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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
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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
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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
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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
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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
Copyright Oracle, 2004. All rights reserved.
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, 2004. All rights reserved.
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
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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
Suppliers - Introduction
Section Objectives
At the end of this section, you should be able to: 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 suppliers parent company if the supplier is a franchise or subsidiary. The parent company must also be defined as a supplier in the system.
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 suppliers 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 employees 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.
Setting Up Suppliers
Chapter 3
Setting Up Suppliers
Section Objectives
At the end of this section, you should be able to: Discuss the basic concepts of setting up suppliers within Oracle Payables.
Financials
Payables
Supplier
Supplier site
Invoice
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.
Tokyo
Paris
New York
Pay site
Contacts
Contacts
Contacts
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.
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.
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.). If you do not enable the Automatic Supplier Numbering option in the Financials Options window, enter a unique supplier number. Optionally, enter the Taxpayer ID, usually the tax identification number (TIN) for a company or the social security number for an individual.
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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.
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 suppliers 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.
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. 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. 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.
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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
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Enter the percentage of allowable Qty Received Tolerance. 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
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Enter the number of days early that you will accept a delivery. Enter the number of days late that you will accept a delivery. 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.
Supplier Information
Information Type Purchasing Receiving Payment Control Bank Accounting Tax Classification General Withholding Tax Sites Oracle Payables Supplier Information Enter at Enter at Supplier Supplier Site Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes No No Yes No
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.
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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.
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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. 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
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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.
Future Dated Payment field: accept or change the default account number established in the setup of the Payables module. Payables displays the account description.
2.
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.
2. 3.
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. 2. Find the supplier. In the Suppliers Summary or the Suppliers window, make any changes in the appropriate fields; and save your work.
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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
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 Terms Date Basis = Invoice Payment Terms = 30 Net Payment Priority = 99 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.
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Choose New. Oracle Payables displays the Suppliers window. In the Classification region, enter the supplier type. Validate that your window appears similar to the one displayed below:
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In the Payments region, enter the payment term for your supplier. Validate that your window appears similar to the one displayed above: In other alternate regions of the Suppliers window, enter all other information about your supplier.
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. 17. Validate that your window appears similar to the one displayed below:
18. Set up the tax reporting requirements for supplier #3 in the Tax Reporting region of the Suppliers window. 19. Validate that your window appears similar to the one displayed below:
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Choose the Find button in the Find Supplier window. To add a new site, navigate to the Supplier Sites window B Sites
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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
1. Navigate to the Suppliers Summary window. N Supplier Entry 2. Click on the Find icon from the Toolbar or choose Find from the Query menu.
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Validate that your window appears similar to the one displayed below:
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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
Merging Suppliers
Chapter 4
Merging Suppliers
Section Objectives
At the end of this section, you should be able to: Identify duplicate suppliers Merge suppliers Review the merge results
Merging Suppliers
ABC Corp
Merge suppliers
ABC Corporation
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.
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. 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. Enter the Old Supplier Name and Site and the New Supplier Name in the appropriate fields.
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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.
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Check Merge to transfer the information from the Old Supplier to the New Supplier.
Summary
Summary
In this lesson you should have learned how to do the following: Identify duplicate suppliers Merge suppliers Review the merge results
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
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Invoices - Introduction
Chapter 6
Invoices - Introduction
Section Objectives
At the end of this section, you should be able to: Discuss the basic concepts of invoices within Oracle Payables.
Entering Invoices
Enter supplier Enter invoices or batches Approve invoices
Create PO
Match to PO
Pay invoices
Reconcile payments
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.
Invoice (Workbench)
Payment
Payment (Workbench)
Invoice overview
Invoices
Payment overview
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.
O racle Projects
O racle Payables
Expense reports
Invoices
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.
Entering Invoices
Receive invoices
Enter invoice
Match to PO
Approve 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.
Invoice d Defaults to
Defaults to
GL date
Invoice distributions
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.
Update the batch control form Receive invoices in the mail Review batch control reports
File by batch
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.
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.
Invoice Batches
How to Enter an Invoice Batch 1. 2. 3. 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. Enter the number of invoices in the batch in the Control Count field. 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.
Invoices
How to Enter Invoices using Invoice Batches 1. 2. 3. 4. Enter an Invoice Batch. Click the Invoices button on the Invoice Batches window. Enter the invoices. Save your work.
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
Prepayment s QuickMatch
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. 2. 3. To enter a basic invoice, choose Standard or Mixed. Enter the Supplier name or Supplier Number. 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.
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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.
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.
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Tab to the Payment Terms field and enter the term Immediate.
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Validate that your Invoice Batch appears similar to the one displayed above. Save your work and click the Invoices button.
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Accept the default for Invoice Type. This invoice is a standard type invoice. Enter your supplier name. Select the second site for your supplier. Since the invoice is dated today, enter todays date in the Invoice date field. Enter the invoice number. Enter 10000 (the total amount due) in the Invoice Amount field. Tab to the Description field and enter the description for this invoice. Remember that this will print on the payment document. Save your work.
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.
