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O r a c l e F i n a n c i a l s Fu n c t i o n a l O v e r v i e w
Invoice Tax Reporting
Oracle Payables provides standard reports for reporting on your invoice taxes. These
reportsinclude a tax audit trail report, a use tax liability report, the Intra-EU VAT Audit
Trail Report,and a listing of your defined tax names.
V AT Ta xes
You can define an unlimited number of VAT (Value Added Tax) taxes. You define VAT taxes
inthe same method as any other sales tax. You can assign a VAT tax as a supplier site default.
Youcan easily enter invoices with VAT taxes and Oracle Payables provides complete
VAT reporting.
Tax Type
Tax Name
Tax Rate
Review VAT Charges
Tax Declaration Report
Intra EC VAT Audit Trail
Enter VAT Charges for Invoices
Define EEC Suppliers and Assign
Tax Name to Supplier Site
Define Tax Names
O r a c l e P a y a b l e s m a k e s i t e a s y f o r y o u t o d e f i n e a n d r e c o r d ta x e s
Gross Method Taxation
When you enable the Automatic Tax Calculation system option and you enter a tax name
forthe invoice that has a sales or user-defined tax type, you can manually enter the tax
amount oryou can have Oracle Payables automatically calculate the tax amount.
Tax Exceptions
Oracle Payables’ automatic invoice approval (Approval) automatically performs tax
variancechecking and places tax exception holds on any invoice with a tax amount that
does not matchthe calculated invoice tax amount(s) as determined by the tax rates you
define for the tax names

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on your invoice. You can define percentage and amount tolerances to determine the
amount of
tax variance you allow on your invoices.
E xpen se R epo r t Ta x Items
You can easily record tax charges on your employee expense reports.
Automatic Tax Withholding
You can automatically withhold taxes for your supplier invoices and employee expense
reports.You have flexibility in defining your withholding tax rate structures using effective
date andtaxable amount ranges, and single invoice limits or period limits.Using withholding
taxgroups, you can withhold multiple taxes for an invoice or expense report.
Tax Inclusive or Exclusive Item Amounts
You can specify whether supplier invoice items or employee expense report items include
tax in
their pricing.Oracle Payables performs the appropriate tax calculations, based on the item.
Flexible Tax Rounding
You can control how Oracle Payables rounds tax calculations to meet varying
countryrequirements.Choose the rounding rule Up, Down or Nearest as a system default
andoptionally change this default at the supplier or supplier site.

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O r a c l e F i n a n c i a l s Fu n c t i o n a l O v e r v i e w
Fixed Assets Integration
Mass Additions lets you add assets and cost adjustments to assets directly into Oracle
Assetsfrom invoices in your Oracle Payables system. The Mass Additions Create process sends
validinvoice distribution lines from Oracle Payables to an interface table in Oracle Assets.
Aftersending the invoice lines, you can review them and determine whether to create assets
from anyof the lines in Oracle Assets.
Bu si n ess Needs
With Oracle Payables and Oracle Assets you can:

Add items from Oracle Payables directly into Oracle Assets

Minimize data entry

Manipulate invoice lines before they become assets in Oracle Assets

Transfer discount taken information on asset purchases

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Purchasing Integration
Oracle Payables fully integrates with Oracle Purchasing and other purchasing systems.
Thisallows you to access your purchasing information on-line and automatically match
invoices topurchase orders using two-, three-, or four-way matching.
Bu si n ess Needs
With Oracle Payables you can:

Share supplier information with your purchasing department, so that you do not have to
enter the same data twice

Require matching for selected suppliers to ensure their invoices are matched to purchase
orders

Match invoices to purchase orders and automatically hold those invoices that exceed your
matching tolerance, whether you use Oracle Purchasing or another purchasing system

Define amount-based and percentage-based matching tolerances

Record a price, quantity, or exchange rate variance between an invoice and its matched
purchase order

Match an invoice at the purchase order shipment line level or the distribution line level

Review purchase order details and purchase order notes when matching an invoice

Assign a match as final and have Oracle Payables permanently close the matched purchase
order

Associate a purchase order with a recurring invoice
M a j o r F ea t u r e s
Matching to Purchase Orders
Oracle Payables allows you to match the invoices you enter to the purchase orders (and
relatedreceipts) in your purchasing system. Oracle Payables supports the level of matching
(2-way, 3-way, and 4-way) that your organization requires for matching invoices to
purchase orders and receipts.
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O r a c l e F i n a n c i a l s Fu n c t i o n a l O v e r v i e w
Match an invoice to one or more purchase orders
4-Way Match
To Inspection
To Receiving
Supplier
Purchase Order
2 Bikes@ $150.00 ea.
Receipt Required
Inspection Required
Invoice
Bikes
Quantity
2
Price
$150.00
Accepted
Bikes
Quantity
2
Receiving
Bikes
Quantity
2
Purchase Order
Bikes
Quantity
2
Price
$150.00
Receipt
Quantity
Accepted
Invoice
Use 2, 3, or 4-way matching for optimal control over your purchases

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