R12 Accounts Payables

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R12 Payables Features



R12 Highlights

• Oracle Payables is a high-productivity accounting solution that helps tomaintain strong financial controls. You can

– Prevent duplicate payments

– Pay for only the goods and services that you order and receive

• MOAC Features added in Payables.

• Introduction to Invoice lines

• Improved Invoice Approvals

• Sub Ledger Accounting in AP (SLA)

• Suppliers in TCA

• Banks in TCA

• Fund Disbursements are handled by Oracle Payments.

• Defining Tax and Tax calculations are moved to Centralized E-Business Tax.

• New and Obsolete Database Objects



MOAC in Payables

Multi-Org Access control allow users to enter Invoices or Batches of Invoices for

one operating unit and seamlessly enter invoices for another operating unit.

Select Invoices across operating units for payment processing within a single pay-

run.



Introduction to Invoice Lines

Invoice Lines has been added between Invoice Headers and Distributions

Each Invoice line can have multiple distributions.



Introduction to Invoice Lines (Contin…)

Invoice Lines supports the representation of the goods or services as well as tax, freight,other charges as lines with distributions tied to each line.

Additional fields record attributes such as serial numbers, warranty number and itemdescriptions.

Can approve the Invoice at Line levels.

Item DescriptionSerial Number

Warranty Number

Manufacturer Details



Improved Invoice Approvals

Line Level Approval:

With the introduction invoice lines, Payables is also able to offer line level approval

followed by the additional control of invoice level approval. Notification details are

targeted to the level of approval required and embedded with a view of the invoiceincluding summary amounts, essential line information, approver sequence, and

attachments.

Invoice Dispute Management:

Invoices that are on hold due to differences between the purchase order or discrepancies

identified by approvers for non-PO invoices can be negotiated with the supplier through

email notifications or online via iSupplier Portal. The negotiation process is tracked and

updates are made real-time providing immediate information for suppliers, approvers,

auditors and Payables users.



Integration with SLA

Oracle Subledger Accounting is a rule-based accounting engine, toolset, and repository

that centralizes accounting across the E-Business Suite.

Acting as an intermediate step between each of the subledger applications and Oracle

General Ledger

With the Introduction of SLA payables no longer create accounting entries, instead SLA

engine will create and transfers into GL.



Posting to GL



Suppliers in TCA

What is TCA?

TCA registry is the single source of party information for multiple Oracle E-BusinessSuite applications.

Structure designed to support complex trading relationships within an organization.

TCA is an Architecture and a Model……not a Module.

In Oracle R12

Suppliers are become TCA party and can be accessed across OU’s.

Single change in Supplier contacts can be seen instantly by all OU’s

Payables updates the existing party information to have Party Usage of Supplier, but it

does not migrate the employee address to the party site. This implies Data Security.

Three new AP tables are introduced and it has links to TCA tables



Suppliers in TCA Model (Contin….)

Access rights to Operating Units…



Banks in TCA - Internal Bank Accounts

In 11i

• Internal Bank accounts and paymentdocuments are owned by Operating Unit.

• Internal Banks defined in AP and is sharedby AP, AR, CE, Payroll and Treasury.

• Bank accounts replicated in multipleoperating units.

In R12• Bank accounts and payment documents are owned bylegal entity. Operating units have granted usage rights.

• Bank and bank branches become TCA party.

• Internal banks are defined in Cash Management.

• Single access points for defining and managing

internal bank accounts for AP, AR, CE, Payroll and

Treasury.



Supplier Bank Accounts

In 11i

• Supplier Banks defined in AP and ownership takenby Payables.

• Bank accounts and their payment documents areowned by operating unit and it replicates inmultiple operating units.

In R12

• Supplier Bank details are defined in AP.Ownership moved to payments.

• Bank and bank branches become TCA party.

• Bank accounts and payment documents areowned by legal entity. Operating units havegranted usage rights.

Assets

ProjectsReceivables

Payablesurchasing

Projectseceivables

Payables

Inventory

Work inProcess

LE

OU A OU B OU C

Banks in TCA (Contin…)

R12 Bank Architecture



Payments

New central payment engine, Oracle Payments processes invoice payments from OraclePayables, bank account transfers from Oracle Cash Management, and settlements against

credit cards and bank accounts from Oracle Receivables.

