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54428080 Basic Concepts in Oracle AP

54428080 Basic Concepts in Oracle AP

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Basic Concepts in Oracle AP - Part1

Oracle 11i Financials - AP
The Payables module in Oracle Applications allows you to pay your suppliers for merchandise and services and enables you to manage your procurement cycle. This module consists of two integrated workbenches, Invoice and Payment. This ReferencePoint describes Accounts Payable (AP) and explains how to manage payments to vendors and suppliers.

The Payables Workflow
Oracle Payables is integrated with Oracle Purchase and Oracle Cash Management. When you purchase goods or services from a supplier, an encumbrance is created. As soon as you receive the goods or services, the encumbrance becomes a liability that remains in your books until you pay for goods or services. Figure shows the integration of Oracle Payables, Oracle Purchase, and Oracle Cash Management:

Integration of Payables, Purchase, and Cash Management Oracle Purchase, similar to all other feeder systems, is also integrated with Oracle GL. You can transfer all accounting transactions generated and created in Oracle Payables to Oracle GL through GL_INTERFACE_TABLE. To integrate Payables with GL: 1. Run Payables Transfer from Oracle Payables to the General Ledger process. Using this process, you can transfer invoice and payment accounting to the GL_INTERFACE table.

2. Run the Journal Import program from Oracle GL to transfer the invoice and payment accounting from the GL_INTERFACE table to GL. This creates unposted journal entries in GL, which can be reviewed and finally posted. The posting process updates account balances.

How to Set Invoice Workbench
Invoice Workbench enables you to enter, adjust, modify, and review invoices and invoice batches that your customers have raised on you. You can integrate the Invoice and Payment workbenches through the Invoice Overview and Payment Overview windows. You can use either of these workbenches to review the information in the other workbench. The Setup options in Oracle allow you to manage the procurement cycle and save money for your organization. You can define the Payables system to: Pay suppliers on time Get maximum discounts on payments Prevent duplicate billing and invoicing Perform multiple matching of Invoice and Purchase Orders Avoid overdrafts on bank accounts Review information online to check the status of payments There are various options that you can set to work with the invoice feature in Oracle Payables. These include the options for suppliers, invoices, and distribution sets.

The Suppliers window enables you to enter information about individuals and organizations that supply goods and services. You can enter employees as suppliers to enable the system to make payments against expenses. If any of the suppliers operate from multiple locations, you need to enter the supplier information only one time. You can assign multiple sites to each of the supplier's locations. A site is a location from where the supplier runs a specific business. Sites can be designated as pay sites, purchasing sites, and REQ only sites. On the basis of supplier definition, you can purchase goods or services and send payments to a site. How to Define a Supplier To define a supplier: 1. Log on to Oracle Applications. Select Switch Responsibility -> Payables, from the main menu. Select Suppliers ±> Entry. The Suppliers form opens, as shown The Suppliers Form

you can create a distribution set for stationery supplier. If you enable any of the HOLD options for a specific supplier. Enter a distribution set to automatically enter distributions for an invoice when it does not match a purchase order. Select Pay to determine the pay date for a supplier's invoice. The options to open the Receiving tab are: Enforce Ship-To Location: Determines whether or not the receiving location is the same as the Ship-To location. This allocates stationery expense on an invoice to a specific number of end users. where the supplier sends the goods to the Ship-To location and the invoices for goods or services to the Bill-To location.2. In the Type field. For example. Define the organization's Ship-To and Bill-To locations among other options. Click the Bank Accounts tab to define the supplier's bank accounts. Payables will withhold payments to that supplier. 4. select either Purchase Order or Receipt. 7. 8. In the Terms field. Enter a priority number between 1 and 99 in the Payment Priority window with one having the highest and 99 the lowest priority. 9. Open the Accounting tab. as shown earlier in screenshot-2 6. select a Payment Term agreed upon by you and your supplier. Open the Control tab. and a number signifying your customer ID. select a type from the LOV for the supplier. 5. Select Purchasing. tax payer ID. In the Invoice Match option. Select Terms Date Basis to define the date from which Payables calculates a scheduled payment from a supplier. Click the Payment tab. 3. . Select Pay Group to assign to the supplier. Select the Classification tab. Enter a name. Select the Receiving tab.

