigned Income Tax Types:

1. Ensure that the supplier is not federally reportable in the Suppliers window and that the site Income Tax Type field is blank.

2. Submit the Update Income Tax Details utility.

If the supplier should be a 1099 supplier, update the supplier as federally reportable in the Suppliers window. In this case, the invoice distributions are accurate, so you need not submit the Update Income Tax Details Utility. Oracle Payables will then include the invoices for the supplier in 1099 reports.

The report is divided into two sections and ordered by supplier within each section:

• Income Tax Type: The Income Tax Type section lists the supplier name and number of invoice distributions that do not have income tax types for your 1099 suppliers. It also lists the invoice distributions that have income tax types for non-1099 suppliers.

• Income Tax Region: The Income Tax Region section lists the supplier name and number of invoice distributions with incorrect or missing income tax regions.

You can choose to run this utility in one of two modes:

• Report mode: If you submit the utility in report mode, for each section, the report lists the number of distributions that will be updated when you submit the utility in Update mode.

• Update mode: If you run the utility in Update mode, the report lists the number of distributions updated by the utility.



Submitting 1099 Forms Oracle Payables N → Other → Requests → Run B → OK Submit Request

Submit Requests

How to Submit 1099 Forms

Use the 1099 Forms report to print, on preformatted forms from the Internal Revenue Service, the total 1099 MISC payments for a particular 1099 supplier. Submit the 1099 Forms report for each tax reporting entity in your organization.

In accordance with the Internal Revenue Service rules, Oracle Payables does not print a 1099 Form for a supplier unless you paid the supplier at least $600 for the calendar year. However, Oracle Payables prints a 1099 form for the supplier if you pay a 1099 supplier at least $10 in royalties (Box 2), substitute payments in lieu of dividends or interest (Box 8), or if you pay any fishing boat proceeds (Box 5).



Submitting 1099 Forms

Oracle Payables does not identify a 1099 payment by any criterion other than income tax type. Oracle Payables supports 1099 MISC types 1–10, except MISC4. For Golden Parachute payments (MISC9), Oracle Payables provides a separate total, appended with EPP, in Box 7.

Oracle Payables prints the 1099 Forms in order by state code and then alphabetically by supplier name.

1. Insert and align the 1099 forms in your printer.

2. Navigate to the Submit Requests window.

3. In the Name field, select 1099 Form.

4. Navigate to the Report Parameters window.

5. In the Tax Reporting Entity field, select the name of the tax reporting entity for which you want to submit the 1099 Forms report.

6. In the Format for Laser Printer field, enter Yes if you want to format the print setting for a laser printer. Enter No or leave the field blank if you do not want to format the print setting for a laser printer. The default print setting for Oracle Payables is defined for a dot matrix printer.

7. In the Payer Name Source field, select the source from which Oracle Payables obtains the payer name for the report. The sources are:

• Address: Address line 1 for the address entered in the Location window

• Location: Location Name entered in the Location window

• Tax Entity: Entity Name entered in the Reporting Entity window

8. Submit the request.



Submitting 1099 Tape Oracle Payables N → Other → Requests → Run B → OK Submit Request

Submit Requests

How to Submit 1099 Electronic Media

Submit the 1099 Electronic Media report to generate your summarized 1099 and 1096 information on a magnetic media file, in the format required by the Internal Revenue Service. The IRS requires that you send them a tape of your 1099 information if you need to submit 250 or more 1099 forms for your suppliers.

Report submission as follows:


2. In the Name field, select 1099 Electronic Media.



Submitting 1099 Electronic Media


4. In the Control Name field, enter your payer name control.

5. In the Control Code field, enter your five-digit transmitter control code (TCC).

6. In the Tax Reporting Entity field, enter the name of the tax reporting entity for which you want to submit the 1099 Tape.

7. In the Media Type field, select 5 1/4" and 3 1/2" Diskette or Magnetic Tape.

8. In the Test Submission field, enter Yes only if you are submitting a test 1099 tape to the Internal Revenue Service.

9. In the Foreign Corporation field, enter Yes if your organization is a foreign tax reporting entity as recognized by the Internal Revenue Service.

10. In the Last Year Filing field, enter Yes if (due to merger, bankruptcy, or other reasons) this is the last year that this tax reporting entity will be filing.

11. In the Payer Name Source field, select the source from which Oracle Payables obtains the payer name for the report. The sources are:

• Address: Address line 1 for the address entered in the Location window

• Location: Location Name entered in the Location window

• Tax Entity: Entity Name entered in the Reporting Entity window



Submitting 1096 Forms Oracle Payables N → Other → Requests → Run B → OK Submit Request

Submit Requests

How to Submit 1096 Forms

Submit the 1096 Form report to print an annual summary of total 1099 payments for a particular 1099 MISC type for all 1099 suppliers. The United States Internal Revenue Service requires that you send one 1096 form for each type of 1099 payment you use. Oracle Payables prints the report on preformatted forms from the Internal Revenue Service. To submit the request:


2. In the Name field, select 1096 Form.


4. In the Tax Reporting Entity field, enter the name of the reporting entity for which you want to submit the 1096 Form report.

5. In the Payer Name Source field, select Address, or Location, or Tax Entity as the source from which Oracle Payables obtains the payer name for the report.



Summary


• Set up 1099 reporting

• Enter 1099 details for suppliers

• Enter and pay 1099 invoices

• Identify and resolve 1099 exceptions


• Submit 1099 tapes


Enhanced 1099 Payments Report

• Oracle Payables enhances the 1099 Payments Report to provide complete options to review annual 1099 payments. In previous releases this report could be run by Income Tax Type or Supplier. It now supports reporting by Income Tax Region, Income Tax Type, or Supplier. The report can now be run for a single supplier, which is useful for providing detail to support a 1099 Form. Other enhancements include showing the tax reporting name and complete address information for the tax reporting site when the report is run for detailed supplier information.


Taxes Setup Chapter 31 - Page 1

Taxes Setup Chapter 31



Taxes Setup

Section Objectives


• Define Reporting Entities for tax purposed.



Taxes Setup

Defining Reporting Entities (1099 Reporting)

Use the Reporting Entity window to define reporting entities for your 1099 tax reporting. A reporting entity is any person or organization that has a unique tax identification number (TIN).

For each reporting entity, you assign one or more balancing segment values. For example, you define a reporting entity called Headquarters, which is comprised of Company 1, Company 2, and Company 3 (three balancing segment values). When you submit a 1099 report, you specify Headquarters as the reporting entity for which you want to submit the report. Oracle Payables prints on the 1099 report the accumulated payments for Companies 1, 2, and 3. Oracle Payables sums up the paid invoice distributions that have these company balancing segment values in their accounts. To define tax entities in the Reporting Entity window:



Defining Reporting Entities (1099 Reporting) Oracle Payables N → Setup → Tax → Reporting Entities Reporting Entity

Reporting Entity

How to Define Reporting Entities (1099 Reporting)

1. Enter the name, location, and tax ID number of the reporting entity you are defining.

2. Enter one or more balancing segment values that comprise the reporting entity.


Submitting Reports Chapter 32 - Page 1

Submitting Reports Chapter 32



Submitting Reports

Section Objectives


• Submit reports

• Submit request sets



Defining Reports and Requests Sets

Payables provides reports, programs, listings, and notices (all referred to as requests) that you can use to:

• review information about your suppliers, invoices, and payments.

• analyze productivity and resolve exceptions

• create reports that comply with tax authority reporting requirements

• print notices

• print listings

From the Submit Request window, you can submit a single request, or you can submit a request set to run several reports as a group.



Submitting Requests (Reports or Programs) Oracle Payables N → Other → Requests → Submit a New Request → Single Request B → OK Submit Request

Submit Requests

How to Submit Requests

There are three elements to submitting a request:

1. Select the request or request set to be submitted. Selecting the request or request set may require you to provide request parameters and the output language.

2. Define a submission schedule. Defining a schedule can be as simple as submitting as soon as possible or using a more complex schedule that you define when you first submit your request and may be used for other requests in the future.

3. Provide completion options. Completion options allow you to deliver request output to others and specify which printers and how many copies of the output you want to produce for each request.



Submitting Requests (Reports or Programs)

How to Submit a Single Request

1. Navigate to the Submit a New Request window.

2. Select the Single Request check box.

3. Click OK.

4. Use the Copy a Prior Request... button to take advantage of previously entered request submissions, or in the Request Names field, select the name of the report or program you want to run from the list of available requests.

5. A Parameters window is displayed if you select a request that requires parameter values. The prompts in the Parameters window are specific to the request you select. Some requests require you to enter parameter values so that you can specify the scope of information you want in the request output. Some requests do not have parameters at all.

6. Once you enter the values in the required parameter fields and click OK, the Parameters window closes, and your parameter values are concatenated and displayed in the Parameters field.

7. If your site supports multiple languages, in the Language field, you can select which language is used for your request output.



Defining Submission Schedules Oracle Payables N → Other → Requests → Submit Request B → Schedule Schedule

Schedule

How to Define a Submission Schedule

The Scheduling window provides you with several scheduling options. You can choose to reuse a schedule you previously defined and saved, or define a new schedule. Choose a type of schedule from the following:

• As Soon as Possible: Submits your request as soon as possible

• Once: Submits your request once at the time and date you specify

• Periodically: Submits your request repeatedly at the interval you specify

• On Specific Days: Submits your request repeatedly on specific days of the week or month

To save your schedule, select the “Save this schedule for use again later” check box. You must also provide a unique name and optionally a description for each schedule you save.



Defining Completion Options Oracle Payables N → Other → Requests → Submit Request B → Completion Options Upon Completion…

Upon Completion

How to Define Completion Options

1. In the Upon Completion segment, select the Save all Output Files check box, if you want to write your request output to a file. To view your output online, you must select this check box.

2. Select the Options button in the Upon Completion region.

3. In the Notify the following people field, specify additional people to be notified via e-mail or workflow notification that the report or program has completed..



Defining Completion Options

4. In the Style field, select a print style. Do not change the style indicated for a standard report. This has been set during the creation of the report. Changing the print style can cause garbage to print out of your printer. Only select the print style for an organization created style such as for and Invoice layout or Check Layout.

5. Select the printers you want to produce a hard copy of your report. Each printer produces at least one copy of the report. If you need more than one copy for a particular printer, use the Copies field to indicate the number of copies.

6. Click OK.

7. When you specified the scheduling and completion options, click Submit Request.

Once you submit your request, open the Requests window using the View menu’s Requests option to see the current status of your request and the request ID number.



Submitting Request Sets Oracle Payables N → Other → Requests → Submit a New Request → Request Set B → OK Submit Request Set

Submit Request Set

How to Submit a Request Set

The steps for submitting a request set are very similar to those for submitting a single request.

1. In the Request Set field, select the name of the set you want to run from the list of available sets. Alternatively, click the Copy a Prior Request button to use a previously defined request set submission.



Submitting Request Sets

2. Oracle Payables displays the requests assigned to the request set. You can modify them for this request set submission. In the Parameters field for a request, Oracle Payables displays a Parameters window specific to that request.

3. To define completion options, open the Upon Completion... window for each request and enter your completion options.

4. Choose the Schedule window to define a schedule for this request set submission.

5. Submit your request set. When you submit a request set, Oracle Payables assigns a request ID to the request set and to each request in the request set.