The product supports features designed specifically for its two payment process

activities: funds disbursement (paying money owed to creditors, such as suppliers) and

funds capture (electrically receiving money owed by debtors such as customers).

Oracle iPayment in 11i has been obsolete and now the functionality of iPayment offered

by Oracle Payments.

Benefits

Companies are able to efficiently centralize the payment process across multipleorganizations, currencies, and regions.

Better working capital management can be achieved by providing cash manager’s real-

time visibility into cash inflows and outflows.

A full audit trail and control is supported through a single point of payment

administration.



Payments (Contin…) In Payables, Fund disbursement functionality has been

moved to new Payment module, which provides,

Creation & validation of payments

Aggregation of payments into files

Format & transmission of files

Where as selection & approval of invoices remains in

Payables itself.

Oracle Payments offers a rich library of payment formats that support various types of

payment files and messages.

Oracle has defined some rules for validation.

Oracle Payments offers a new user dashboard for managing the funds disbursement

process.



AP/AR Netting

In R12 there is no separate responsibility for AP/AR Netting.

When a trading partner is a customer as well as supplier, an agreement may be made tooffset open receivables’ against open payables’ items.

Netting Agreements add trading partner terms as well as deploying company controls.

A selection program automatically pulls information from Oracle Receivables and OraclePayables taking into consideration discounts, late fees, and withholding taxes prior to

determining the final netting amount.A review process and trading partner approval afford further verification to support the

netting event

Benefits

AP/AR Netting provides for the ability to “collect” on your receivables balances with the

amount owed for your purchases by offsetting one against the other.



Data Flow from AP to GL

Accounting in 11i Accounting in R12

GL_JE_HEADERS

GL_JE_LINES

AP_AE_HEADERS_ALL

AP_AE_LINES_ALL

AP_ACCOUNTING_EVENTS_ALL

AP_INVOICES_ALL

AP_INVOICE_DISTRIBUTIONS_ALL

GL Interface Tables

GL_JE_HEADERS

GL_JE_LINES

XLA_HEADERS_ALL

XLA_LINES_ALL

XLA_EVENTS_ALL

AP_INVOICES_ALL

AP_INVOICE_LINES_ALL

AP_INVOICE_DISTRIBUTIONS_ALL

GL Interface Tables



New and Obsolete Database Objects (Contin…)

New Tables

Table Name Feature Area

AP_PREPAY_HISTORY_ALL Prepayment Application

AP_PREPAY_APP_DISTS Prepayment Application distribution for

AccountingAP_NEGOTIATION_HIST Hold Resolution Workflow

AP_PAYMENT_HIST_DISTS Payment distribution for Accounting

CE_BANK_ACCOUNTS Internal Bank Accounts

CE_PAYMENT_DOCUMENTS Payment Documents to be used forprinted type Payments

IBY_EXTERNAL_PAYMENTS_ALL Payee (Trading Partner information forpaying Invoices)

IBY_PMT_INSTR_USES_ALL Used for Remit to Banking Accounts



New and Obsolete Database Objects (Contin…)

Obsolete Tables

Table Name Replaced By

AP_AE_HEADERS_ALL Data moved to XLA_AE_HEADERS

AP_AE_LINES_ALL Data moved to XLA_AE_LINES

AP_ACCOUNTING_EVENTS_ALL Data moved to XLA_EVENTSAP_ENCUMBRANCE_LINES_ALL New Data should be stored

XLA_AE_HEADERS

AP_LINE_APRVL_HIST_ALL AP_INV_APRVL_HIST_ALL

AP_BANK_BRANCHES CE_BANK_BRANCHES_V

AP_BANK_ACCOUNT_USES_ALL IBY_PMT_INSTR_USES_ALLAP_BANK_ACCOUNTS_ALL CE_BANK_USES_OU_V

IBY_EXT_BANK_AC

PO_VENDORS AP_SUPPLIERS_ALL

PO_VENDOR_SITES_ALL AP_SUPPLIER_SITES_ALL

PO_VENDOR_CONTACTS AP_SUPPLIER_CONTACTS

Still

existing

as Views



The End

R12 Accounts Payables

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