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RELEASE 12 : PAYABLES

Trading Community Architecture


Agenda

 Suppliers
 Bank’s
 Retainage
 Recoupment
 Payments Manager
 AP/AR Netting
Supplier’s

In 11i
 Suppliers defined in AP.
 Supplier contacts replicated for each supplier site.

In R12
 Supplier becomes as TCA Party.
 Suppliers Sites as TCA Party Site for each distinct address.
 Contacts for each supplier/address , it means Single supplier address
and contact can be leveraged by multiple sites, for each OU
– A single change to an address can be seen instantly by all OUs
– No longer need to manually ‘push’ updates across OUs.This can be
best understood by the figure below.
Creating Supplier

Creating Supplier
Select
Click Apply to
continue

Enter Header Level Info


Select Address book to
Insert Site Address
New Address
Site Name
Click on Create to Create
a new Supplier Bank A/c
Banks and Bank Details

• The Bank Account model in R12 provides a single


access point for defining and managing internal bank
accounts for Oracle Payables, Oracle Receivables,
Oracle Payroll, Oracle Cash Management, and Oracle
Treasury.

• A single Legal Entity is granted ownership of each


internal bank account. One or more Organizations
are granted usage rights.
Ownership of internal bank account

• Each Legal Entity is granted ownership for each


internal bank account.
• For Granting Access to the Legal Entities log In to Sys
Admin
• Go to “User Management” Responsibility
• Click on “Roles & Role Inheritance”
Give Required
Information

Click on Go
Click on Update
Select
Click on Run Wizard
Select Add Legal Entities to
Give access to Bank Accounts
Click on apply after
Adding Legal Entities
Creating Bank and Bank Branches in Payables

Navigation for Defining


Banks

Select
Select
Click on Create
Enter Bank
information

Select
Click on Create
to Add Address
Click on
Apply to
Save the
informatio
n entered
Click
Click Finish after
entering contact info

Click on Create
to enter a
Contact info
Creating Bank Branches

Click on Bank Braches Tab

Create new Bank


Branches
Enter Bank Name and
Country

Click Continue
Enter Branch
Information

Select Save
and Next
Select Create to Fill
Bank Branch Address
Enter Branch
information

Click on Apply
Select
Click Finish after
entering Contact’s

Click on Create
Contact to add
Contact
Creating Bank Account’s

Navigation

Select
Create New Bank Accounts
Enter Bank And
Branch Name

Click Continue
Enter your Legal
Entity in Bank
Account Owner

Select Next
to Continue

Note:- If Legal Entity Is not Granted Access at the Sys


admin Level in “User Management” Responsibility, you
can not View your Legal Entity in the above “Bank
Account Owner” Field.
Select Save and
Next to Continue

Enter Bank
Account
Information
Select Save and
Next to Continue

Enter
Required
Information
rest all are
Optional
Select to Grant
Access to
Operating Unit’s
Enter Account use and
Operating Unit

Select Continue
Enter Payment Method
and Category
Select Apply
to continue
Click on Add Organization
Access to Give bank account
access to Multiple Operating
Units Click Save and Next to
Continue
Select Finish to Save your
work

Click on Create Contact to enter


Contact info of Bank account
Select

Select the Bank Account


Select
Select Apply

Enter
Required
Information
Payment Doc got Created
Retainage and Retainage Release

• Retainage is the common practice of withholding a fixed


amount / percentage of payment until all work under a
contract is complete and accepted.

• Retainage is also called ‘retention’ or contractual


withholds’.

• At the end of the project or when agreed events have


occurred, the supplier requests the amount retained and
payment is made to release it.

• Retainage comes under Complex Payments


Contract with Subway

Contract amount 15,000, Retainage 20%


AMT Invoice Retain Amount Amount Paid
1. Stage - 8000 8000 1600 6400
2. Stage - 4000 4000 800 3200
3. Stage - 3000 3000 600 2400
Total - 15,000 3,000 12,000

Release the Retained Amount, Once an Agreed event


Occurred by “Retainage Release Invoice”
Required Setups

Enter Retainage A/c in


Financial Options
1. Navigate to Supplier’s Window

3. Select

2. Select

4. Give Retainage Rate


Create Complex Service Agreement in Purchasing

Navigation

Select
Select “Complex Service Agreement”
from list of Values

Click
Enter Supplier and
Supplier Site

Go To
Enter Contract
Amount Click on
Update

Enter Type as Fixed Price


Enter Contract
Services
Need by Date
Select

Enter Retainage
Rate

Enter Charge
Account
Select
Select Split to Split
the Contract into
Stages
After completion move to the
Distributions Tab