Description Records the amount a supplier charges for goods or services purchased Records the sales or other tax amount due on goods or services purchased Records the amount a supplier charges for shipping and handling Records the amount for miscellaneous expenses on an invoice Records the amount of taxes withheld from an invoice
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Invoices
How to Enter Freight Distribution for an Invoice 1. In the Invoices window, enter all basic invoice header information.
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. 2. In the Invoices window, enter all basic invoice information. Do not select the Create Freight Distribution check box.
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In the Allocate Charges window, select Freight, Tax or Miscellaneous in the Type field. Select the Prorate check box. Enter the total amount to be allocated in the Amount field. 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.
Distribution Sets
Defining a Distribution Set 1. 2. Use a distribution set to automatically enter distributions for an invoice when you are not matching to a purchase order. 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. 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%).
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With your cursor in the first invoice line, click the Distributions button.
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Accept the Items default. Enter $4,000.00 in the Amount field. As no taxes were charged on this invoice, leave the tax name blank. The GL date defaults from the invoice and should be accepted. In the Account field, enter the account number 01-402-7110-0000-000. 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.
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Accept the default for Invoice Type. This invoice is a standard type invoice.
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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 menus 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. 22. Close the Distributions window.
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.
If you have enough time, create a Skeleton distribution set. Use the same account numbers that you used for the Full distribution set.
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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. In the Description field, further describe your distribution set. Leave the Type field blank; it will default automatically. Enter 25 in the % field. Enter 01-402-7410-0000-000 in the Account field. Enter a description for the line, but leave the Income Tax Type, and Invoice Tax Name fields blank. In the next line, enter 50 in the % field. Enter 01-404-7410-0000-000 in the Account field.
14. Validate that your window appears similar to the one displayed above. 15. Save your work.
10. Leave the Description, Income Tax Type, and Invoice Tax Name fields blank. 11. In the next line, enter 0 in the % field. 12. In the Account field, enter 01-410-7410-0000-000. 13. Enter a Description but leave the Income Tax Type, and Invoice Tax Name fields blank.
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From Invoice Batches window, click Invoices. Accept the default for invoice type. This invoice is a standard type invoice. Enter your supplier name. Select the first site for your supplier. Since the invoice is dated today, use the [Tab] key to accept the default date. Enter the invoice number.
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Enter 2,567.89 (the total amount due) in the Invoice Amount field. In the Distribution Set field, enter the full distribution set name you defined in a previous lab.
15. Validate that your window appears similar to the one displayed above. 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
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. 3. 4. Verify that the displayed number in the Invoice Count Difference field is zero Verify that the displayed amount in the Invoice Total Difference field is zero. Validate that your window appears similar to the one displayed below:
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Save your work. 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. Oracle Payables displays a concurrent request number. Note the number. View the status of the concurrent request manager by choosing View My Requests from the Help menu. 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.
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Summary
In this lesson you should have learned how to do the following: 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
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 PO information Header Supplier information Detail Item line Shipment line Distribution line Distribution line Distribution line Shipment line Shipment line Item line Item line
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Select either the Standard or the PO Default invoice type in the Invoices window. 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. Click Match to open the Find Purchase Orders to Match window.
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Enter search criteria to locate the purchase order to which you want to match the invoice. Click the Find button to open the Match to PO window.
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Close the Match to Purchase Orders window and click the Distributions button on the Invoices window to verify the distributions created by the match. Save your work.
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Select either the Standard or the PO Default invoice type in the Invoices window. 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. Select Receipt in the drop-down box next to the Match button and then click Match to open the Find Receipts to Match window.
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Enter search criteria to locate the receipt to which you want to match the invoice. Click the Find button to open the Match to Receipt window.
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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. 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.
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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. Save your work.
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Validate that your window appears similar to the one displayed above:
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.
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Validate that your window appears similar to the one displayed above:
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. 19. Validate that your window appears similar to the one displayed above. 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.
10. Validate that your window appears similar to the one displayed below:
Match to PO
How to Match All Purchase Orders Shipments (QuickMatch) 1. 2. Enter QuickMatch as the invoice type in the Invoices window and enter PO Number in the window that displays. Enter the remaining invoice information except for the distributions.
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11. Validate that your window appears similar to the one displayed above and select the Distributions Button.
Invoices
How to Enter Debit and Credit Memos Enter the invoice header information. 1. 2. 3. Navigate to the Invoice window and select Debit Memo or Credit Memo from the Type drop-down list. Enter the supplier or supplier number in the corresponding fields. Select the supplier site from the Site drop-down list.
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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
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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.
Match to Invoice
How to Match Credit and Debit Memos to Invoices 1. Navigate to the Invoices window. 2. 3. Enter a Credit Memo or Debit Memo as the invoice Type Enter all basic invoice information and a negative invoice amount, but do not manually enter the distributions.
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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.
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Optionally, click Invoice Overview to review more information about an invoice. 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. 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.
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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.
10. Select Invoice in the drop-down list for the Match button and click Match.
20. Validate that your window appears similar to the one displayed above. 21. Note how the distribution lines were prorated proportionately.
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.