Save and click the Sites button. Save and close the Supplier Sites form. Receipt Date Exception: Defines how the purchase department handles receipts that exceed the Days Early and Days Late Receipt Allowed.Receipt Routing: Defines the flow of goods after the supplier has delivered the same at the Ship-To location. The Supplier Sites form opens. as - The Supplier Sites Form 11. Select the Accounting tab. The concerned supplier uses this site for receiving purchase orders as well as payments. you are ready to accept the delivery. 12. Select the Contacts tab and enter a contact name and information for the supplier. 10. Enter the default GL accounts that will be updated when you deal with the supplier. Type a site name. Days Early and Days Late Receipt Allowed: Defines how many days before and after the date of receipts of goods. Tolerance: Defines how the purchase department handles the receipts that exceed the QuantityReceived Tolerance based on the selected value. Select the General tab and select the Pay and Purchasing check boxes in the Site Uses option. EC-NYC in the Site Name text box. based on the percentage you enter. QuantityReceived Tolerance: Defines the maximum range of over-receipt in addition to the quantity ordered. . Match Approval Level: Allows you to online match receipts and purchase orders to ensure that you pay only for the ordered goods and services. Click the Bank Accounts tab and enter the supplier's bank account data. Type the address in the Address option.

After the Cut-off Day. due and discount dates will be in a future month depending upon the value entered in the Months Ahead field. Payables will set the due date to April 15.Payment Terms You need to define Payment Terms to assign them to an invoice. The number of days added to the terms date. The Payment Terms form opens. such as the tenth day of the month. 3. If you enter an invoice with a terms date of March 12. The Cut-off Day defines the day of the month. such as January 10. and Day of Month is 15. A special calendar that mentions a due date for the period that includes the invoice terms date. Enter a name for the Payment Term. Due dates can be based on a special calendar but not discount dates. This allows you to automatically create scheduled payments when you submit an invoice for approval. Enter a Cut-off Day if you are entering Day of Month terms. such as 10 days after the terms date. Months Ahead is 0. Each scheduled payment has an associated due date or a discount date based on: A specific day of a month. To define a Payment Term: 1. Select Setup ±> Invoice -> Payment Terms from the main menu. A specific date. For example. as shown - The Payment Terms Form 2. . 2003. A Payment Term consists of one or more Payment Term lines where each line creates a scheduled payment. the values of Cut-off Day are 10.

You need to assign distribution sets to a supplier site where the Payables module uses them for every invoice assigned to the supplier site. You need to enter the amount when you enter the invoice. Skeleton: Contains no predefined percentages. Enter a value 10 in the Days field. Save and close the Payment Terms form. but you cannot select two different terms. Click the First Discount tab. If a distribution set has not been assigned to a supplier site. The two types of distribution sets are: Full distribution set: Contains the percentages in which the distribution of the Invoice amount is created. This Payment Term will provide a 2% discount if payment is made within 10 days of the Term Date. 4. Distribution Sets A distribution set creates distributions for an invoice where the Purchase Order does not match with the invoice. Enter the discount percentage in the % Discount field. The Distribution Sets form opens. as shown ± The Distribution Sets Form . select one when you enter the invoice. 6. Enter 100% or less if payment is made in installments in the % Due field. Define the second and third discounts. Press Tab to go to the Days field. 5.Note You can also use Fixed Date or Days terms instead of Day of Month terms. Select Setup ±> Invoice ±> Distribution Sets. To define a distribution set: 1.