Give the Need


by Date

Enter Type as Split the Contract amt


Lump Sum
After Completion select Submit
Complex Service Agreement has been
Approved. Agreement NO is- 5546
Navigate to Invoice Workbench to Raise Invoice

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the


Agreement
Select the Match Amount

Click on Match after Selecting


10 percent of the Total amt got
automatically got Retained

Go to Actions and Pay the


Invoice
Out of 25,000 invoice amt 2,500 got
retained and amount paid to Supplier
is 22,500
Retainage Release

Select PO Number

Select Invoice Type as Enter Invoice Amt to


Retainage Release be Released

Go to Match and Match


the Agreement
Select The Po line to be Matched

Release the Amount

After Release go to Payment work


Bench and Pay the Amount
Contract with Subway

Contract amount- 35000, Prepaid amount-7000


Recoupment Rate 20%

Amount Invoice Pre’ment Applied Amount paid


Stage 1 20,000 20,000 4,000 16,000
Stage 2 15000 15,000 3,000 12,000
Total 35,000 7,000 28,000
Select “Complex Service Agreement”
from list of Values

Click
Enter Supplier and
Supplier Site

Go To
Enter Contract Click on
Amount Update

Enter Type as Fixed Price Enter Contract


Services Need by Date
Select

Advance amount is Prepaid


amt Paid to Supplier

Recoupment rate is
7000/35000*100
Select
After completion move to the
Distributions Tab

Give the Need


by Date

Enter Type as
Split the Contract amt
Lump Sum
Give Prepaid Account

Click on
Complex Service Agreement has been
Approved. Agreement NO is- 5547
Navigate to Invoice Workbench to Raise Prepaid Invoice

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the


Agreement
Select the Match Amount

Click on Match after Selecting

After Matching Pay the


Invoice
Raise a Standard invoice and match with Agreement

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the


Agreement
Select the Match Amount

Click on Match after Selecting


Prepayment Automatically applied
according to Recoupment Rate

Pay the Invoice


Total amount paid to Supplier is
20,000
Payments Manager

• The Payments Manager enables you to complete a pay


run from start to finish Payments.

• The Payments Manager is comprised of the following


components:
Payments Dashboard
Templates
Payment Process Requests
Payment Instructions
Payments
Creating Payments through Payment Manager

Navigation

Select
Select
Select to create a
new template
Enter Template Name

Enter Supplier Name

Select Pay group

After Completion click on


Payment Attributes Tab
After Completion click on
Process Automation Tab

Select Bank A/c and


Exchange rate Type
View

Select Apply

When “Initiate Payment Process


Request is complete” is selected
System will Automatically create
Format for the Payments Selected
Go to

Select
Enter Request Name and Select Template from
list of values

Select User
Rates Tab

Information gets defaulted from Template


Select Submit “Requests”
Enter exchange rate gets Generated
Report Gets Generated
Go back to

Query the Process


Request

Click on
Click on submit Request
gets generated

Select to Add or Remove


Payments
3. Go to Payment Instructions
Tab to complete the Payment

1. Query the Process


Request

2. Status changes to
Formatting
Query by Process Request
Name and Creation Date

Select
Select Continue the
Apply
Go to

Query “Process Request


Name”

Status got Confirmed


Navigate to Payments Overview
to view Payments Made
AP/AR Netting

• The Payables and Receivables Netting feature enables the


automatic netting of Payable and Receivable transactions
within a business enterprise.

• You can predefine a netting agreement that incorporates the


netting business rules and transaction criteria needed to run
your tailored netting process.

• The netting process automatically creates the Payables


payments and Receivables receipts required to clear a
selected number of Payables and Receivables transactions.
Prerequisites for AP/AR Netting

• Define a netting control account in GL.


• Define a netting bank account.
• Associate the bank account with the AP/AR Netting
receipt class.
• Enable the Allow Payment of Unrelated Transactions
Receivables System Option.
• Define Document Sequence for Receipts and
Payments.
Defining Netting Agreement

Navigation

Select
Select
Select Bank A/C
Enter Operating Unit
name and Rules
And Agreement Name

Select Invoice
and Transaction
Types

Once Finished Click


on Next
Select Supplier and Customer
Select Finish to Complete
Creating Netting Batch

Navigation

Select
Select
Select the Required Information
and give the Batch Name

Once Submitted go back to Netting Batch Once Finished Click


window and Query the Netting Batch on Submit
Status got Complete

Click on To View the Transactions


Netted