Summary


• Submit reports

• Submit request sets


Completing the AP Cycle Chapter 33 - Page 1

Completing the AP Cycle Chapter 33



Completing the AP Cycle

Section Objectives


• Transfer fixed assets detail to Oracle Fixed Assets

• Transfer accounting detail to general ledger

• Close the period in Oracle Payables

• Reconcile accounts payable activity for the period

• Purge records



AP Close Cycle

Oracle Payables prevents you from closing an accounting period until you post all transactions with an accounting date in that period. If there are unposted invoices or payments that you want to move forward into the next accounting period, you can submit the Period Close Exceptions Report to review and move them forward. You should close a period when no one is entering any invoices or payments. This way you avoid the possibility of someone entering (without saving) a transaction, while you are closing the period.

To complete the close process in Payables:

1. Validate all invoices, confirm all payment batches and run Create MassAdditions Program.

2. Run the Payables Accounting Process selecting NO for the parameter “Submit Transfer to GL”.

The Payables Accounting Process Report is generated with two sections: − Accounting Entries Audit Report - shows detail of all accounting entries

created. − Accounting Entries Exception Report * - shows detail of all accounting entries

created with an error status and a description of that error.

* This report is only generated when the accounting process encounters entries that fail validation.



AP Close Cycle

3. Correct any errors.

Simply find and correct errors using the Update Accounting Entries window.

N→Accounting→Update Accounting Entries

Use the Accounting Status field to search for Errors. Use the down arrow on your keyboard to toggle through the transactions.

Make the appropriate updates in this window and save your work.

3. Run the Unaccounted Transaction Report - This report will list all of the unaccounted Invoice and Payment transactions and the reason that Payables cannot account for a transaction. (Unaccounted = accounting errors; for example invalid account or debit & credit don’t equal, etc.)

4. Make any necessary corrections.

5. Re-Run the Payables Accounting Process.

The Payables Accounting Process Report is generated with two sections: − Accounting Entries Audit Report - shows detail of all accounting entries

created. − Accounting Entries Exception Report - shows detail of all accounting entries

created with an error status and a description of that error.

6. Repeat the above steps as necessary until you are ready to close the period.

7. Close the period in Oracle Payables.

N→Accounting→Control Payables Periods

Place your cursor in the Period Status field for the month you want to close. Change the value to Closed and try to Save.

If unaccounted Invoices or Payments exist a "Note" will appear on your screen stating that you will not be able to close the period until they have been accounted or you decide to Sweep them to the next period.

9. Click OK.



AP Close Cycle

You will then click on the Sweep button and another window will appear that will allow you to run the Period Close Exceptions Report . View this report for all Unaccounted Invoices and Payments and make a decision whether to account for these transactions in the current period or sweep them to the next. This should be what your Period Close Exception Report showed. This sweep function merely pushes these problems forward. It does not correct them.

CAUTION! If you click on the Sweep button all unaccounted transactions will be swept to the next period. This is irreversible.

10. Run the Payables Transfer to the General Ledger.

11. From General Ledger, run the Journal Import process for the Payables source to bring in the invoice and payment transactions activity for the period.

12. Post the journals created by the Journal Import process in Oracle General Ledger.

13. Reconcile Oracle Payables activity for the period by submitting the following reports: − Accounts Payable Trial Balance Report (current and prior periods) − Posted Invoice Register − Posted Payment Register



Submitting Mass Additions

Enter asset information in

Oracle Payables

Enter asset information in

Oracle Payables

Submit Mass Additions Create program

Review the results

Review the results

Post additions to

Oracle Assets

Post additions to

Oracle Assets

Overview

The Mass Additions create program selects invoice lines from Oracle Payables, copies them to a table in Oracle Assets (FA_MASS_ADDITIONS), and marks invoice lines as having been considered for selection. These invoice lines are then used to create assets or to cost adjust existing assets. Invoice lines not used by Oracle Assets can be deleted by the Asset personnel; however, an invoice distribution adjustment must be performed in Oracle Payables to clear these items from the clearing account.

In this process data is only sent; no data is received by Oracle Payables from Oracle Assets. Data sent by the Mass Additions create program includes the following items:

• Invoice number, invoice line number, supplier number, supplier name, concurrent request ID number of the mass additions create process, invoice date, invoice distribution line description, invoice distribution line Accounting Flexfield, number of units, and invoice distribution line amount as cost




If the invoice was matched to a Purchase Order, the Purchase Order Number and Purchase Order Batch Number will be sent. Additionally, if the Purchase Order used an Item for which the Item Attribute called Asset Category was defined, the Asset Category will also be sent to Oracle Assets.

Supplier tables are shared between Oracle Payables and Oracle Assets. Oracle Assets only uses Supplier Number and Supplier Name. Also, Asset Categories must be defined in Oracle Assets before you can define this Attribute for an Item in Oracle Payables.

All posted invoice distribution lines are reviewed by the Mass Additions create program. Once reviewed, they are marked as being reviewed and will never be considered again by the Mass Additions Create process. If an invoice line did not come over due to a set-up issue, that Invoice Distribution Line must be reversed in Oracle Payables, reentered, approved, and posted before the Mass Additions Create process will select it.

Oracle Assets reviews all posted invoice distribution lines, but only considers those with the “Track as an Asset” flag set to Yes. The flag is set to Yes by one of the following actions:

• Coding an invoice distribution line to any asset account causes the Track flag to automatically be set to Yes and the field to be protected against update.

• When coding an invoice distribution line to an expense account, the Track flag defaults to No, but can be manually set to Yes. These items will always transfer to Oracle Assets as Expensed Asset type. This is done to use the asset tracking functionality in Oracle Assets without affecting depreciation.

Note: The Track As Asset check box is not shown on the default layout of the Distributions window. Use the Folder menu and select the Show Fields option to select the Track as Asset field and have it show on the Invoice Distributions window. Save the Folder you created as a Default view to always show this field when you open the window.




For invoice distribution lines coded to Asset accounts, Mass Additions only selects those lines where the asset account used is the same account as an asset clearing or CIP clearing account in setup of any of the asset categories. All invoice distribution lines coded to any other asset accounts will not be sent to Oracle Assets. To avoid the situation where invoice distribution lines get posted to the asset cost account instead of the asset clearing account, define segment security rules for all Oracle Payables responsibilities that bar input to all fixed asset account except the asset clearing and CIP clearing accounts.



Recording Asset Information in Oracle Payables Oracle Payables N → Invoices → Entry → Invoices B → Distributions Distributions

Distribution

How to Record Asset Information in Oracle Payables

• Oracle Payables automatically selects the Track as Asset check box if the account segment for the GL account is defined as an Asset or CIP clearing account in an asset category definition in Oracle Assets.

• Optionally, select the Track as Asset check box if you want to have this distribution line be expensed, but also tracked as an asset in Oracle Assets.



Recording Asset Information in Oracle Payables

• Enter additional asset information in the distribution description; any text in this field is displayed in the Mass Additions Summary window in Oracle Assets.

• When you make a payment for an invoice with distributions that have been (or will be) transferred to Oracle Assets, Oracle Payables automatically transfers any information about discounts taken through the Mass Additions Create process. After the discount information is transferred to Oracle Assets, it can be added to the asset as a cost adjustment. This enables you to depreciate the actual cost of the asset.



Submitting Mass Additions Create Program Oracle Payables N → Other → Requests → Submit a New Request → Single Request B → OK Submit Request

Submit Requests

How to Submit Mass Addition Create Program

1. To import asset information (including discounts taken) from Oracle Payables to Oracle Assets, navigate to the Submit Requests form.

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: Oracle Payables creates mass additions from invoice 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.



Submitting Mass Additions Create Program

4. Click Submit Request to submit the concurrent request.

5. Oracle Payables automatically runs the Mass Additions Create report so you can review a list of the mass additions created.

6. Review the log files and report after the request is completed.



Transferring Accounting Details to General Ledger Oracle Payables N → Other → Requests → Submit a New Request → Single Request B → OK Submit Request

How to Transfer Accounting Details to General Ledger

Submit the Payables Transfer to General Ledger program to transfer invoice and payment accounting information to the Payables General Ledger Interface table. You can then use your general ledger to create and post journal entries.

To create journal entries for Oracle General Ledger:

1. In the Submit Requests window, Choose Payables Transfer to General Ledger from the Request Name list of values.



Transferring Accounting Details to General Ledger

2. Enter the report parameters, and click OK. The parameters you enter determine how Oracle Payables transfers invoice and payment information to your general ledger. You also specify if you want to maintain audit information and, if you use General Ledger with Oracle Payables, you can also specify your journal entry creation method.

3. In the Submit Requests window, click Submit.

4. Resolve posting issues by reviewing the following reports:

• Accounts Payable Journal Entry Audit Report

• Accounts Payable Journal Entry Exception Report

• Posting Hold report



Moving Unresolved Exceptions to the Next Period Oracle Payables N → Other → Requests → Submit a New Request → Single Request B → OK Submit Request

How to Move Unresolved Exceptions to the Next Period

Oracle Payables does not allow you to close a period with unposted invoices and payments. Use the Period Close Exceptions Report to transfer all unposted invoices and payments from one accounting period to another.

1. Choose Period Close Exceptions Report from the Request Name list of values. Oracle Payables opens the Report Parameters window.

2. In the From Period field, enter the accounting period in Oracle Payables from which you want to transfer all unposted invoice distributions or payments.

3. In the To Period field, enter the accounting period in Oracle Payables to which you want to transfer all unposted invoice distributions or payments.

4. In the Detail field, select the level of detail in the Invoice Sweep report.

• Select Yes to include individual distributions and payments.

• Select No to include only a summary of distributions and payments.

5. In the Sweep Now field, select one of following options:

• Yes: Submit the program now, and print the Actual Invoice Sweep report

• No: Defer submission of the sweep program, but print the Preliminary Invoice Sweep report



Controlling AP Accounting Periods (Closing the Period) Oracle Payables N → Setup → Calendar → Accounting → AP Accounting Periods AP Accounting Periods

AP Accounting Periods

How to Close Accounting Periods

Oracle Payables allows invoice entry, payment entry, and payment voiding in open accounting periods. You can enter invoices in future accounting periods, but you cannot post any invoices in Future accounting periods until you change the status of the period to Open. You can open and close accounts payable periods independently of your General Ledger periods.



Controlling AP Accounting Periods (Closing the Period)

To change the status of an accounting period, in the AP Accounting Periods window, update the period status to one of the following:

• Never Opened: Payables does not allow invoice entry, payment entry, or payment voiding in a period that has never been opened.

• Future: Oracle Payables allows invoice entry in a future period. Approval places a posting and payment hold on any invoice you enter in a future period. Approval releases the hold when you open the period and resubmit approval.

• Open: Oracle Payables allows invoice entry, payment entry, payment voiding, and posting in an Open period.

• Closed: Oracle Payables does not allow any entry in a Closed period.

• Permanently Closed: You cannot reopen a Permanently Closed period.



Reconciling Accounts Payable Activity for the Period

Reconciling Accounts Payable Activity for the Period

Use the following reports to reconcile your posted invoices and payments to your Accounts Payable Trial Balance:

• Posted Invoice Register

• Posted Payment Register

• Accounts Payable Trial Balance

How to Record Accounts Payable Activity for the Period

Use the following Oracle Payables reports to reconcile your posted invoices and payments to your Accounts Payable Trial Balance to ensure that your Trial Balance accurately reflects your accounts payable liability:

• Posted Invoice Register

• Posted Payment Register

• Accounts Payable Trial Balance (last period and current period)

To reconcile your Accounts Payable Trial Balance for a given period add the current period’s posted invoices (total invoice amount from the Posted Invoice Register), and subtract the current period’s posted payments (total cash plus discounts taken from the Posted Payments Register) from the prior period’s Accounts Payable Trial Balance. This amount should equal the current period's Accounts Payable Trial Balance.