You can define tolerances in percent or absolute terms. Note You can create as many distribution lines as you need. allow variances between invoices. Type 1 for the first distribution line. Payables calculates the tolerance. Enter a name for the set. if the value exceeds the tolerance levels defined in the Invoice Tolerances window. 4. Click the Num field. and the tax tolerance is 5%. select Setup ±> Invoice ±> Tolerances from the main menu. Payables checks whether the invoice tax amount equals the calculated tax amount within the tolerance limits you have defined. as shown- . 3. 5. Invoice Tolerances The Invoice Tolerances window allows the end user to define acceptable tolerances. the invoice amount is USD 100. Type the account code to which this distribution line belongs in the Account field. For example. purchase orders. you can enter depart 001. Oracle Payables checks whether the invoice matches the purchase order or the receipt within the purchase order tolerance limits you have set. the tax rate is 10%. Save and close the Distribution Sets form. For example. The Invoice Tolerances form opens. To define Invoice Tolerances. but ensure that the total of the values of the % field equals 100. 6. based on the invoice amount including the tax. Enter the percentage of the invoice amount you want to distribute among the distribution line in the % field. Tolerances in Payables store a matching or a tax hold in an invoice. and obtains receipts and tax information. an Invoice will not be raised on a Tax variance hold if the tax distribution amount entered ranges from USD 9. When you submit an invoice for approval. In this case.2.5 to USD 10. When you submit the invoice with a tax amount for approval. If you define a percentage-based tolerance.5.

such as APPROVED.The Invoice Tolerances Form Invoice Approvals The Invoice Approvals window defines the rules that manually hold or release invoices. You can define as many approval rules as you need. To define Invoice Approval code: 1. as shown - The Invoice Approvals Form . and release rules. The Invoice Approvals form opens. such as APPROVAL REQUIRED. You can create hold rules. from the main menu. Select Setup ±> Invoices ±> Approvals.

Expense Report: Enables you to enter amounts due to an employee for business-related expenses. 3. Select a predefined type in the Type field. You can use it as a price correction tool. Mixed: Allows the ordered quantity against purchase orders and other invoices. For example. This document is created and sent to the supplier. you may need to make a deposit when placing an order or make advance payments for travel expenses. Withholding Tax: Enables you to remit taxes invoice withheld from the tax authority.2. Enter a name and description for the code. Save and close the Invoice Approvals form. Debit Memo: Represents a credit amount. Purchase Order Default: Enables you to match the invoice against the purchase order. Select the Accounting Allowed option if you are defining a hold code. 6. the purchase order number entered automatically copies supplier related information from the purchase order to the invoice. Figure shows the invoicing process: . It releases the hold on an invoice. 4. You need to enable the Allow Interest Invoice option in the Payables options window. While you enter an invoice. Prepayment: Enables you to enter an advance payment for expenses to a supplier or an employee. Interest: Enables you to calculate the interest for overdue invoices and create interest invoices for relevant suppliers. 5. Credit Memo: Indicates a negative amount invoice that is received from the supplier for goods and services purchased. Enable the Manual Release Allowed option manually if you are defining the release code. which the supplier owes you. Invoices Oracle Payables enables the end user to enter and work with the following types of invoices: Standard: Indicates the basic form of invoice that represents a payment due to a supplier for goods or services purchased. both in excess and in deficit. Quick Match: Enables you to match an invoice against all shipment or receipt lines in a purchase order.

from the main menu. you may need to apply a payment immediately upon entering the invoice information and you can do it from the same window. The Invoice Batches form opens. For example. The Invoice Gateway enables Purchase Order matching and applying prepayments to invoices being entered. Invoice Workbench You can enter invoice information using either the Invoice Workbench or the Invoice Gateway. Log on to the system. How to Enter an Invoice To create a Purchase Invoice batch and to enter a Purchase invoice: 1. as shown - The Invoice Batches Form . from the main menu. The Invoice Gateway enables you to enter large volumes of standard and credit memo invoices that are not complex and do not require extensive online validation or change in values during data entry. Select Invoices ±> Entry ±> Invoice Batches.Overview of the Invoicing Process Invoice Gateway vs. Select Switch Responsibility -> Payables. The Invoice Workbench enables you to enter complex invoices that require extensive online validation and change of values that appear by default during data entry. 2. You can also use the Invoice Workbench to perform an action on the invoice immediately after entering it.