Summary
In this lesson you should have learned how to do the following: 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)
Apply advances
Payments to employees
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.
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.
People
How to Enter Employees and Locations In the People window of Oracle Human Resources, enter employees, their locations, and their expense addresses.
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Expense Report
How to Enter Expense Report Information 1. 2. 3. 4. Choose the employee from a list of values. Enter or modify the GL account for an employee. Optionally, change the default expense check address in the Send To field. Either enter an invoice number or the period ending date as the Invoice Number field.
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10. When entering an expense report in a foreign currency, first select the appropriate currency, and then enter the relevant exchange rate information.
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Submit Request
How to Submit Payables Invoice Import 1. 2. 3. Use Expense Report to create invoices from expense reports you enter in Oracle Payables, Oracle Web Employees, or Project Accounting. If the Payables option for Use Batching is selected, create a batch name for the expense reports that will be created as invoices. Review detailed or summary information for imported expense reports including Invoice Import exceptions.
Parameters
How to Import Invoices from Oracle Projects 1. 2. 3. 4. Enter Oracle Projects as the source. Oracle Payables validates expense report details received from Oracle Projects so that invoices are created for active employees and valid GL accounts only. After Oracle Payables creates an invoice from an Oracle Projects expense report, Oracle Projects links the invoice to a project. 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.
Parameters
How to Import Invoices from Other Accounting Systems 1. 2. 3. Define a Payables QuickCode to create a source name and to easily identify any invoices imported from another accounting system. Enter the defined Payables QuickCode as the source when submitting Payables Invoice Import. Imported information must include valid supplier name, supplier site, and invoice distributions.
Summary
In this lesson you should have learned how to do the following: 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 using Oracle Web Employees Submit Payables Invoice Import
Invoice # Week ending Date <XXX-Mth-Year> (where XXX is your initials) Description: Airfare Meals Car Rental Total Due Employee Weekly Total $ 1,805.78 194.22 185.00 $ 2,185.00
You want the week ending date to always be the invoice number for expense reports. Enter the week ending date as noted. (XXX-MTH-YR) Enter the description. In the Amount field, enter the total amount to be reimbursed to the employee. In the Template field, choose Travel. Choose the appropriate types of items and enter the amounts as noted on expense report. Accept the default accounting flexfield information.
10. Validate that your window appears similar to the one displayed above. 11. Save your expense report.
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
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Recurring Invoices
How to Define Recurring Invoice Templates 1. 2. Enter the supplier information. 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. In the Number of Periods field, enter the total number of invoices you want to create over the life of the template.
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Create Invoices
How to Create and Review Recurring Invoices 1. 2. Determine how many invoices to create. 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.
Summary
Summary
In this lesson you should have learned how to do the following: Define special calendar names Define recurring invoice templates Enter recurring invoice information Create recurring invoices Review recurring invoices
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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.
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Validate that your window appears similar to the one displayed above. Save your work
10. Choose Create Invoices. Oracle Payables displays the Create Invoices window. 11. Validate that your window appears similar to the one displayed below:
Applying Holds
Hold Types
Review the hold types that Oracle Payables automatically places during approval
Hold Types
Acct Hold Reason Funds Hold Reason Insufficient Information Invoice Hold Reason Matching Hold Reason Period Hold Type PO Req Hold Reason Variance Hold Reason
Predefined
User Definable
Manually Releasable
No Mixed No Yes Mixed No No Mixed
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.
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.
Invoice Holds
How to Apply Holds to Selected Invoices 1. 2. Find the invoice by using the Invoice window and select the Holds tab. 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. Save your work.
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Scheduled Payments
How to Apply Holds to Scheduled Payments 1. 2. 3. 4. Find the invoice by using the Invoices window, and click the Scheduled Payment button. Select the Hold check box, to place a hold on a scheduled payment. Place a hold on a scheduled payment to prevent payment for only a portion of an invoice (create multiple scheduled payments if necessary). Payment schedule holds prevent payment of only that portion of the invoice.
Releasing Holds
Review the predefined release types that Oracle Payables provides. Approval Release Types
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
Predefined
User 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.
Predefined
User Definable
Manually Releasable
No Mixed No Yes Mixed No No Mixed
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.
Invoice Holds
How to Release Holds for One Invoice or Group of Invoices 1. 2. 3. 4. Using the Find Invoices window, search for invoices for a selected supplier or for all invoices with a selected Hold name or hold type. Optionally, include invoices that are not on hold. Review all invoices that meet the search criteria. Select the Scheduled Payments tab to place or release any scheduled payment line holds.
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Approving Invoices
Batch invoices
Enter invoice
Match to PO
Approve Invoice
View Invoice
Receive invoices in the mail Post invoice Pay invoice File 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
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. 2. In the Submit Requests window, select Invoice Validation, and enter the parameters of your choice. 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.
Invoice Actions
How to Validate Invoices Online 1. 2. Submit online Validation for individual invoices when an invoice must be approved and paid immediately. Enable the Payables option to allow online Validation.