Purging Records

Abort purge

Back up andarchive thedatabase

Submit purge Review purgecandidates listings

Confirmpurge

Review purgeresults

Recreate tablesand indexes

How to Purge Records

You can delete Oracle Payables or Oracle Purchasing records that you no longer need to access online to free up space in your database. You can purge invoices, purchase orders, suppliers, and related records such as invoice payments and purchase receipts. After a record is purged, it is no longer available for query and the record will no longer appear on standard reports. However, the system maintains summary information of deleted records to prevent you from entering duplicate invoices or purchase orders. Create a special responsibility called Payables Purge Administrator for purging information from Oracle Payables and Oracle Purchasing, and assign this responsibility only to the person responsible for purging information from the database. After initiating a purge, you can abort the purge except during the Initiating, Revalidating, and Summarizing phases.

Use the following steps for purging records:

1. Back up and archive the Oracle Payables database.

2. Confirm the integrity of the backup for safety.

3. Initiate a purge.

4. Based on the review of purge candidates listings, abort or confirm the purge.

5. Review the purge results. Drop and recreate the database tables and indexes.



Purging Records

Enhanced Purge

The Payables Purge has been enhanced by eliminating some restrictions on what data can be purged. Now you can purge employee type supplier records. You can also purge invoices with 1099 information and invoices that were created from recurring invoice templates.



Summary


• Transfer fixed assets detail to Oracle Fixed Assets

• Transfer accounting detail to general ledger

• Close the period in Oracle Payables

• Reconcile accounts payable activity for the period

• Purge records


Using Optional Accounting Features Chapter 34 - Page 1

Using Optional Accounting Features Chapter 34



Using Optional Accounting Features

Section Objectives


• Balance entries for intercompany transactions

• Pay invoices in a currency other than the invoice currency

• Enter and pay multiple currency invoices

• Review unrealized gains or losses

• Use automatic offsets

• Use sequential numbering



Using Intercompany Accounting

Invoice for $150 50 150 50 50

Company 01 Company 02 Company 03 Expenses AP Expenses Expenses

Step 1

Step 2

Company 01 Company 02 Company 03 Intercompany Intercompany Intercompany Receivable Payable Payable

Intercompany 100 50 50Balancing Entry

Using Intercompany Accounting

When you use Oracle General Ledger, you can perform accounting for multiple companies within one set of books. When you post journal entries, if a journal entry is out of balance for a balancing segment or company, Oracle General Ledger automatically posts any difference against the intercompany account you defined for the combination of source and category. The following example explains the process further. An organization owns three companies: A, B, and C. Company A receives a $150 invoice for supplies that all three companies use. Company A enters the invoice in Oracle Payables and splits the expense three ways, creating three distributions, one for each company. At this point, the journal entries for this transaction are out of balance, because company A has a liability of $150 and an expense of $50. Companies B and C are also out of balance with expenses of $50 and no liability. The T-accounts in Step 1 on the slide illustrate this situation. During the posting process, Oracle General Ledger identifies unbalanced entries and automatically creates additional intercompany balancing entries. Then it posts both the invoice and balancing entries. The T-accounts in Step 2 illustrate the intercompany balancing entries that Oracle General Ledger creates to resolve the imbalance presented in Step 1.



Setting Up Euro Settlements in Oracle Payables

Setting Up Euro Settlements in Oracle Payables

• Set up fixed rate currencies in the Define Currency window.

• Set up the rounding account in the Payables Options window.

• Set up the Rounding Account Journal Entry Creation Audit option the Payables Options window.

• Set up default currencies for suppliers in the Suppliers window.

Overview

Oracle Payables supports businesses operating in the European Monetary Union (EMU) during their transition from national currencies to the common Euro currency. With Oracle Payables you can pay an invoice in a currency other than the invoice currency as long as the currencies are related to each other by a fixed rate.



Setting Up Euro Settlement Fixed Rate Currencies Oracle Payables N → Setup → Currency → Define Currencies

Currencies

Setting Up Fixed Rate Currencies

All standard ISO currencies, including the EMU currencies and euro, are predefined in Oracle Payables.

1. The Precision and Extended Precision fields, are predefined. However, the precision data may change for the euro-derived currencies at the time of rate determination. In this case, update the precision fields accordingly.

2. In the Currency Derivation Type field, you can select one of the following options:

• Blank: For nonfixed currencies, leave this field blank.

• Euro Currency: Only one currency code can be assigned to the Euro current type.

• Euro Derived: Should be assigned to all currencies fixed to the Euro currency.



Setting Up Euro Settlement Fixed Rate Currencies

3. In the Factor field, enter the fixed currency rate for Euro derived currencies.

4. In the Effective field, enter the date on which the fixed currency rate (Factor) will become effective.

5. In the Effective Dates fields, enter the date range which the currency is available for transaction processing.

For example, the French franc may be effective for use in transaction processing from January 1, 1983 to January 1, 2999. However, the fixed currency (Factor) will be effective only as of May 15, 1998.

6. Enable check box is used by the system for verification during transaction entry and committal. If you want to quickly disable a currency, use this check box to disable that currency from use in transaction processing.



Entering Euro Settlements Daily Rates Oracle Payables N → Setup → Currency → Define Daily Rates

Daily Rates

Entering Daily Rates

• You cannot enter any rates for active euro derived currencies in the euro- derived Daily Rates window.

• All euro-derived rates are calculated by the system at the time of transaction entry. The rates cannot be modified.

• In the Daily Rates window, you only need to enter rates if: − Functional currency is a non-fixed currency: Enter daily rate between the

functional currency and the euro. − Functional currency is a non-fixed currency and you have defined other non-

fixed currencies: Enter daily rates between the functional currency and all other non-fixed currencies.



Entering Euro Settlements Conversion Rate Types Oracle Payables N → Setup → Currency → Rates → Types Conversion Rate Types

Conversion Rate Types

How to Set Up Euro Settlements Conversion Rate Types

Oracle Payables supports conversion and exchange rate types as follows:

• Several exchange rate types are predefined in the system, including the EMU Fixed exchange rate type.

• EMU Fixed exchange rate type is automatically assigned at the time of transaction entry if: − The invoice currency is not the same as payment currency and − The relationship between the two currencies has been defined as Fixed



Entering Euro Settlements Rounding Accounts Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options

How to Set Up a Rounding Account

Oracle Payables creates journal entries in the transaction currency and your functional currency for all invoices and payments. Oracle Payables continues to record gains and losses in the Gain/Loss Accounts you assign.

• When you pay invoices in a different currency than the payment currency, Oracle Payables uses the Rounding Errors account you define in the Currencies region of the Payables Options window to record the rounding error.

For example, your functional currency is French franc (FRF) and you enter an invoice in 1000 FRF and enter Euro as the payment currency. The payment amount converts to 152.53917 euros, at the fixed conversion rate of 6.555693, and is rounded to 152.54 euros. The payment, converted back to your functional currency is 1000.0054, which is rounded to 1000.01. The .01 FRF difference is recorded in the rounding account.



Entering Euro Settlements Rounding Accounts Oracle Payables N → Setup → Options → Payables Payables Options

Oracle Payables uses the rounding errors account you define in the Currencies region of the Payables Options window to record the rounding error. In the Accounting region of the Payables Options window, select one of the following audit information options:

• Audit: Oracle Payables maintains audit information and detail accounting records for your rounding errors account.

• No Audit: Oracle Payables maintains only summary records of the transactions for each unique rounding errors account, when you post payments to set of books.



Entering Euro Settlements Supplier Sites Oracle Payables N → Suppliers → Entry → Open Supplier Sites

Supplier Sites

How to Set Up Default Currencies for Suppliers

In the Suppliers or Suppliers Sites window, you can set different default currencies for invoices and payments.

1. In the Invoice Currency field, select the default currency for recording supplier invoices.

2. In the Payment Currency field, select the default currency for invoice payments.

3. The default currencies cascade down to new supplier sites.

4. At the supplier site level, the default from the parent supplier can be changed.



Entering Processing Invoices for Euro Settlements Oracle Payables N → Invoices → Entry Invoices

Invoices

How to Enter Processing Invoices for Euro Settlements

When you enter invoice information, enter an associated fixed rate currency as the payment currency. For example, you can enter FRF as the invoice currency, and another EMU currency as the payment currency. Enter the cross rate date or accept the default. Oracle Payables provides the fixed rate, the rate type of EMU Fixed, and the default rate date. You can override the rate date.

1. Invoice currency defaults from supplier or supplier site. The invoice currency can be any currency enabled in the Currencies window. You can only modify the invoice currency during the invoice entry.



Entering Processing Invoices for Euro Settlements

2. In the Payment Currency field, enter the currency in which you want to pay the invoice. You must first define a fixed relationship between the invoice currency and the payment currency.

3. In the Payment Rate Date field, the date that system validates the payment currency by verifying that there is a fixed relationship defined in the Currencies window.

For example, based on the following assumptions: − Invoice currency is FRF and the payment currency is euro. − The FRF is defined as a fixed rate currency as of May 1, 1998. − A nonfixed rate for the FRF is defined in the Daily Rates window, effective

from January 1, 1960 to April 1, 1998.

The transaction is rejected if the Payment Rate is before May 1, 1998 and it is accepted if the payment rate is on or after May 1, 1998.

4. Payment Rate Type and Payment Rate: Oracle Payables displays the information in these fields only when the invoice and payment currencies are different.

• Oracle Payables verifies that the two currencies have a fixed rate relationship.

• Assigns a Payment Rate Type of EMU Fixed.

• If the two currencies have a defined rate, Oracle Payables retrieves that rate.

• If the two currencies have a defined relationship through a fixed rate, Oracle Payables calculates the rate.

5. Rate Type, Exchange Date, and Exchange Rate: The information in these fields, pertain to the relation between the functional currency and the invoice currency. Oracle Payables retrieves or calculates the rates from the Daily Rates, Period Rates, or Currencies windows.



Using Multiple Currencies: Overview

System Setup for Multiple Currency

In the Currencies window, enable the foreign currencies you want to use. See: Currencies Window.

• Choose your functional currency in the Set of Books 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.

• Enter Daily Exchange Rates. See: Entering Daily Rates (optional)

• Define foreign currency bank accounts and payment documents. See: Defining Banks.



Entering Exchange Rate Information for Invoices Oracle Payables N → Invoices → Entry → Invoices Invoices

Invoices

How to Enter Exchange Rate Information for Invoices

1. Rate Type: For Spot or Corporate rate types, Oracle Payables automatically enters an exchange rate if the rate exists in the Daily Rates table. For a User rate type, enter your own exchange rate.

• Spot rate type: A daily exchange rate that is a quoted market rate

• Corporate rate type: A standard market rate determined by senior management for use throughout the organization

• User rate type: Used to manually enter your own exchange rate during invoice entry or at payment time

If you select Spot or Corporate rate type, Oracle Payables automatically enters the invoice exchange rate from the Daily Rates table.



Entering Exchange Rate Information for Invoices

2. Exchange Date: For the User Rate type, enter the exchange rate date.

3. Exchange Rate: Enter the corresponding exchange rate for the exchange date.

4. Oracle Purchasing will automatically capture and store the exchange rate at the time of the receipt. When Payables matches invoice to purchase order receipts, the exchange rate at the time of receipt will be used to calculate the exchange rate variance.

5. Oracle Payables places a No Rate hold on foreign-currency invoices that do not have a defined exchange rate.



Paying Foreign-Currency Invoices Oracle Payables N → Payments → Entry → Payments Payments

Payments

How to Pay Foreign-Currency Invoices

To pay an invoice in the same currency as the invoice currency:

1. Select a foreign-currency bank account.

2. Use any payment method to pay foreign-currency invoices.

3. Enter exchange rate information for the payment.



Paying Foreign-Currency Invoices

To enter exchange rate information for foreign-currency payments:

1. If exchange rate information exists in the Daily Rates table, Oracle Payables automatically enters exchange rate information for Spot and Corporate rate types.