. For example. The default value defined will be similar to the Invoice Batches form. Select a payment method such as Check. Save the date in the Invoices form. Furniture. Enter a batch name and a Payment Term. 5. How to Enter Invoice Distributions You may need to distribute the entered invoice to various departments in your organization. you have an expense item. Change the Payment Term if needed. if needed. 9. Select Type as Standard. When you select a Supplier. Enter the invoice number as 100. Do not close the Invoices window. Select a Supplier. The Invoices form opens. 7. 6. Select the Invoice Currency as USD. Enter the invoice amount as 10. 10. Click the Invoices button. as shown - The Invoices Form 4. 8. the Supplier Number and Site is automatically populated. Select Pay Group. Enter an invoice date in the Invoice Date column. Type GL Date = System Date and Terms Date = System Date. 000. You may need to allocate its cost to three departments.3.

6. In the Amount field. The Distributions form opens. Type 2 in the Num field. Type the account combination for the first department for which the cost is being allocated in the Account field. as shown ± The Distributions Form 2. 5. 7. Type one in the Number field. as shown in the Screenshot above. Select Item in the Type field. 4. enter 4000. Type a GL Date or accept the system date. Type a GL Date and the account combination for the second department.Use the invoice created in the earlier exercise. Click the Invoice line and then click the Distributions button. . How to Enter Distributions Using a Distribution Set Prerequisite: Create a distribution set. Save and close the Distributions form. To enter an invoice distribution using a distribution set: 1. Repeat the steps for the third number. In the Amount field. type 3500. 3. To enter invoice distributions: 1. Open the Invoice Batches window. Ensure that the Invoice Total matches the Distribution Total. select Item. In the Type field. 8.

7. Enter the invoice number and invoice amount. Select Invoices ±> Entry ±> Invoice Batches. The Payment Terms parameters enable you to calculate the due date for the invoice. The Invoice Batches form opens with the invoice batch.2. To create a scheduled payment for an invoice: 1. 6. The Find Invoice Batches window opens. The Invoice Batches window opens. Click the Find button. 4. 9. The Invoice form opens. Click the Distribution button. Enter your supplier and press Tab to go to the Invoice Date field. from the top menu. Enter Type as Standard. Select View -> Find. Click the Invoice button. The Scheduled Payments form opens. The Distributions window opens where you can see that the distribution for your invoice is complete. 3. Click the Invoices button in the Invoice Batches window. Select View ±> Find to query the Invoice Batch from the top menu. Type an invoice date. the discount date. Enter the name of your invoice batch. 2. 5. Save date in the Invoice form. 8. How to Create a Scheduled Payment After entering an Invoice. Click the Distribution Set field. Open the Invoice Batches window. 4. Enter a Standard invoice using a distribution set. and the discount amount for each scheduled payment. as - The Scheduled Payments Form . 5. Click the Scheduled Payments button. the Payables module uses the Payment Terms and the Term date specified to automatically schedule payments. Save and close the Invoice Batches form. 3. Select the distribution set that you have created earlier and save. The Invoices form opens.