Invoice Batches
How to Validate Invoice Batches Online 1. 2. Submit Validation for entire batches from the Invoice Batches window. 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. 2. 3. In the Invoices window, select the invoice you want to cancel, and click the Actions 1 button. In the Invoice Actions window, select Cancel Invoices, and click OK to have Oracle Payables cancel the invoice. Save your work.
Invoices
How to Adjust Invoice Amounts There are two prerequisites for adjusting the invoice amount: 1. The invoice is not fully paid. The invoice has at least one unposted or unapproved distribution.
Click Scheduled Payments to navigate to the Scheduled Payments window. Adjust the scheduled payments to match the new invoice amount. Click OK. You must submit Validation again before you can pay the invoice.
Summary
In this lesson you should have learned how to do the following: 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
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Choose Find. Oracle Payables displays the Invoices window for invoice number 1000.
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Choose Distributions.
10. In the Account field, enter 01-420-7110-0000-000. 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. 14. Close the Distributions window.
Your supplier has sent you invoice #8000. The AP supervisor has asked you to record the invoice and amend the payment 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 Supplier Name: Your Supplier from a previous lab Description: 20 items @ $50 each Total Due:$1,000 GL Account: 01-402-7410-0000-000
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Validate that your window appears similar to the one displayed above. Save your work.
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Choose OK.
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Click Find. Oracle Payables displays the Invoices window for invoice # 5000.
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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.
It is your company policy that all car purchases over $35,000 requires management Validation. Place an Amount hold on the invoice #2000 for purchase of a red Corvette that you entered in a previous lab.
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Choose Find to display the invoice in the Invoices window. Click the Holds tab on the Invoices window to display the Holds tabbed region.
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Save your work. Click the Actions1 button to revalidate the invoice.
Invoice Inquiry
Batch invoices Enter invoice Match to PO
Approve invoice
View invoice
Receive invoices in the mail Post invoice Pay invoice File 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. 2. 3. Access the Find Invoices window either by choosing the Find icon ( toolbar or by selecting the Find option from the View menu. ) on the
Enter multiple search criteria by entering information in one or more fields. Click the Find button located at the bottom of the window to display all the invoices that meet your criteria.
Invoice Overview
How to Review High-Level Invoice Information 1. 2. Use the Invoice Overview window to review information quickly when a supplier calls you to inquire about the status of an invoice. This window is a summary of the following information: Supplier information Invoice information Active holds
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.
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.
Use the Suppliers window to access the suppliers site information and to review all the tabbed regions for the supplier.
Use the Purchase Order Summary window to review the shipment information for the PO. This will show youre 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.
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 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.
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Summary
Summary
In this lesson you should have learned how to the following: Find invoices Find invoice distributions Calculate supplier balances
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Choose Done.
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. 2. The Payables Open Interface Import program validates the data and populates the Oracle Payables database tables with the valid data. 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. 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.
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Parameters
Identify the Payables Open Interface Import program parameters: 1. 2. 3. 4. 5. In the Source field, select eCommerce Gateway for EDI invoices or another source name you have populated for your data. If you are importing data from another source, enter the appropriate value in the Group field. The batch name is required if you are using Batch Control. Enter a hold name if you want to place all invoices on hold. Oracle Payables displays the hold name description. If you want to assign a specific GL date to all invoices, enter it in the GL Date field.
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. 2. Submit this process from Oracle Payables for the source of eCommerce Gateway. In the Invoice Status field, you can choose to create notification for invoices that were: 3. Accepted (successfully imported into Oracle Payables) Rejected (failed import: supplier needs to take corrective action and resend) All (all Invoices)
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.
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
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.
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In the Code Set Name field, enter the code set name. In the Description field, enter the description for the code set name. Select the Blocking Group check box, if the card code value is a group card code. In the Value field, enter the card code value. In the Description field, enter a description for the card code. 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. Enter an inactive date if you want to limit the time during which the card code appears on the list of values. Save your work.
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In the Card Type field, select the card type for your reference. You can select Procurement or Travel and Entertainment. 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.
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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. 2. 3. 4. In the Card Program field, select the credit card program you want to assign to the credit card. In the Card Member Name field, enter the card holders name, as it appears on the credit card. In the Employee Name field, select the employees name from the list of values. 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.
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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. 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
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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. 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.
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Summary
In this lesson you should have learned how to do the following: 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
Invoices Setup
Section Objectives
At the end of this section, you should be able to: Discuss the basic concepts of invoices setup within Oracle Payables.
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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 amountbased 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.
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People
Entering Employee and Locations In the People window of Oracle Human Resources, enter employees, their locations, and their expense addresses.
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If you install Oracle Self-Service Web Applications, your organizations 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 users guide.
Financials Options
Setting Up the Default Expense Address in the Financials Options Window 1. 2. Navigate to the Human Resources region of the Financials Options window. 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. Save your work.
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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.
Payables Options
How to SetUp Expense Report Defaults 1. 2. 2. 3. Navigate to the Payables Options window and click the Expense Report tab. In the Terms field, select the payment term you want to assign to any suppliers that you create from employees during Invoice Import. In the Pay Group field, select the pay group you want to assign to any suppliers that you create from employees during Invoice Import. In the Payment Priority field, assign a priority number, between 1 and 99, to any suppliers that you create from employees during Invoice Import.