2. Enter exchange rate information manually for the User exchange rate.

3. To enter exchange rate information for payments missing exchange rates, Click Submit AutoRate from the Submit Request window.



Reviewing Unrealized Gains and Losses Oracle Payables

N → Other → Requests → Run

Submit Request

Submit Request

How to Review Unrealized Gains and Losses

• Submit Unrealized Gain/Loss report to review unrealized gains and losses on foreign currency invoices.

• An unrealized gain or loss occurs on an unpaid foreign currency invoice when the exchange rate changes.

• Oracle Payables runs this report by currency and supplier.

• The report provides you with a total for each currency and a total for all the currencies. Oracle Payables prints supplier names alphabetically within each currency.

• Use the Submit Requests window to submit this report.



Using Automatic Offsets

• Consider using automatic offsets if you enter invoices for expenses or assets for more than one balancing segment.

• By enabling automatic offsets, Oracle Payables allocates the liability, discount taken, and gain or loss entries across multiple balancing segments.

• If you do not enable automatic offsets, Oracle Payables records the liability, discount, and gain or loss entries in the accounts you specify in the Payables Options and Bank windows.

Overview

If you enter invoices for expenses or asset purchases for more than one balancing segment, consider using automatic offsets to keep Oracle Payables transaction entries balanced at the balancing segment level.

For an invoice, Oracle Payables creates offsetting liability distributions. For a payment, Oracle Payables creates offsetting cash and discount taken distributions. This helps to ensure that each set of accounts remains balanced by balancing segment. Otherwise, Oracle Payables records offsetting entries using the liability account from the supplier site, the cash account associated with the bank account used for payment, and the discount account specified in the Payables Options window.

Alternatively, you can set up intercompany accounting in Oracle General Ledger so that General Ledger automatically creates the intercompany accounting entries necessary to balance a transaction at the balancing segment level. If you choose to use intercompany accounting instead of automatic offsets, Oracle Payables transactions that cross multiple balancing segments will not balance at the balancing segment level until you transfer them to Oracle General Ledger and submit the Journal Import program.



Using Automatic Offsets Oracle Payables N → Setup → Options→ Payables Payables Options

Payables Options

Enabling Automatic Offsets

1. In the accounting region of the Payables Options window, choose Account or Balancing as your automatic offset method.

• Account: Oracle Payables retains all segments except the distribution's account segment when it builds an offsetting account. Use this option if you want all of your accounts to preserve the same level of distribution detail.

• Balancing: Oracle Payables retains only the distribution’s balancing segment when it builds an offsetting account. Companies typically find this level of detail sufficient.



Using Automatic Offsets

2. Select Audit as the Journal Entry Creation default for liability, discount taken, gain or loss, and cash clearing transactions. This enables Oracle Payables to supply General Ledger with the information needed to create detail balancing journal entries when you run Journal Import.

3. Optionally, leave the Create Summarized Journal Entries check box cleared. Oracle Payables can then create journal entries with invoice and cash distributions in detail.



Using Automatic Offsets Oracle Payables N → Setup → Options→ Payables Payables Options

4. In the Payment region of the Payables Options window, choose System Account as the discount distribution method if you want Oracle Payables to prorate discounts across the invoice distributions when you pay an invoice that crosses multiple balancing segments. The balancing segment from the offsetting invoice distribution replaces the balancing segment of the system discount taken account when Oracle Payables builds the accounts for these entries.



Creating a Pooled Account Oracle Payables N → Setup → Payment → Banks B → Bank Accounts Bank Accounts

Bank Accounts

How to Create a Pooled Account

• To create a pooled account, select the Pooled Account check box in the Payables Options region of the Bank Accounts window. − The cash in a pooled bank account is shared by multiple balancing segments. − The cash in a non-pooled bank account is associated with a single balancing

segment.



Creating a Pooled Account

When you create a payment from a pooled bank account by using automatic Offsets, Oracle Payables automatically builds the cash account for each payment distribution on the basis of the bank account’s associated cash account by using the chosen automatic offset method.

When you make a payment using a non-pooled bank account, Oracle Payables generates only a single cash offset even if automatic offsets is enabled. For payment distributions that cross balancing segments, you can either enter balancing entries manually or set up Oracle General Ledger to create them automatically on posting.



Implementing Sequential Numbering

How to Implement Sequential Numbering

1. Select Sequential Numbering Profile check box. In the System Administrator responsibility, set the Sequential Numbering Profile option to Always Used, Not Used, or Partially Used for the site level.

2. Define document categories. In the System Administrator responsibility, define additional document categories. Oracle Payables predefines document categories for invoices and payments.

3. Define document sequences. In the system administrator responsibility, define sequence names.

4. Assign document sequences to document categories. In the system Administrator responsibility, associate a document sequence to one or more combinations of applications, set of books, document categories, creation method (manual or automatic), and a range of transaction dates.

5. Optionally, enable document category override.

• As a Payables Option, override the default document category assigned to invoice and payment documents.

• Optionally, override the default document category for invoices.

• Optionally, override the predefined payment document category.



Using Sequential Numbering

How to Use Sequential Numbering

You can assign sequential voucher numbers to each invoice and payment in the Oracle Payables system to ensure that you have a unique number for each document. You can also maintain an audit trail if you post detail journal entries in your general ledger, because you can trace a journal entry back to the original document.

For the following documents you manually create, you can manually enter a voucher number in the Voucher Number field of the Invoices or Payments window, or have Oracle Payables enter it automatically:

• Manually entered invoices

• Manual payments

• Quick payments

For the following documents that Oracle Payables automatically creates, you can have Oracle Payables automatically assign automatic sequential voucher numbers, but you cannot manually enter voucher numbers:

• Invoices created during Payables Invoice Import

• Invoices created from recurring invoice templates

• Payments created in a payment batch

• Interest invoices



Summary

In this lesson you should have learned how to

• Balance entries for intercompany transactions

• Pay invoices in a currency other than the invoice currency

• Enter and pay multiple currencies invoices

• Review unrealized gains or losses

• Use automatic offsets

• Use sequential numbering


Reporting, Accounting, and Auditing Setup Chapter 35 - Page 1

Reporting, Accounting, and Auditing Setup Chapter 35



Reporting, Accounting, and Auditing Setup

Section Objectives


• Discuss the basic concepts of reporting, accounting, and auditing setup within Oracle Payables.





• Selecting a set of books

• Setting up multiple currencies

• Setting up foreign-currency bank accounts

• Defining accounting and audit levels

Effective Exchange Rate Calculation

A new option enables Oracle Payables to calculate effective invoice exchange rates. If the converted amount of a foreign currency invoice is already determined, then Oracle Payables can calculate and enter the exchange rate for that invoice.

Automatic Bank Transmission

Oracle Payables integrates with Workflow to automate the transmission of electronic payment files to your bank and the retrieval of payment confirmation messages from your bank. When you format a payment batch or Quick payment that uses a transmittable payment document, Oracle Payables automatically sends the payment file to your bank. Workflow notifies the designated users of transmission status, and the new transmissions window allows you to view details of files transmitted by this feature. Setup for this feature requires you to implement a custom java class to provide transmission logic.



Selecting a Set of Books Oracle Payables N → Setup → Set of Books → Choose Set of Books

Set of Books

How to Select a Set of Books

A set of books defines the account structure, accounting calendar, and functional currency that the organization uses to record transactions in Oracle Payables. You can choose one primary set of books for each installation of Oracle Payables. You can choose a secondary set of books in the Accounting Methods region of the Payables Options window if you are keeping both an accrual and a cash set of books.

Your responsibility determines with which set of books you are working.

To select the primary set of books:

1. Open the Set of Books window.

2. Enter the name of the set of books.

3. Save your work.



Setting Up Oracle Payables to Use Multiple Currencies Oracle Payables N → Setup → Options → Payables Payables Options

Payables Options: Currency Region

How to Set Up for Multiple Currencies

1. Enable the Use Multiple Currencies option if you want to enter and pay invoices in a currency different from your functional currency. Oracle Payables also enables you to define a multiple currency payment format and bank account if you enable this option.

2. Enable the Require Exchange Rate Entry to require entry of an exchange rate whenever you enter an invoice or a payment in a currency other than your functional currency. If you maintain daily rates in the Daily Rates window, Oracle Payables defaults the rate automatically, based on the date and the rate type you enter. Oracle Payables always requires you to enter an exchange rate when you use the User exchange rate type, even if you do not enable this option.



Setting Up Oracle Payables to Use Multiple Currencies

3. Select the default exchange rate type for entering invoice and creating payments.

4. Enter the GL exchange gain and loss accounts. Oracle Payables uses these accounts as the default realized gain or loss account for payments from the bank accounts.

5. Enter the Rounding account. Oracle Payables uses this account when you use multiple currencies.



Setting Up Foreign-Currency Bank Accounts Oracle Payables N → Setup → Payment → Banks B → Bank Accounts Bank Accounts

Bank Accounts

How to Set Up Foreign-Currency Bank Accounts

To define a single-currency bank account:

1. Define a bank account currency other than the functional currency to create a single-currency bank account.

2. Define payment documents that use single-currency payment formats or multiple-currency payment formats.

3. Use a bank account to pay invoices in one currency only by not selecting the Multiple Currency Payments check box.



Setting Up Foreign-Currency Bank Accounts

To define a multiple-currency bank account:

1. Define the functional currency as the bank account currency, and select the Multiple Currency Payments check box to use a bank account to pay invoices in multiple currencies.

2. Select a payment currency when paying all invoices in a batch. For example, use the same multi-currency bank account to pay British pound sterling invoices in one batch and French francs invoices in another batch.



Defining Accounting and Audit Levels Oracle Payables N → Setup → Option → Payables Payables Options

Payables Options: Accounting Region

How to Define Accounting and Audit Levels

Use the Accounting region of the Payables Options window to control accounting information for your Oracle Payables system.

1. Enable automatic offsets by selecting Account or Balancing as the offset method if you want Oracle Payables to automatically create balancing entries for the invoice and payment transactions. If you enable automatic offsets, for invoice transactions, Oracle Payables creates one offsetting liability distribution for each invoice distribution, according to the offset method you choose.

2. You can select one of following options: − None: Do not use automatic offsets. For invoice transactions, Oracle Payables

creates one liability distribution; and for payment transactions, Oracle Payables creates one cash type payment distribution.



Defining Accounting and Audit Levels − Account: When creating the offsetting liability account, Oracle Payables uses the

expense GL account from the invoice distribution and overwrites the account segment with the default liability account from the supplier site.

− Balancing: Oracle Payables uses the supplier site's default liability account and overwrites the balancing segment (usually the cost center code) with the balancing segment from the expense distribution GL account.

3. Accounting Methods: Methods used to create accounting entries for transactions in accordance with cash basis, accrual basis, or both (combined basis) accounting methods.

− Primary Accounting Method: Accounting method you use for your primary set of books. Although the Primary Accounting Method is not a required field, you cannot transfer invoice and payment information to your general ledger until you have entered a primary accounting method.

4. Set of Books (Primary/Secondary): Oracle Payables displays the primary set of books you selected in the Choose Set of Books window. If you use a secondary set of books, select its name from the list of values. Your secondary set of books must have the same currency, chart of accounts, and calendar as your primary set of books.