Click OK. Click the Distributions button to verify the freight distribution. The Invoice Amount here includes Freight. Select the Create Freight Distribution check box. Manually enter freight distributions. Open the Invoice Batches window and select Query to find the invoice batch option. 2. 4. The Freight line appears. 9. Save the Invoices form. Enter an invoice. 9. 3. Click the Split Schedule button. 6. The Freight window opens. Click the Invoices button. . Ensure that the invoice amount matches the gross amount total. 7. Note If you cannot view the Freight Amount field and the Create Freight Distribution check box. How to Create Freight Distribution To create freight distribution in Oracle Payables: Enable the Automatically Create Freight Distribution option when you parameterize the Payable options. Type your Freight distribution account here. You can enable this option in the Invoice tab embedded in the Payable Options form. 3.6. 8. Save the date in the Scheduled Payments form. Set Type as Standard and select a supplier name. Open the Invoice Batches window and select Query to find the invoice batch. Enter 70% of your invoice amount in the Gross Amount field. How to Allocate Freight To enter freight distribution and allocate it across two departments or divisions: 1. 7. Click the Invoices button. Select your batch. Allocate freight across invoice distributions. 8. Enter a value in the Freight Amount field. Save and close the Invoices form. select Folder ±> Show Field from the top menu. Create a Standard invoice in the Invoices form. Enter the invoice number and invoice amount in the Invoices form. Note If you have already entered a Freight distribution account when configuring the Payable option then that account code will appear by default. Add another distribution line. 5. To create freight distribution: 1. 2. A scheduled payment new line is automatically created in the Scheduled Payments form. The Invoices form opens. by default.

The Distributions form opens.4. Enter a two-line distribution for your invoice. Enter the Freight amount to be allocated to each department in the Amount field. Click the Select/Unselect All button. Save the date. 10. The amount distributed here will be net freight amount. Click the Distributions button. 9. 6. Save and close the Charge Allocations form. Select Freight in the Type field and select the Prorate check box. 5. While entering the account code. For this. . The Freight allocation is prorated on the basis of the amounts in the two item distribution lines. Note 7. The Charge Allocations form opens. ensure that different values are selected for the Department segment. You will automatically return to the Distributions window. Click the Allocate button. Enter an Invoice number and the Invoice amount. The invoice amount includes the freight amount. Oracle Payables allows you to either match a single invoice against multiple purchase orders or distributions or match multiple invoices with a single purchase order or distribution. as shown - The Charge Allocations Form 8. The distribution is being made across two different departments. Click the OK button. you need to match your invoice against the payments made and the original purchase order. How to Match Invoices with Purchase Orders Best business practices include payment for the goods that have been ordered.

3-Way: The quantity billed is matched against the quantity ordered. Enter your purchase order number here. Enter an invoice number and an invoice amount. The invoice unit price is matched against the purchase order line unit price. The PO Number window will appear. 2. The quantity billed is matched against the quantity accepted. from the main menu. You will not be able to make a payment on the invoices unless the hold is removed. Select View ±> Find. Set Type as PO Default. Select Invoices ±> Entry ±> Invoice Batches. You need to create an Invoice and match it against the original Purchase Order. Select Switch Responsibility -> Oracle Payables. The invoice unit price is matched against the purchase order line unit price. 4-Way: The quantity billed is matched against the quantity ordered. The invoice unit price is matched against the purchase order line unit price. The quantity billed is matched against the quantity received. 5. In the Invoices window. from the top menu. enter an invoice. Click OK. Query your invoice batch. To understand the three Match Approval Levels: 1. 4. The quantity billed is matched against the quantity received. There are three Match Approval levels: 2-Way: The quantity billed is matched against the quantity ordered.Using Oracle Payables. Remember to note the Purchase Order Number. 3. . Click the Invoices button. 6. you can create Holds on invoices where you are being billed in excess of the amount and quantity tolerances that you define. Prerequisite: You need to create a Purchase Order using the Oracle Purchasing module.

as shown- The Match to Purchase Orders Form 9.7. Select the Match check box and click the Match button. The Match to Purchase Orders form opens. . Accept the default PO number. The Find Purchase Orders for Matching form opens. Click the Find button. Click the Match button. as - The Find Purchase Orders for Matching Form 8. Save and close the Match to Purchase Orders form.