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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.
Payments - Introduction
Chapter 16
Payments - Introduction
Section Objectives
At the end of this section, you should be able to: Discuss the basic concepts of payments within Oracle Payables.
Enter supplier
Enter invoice
Approve invoice
Create PO
Match to PO
Pay invoice
Reconcile 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
Computergenerated Combined
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.
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.
Payments
How to Initiate a Manual Payment 1. 2. 3. 4. 5. 6. 7. In the Type field, select Manual. Select the bank account you use for the payment. Select a payment document name. Enter the payment document number. Enter the payment date. Enter the payment amount. If you are using a multiple currency bank account with a multiple currency payment document, optionally, change the payment currency.
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. Select as many approved invoices as will fit on a single check stub. To record a manual payment, save your work at this point and you are done. 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.
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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.
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Select the Pay in Full check box and click the OK button to open the PaymentsPay in Full window. 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. 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.
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PaymentPay 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. If necessary, enter or adjust other information in the Payments window. 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.
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Select the Format check box and, optionally, select the Print checkbox. If printing the check, select the appropriate printer. Save your work. Oracle Payables records the payment and updates the invoices as paid.
Scheduled Payments
How to Schedule Payments from the Invoice Workbench 1. 2. 3. Make certain the invoices that you want to pay are fully approved. To pay a portion of an invoice, select the invoice from the Invoices window. Click Scheduled Payments tab.
Payments
How to Pay Suppliers with Future Dated Payments 1. 2. Make certain the invoice that you want to pay is fully approved. In the Payments window, record the invoice payment as a manual payment. 3. 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.
Enter a maturity date. During setup you can enable the use of a Future dated payment account along with a cash clearing.
Payments
Adjusting Selected Invoices for Manual Payments You can change the invoices you select for a manual payment at any time before posting: 1. 2. Find the payment online by using the Payments Overview window, or by opening the Payments window in entry mode and querying the payment. In the Payments window, select the payment, and click the Enter/Adjust Invoices button to navigate to the Select Invoices window.
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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. 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. 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.
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Summary
In this lesson you should have learned how to do the following: Select invoices to pay Pay from the Invoice Workbench Pay suppliers with future-dated payments Override payment controls
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)
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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. Save your work and close the Select Invoices window. 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.
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Click the OK button on the Payment Actions window to print the check.
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.
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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.
Summary
Summary
In this lesson you should have learned how to do the following: Select Invoices to pay Pay from the Invoice Workbench Specify computer-generated payment Change payment currency Predate payments
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
21. Verify that your window appears similar to the one displayed above. 22. Click the Actions button to open the Payment Actions window. 23. Select the Format check box.
24. Verify that your window appears similar to the one displayed above. 25. Click OK. The system displays a Concurrent Request ID number. 26. View your check online. M Help View My Requests
Format payments
Confirm 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. Format payments to have Oracle Payables produce an output file. Print checks from the output file, or create electronic payments. 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.
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Payment Batches
How to Initiate New Payment Batches 1. 2. Navigate to the Payment Batches window. Enter a unique name in the Batch Name field. This name will appear on reports and helps to locate the batch online. 3. 4. 5. Tab to the Payment Date field and enter or change the date that payables needs to print on the payment or remittance advice. Optionally, select an Invoice Batch Name to limit the payment batch to only invoices included in the batch. Optionally, select a Supplier Name to only pay invoices for a specific vendor.
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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. Tab to the Bank Account field and change this if needed. 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. Optionally, select the checkbox in the Future Dated Payment field to pay invoices using a future date.
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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.
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
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your payment batches for your bank accounts can be initiated with a single payment batch submission.
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12. Validate that your window appears similar to the one displayed below:
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.
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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.
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.
10. View the checks online and write down the last check number. You will need this number for confirming the payment.
Format payments
Confirm 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.
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Payment Overview
Finding High-Level Payment Information Use the Payment Overview window to review the status of a payment and its related highlevel 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:
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.
Build
Build
Format
EDI 820
Confirm
Confirm
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.
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.
Payment Batches
How to Create EDI Payments 1. 2. Initiate a payment batch using a payment document associated with the EDI Outbound Program payment format. 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. 4. Verify that your bank has received the file. Confirm the payment batch.
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.
Supplier Sites
How to Set Up Suppliers Define the suppliers and supplier sites that use the bank account to receive electronic payments. 1. 2. Enter the data about the supplier in the Suppliers and Supplier Sites windows. In the Payment region, choose Electronic Payments as the payment method.
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. 2. 3. In the Banks window query an existing Bank or create a bank record. Choose Bank Account. Oracle Payables displays the Bank Accounts window. Enter the bank account name, number, and currency.
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Supplier Sites
How to Verify Supplier Bank Assignments 1. 2. In the Bank Accounts region of the Suppliers or Supplier Sites window, verify that all appropriate bank accounts are listed. For suppliers and supplier sites with multiple bank accounts, verify that one bank account is designated as the primary bank account.
