Invoice Type Standard

Issued / Created By Supplier

Matched To

Amounts

PO Matched / Not Postive (+) Matched PO Matched Invoice Matched Postive (+) Negative (-)

Mixed Invoice Buyer

Credit Memo

Supplier

PO Matched Invoice Matched

Negative (-)

Debit Memo

Buyer Supplier Buyer

PO Invoice Invoice Matched

Negative (-)

Prepayment

Negative (-)

Expense Reports

Buyer

Invoice Matched

Postive (+) Negative (-)

Retainage Release

Buyer

PO Matched

Postive (+)

Witholding Tax (WHT)

Automatic / Manual

To Invoice

Postive (+)

PO Price Adjustment Invoice Quick Invoice

Buyer

PO Matched Invoice Matched

Postive (+) Negative (-)

Buyer

Description Standard Invoice are invoices from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Standard invoices must be positive amounts. Mixed Invoices are invoices or credit/debit memos for which you can perform both positive and negative matching to purchase orders and to other invoices.

Credit Memos are memos from a supplier representing a credit amount toward goods or services.

Debit Memos are invoices you enter to record a credit for a supplier who does not send you a credit memo. A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee. You can enter two types of prepayments: Temporary and Permanent. Temporary prepayments can be applied to invoices or expense reports you receive. Permanent prepayments cannot be applied to invoices.

Expense Reports are invoices representing an amount due to an employee for business-related expenses.

Retainage release is the act of releasing, or paying, that portion of a payment that was withheld until a substantial portion or all of the service procurement work is completed. The amounts retained during the life of the contract must be released and paid to the supplier or subcontractor once all or a substantial portion of the work is completed.

Similar to Automatic VAT processing, Oracle provides the feature for automatic WHT processing. To perform automatic withholding, assign a WHT group (not WHT) to an invoice or invoice lines. WHT group defaults from supplier site. If required, the user can override the default and select a different WHT group. PO Price Adjustment Invoices are used for recording the difference in price between the original invoice and the new purchase order price.

Used for quick, high-volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import

Scenario When Buyer needs to pay to supplier for the Goods / Services which is procured form the supplier. Due to manual entry of Standard invoice sometimes there might be manual typo error in amount. To have Invoice adjustments Mixed Invoices are created. For example, you can enter an invoice for -$100 with Invoice Type Mixed. You can match to an invoice for $-200, and match to a purchase order for $100. For instance, assume that SellerCorp had issued a sales invoice for $800 for 100 units of product that it shipped to BuyerCo at a price of $8 each. BuyerCo informs SellerCorp that one of the units is defective and SellerCorp issues a credit memo for $8. The credit memo will cause the following in SellerCorp’s accounting records: 1) a debit of $8 to Sales Returns and Allowances, and 2) a credit of $8 to Accounts Receivable. In other words, the credit memo reduced SellerCorp’s net sales and its accounts receivable. When BuyerCo records the credit memo, the following will occur in its accounting records: 1) a debit of $8 to Accounts Payable, and 2) a credit of $8 to Purchases Returns and Allowances (or Inventory). A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo. Temporary prepayments: For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel's invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay. Permanent prepayments: For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced. If you have paid advances to an employee you can use this window to apply advances to expense reports to reduce the amount you pay. You can also apply a hold to an expense report to prevent payment. You can apply advances and holds to expense reports that are from any source. Note* Mainly used when you are using Oracle Projects, OTL, iExpense Modules. With Oracle's Complex Work feature, contract administrator can negotiate retainage terms with the contractor and capture these as part of the contract. These terms include Retainage Rate and Maximum Retainage Amount.

A large Television broadcasting and production company had the following concern. They take the services of large number of TV artists who are employed for a very short period of time. While making a payment to them the company has to deduct taxes and pay them. For example, If a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed. Payables uses information you enter in the Quick Invoices window to create invoices in Payables. You enter invoice header and line information in this window. This information is stored in the Payables Open Interface tables. Because the system performs limited validation and defaulting of invoice values while you are entering invoices, you can enter invoices more quickly in the Quick Invoices window than you can in the Invoice Workbench (the Invoice Workbench is the Invoices window and its associated windows).

Type Invoice Hold

Description You can manually apply one or more Invoice Hold Reason Approvals ("hold using the Invoice Holds window of the Invoice Workbench.