5. Cash Clearing: You can enable only one of the following two options: − Allow Reconciliation Accounting: Select this option if you want Oracle Payables to

create reconciliation accounting entries for cash clearing, bank charges, bank errors, and exchange rate gain or loss when you reconcile payments using Oracle Cash Management.



Defining Accounting and Audit Levels − Allow Future Payment Method: Select this option if you want to use the future dated

and manual future dated payment methods in Oracle Payables. If you use the future payment method, you can create a payment document with a future date (maturity date). The payment document instructs your bank to disburse funds to your supplier's bank on the maturity date.

You cannot use reconciliation accounting if automatic offsets are used.

5. Gain or Loss: Select the method for maintaining audit information for the foreign currency gains and losses if you use multiple currencies.

− Audit: Oracle Payables maintains detail audit information for your gain or loss transactions when you post payments to your accrual set of books.

No Audit: Oracle Payables maintains summary records of the invoice and payment transactions for each unique foreign currency gain or loss account when you post payments to your accrual set of books.

Discount Taken: Select the method for maintaining audit information for your discount distributions.

− Audit: Oracle Payables maintains detail audit information for the invoice discount transactions, when you post payments to your accrual and cash sets of books.

− No Audit: Oracle Payables maintains summary records of the invoice and payment transactions for each unique discount taken account when you post payments to your accrual and cash sets of books


System and Profile Options Chapter 36 - Page 1

System and Profile Options Chapter 36



System and Profile Options

Section Objectives


• Profile options in Oracle Payables.



Profile Options in Oracle Payables

During your implementation, you set values for profile options in Oracle Financials to specify how Oracle Payables controls access to and processes data. In addition to the Oracle Payables profile options, Oracle Payables uses profile options from other Oracle Financials applications to control features, such as Budgetary Control and Sequential Numbering, which affect more than one application.

If you have installed Oracle Self-Service Web Applications and your organization uses Oracle Web Employees to enter expense reports, you can also enter WebExpense profile options to control expense report entry by your organization’s employees. If your organization does not use Oracle Web Employees to enter expense reports, ignore the WebExpense profile options.

In addition to profile options, Oracle Payables provides you with Financials and Payables options that you use to enable the invoice, payment, currency, tax, and accounting controls in Payables.

Your System Administrator sets many of these user profile options at one or more of the following levels:

• Site

• Application

• Responsibility

• User.

Use the Personal Profile Options window to view or set your profile options at the user level. Consult your Oracle Applications System Administrator’s Guide for a list of profile options common to all Oracle Applications.

Profile Option Migration

Profile options that were previously assigned to applications responsibility to control the application behavior of a single operating unit are to be migrated to more natural locations. Profile Option Migration is a pre-requisite for supporting Multi-Org Access Control in the future.

As part of the Profile Option Migration, Payables made the following changes, without altering existing functionality:

• AP: Bank File Character Set profile option: This option was moved to the Payment Formats window.

• AP: Enter Alternate Fields profile option: This profile option was made obsolete. The alternate fields that this profile option previously enabled are now standard fields.



• AP: Sort by Alternate Fields profile option: This option was moved to the Reports region of the Payables Options window.

• Use Batch Controls: This option was moved from the Invoice region of the Payables Options window to become a profile option. The new profile option is called AP: Use Invoice Batch Controls.


Payables Reports Chapter 37 - Page 1

Payables Reports Chapter 37



Payables Reports

Section Objectives


• Reference these Oracle Payables reports



Payables Programs

Payables provides the following programs:

• AutoRate Program

• Credit Card Invoice Interface Summary

• Employee Update Program

• Expense Report Import Program

• Invoice Validation Program

• Mass Additions Create Program

• Payables Accounting Process

• Payables Open Interface Import Program

• Payables Transfer to General Ledger Program

• Procurement Card Transaction Validation Report

• Purge Payables Open Interface

• Purging Records

• Supplier Merge Program

• Unaccounted Transactions Sweep Program

• Unapply Preupgrade Prepayments Program

• Update Income Tax Details Utility and Report

• Update Matured Future Payment Status Program



Supplier Reports

Invalid PO Supplier Notice

Use the Invalid PO Supplier Notice to create a notice informing a supplier that you placed an invoice on hold because the supplier did not provide a purchase order number for matching or you could not use the purchase order number provided by the supplier. Payables creates a notice for each supplier with invoices to which you have manually applied an Invalid PO hold.

This notice lists the invoice number, date, and amount and asks the supplier to provide a valid purchase order number. Payables also provides a summary listing displaying the supplier name, site name, invoice number, invoice date, and invoice amount of all the notices that Payables created. You can use this summary for reference purposes and to keep track of how many replies you receive.

Payables prints the notice in the preferred language of the supplier., based on the language you specified in the Language field for the supplier in the Supplier Sites window.

Purchase Order Header Updates Report

Use the Purchase Order Header Updates Report to review purchase orders updated by the Supplier Merge program.

This report prints the new (correct) and the old (duplicate) suppliers. It then lists for each updated purchase order the purchase order number and name of the purchasing agent.



Supplier Reports

Supplier Audit Report

Use the Supplier Audit Report to help identify potential duplicate suppliers. For example, you enter a supplier named Oracle Corporation, and another supplier named Oracle Corp. This report lists active suppliers whose names are the same up to a specified number of characters. The report ignores case, spaces, special characters, etc.

You may want to run the report with different parameters to fine tune your search. Specify a length short enough to identify duplicates, such as Comco and Comco, Inc., but long enough to avoid obviously different supplier names, such as General Instruments and General Electric.

The report lists all site names and addresses of each potential duplicate supplier. Payables inserts a blank line between groups of possible duplicate suppliers. Review the report to determine which suppliers are duplicates. After you have identified duplicate suppliers, you can combine them using Supplier Merge. If you merge purchase order information, then any references to the supplier in blanket purchase orders, quotations, and autosource rules are updated to the new supplier.

Supplier Customer Netting Report

This report displays the net balance in Oracle Payables and Oracle Receivables for any Suppliers and Customers who have the same name, NIF Code, or VAT Registration. For example, if you sell to Kline Manufacturing, but you also purchase goods from them, they are considered both a customer and a supplier.

The Supplier Customer Netting report will show a transaction listing and total balance for Receivables and Payables where the transactions are in the selected currency and for the selected range of customers or suppliers. The report will calculate a net amount owed where a customer and supplier exist with exactly the same name. This amount will be calculated as Receivables minus Payables.

Supplier Mailing Labels

Use this report to create mailing labels for supplier sites. You can order your labels by supplier or by postal code. You can print mailing labels for any of your supplier's active sites.



Supplier Reports

Supplier Merge Report

The Supplier Merge Program is a utility you can use to maintain your supplier records. You can use it to merge duplicate suppliers into a single, consolidated supplier. You can use it to merge transactions within the same supplier from one supplier site to a different suppler site. You can choose to merge all transactions for a suppler into a new supplier, or you can just choose to merge unpaid invoices. This option is useful in the case of an acquisition. In that case you may want to leave all of the transaction history with the original supplier and only merge unpaid invoices to the new supplier who now wants to receive the payments.

The report lists the new (correct) suppliers and the old (duplicate) suppliers. The report also lists invoice information for invoices updated for each set of new and old suppliers. Payables prints the total number and total amount of invoices that have been updated for each set of merged suppliers.

Payables also prints the total number of duplicate invoices. You can use this report to identify any duplicate invoices, update the invoice number on one of the invoices, and then resubmit Supplier Merge.

Supplier Open Balance Letter

Use this report for auditing purposes or to periodically inform your suppliers of open balances. This letter contains an introductory paragraph, individual transaction information, and the outstanding balance due for a supplier site as of a specific date.

You can run the report for supplier invoices for all currencies in which a supplier does business or for only one currency. The report summarizes balances by currency.

When calculating a supplier's open balance, the report includes invoices, payments, uncleared payments, discounts taken, and paid prepayments. Payables uses the following formula to calculate the balance due:

Sum of Open Invoices - Paid Prepayments = Open Balance



Supplier Reports

Supplier Paid Invoice History Report

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.

The report lists supplier payments alphabetically by supplier and site. Payables separates invoice amounts paid in foreign currencies from invoice amounts paid in your functional currency by printing a subtotal of the paid invoices by currency.

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. You can submit this report by supplier or supplier type to review the payments you made during a time range you specify.

This report provides totals for the payments made to each supplier site, each supplier, and all suppliers included in the report. If you choose to include the invoice details, Payables displays the paid invoice's invoice number, date, invoice amount, and amount paid by the payment. This report also displays the void payments for a supplier site, but does not include the amount of the void payment in the payment total for that supplier site.

The report lists supplier payments alphabetically by supplier and site. You can additionally order the report by Payment Amount, Payment Date, or Payment Number. All amounts are displayed in the payment currency.

Suppliers Report

Use the Suppliers Report to review detailed information about your supplier records. You can use this report to verify the accuracy of your current supplier information and to help manage your master listing of supplier records. Payables provides detailed information for each supplier, and optionally, supplier site, including the user who created the supplier/site, creation date, pay group, payment terms, bank information, and other supplier or site information.

You can sort the report by suppliers in alphabetical order, by supplier number, by the user who last updated the supplier record, or by the user who created the supplier record.



Income Tax Forms and Reports

Payables provides the following income tax forms and reports:

• 1096 Form

• 1099 Forms

• 1099 Invoice Exceptions Report

• 1099 Payments Report

• 1099 Electronic Media

• 1099 Supplier Exceptions Report

• Tax Information Verification Letter

• Withholding Tax By Invoice Report

• Withholding Tax By Payment Report

• Withholding Tax By Tax Authority Report

• Withholding Tax By Supplier Report

• Withholding Tax Certificate Listing

• Withholding Tax Letter

• Withholding Tax Report



Invoice Reports

Accrual Reconciliation Report

The Accrual Reconciliation Report can be used 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 approved invoice, Payables clears the A/P accrual accounts and records the liability from the supplier site.

Unaccounted Transactions Sweep Program

The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accounting period to another. The program redates all accounting dates of all unaccounted transactions to the first day of the open period you specify.

Expense Report Import Report

Use this report to review detailed information for each Expense Report type invoice that Payables imports during Expense Report Import. You can also review the total number and amount of invoices that Payables successfully imported. This process creates invoices from Payables, Oracle Internet Expenses, and Oracle Projects expense reports.

You can submit the Expense Report Import report in summary or in detail by using the Summarize Report parameter when you submit Expense Report Import. The summary report displays only the total number and amount of imported invoices.

This report has multiple sections:

• Audit Report. This report lists the invoices that Payables has successfully imported.

• Exceptions Report. This report lists employees with expense reports that Payables was not able to import.

• Prepayments Applied Report. This report lists prepayments applied to expense reports that are imported into Payables.



Invoice Reports

Batch Control Reports

Use the Batch Control reports to review invoice batches. You can run either report to review invoice entry and identify and resolve batch variances.

The report you choose determines the order in which the invoice batches are listed:

• 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 Batch Entered By: Lists invoice batches in order of entry person. Also sorts by batch name.

Each report displays the user id of the person who entered a batch for easier research, or to review employee performance. Each report also prints the control count and the control total of invoices for all batches. Each report prints the difference between the total control count and the actual control count, as well as the difference between the total control amount and the total of actual invoice amounts.



Invoice Reports

Managing Credit Card Outstanding Transactions

After importing and validating credit card transaction files, use the Credit Card Outstanding Transactions programs and reports to identify and manage transactions that were not imported and require further action. A transaction appears in any of the Credit Card Outstanding Transactions reports until the expense report to which it belongs is imported into Payables.