Scheduled Payments
How to Schedule Payments 1. 2. 3. In the Invoices window, select the invoice that you want to pay. The invoice must be approved, uncancelled, and without any holds. Click Schedule Payments. Oracle Payables displays the Schedule Payments window. In the Remit To Bank region, Oracle Payables displays the invoice amount and the primary bank account for the supplier or supplier site.
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
Entering Prepayments
Section Objectives
At the end of this section, you should be able to: 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 prepayment
Status = Unapproved
Approve prepayment
Status = Unpaid
Pay prepayment
Status = Available
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. 2. 3. Navigate to the Invoice window. Select Prepayment in the Type field. Enter all other Invoice Header information for a standard invoice. 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.
Distributions
How to Enter Prepayment Distributions 1. 2. 3. 4. Automatically create a prepayment distribution by using the default prepayment account from the supplier site. Optionally, enter other distribution details, including a description and 1099 information. Automatically create, as an option, one tax distribution using the tax name entered for the prepayment. Review or modify the scheduled payments, and review or apply holds by choosing the appropriate button.
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.
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Click the Apply/Unapply button to apply the prepayment amount to the invoice.
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.
Apply/Unapply Prepayments
How to Unapply Prepayments from Invoices (continued) 1. 2. In the Invoices window, query either the prepayment or the invoice to which it is matched. Click Actions, and select Apply/Unapply Prepayments.
Approve prepayment
Status = Unpaid
Pay prepayment
Status = Available
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.
Expense Report
How to Apply Advances to Expense Reports 1. 2. Pay an employee advance and later apply the advance against an expense report to reduce the amount you pay for an expense report. 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.
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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.
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 todays date. 11. Validate that your window appears similar to the one displayed below:
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.
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.
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. 16. In the Account field, enter 01-402-7695-0000-000. 17. Verify that the Distribution Total is equal to the Invoice Amount. 18. Validate that your window appears similar to the one displayed below:
19. Close the Distributions window. 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.
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
In this lesson you should have learned how to do the following: 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
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.
Payment Actions
How to Record Stop Payments 1. 2. 3. 4. 5. Find the payment online. In the Payments window, select the payment, and click Actions. In the Payment Actions window, select Initiate Stop. Click OK to have Oracle Payables update the payment status to Stop Initiated. Save your work. 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.
Payment Actions
How to Release Stop Payments 1. 2. 3. 4. Find the payment online. In the Payments window, select the payment and click Actions. In the Payment Actions window, select the Initiate/Release Stop checkbox. Click OK to have Oracle Payables release the stop on the payment and reset the status to Negotiable. 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 uncashed 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. 2. 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. 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.
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Choose Find. Oracle Payables displays the search result in the Payments window. Verify that the information is related to your supplier and the payment. Choose Actions. In the Payment Actions window, select the Initiate Stop check box.
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Choose Find. Oracle Payables displays the search result in the Payments window. Verify that the information is related to your supplier and the payment. Choose Actions.
10. Validate that your window appears similar to the one displayed below:
Summary
In this lesson you should have learned how to do the following: Place stop payments Release stop payments Void payments Void unused payment documents
Reduce cash outlays Forecast cash needs Require special handling for an invoice payment
The table above indicates the cash control Business Needs and the Feature that relates to that control.
Lookups
How to Define Pay Groups Pay Groups are defined in the Oracle Purchasing Lookup windows. 1. 2. 3. 4. 5. 6. Navigate to the Purchasing Lookup window and enter Pay Group in the Type field. Enter the name of the lookup that you are defining in the User Name field. Select Purchasing as the application the lookup applies to in the Application field. Enter a description for the lookup type. Select the Access Level to which this lookup applies. 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.
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 sites 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.
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.
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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.
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10. Validate that your window appears similar to the one displayed below:
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.
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.
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.
10. Validate that your window appears similar to the one displayed below:
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
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. 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. 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.
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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. 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. 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.
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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.
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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 DisbursementUSD. Select Bank as the institution. Optionally, enter the information related to electronic data interchange (EDI) and electronic funds transfer (EFT). Optionally, enter names and information for your bank contacts in the Contact region. Save your work. Proceed with Defining Bank Accounts.
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Bank Accounts
How to Define Internal Bank Accounts 1. 2. 3. 4. 5. Enter the bank accounts name and bank accounts number. 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. Optionally, enter an account type and description. The currency defaults from your functional currency. To use bank account validation, enter check digits. Select internal account use.
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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.
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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. Proceed with Defining and Maintaining Payables 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.
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.
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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. In the Last Available field, enter the last payment document number available for a payment document. 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. In the Clearing Days field, enter the number of days it takes for the bank to clear future dated payment documents. 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.
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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 accounts cash account. 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. 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.
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The accounts you enter in this region override the accounts you entered in the GL Accounts region of the Bank Accounts window.
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. 2. Select Pay Group in the Type field. In the Name field, enter a name for the pay group that you are defining. 3. 4. 5. 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.
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. To inactivate this name on and after a certain date, enter an inactive date. Save your work.
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. If you are entering Day of Month terms, enter a cutoff day. If you select the Recalculate Scheduled Payment Payable option and you match to a purchase order, 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.