Payment Holds Scheduled Payment Hold You can hold payment on part of an invoice by placing one or more of the (Manual) payments on hold in the Scheduled Payments window of the Invoice Work In the Supplier Sites window, you can enable the Hold All Payments, Hold Supplier Hold Hold Unmatched Invoices options. You also have the option of specifying a Limit for a supplier site.

Hold Name Can't Funds Check Amount Invalid PO Supplier Matched Required Max Quantity Ordered Max Quantity Received PO Not Approved Price Quantity Ordered Distribution Variance

Description Invoice project, task, award (PTA) does not equal the purchase order PTA Invoice amount exceeds invoice amount limit specified for a supplier site r Invoice matched to an unapproved or invalid purchase order Hold Future Invoices" has been designated in the supplier site window for Invoice not matched to purchase order. Quantity billed exceeds the total quantity ordered + tolerance amount. Quantity billed exceeds the total quantity received + tolerance amount (on Matched purchase order not approved. Invoice unit price exceeds the total purchase order unit price X (1 + % toler Quantity billed exceeds the total quantity ordered X (1 + % tolerance). Invoice amount does not equal sum of invoice distribution amounts. Manu Must adjust invoice distributions or invoice amount and resubmit approva

System Holds

Hold Name Amount

Hold Reason

Invoice amount is more than the invoice amount limit you specify for a sup

Invalid PO

You apply this hold when a supplier does not provide a valid purchase ord matching

Invoice Holds

Natural Account Tax

You assigned a tax code to an expense or asset account in the Tax Options enabled the Enforce Tax From Account Payables option. The tax code on th match the tax code assigned to the account.

Pay When Paid PO Deliverable Supplier

Subcontractor cannot be paid until the customer pays. PO deliverables are not submitted by the subcontractor. You enabled the Hold Unvalidated Invoices option for a supplier site in the window

Withholding Tax

Payables cannot perform automatic withholding of tax

Custom Holds
Below API's can be used to put invoice on hold. Insert Hold Release Hold ap_holds_pkg.insert_single_hold ap_holds_pkg.release_single_hold

How to Define Custom Holds? Payables Manager --> Set up --> Hold and Release

Hold Restrictions PAYMENT BATCH SELECTED INVOICES: You cannot apply holds to an invoice you have selected for payment in a payme

re Invoice Hold Reason Approvals ("holds") to an invoice the Invoice Workbench.

n invoice by placing one or more of the scheduled d Payments window of the Invoice Workbench. an enable the Hold All Payments, Hold Future Invoices, or You also have the option of specifying an Invoice Amount

does not equal the purchase order PTA mount limit specified for a supplier site record for the or invalid purchase order signated in the supplier site window for this supplier. rder. uantity ordered + tolerance amount. uantity received + tolerance amount (only applicable if oved. purchase order unit price X (1 + % tolerance). uantity ordered X (1 + % tolerance). m of invoice distribution amounts. Manual hold not allowed. r invoice amount and resubmit approval.

Manual Release Allowed? Not Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed Allowed

Hold Reason

Hold Placement Invoice Validation

voice amount limit you specify for a supplier site

Accounting Allowed Yes

r does not provide a valid purchase order number for

Manual

No

nse or asset account in the Tax Options window, and you Invoice Validation ount Payables option. The tax code on the invoice does not account.

No

the customer pays. by the subcontractor. Invoices option for a supplier site in the Suppliers Sites

Invoice Validation Invoice Validation Invoice Validation

Yes Yes Yes

c withholding of tax

Invoice Validation

No

u have selected for payment in a payment batch.

Manual Release Allowed Yes

Hold Removal Adjust invoice amount and resubmit Invoice Validation Change Invoice Amount Limit option for supplier site and resubmit Invoice Validation Manually release in the Invoice Holds tab Manually release in the Invoice Holds tab. (Note: you can submit the Invalid PO Supplier Notice to request a valid PO from the supplier). Change the tax code on the invoice to match the tax code assigned to the account. Disable the Enforce Tax From Account Payables option In the Tax Options window in General Ledger, change the tax code association, or manually release the hold in the Invoice Holds tab. Release in the Invoice Holds tab Release in the Invoice Holds tab Manually release in the Invoice Holds tab (To prevent future Supplier holds, disable the Hold Unvalidated

Yes

Yes

Yes Yes Yes

No

Correct error that caused automatic withholding of tax to fail. For example, you may need to set up a period in the withholding tax special calendar.

Sign up to vote on this title
UsefulNot useful