There are three programs for managing credit card outstanding transactions:

• Credit Card Outstanding Transactions Management (Details)

• Credit Card Outstanding Transactions Summary Report

• Credit Card Outstanding Transactions Management (Aging)

Each program generates a report for the extracted data. When you run the Details or Aging program, Payables also notifies the necessary personnel of the outstanding transactions. If a transaction has not been included in an expense report, or included in an expense report that was not submitted, a notification is sent to both the employee and the manager indicating the amount and date of the transaction. If an expense report requires manager approval, a notification is sent to the manager with the corresponding expense report number.

Credit Card Outstanding Transactions Management Details

Use the Credit Card Outstanding Transactions Management Details report to print detailed information about the outstanding transactions of a particular credit card program. The report orders results by transaction date and amount. You can run this report for all employees, current employees only, or inactive employees only.



Invoice Reports

Credit Card Outstanding Transactions Summary Report

Use the Credit Card Outstanding Transactions Summary Report to view summary transaction information of a particular credit card for one or more employees. The report orders results by manager and employee, and shows for each employee the employee status and total amount outstanding. The report includes outstanding transaction subtotals for each manager.

Credit Memo Matching Report

This report lists credit memos and debit memos that match the supplier and date parameters you specify. The report lists the following for each credit memo's distribution lines: the distribution line amount in functional currency, the distribution line GL Date, the invoice to which it is matched, and any exchange rate information.

The report also lists the total of the distribution line amounts of each credit memo in your entered currency and your functional currency. It also lists total credit memo amounts for each supplier, and a total amount for the report.

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.

If you use multiple currencies, the report converts invoice amounts into your functional currency. If this report includes foreign currency invoices with missing exchange rates, the amounts appear as null values. We recommend that before submitting this report that you run the AutoRate program to provide any missing exchange rate information.

Invoice Approval Status Report

Use the Invoice Approval Status Report to monitor invoices that are in the Invoice Approval Workflow process as of the date and time the report is run. The report also shows invoices that have completed the process because they were approved or rejected.

You can use this report to determine which invoices require approval (regardless of payment status) and review all pending approvers for a particular supplier. This report also provides a report version of the information that is displayed in the Invoice Approval History window.



Invoice Reports

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.

Payables sorts this report by voucher number.

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. For example, you may want to only audit invoices over $1000. You can specify a minimum invoice amount, and sort invoices by amount, then supplier name and date.

You can also use this report to obtain a listing of your invoices by invoice type. For example, you can submit the report to obtain a listing of just your expense report invoices or your prepayments.

Invoice Audit Report

Use the Invoice Audit Report to audit invoices for duplicates.

• Number of matching characters in the invoice number. For example, if you enter 5 then the first 5 characters of each invoice number must match.

• (optional) same supplier name

• (optional) same supplier type

• (optional) same invoice date

Payables sorts the report alphabetically by supplier name, and lists possible duplicates together on consecutive lines.



Invoice Reports

Invoice History Report

The Invoice History Report provides information to support the balance due on an invoice. It helps you quickly identify and review a detailed list of all payment activities pertaining to a specific invoice such as gains, losses, and discounts. All amounts on this report are shown in the payment currency.

Attention: Payments must be accounted before the associated payment activities are shown on the Invoice History Report. Run the Payables Accounting Process before generating this report to ensure that you are seeing the most accurate invoice history information.

Invoice on Hold Report

Use the Invoice on Hold Report to identify invoices on hold. The report provides you the total number and amount (in your functional currency) of invoices on hold, which can be helpful for your accounts payable metrics. Run the Invoice Validation process before submitting this report to obtain the most up-to-date hold information. To obtain additional detail and help research invoices on matching hold, you can use the Matching Detail Report or the Matching Hold Detail Report.

Invoice Register

Use the Invoice Register to review detailed information about invoices. Payables orders the report by invoice currency and, if you use batch control, by the invoice batch name. Within the currency and batch name, the report orders by the supplier name and invoice number.

Invoice Validation Report

Use the Invoice Validation Report to review the total number of matching and variance holds that Payables applies and releases after you submit Invoice Validation. If you use budgetary control, Payables also lists any funds control holds.

The same invoice may be counted in more than one category or even twice in the same category because each invoice can be matched to more than one purchase order line and more than one match rule can be violated. The same invoice can also have one or more matching holds, a tax and distribution variance hold, and a funds control hold.



Invoice Reports

Matched and Modified Receipts Report

Use this report to identify receipts that have been changed after invoice matching, and for which no users have seen modifications. Modifications include quantity adjustments and return to supplier transactions. This report displays modified receipts and invoice distributions matched to them.

The report displays modified receipt lines only if they are matched to a Payables document (invoice, credit memo, or debit memo) and meet the criteria below.

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. Data entry errors can occur during matching, and the information in this report can help in researching these problems. When you submit the report, you specify an invoice, a purchase order, or a receipt and the report shows all distributions matched to that transaction.

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. You can print this report for all invoices with matching holds and releases during a time period you specify, or you can print this report to review only invoices with matching holds applied or released since the last time you submitted Invoice Validation.

This report can assist you in identifying suppliers that frequently have invoices on matching hold. This report can also help you to respond to supplier questions on delayed payments.

Attention: Enter purchase orders in Purchasing, match invoices to the purchase orders, and validate the invoices before you submit the report, because the report lists only invoices with matching holds and/or releases. To review invoices with matching and other types of holds, you can use the Invoice on Hold Report.

Open Items Revaluation Report

Use the Open Items Revaluation report to revalue the balances of your open items.

Open items in this report are all invoices (including prepayments, credit memos, and debit memos) that are unpaid as of the last date of the revaluation period you specify.



Invoice Reports

Payables Open Interface Import Report

Use this report to review detailed information for each invoice Payables imports during Payables Open Interface Import

• The Audit section lists the invoices that Payables has successfully imported. If you choose to summarize the report when you import, then the Audit section will list only the number of invoices selected for import, and the number of successfully imported invoices.

• The Rejections section lists invoices that Payables was not able to import and lists the rejection reasons.

Prepayments Applied Report

Use this report to review the advances (prepayments) applied to expense reports you import into Payables. Payables displays a listing of all prepayments that were applied during Expense Report Import.

Prepayments Status Report

Use the Prepayments Status Report to review the unapplied prepayments and unpaid or partially paid invoices for a supplier. You can compare the invoices and prepayments for a supplier to determine if there are outstanding prepayments which you can apply against unpaid invoices.

You can submit the report for either Temporary or Permanent prepayments, or a combination of a specific prepayment type with credit/debit memos and invoices. You can view the distribution detail for validated and paid prepayment invoices. Payables displays the prepayment item distributions that have an amount remaining greater than zero.

The report provides subtotals for the prepayments, credit/debit memos, and invoices in each currency for a supplier. The subtotal for prepayments includes validated and paid prepayments. You can apply only a paid temporary prepayment to an invoice. All amounts and subtotals are displayed in the invoice currency. The subtotal for available prepayments is displayed as a negative amount. The subtotal for Permanent prepayments is displayed as a positive amount.



Invoice Reports

The report also provides a total of the available prepayments, credit/debit memos, and invoices, which is the sum of the three subtotals, in each invoice currency for the supplier. A positive total indicates the invoice amount outstanding for a supplier if all available prepayments are applied and all outstanding credit/debit memos are paid. A negative total indicates the prepayment or credit/debit memo amount still available, if all existing invoices are fully paid by applying available prepayments and credit/debit memos.

Payables groups the report by supplier name, invoice currency and payment currency combination, and invoice type. Data is then sorted by invoice date and invoice number.

Recurring Invoices Report

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. The report also lists the number of periods remaining for a recurring invoice and the next period you have scheduled.

The report lists recurring invoice templates by supplier and site.

Unrealized Gain/Loss Report

Use this report to review unrealized gains and losses on foreign currency invoices. An unrealized gain or loss occurs on an unpaid foreign currency invoice when the exchange rate changes.

You usually calculate unrealized gains and losses at the end of an accounting period. You may also want to submit this report whenever there is a large movement in the value of a foreign currency as compared with your functional currency.

Payables orders this report by currency and supplier. The report provides you with a total for each currency and a total for all the currencies. Payables prints suppliers names alphabetically within each currency.



Invoice Tax Reports

Financial Tax Register

Use the Financial Tax Register to view the output from the Tax Reporting Ledger. The Financial Tax Register consists of accounting information created in Oracle Receivables, Oracle Payables, and Oracle General Ledger. The Financial Tax Register uses this data to generate Tax Register reports using the RXi reporting tool.

The following tax registers are available:

• Tax Register

• Interim Tax Register

• Nonrecoverable Tax Register

Intra-EU VAT Audit Trail Report

Use the Intra-EU VAT Audit Trail Report to review invoice and tax information for your intra-EU invoices. Intra-EU invoices are invoices that you receive from suppliers located in European Union member states other than the member state in which your organization is located. You are not required to pay Value-Added Tax (VAT) for intra-EU invoices, but you are required to maintain records and report on the VAT amounts for these invoices. Payables allows you to record these tax liabilities by creating offsetting tax amounts for each tax amount on an invoice.

This report includes invoices for any supplier site that is a VAT member of the EU. A supplier site is a VAT member of the EU if the country for the supplier site address is a VAT member of the EU. You can designate whether a country is a VAT member of the EU in the Countries and Territories window.

This report lists the invoice amounts, sales tax amounts, and offset tax amounts for all the intra-EU invoices you specify. Payables sorts the report by supplier, supplier site, and VAT registration number. You can choose to also order the report by country. You can choose to submit the report in summary or detail.

If you are using multiple currencies, Payables displays invoice amounts and totals converted to your functional currency. If you enter a foreign currency invoice without an exchange rate, Payables displays 0 (zero) in the invoice amount and tax amount columns and does not include the invoice in the report total.



Invoice Tax Reports

Tax Audit Trail Report

Use this report to review tax information for posted or partially posted invoices you select. You can order this report either by Tax Code or Invoice.

Payables provides detail tax and invoice information and the total amounts for each tax value (tax code or tax group), invoice currency, and functional currency in addition to the total amount for each tax value. For each tax value you specify, Payables lists distributions of all posted or partially posted invoices that have a corresponding Tax distribution with the tax value you specified. For each invoice, Payables specifies the tax amount as well as the invoice amount subject to tax. The report summarizes by invoice and tax code value any distributions that have associated tax amounts, and any that have a zero-rated tax code, even if there is no zero-amount Tax distribution.

Attention: If you choose to prorate any payment discounts across your tax distributions, the tax amounts included in this report are the gross tax amounts, not the prorated tax amounts. You define your discount distribution method in the Payables Options window

Use Tax Liability Report

Use this report to determine the amount of use tax you owe to each tax authority for invoices you enter during a period. Payables defines Use Tax as the amount of tax a supplier should have, but did not, charge you for an invoice. You must enter a Use tax code(s) on invoice distributions for Payables to select the invoice in this report.

Payables determines the use tax liability for each use tax code by taking the tax rate you defined for each tax code and applying it to the sum of each invoice distribution with a particular tax code. Payables ignores Sales tax codes in this report.

The report lists in summary or detail the total amount of tax you owe for each tax code on invoices you enter between two dates you specify when you submit the report. Payables displays the amount of use tax you owe in the currency in which you entered an invoice.



Payment Reports

Cash Requirement Report

Use the Cash Requirement Report to forecast your immediate cash needs for invoice payments. You can submit this report before every payment batch to determine your cash requirements for the batch. You can also submit this report for the next two or three payment batches to forecast your cash requirements for the future and improve your cash management.

You can submit this report for a single currency or for all currencies. The report is ordered by currency and lists cumulative invoice totals in the invoice currency. The report provides in your functional currency a sum of all invoices of each currency, and a sum of all invoices on the report. The report alerts you if any invoices in the currency are missing exchange rates.