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Enter information into one or more payment term lines starting with the Due tabbed region. Enter the percentage or amount in the % Due or Amount field to determine the portion of an invoice due on the scheduled payment. 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
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Enter one of the following to determine the due date on the scheduled payment line: Fixed date Days Day of month, and months ahead
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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
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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
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In the Payables Options window, select the Allow Future Payment Method check box. In the Automatic Payment Programs window, define payment programs to format futuredated payments. 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. 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.
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If you want to use combined accounting, select one of the options above, otherwise choose: None
Tax Types
Tax Type Sales Use Description Used to record sales tax charges on invoices and taxable invoice distributions 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 A negative-rate tax you use to offset a positive tax to enable you to record and report on zero-rated taxes 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.
Automatic Withholding
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.
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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.
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. 2. 3. 4. Select or enter and account value in the Account field. Select Input from the drop-down list in the Tax Type field. Enter the appropriate tax code in the Tax Code field. Optionally, select the check boxes to Allow Tax Code Override and to indicate that the Amount Includes Tax.
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.
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. 2. 3. 4. 5. Enter a unique tax code name in the Tax Code field. Select the tax type from the list of values in the Tax Type field. Enter the tax rate percentage in the Rate field. For an offset tax, enter a negative rate. Enter an effective date for the new tax code and select the Enable checkbox. Enter the GL Account where the tax will be charged. If this is a VAT tax, enter the Vat Transaction Type.
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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.
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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.
Tax Codes
How to Define Tax Codes for Withholding Taxes 1. 2. 3. 4. 5. 6. 7. Enter a unique tax code name in the Tax Code field. Select the tax type Withholding Tax from the list of values in the Tax Type field. Do not enter a tax rate percentage in the Rate field. Enter an effective date for the new tax code and select the Enable checkbox. Enter the GL Account where the tax will be charged. If this is a VAT tax, enter the Vat Transaction Type. Click the Other tab and enter a Description for the tax code. Click the Withholding Tax Details button to navigate to the Withholding Tax Details window.
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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.
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Summary
In this lesson you should have learned how to do the following: Assign the source and hierarchy for tax defaulting Define tax codes Define withholding tax groups
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Prorate
How to Prorate Freight and Miscellaneous Charges 1. 2. In the Invoices window, enter all basic invoice information. Do not select the Create Freight Distribution check box.
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10. Click the OK button to prorate the charges across the lines. 11. Open the Distribution window to review the invoice distribution.
Invoices
How to Enter Freight Distribution for an Invoice 1. 2. In the Invoices window, enter all basic invoice information including the Freight Amount. 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.
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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. 1. 2. In the Invoices window, enter all basic invoice information. Do not enter a tax name or tax amount in the tax region.
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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. 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. 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.
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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.
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.
Summary
In this lesson you should have learned how to do the following: Automatically create freight distributions Prorate freight charges across invoice distributions Enter freight distribution manually Automatically prorate sales tax across invoice distributions
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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.
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.
10. Select Header as the tax calculation level. 11. Enter the sales tax name that you defined in a previous lab.
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.
24. Validate that your window appears similar to the one displayed below: 25. Save your work.
10. Select the Create Freight Distribution check box. Oracle Payables displays the Freight window.
10. Enter the two lines of invoice distributions. Do not enter a tax name at this point. 11. Click the Allocate button.
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.
21. Click the OK button to create the Freight distributions and return to the Distributions window.
Summary
In this lesson you should have learned how to do the following: Set up Automatic Tax Calculation Use Automatic Tax Calculation
Tax Types
Tax Type Sales Use Description Used to record sales tax charges on invoices and taxable invoice distributions 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 A negative-rate tax you use to offset a positive tax to enable you to record and report on zero-rated taxes A feature you use to withhold taxes from expense reports and supplier invoices
The table above indicates the type of Taxes and how they are used. This chapter will focus on the Value Added Tax (VAT).
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 VATregistered 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.
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Tax Codes
How to Define Tax Codes 1. 2. 3. 4. Use the Tax Codes window to enter all relevant information. Establish a tax code, tax type, and a rate for each type of tax. Enter the appropriate GL account to charge for each tax type. 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.
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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 suppliers VAT numbers to each new supplier site and to all invoices you enter for those supplier sites. In the Invoice Tax Code field, select a VAT default tax name for supplier sites to pay VAT charges on invoices. 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.
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Tax type Tax type Tax name Tax name Tax rate Tax rate Define tax names Define EU suppliers and assign tax names
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
In this lesson you should have learned how to do the following: Define VAT names Define EU suppliers Record VAT charges Review VAT charges
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.
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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
In this lesson you should have learned how to do the following: 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
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.
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. 2. 3. 4. 5. Enter the name of the entity you are defining. Select the location of the entity you are defining. Enter the tax ID number. Enter one or more balancing segment values that comprise the reporting entity. Save your work.
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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 suppliers 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 Sites Tax Region Payable option, the default for the Region is the state in the address for the supplier site.
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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.
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).
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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: 1. 2. Navigate to the Submit Requests window. In the Name field, select 1099 Electronic Media.