This report lists unpaid or partially paid invoices that match parameters you enter. The report does not include cancelled or fully paid invoices.

If you submit the Cash Requirement Report with No for the Summary Option parameter, the report lists all unpaid or partially paid invoices for a currency, by payment date and supplier name, starting with those invoices with the earliest due or discount date. Payables subtotals the amount due for each supplier and then for each payment date.

If you submit the Cash Requirement Report with Yes for the Summary Option parameter, the report lists the cash requirements by supplier for each currency and each payment date without displaying each invoice.

Note that this report may include invoices that you plan to pay with future dated payments. If the payment date you specify is before the expected maturity date, you will not require immediate cash to pay those invoices. You can submit the Future Payment Maturity Date Report to help plan your cash needs for future dated payments.

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 payment batch selection criteria to make sure that you take all valid discounts.

Suggestion: You can submit the Discounts Available Report before a payment batch to identify payments where you can take advantageous discounts.



Payment Reports


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 payment batch selection criteria to make sure that you take all valid discounts.

The report groups the invoice amounts by currency and prints a separate page for each currency. For each supplier and currency, Payables also provides the totals of your invoice amounts and discounts taken or lost in your functional currency.

E-mail Remittance Advice

The E-mail Remittance Advice program sends remittance advice information to suppliers in e-mail format. It is not necessary to use this feature if remittance advice information is attached to your payment document.

To activate this feature for a supplier, enter a remittance e-mail address in the Payment region of the Supplier Sites window. Remittance e-mails are automatically generated during the payment process when you confirm a payment batch or create a Quick payment that includes payment to a supplier site that has a remittance e-mail address defined.

This program does not aggregate remittance information, so it initiates a separate e-mail for each payment generated to a supplier site that has a defined remittance e-mail address.

Final Payment Register

Use the Final Payment Register to list each payment that was included in a payment batch. The report lists each payment in a payment batch, including setup, overflow, and subsequently voided payment documents, in ascending order by payment number.

Payables sorts the report using the document order you specify for the payment batch. Payables prints this document order on the first page of the report, along with the other criteria you specify for the payment batch. Payables also prints the total outlay required for the payment batch on this page. On the first page of the report, Payables prints the number of set up documents, overflow documents, and the number of negotiable documents.



Payment Reports

Future Payment Maturity Date Report

Use this report to review the amounts and maturity dates of future dated payments that have not yet matured. This can help you estimate your cash needs by showing you the amounts of future dated payments due to mature on a specific date. Note that this report uses only the payment's maturity date, and does not use information from Oracle Cash Management to identify whether the payment has actually cleared your bank.

Data is grouped by maturity date for future dated payments within a bank account, with subtotals for all payments in that bank account that have the same maturity date. Totals are for all payments for all accounts with the same currency and maturity date.

If an exchange rate is not defined between the payment currency and the bank account currency, the subtotal for that maturity date does not include those amounts, and the report notifies you of this.

Missing Document Numbers Report

Use the Missing Documents Report to identify any payment documents that you have not accounted for in Payables. The report lists any payment document numbers within a range you specify that are not recorded in Payables as paid, stopped, void, or spoiled.

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 Batch Control Report

Use the Payment Batch Control report to review information about the invoices paid in one or more payment batches. You can submit this report after every payment batch to compare it with actual payment information. If the payment batch created check documents, you can use this report to provide your check signer with comprehensive information about each payment document, eliminating the need to review any invoice documents. The report displays payment, supplier, invoice, and invoice distribution information for all payment documents in a payment batch.



Payment Reports

The report includes the total number of payments and the total batch outlay. Payables sorts the Payment Batch Control Report by bank account, then payment batch, and within each payment batch by payment document number.

Amounts on the report are displayed in the invoice currency for the invoice information, and in the payment currency for the payment information.

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

In addition, this report lists future dated payments that have not cleared and the maturity date has passed.

The report lists exception payments by bank, branch, account and payment document, and includes issued amount, issued date, cleared amount and cleared date, as well as the variance of cleared amount to issued amount. Payables also prints a total of the variance at the end of the report in the payment currency. You can resolve payment exceptions using Oracle Cash Management.

Payment Gain & Loss Report

Use this report to identify payments that have at least one invoice with a loss and at least one invoice with a gain. The report totals the exchange rate currency gain and loss for each payment and calculates the amount you can adjust your general ledger balance for each combination of gain/loss accounts. In some accounting practices, you are required to make this adjustment to avoid inflating your gain/loss accounts. For each payment that has both a gain and a loss, Payables lists each currency exchange rate gain and loss included in the payment.

Attention: Payments must be accounted and transferred to general ledger before they will appear on this report



Payment Reports

Payment Register

Use the Payment Register to review payments created for each bank account you use.

The report lists each payment that has a payment date within the range you specify, as well as the total payment amount and cleared amount of all payments. It sorts and subtotals by bank, bank branch, and bank account. The report also displays the payment document and disbursement type for each set of payments, and provides a subtotal for each payment document. Voided checks will not be subtracted from the report totals. If you want to review actual cash disbursed, then you can run this report along with the Void Payment Register.

Positive Pay Report

You can create a flat file that contains information on your current negotiable and voided payments. Your positive pay program formats and electronically transmits this file to your bank.

Prerequisites

• In the Banks window, enter the Branch Number and Bank Account Number for all bank accounts you want to include in the Positive Pay file.

• Create checks in a payment batch, or by using Quick payments, or Manual checks.

• If you want to include payment batch checks in the positive pay file, confirm the payment batch.

• If you want to include voided payments in the Positive Pay file, void the payments.

Preliminary Payment Register

Use the Preliminary Payment Register to review the payments Payables will create when you format payments for the invoices in a payment batch.

Payables sorts the report using the document order you specify for the payment batch. Payables displays this document order on the first page of the report, along with the other criteria you specify for the payment batch. On the first page of the report, Payables displays the number of set up documents, non-payment documents (those documents that exceed the maximum payment amount or are below the minimum payment amount, zero payments allowed, zero invoices allowed, or payment documents that you deselected while making modifications to the payment batch), overflow documents, and the number of negotiable documents. Payables also displays the total outlay required for the payment batch on this page.



Payment Reports

Separate Remittance Advice

Use this report to display and print remittance advice information that is not included in your payment document (for example, electronic payment documents). You can send the output of this report to your suppliers to notify them that you made a payment and which invoices were paid.

You can generate a separate remittance advice only if you use a payment format that uses a Separate Remittance Advice program.

Stopped Payments Report

Use the Stopped 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. Payables sorts the report by bank, bank account, payment document, and document number. Payables subtotals the amount for each payment document and displays the cumulative total for each bank account.

Unclaimed Property Report

Use this report to identify uncleared payments. This report is particularly useful in the United States where you need to identify unclaimed property that might need to be legally escheated to a designated authority. The report includes all payments that meet the criteria you specify in the report parameters, and that have one of the following statuses: Issued, Negotiable, Stop Initiated.

The report output is sorted in the following order: operating unit, bank account, payment method, and currency. The report is then organized by state and supplier. Within each supplier the report is sorted by payment date, starting with the oldest payment date. The report provides payment totals by state.

Update Matured Future Payment Status Program

Use this program to automatically update the status of matured future dated payments from Issued to Negotiable. If the payment's Maturity Date is on or before the Maturity Date parameter you specify and on or before the system date, then the system updates the payment's status. This program creates journal entries to record the status change of the payment. It then creates the Automatic Maturity Event report so you can see the payments that were updated, and those that Payables was unable to update.



Payment Reports

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. Payables sorts the report by bank, bank branch, bank account, payment document, and payment number, and prints a subtotal for each. Payables also provides a report count and total at the end of the report.

You can submit this report before you reconcile your bank account to verify that void payments did not clear your bank. Payables does not clear void payments when you use Oracle Cash Management to reconcile your bank account; Payables lists these void payments as exceptions.



Accounting and Reconciliation Reports

Payables Accounting Entries Report

Use this report to review and analyze accounting entries in the Payables subledger. You can request the report for a specific run of the Payables Accounting Process or the Payables Transfer to General Ledger program. Using the report parameters, you can produce a detailed or summary listing of the accounting information you want to review.

The report also lists any transactions that could not be accounted because of invalid or missing information.

Payables groups the report by set of books, journal category, and bank accounts. Data is then sorted by accounting date, event type, supplier name, document number, and voucher number.

Accounts Payable Trial Balance Report

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.

The Trial Balance Report lists and subtotals by supplier and liability account all unpaid and partially paid invoices that Payables has transferred to the general ledger. These invoices represent your organization's outstanding accounts payable liability. Therefore, to obtain the most up-to-date trial balance, you should transfer your invoice and payment activity to the general ledger before submitting this report.

You can use this report to review all negative supplier balances. To do this, choose No for the Summarize Report parameter, and Yes for the Negative Balances Only parameter.




Payables Account Analysis Report

Use this report to review and analyze accounting entries in Payables. You can use the report parameters to limit the report to just the accounting information you want to review.

This report is helpful when you reconcile your accounts with your general ledger. For example, you can reconcile the prepaid expense account between Payables and your general ledger. You can submit this report in detail and compare it to an account analysis report in your general ledger.

The report sorts accounting data by balancing segment first. Within each balancing segment group you can specify the order of the other account segments by using the Order By parameters. Within each account, the data is sorted by the following:

• accounting date

• supplier name

• document number

• order of creation (line ID of the accounting entry line)




Payables Accounting Process Report

Use this report to review accounting entries created by the Payables Accounting Process. This report has the following sections:

• Accounting Entries Audit Report. The audit report provides, in detail or summary, a listing of accounting entries created by the accounting process.

• Accounting Entries Exceptions Report. This report shows all transactions within program parameters that could not be accounted. − The report lists first, by set of books, all accounting entries that were not created

because they would have been invalid. The accounting entries would have had either:

− unequal debits and credits, or − an invalid account (when the system tries to build an account that is invalid, or if the

Validate Accounts parameter is Yes and the transaction has an existing invalid account)

The report then lists, by journal category, all other transactions that the program could not create accounting for because the system did not have sufficient information. Types of missing information include: exchange rate information, or a related, previous transaction is not yet accounted. For example, an Invoice Cancellation event cannot be accounted until the Payment Void has been accounted. Review the log file for the Payables Accounting Program concurrent request and search by the document number to find the reason that the program could not generate accounting for a particular accounting event.




Period Close Exceptions Report

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 Payment Batches

• Accounting Entries not Transferred to General Ledger

• Future Dated Payments Requiring Maturity Event and Accounting

• Unaccounted Invoices

• Unaccounted Payments

Posted Invoice Register

Use the Posted Invoice Register to review accounting lines for invoices that have been transferred to your general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books.

The Posted Invoice Register is primarily a reconciliation tool. Use this report along with the Posted Payment Register and the Accounts Payable Trial Balance Report to reconcile balances between Payables and your general ledger. To make their output easier to read, each of these reports can be generated for a single liability account. For example, if you are using Automatic Offsets and the liability for your invoices is allocated across multiple balancing segments, then you can use the Liability Account parameter to limit your reports to a single balancing organization.

Posted Payment Register

Use the Posted Payment Register to review accounting lines for payments that have been transferred to general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. You can submit the Posted Payment Register for one payment journal entry batch or all payment journal entry batches.

Use this report along with the Posted Invoice Register and the Accounts Payable Trial Balance Report to reconcile balances between Payables and your general ledger. To make the output easier to read, each of these reports can be generated for a single liability account. For example, if you are using Automatic Offsets and the liability for your invoices is allocated across multiple balancing segments, then you can use the Liability Account parameter to limit your reports to a single balancing organization.




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.

Payables sorts the report by transaction type (invoice or payment), exception, supplier, transaction currency, and transaction number.

Run this report after you have run the Payables 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.



Key Indicators Reports

Key Indicators Report

When you submit the Key Indicators Report, Payables generates reports you can use to review Payables transaction activity, and review the current number of suppliers, invoices, payments and matching holds in your Payables system:

• Key Indicators Current Activity Report: Report that compares Payables activity during the period you specify, and the previous period. You might want to report on key indicators weekly or monthly, to review short-term productivity, and quarterly, to review longer-term productivity.

• Key Indicators Invoice Activity Report: Report that compares the invoice activity for each of your accounts payable processors during the period you specify and the previous period. Payables produces this report only if you choose Yes for the Include Invoice Detail parameter.

• Key Indicators State-of-the-System Report Snapshot of Payables at the end of the key indicator period for which you are reporting.



Notices

Invalid PO Supplier Notice

Use the Invalid PO Supplier Notice to create a notice informing a supplier that you placed an invoice on hold because the supplier did not provide a purchase order number for matching or you could not use the purchase order number provided by the supplier. Payables creates a notice for each supplier with invoices to which you have manually applied an Invalid PO hold.

This notice lists the invoice number, date, and amount and asks the supplier to provide a valid purchase order number. Payables also provides a summary listing displaying the supplier name, site name, invoice number, invoice date, and invoice amount of all the notices that Payables created. You can use this summary for reference purposes and to keep track of how many replies you receive.

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.

This notice lists the invoice(s), supplier name, description, and the matched purchase order number. You can use this report to help resolve any invoices with matching holds to ensure that the invoices receive prompt attention by the purchasing agent responsible for the purchase order.

Prepayment Remittance Notice

Use the Prepayment Remittance Notice to print a notice to a supplier with information regarding the prepayments you have applied to invoices for the supplier. The notice informs a supplier that the supplier will not receive a payment or will receive a reduced payment as a result of a prepayment application.

The notice lists the prepayment invoice number, application date, amount applied, invoice number to which the prepayment was applied, and the remaining invoice amount. This amount will be zero if you applied a prepayment amount equal to the invoice amount. In this way, you can inform a supplier that the supplier should not expect any payment on this invoice.



Notices

Print Invoice Notice

Payables prints invoice notices for each invoice that matches the selection criteria you specify in the Print Invoice Notice parameters.

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. When you submit this report, Payables prints a notice to each requestor who has ordered goods or services from a supplier who has sent you an invoice, but the requestor has not yet acknowledged receipt of all items so the invoice remains unpaid.

This notice lists the supplier name, invoice number, description, quantity ordered, and the purchase order number. The notice asks that the requestor inform the accounts payable department whether the requestor has received the items. Payables also provides a summary listing displaying the requestor name, supplier name, invoice number, description, and purchase order number of all the notices that Payables printed. You can use this summary for reference purposes and keep track of how many replies you receive.

Withholding Tax Letter

Use this report to create a withholding tax letter to mail to your suppliers on a periodic basis. This letter contains a list of withholdings made for a supplier, summarized either by tax type and tax rate or by supplier site.



Listings

Payables provides the following listings:

• Bank Account Listing

• Distribution Set Listing

• Employee Listing

• Expense Report Template Listing

• Payment Terms Listing

• Payables Lookups Listing

• Tax Codes Listing

• Tax Groups Listing

• Tax Recovery Rules Listing



Suppliers Report



New Supplier/New Supplier Site Listing



Supplier Payment History Report



Supplier Paid Invoice History



Supplier Audit Report



Supplier Merge Report



Matching Hold Detail Report



Batch Control Report by Batch Name



Prepayments Status Report



Invoice Aging Report



Cash Requirement Report



Posting Hold Report



Distribution Set Listing



Unrealized Gain/Loss Report



Mass Additions Create Report



Use Tax Liability Report



Intra-EU VAT Audit Trail



Tax Information Verification Letter



1099 Invoice Exceptions Report



1099 Supplier Exceptions Report



1099 Payments Report



Withholding Tax By Invoice Report



Withholding Tax By Payment Report



11.5.10 New Features

Section Objectives

At the end of this section, you should be:

• Familiar with the new or changed functionality included in the Release 11.5.10 for Oracle Payables

o Invoice Processing Enhancement

o User Interface Enhancement

o Supplier Enhancement

o Reports and Programs Enhancement



Invoice Processing Enhancements

Matching Control for Oracle iSupplier Portal

Oracle Payables has added a new Profile Option that prevents suppliers from matching an invoice to more than one purchase Order when they enter invoices in Oracle iSupplier Portal.

The profile name is POS: Limit Invoice to single PO and the default value is NO.

Amount Base Matching

Oracle Payables has enhanced matching functionality for services procurement. So that users can match invoices based on variable rates for services, they can now match based on an amount only, rather than matching on quantity and price. The self-service invoice entry capability in Oracle iSupplier Portal has also been enhanced to support this new feature.

Invoice Attachments in Oracle iSupplier Portal

Suppliers can now attach supplemental files to the invoices they enter in Oracle iSupplier Portal. Attachments can be any type of supported file, including text files, images, and video clips.

Enhanced Purchase Order Number Display in Oracle iSupplier Portal

Oracle Payables has enhanced purchase order number display in Oracle iSupplier Portal. The order in which purchase orders are displayed has been improved, and the release number has been added for blanket purchase orders.

Retroactive Pricing of Purchase Orders Support

If your enterprise uses Oracle Purchasing’s Retroactive Pricing feature, then your purchasing department can retroactively adjust the price of a previously invoiced item.

Oracle Payables supports Oracle Purchasing’s new Retroactive Pricing of Purchase Orders feature. After a Purchasing user updates the price of a purchase order item, the system creates adjustments in Payables for any existing invoices matched to that item. The net effect is as if each original invoice had been matched at the new price.

When an Oracle Purchasing user updates the price on an item that has already been invoiced, and then the user submits the Create Adjustment Documents program in Payables, the program automatically creates adjustment documents in Payables to adjust the total invoiced amount to the final negotiated purchasing price.



Invoice Processing Enhancements

If the Create Adjustment Documents program in Payables cannot generate an adjustment invoice for some reason, then the program produces the PO Price Adjustment Invoice Creation Exception report.

Attention: In certain countries, unless you receive special dispensation from the fiscal authorities, this feature may not be appropriate because it automatically generates invoices without first receiving a corresponding invoice document from a supplier.

Invoice Approval Workflow Resubmission

The Invoice Approval Workflow automates your invoice approval process. Based on rules you define, the workflow determines if an invoice needs approval, who are the approvers, and in what order approvers should approve payment of the invoice.

Oracle Payables has enhanced the Invoice Approval Workflow feature to automatically resubmit invoices to the workflow process. If an invoice amount is changed after the invoice is approved or if the invoice is in the process of being approved, it will be resubmitted to the workflow approval process.

Gapless Invoice Numbering for Self-Billing Invoices

Oracle Payables can now automatically assign gapless, sequential invoice numbers to all self-billing invoices for a supplier site. This feature meets certain country-specific invoice numbering requirements for invoices created using the ERS feature, the Automatic Debit Memo from Return to Supplier Transaction feature, and the Retroactive Pricing of Purchase Orders feature.



User Interface Enhancement

User Interface Enhancements

Oracle Payables improved the invoice and payment windows to streamline transaction entry and management. These windows are now larger, display more information, have enhanced functionality, and are more intuitive. Some windows were consolidated so users can review and manage transactions using fewer windows. The major changes are as follows:

• The Invoices window has new tabs so without opening additional windows you can manage holds and scheduled payments, as well as review payments and prepayments for an invoice.

• The Invoice Gateway window has been renamed to Quick Invoices.

• Both the Payments window and Payment Batches window have a new button to allow you to easily monitor your payment concurrent programs.

• The Payments window has a new Invoices region that displays the invoices paid by each payment, all in a single window.



User Interface Enhancement Oracle Payables N → Invoices → Entry Invoices

New “View Payment Application” tab in the Invoice Window

In the Invoice Window, navigate to the View Prepayment Applications tab. This tab displays the prepayments applied to the invoice.

Account. Account from which the prepayment was made.

Amount Applied. Amount of prepayment applied to the invoice.

Prepayment Dist. Distribution Line number for the prepayment distribution item.

Invoice Number. Invoice toward which the prepayment has been made.

PO Num/Receipt Num. Payables populates these fields for prepayments related to a purchase order.

Tax Code. Tax code for the prepayment, if it’s different from the code listed at the Invoice header level.



User Interface Enhancement Oracle Payables N → Payments→ Entry Payments

New “Invoice Region” in the Payments Window

You can review payments in either the Payments Workbench or the Payment Overview window. Now you can quickly review all details about the payments including the invoices each payment paid, clearing information, bank information, and more. The information available in this region is:

GL Date: The default GL Date for the distributions of this invoice.

Number: Number of invoice being paid.

Payment Amount: Invoice amount displayed in payment currency.



Suppliers Enhancements




• A new function controls the display of the Bank Accounts and Supplier Assignments tabs in the Suppliers and Banks windows. If a user’s responsibility does not have access to this function, then the user cannot see the following: − Bank Accounts tab in Suppliers window − Bank Accounts tab in Supplier Sites window − Supplier Assignments tab in Bank Accounts window










Suppliers Enhancements


Supplier Open Interface

Oracle Payables has added new open interface tables and concurrent programs to support the automated import of supplier records from external sources.

Supplier Open Interfaces emulate the entry of Suppliers, Sites, and Contacts through the Supplier Entry form as closely as possible. As such, there are many values that will be automatically defaulted if not provided by the user. The validations performed by the Open Interface programs performs several controls at the database level for correct data types, as well as validations performed against existing lookup values or values derived from other tables.

If an invalid value is encountered when the concurrent process is evaluating each row, a REJECTED MESSAGE column is populated with the relevant rejection message and the STATUS is updated to ’REJECTED’. Processing on that row then stops and the program moves on to the next row.

The Suppliers Open Interface, include the following independent programs:

• Supplier Open Interface Import – for Suppliers Headers

• Supplier Sites Open Interface Import – for Suppliers Sites

• Supplier Site Contacts Open Interface Import – for Supplier Contacts



Reports and Programs Enhancements

Payables Accounting Entries Program and Report Enhancements

Oracle Payables has improved the Payables Accounting Process so it no longer creates accounting entries with an error status.

Previously the accounting process created an accounting entry with an error status when the system built an invalid account during accounting, or when the Validate Accounts program parameter was enabled and a transaction had an invalid account. Users then needed to provide a valid account for the accounting entry in the Update Accounting Entries window in Oracle Payables.

Now, when the accounting process identifies an invalid account, the accounting process does not create accounting entries for that transaction. The details of the transaction are still listed in the exceptions report, enabling users to resolve any invalid account issues before creating accounting entries.

Oracle Payables also enhanced exception reporting in the Payables Accounting Entries Report. The report has a new exception section that lists all transactions within the program parameters that could not be accounted.

Invoice Validation Concurrent Processing

Oracle Payables can now concurrently process the Invoice Validation program for multiple instances.



Summary

In this lesson you should have learned about:

• The new features available for R11.5.10 in the Transactions processing in Oracle Payables

• The new features available for R11.5.10 for the Suppliers in Oracle Payables

• The Enhancements included in Oracle Payables R11.5.10 Reports and Programs

Accounts Payable r11i Student Guide[1]

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Transcript of Accounts Payable r11i Student Guide[1]