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In the Control Name field, enter your payer name control. In the Control Code field, enter your five-digit transmitter control code (TCC). In the Tax Reporting Entity field, enter the name of the tax reporting entity for which you want to submit the 1099 Tape. In the Media Type field, select 5 1/4" and 3 1/2" Diskette or Magnetic Tape. In the Test Submission field, enter Yes only if you are submitting a test 1099 tape to the Internal Revenue Service. 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
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: 1. 2. 3. 4. 5. Navigate to the Submit Requests window. In the Name field, select 1096 Form. Navigate to the Report Parameters window. In the Tax Reporting Entity field, enter the name of the reporting entity for which you want to submit the 1096 Form report. 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
In this lesson you should have learned how to do the following: 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 Submit 1096 forms
Taxes Setup
Chapter 31
Taxes Setup
Section Objectives
At the end of this section, you should be able to: 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:
Reporting Entity
How to Define Reporting Entities (1099 Reporting) 1. 2. Enter the name, location, and tax ID number of the reporting entity you are defining. Enter one or more balancing segment values that comprise the reporting entity.
Submitting Reports
Chapter 32
Submitting Reports
Section Objectives
At the end of this section, you should be able to: Submit reports Submit request 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.
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. 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. 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.
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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.
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. Select the Options button in the Upon Completion region. 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..
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Summary
In this lesson you should have learned how to do the following: Submit reports Submit request sets
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. 2. Validate all invoices, confirm all payment batches and run Create MassAdditions Program. 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. NAccountingUpdate 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 dont equal, etc.) Make any necessary corrections. 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. 7. Repeat the above steps as necessary until you are ready to close the period. Close the period in Oracle Payables. NAccountingControl 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.
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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
Enter asset Enter asset information in information in Oracle Payables Oracle Payables Submit Mass Additions Create program
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
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.
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.
Submit Requests
How to Submit Mass Addition Create Program 1. 2. 3. To import asset information (including discounts taken) from Oracle Payables to Oracle Assets, navigate to the Submit Requests form. Choose Mass Additions Create from the Request Name list of values. 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.
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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
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.
To reconcile your Accounts Payable Trial Balance for a given period add the current periods posted invoices (total invoice amount from the Posted Invoice Register), and subtract the current periods posted payments (total cash plus discounts taken from the Posted Payments Register) from the prior periods Accounts Payable Trial Balance. This amount should equal the current period's Accounts Payable Trial Balance.
Purging Records
Submit purge
Abort purge
Confirm purge
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
In this lesson you should have learned how to do the following: 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
Step 1 Company 01 Expenses AP Invoice for $150 50 Company 02 Expenses 150 50 Company 03 Expenses 50
Step 2 Company 01 Intercompany Receivable Intercompany Balancing Entry 100 Company 02 Intercompany Payable 50 Company 03 Intercompany Payable 50
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.
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. 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.
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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 nonfixed currencies: Enter daily rates between the functional currency and all other non-fixed currencies.
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.
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.
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. 2. 3. 4. In the Invoice Currency field, select the default currency for recording supplier invoices. In the Payment Currency field, select the default currency for invoice payments. The default currencies cascade down to new supplier sites. At the supplier site level, the default from the parent supplier can be changed.
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.
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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.
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.
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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.
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Payments
How to Pay Foreign-Currency Invoices To pay an invoice in the same currency as the invoice currency: 1. 2. 3. Select a foreign-currency bank account. Use any payment method to pay foreign-currency invoices. Enter exchange rate information for the payment.
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.
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.
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 distributions balancing segment when it builds an offsetting account. Companies typically find this level of detail sufficient.
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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.
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.
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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
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. 2. 3. Open the Set of Books window. Enter the name of the set of books. Save your work.
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Bank Accounts
How to Set Up Foreign-Currency Bank Accounts To define a single-currency bank account: 1. 2. 3. Define a bank account currency other than the functional currency to create a singlecurrency bank account. Define payment documents that use single-currency payment formats or multiple-currency payment formats. Use a bank account to pay invoices in one currency only by not selecting the Multiple Currency Payments check box.
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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.
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
Use the Personal Profile Options window to view or set your profile options at the user level. Consult your Oracle Applications System Administrators Guide for a list of profile options common to all Oracle Applications.
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
Payables Reports
Section Objectives
At the end of this section, you should be able to: 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 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 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.
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.
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.
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.
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 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 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.
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.
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.
Intra-EU VAT Audit Trail Report Use the Intra-EU VAT Audit Trail Report to review invoice and tax information for your intraEU 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 intraEU 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.
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.
Payment Reports
Discounts Taken and Lost Report
Use the Discounts Taken and Lost report to identify payments for which you could have taken a discount, but did not. If you find that you are losing discounts, you can change your system and supplier defaults and modify your 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.
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.
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.
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 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.
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.
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.
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.
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.
Notices
Print Invoice Notice
Payables prints invoice notices for each invoice that matches the selection criteria you specify in the Print Invoice Notice parameters.
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
Suppliers Enhancements
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 suppliers 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 users 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
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.
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