iv. Holds on an invoice prevent you from generating a payment referencing that invoice. ii. or Hold Unmatched Invoices option in the Supplier Sites window. iii. Click the Scheduled Payments button. select the invoice to which you want to apply a scheduled payment hold. If Payables applies a system hold on an invoice. Click the Holds button.} How to Apply Holds You can apply holds on invoices. Hold Unapproved Invoices. System Holds: Indicates a hold other than a user-defined hold. Click the Invoices button. while leaving the other free for payment. If you want to partially pay an invoice that has only one scheduled payment. Select Suppliers ±> Entry from the main menu. Query the Supplier to whom a Hold needs to be applied. ii. . scheduled payments as well as on supplier sites. In the Invoices form. Supplier Hold: You can enable the Hold All Payments. ii. You can also specify an Invoice amount limit for a supplier site. You can define manual holds to prevent payment of the invoice or even prevent the account for the invoice. choose Split to break the scheduled payment into two.Part2 span. iii. you need to rectify it before the hold is released. Invoice Holds: Applies one or more Invoice Hold Reason Approvals or holds manually to an invoice using the Invoice Holds window of the Invoice Workbench. Save and close the Invoices form.Basic Concepts in Oracle AP . Select the Hold check box to apply a hold to this scheduled payment. Holds can be applied either by the system or manually as: Manual Holds: Indicate user-defined holds. Save and close the Invoices form. Scheduled Payment Hold: Holds the payment on a part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench. Open the Invoice Batches window and Query and select the invoice batch. Click the Invoices button.fullpost {display:inline. select the invoice to which you want to apply an invoice hold. you can place one of the lines on hold. Open the Invoice Batches window and Query and select the invoice batch. In the Invoices form. Manual holds cannot be released automatically and need to be released manually. In this way. To apply a Hold on a Supplier Site: i. Apply a hold by selecting a Hold name. To apply an Invoice Hold: i. To apply a Scheduled Payment Hold: i.

Click the Invoices button. In the Invoices window. The Payables module also allows you to define a bank or a clearinghouse. Payables automatically release system holds from invoices by releasing invoice holds. Manual holds must be released manually. . How to Release Holds You can release holds to make payments and allow the system to create accounting entries for invoices. How to Set Up the Payment Workbench Payment Workbench enables you to create. Select a Release Name. scheduled payment holds. and supplier holds. Save and close the form. and review the payments and payment batches that you make against invoices. Save and close the Invoice Batches form. 2. You can also specify an invoice amount limit for a supplier. To release invoice holds: 1. Save and close the Invoices form. 3. 4. Clear the Hold check box to remove the hold. Select the relevant Hold options check boxes. you can list the invoices with holds. Go to the Control tab and clear the hold Options. To release a Supplier Site hold: 1. Select the Invoice to which a Scheduled Payment hold has been applied. select the invoice from which the hold needs to be released. 3. adjust. Select the Control tab. To release Scheduled Payment holds: 1. Payables do not automatically release holds that you apply to invoices.iii. Click the Release button to move to the Release window. Clearinghouses create copies of the customer receipt information and forward the same to each of your remittance banks. Open the Invoice Batches form. Complete Step 1 from the earlier exercise. Click the Scheduled Payments button to go to the Scheduled Payments window. You need to define a clearinghouse to record information pertaining to banks that process the receipt information that you send in an electronic format. Save and close the Supplier window. 5. 3. Select the hold you want to release. 2. Query the invoice batch. iv. 4. Click OK. During the Approval process. 2. You use the Banks window to define internal banks where either you or your organization is the account holder. By submitting concurrent requests such as the Invoices on Hold and Matching Hold Detail reports. You can also define external bank accounts where your suppliers are the account holders. Click the Holds button to open the Invoice Holds window. Open the Suppliers window. 5.

In the Branch Name field. The value that you typed in the Number field is the identification number of the bank. iii. EFT Number: Used by the organization's Electronic Fund Transfer module. Enter a description for the bank or the branch in the Description field. you will be unable to select this bank account from the List of Values while entering transactions. Select either Bank or Clearing House in the Institution field. 5. This number identifies the organization on any EFT transmissions with the bank. Optionally. 4. The Banks form opens. Type the Address and then type the contact and clearinghouse information after selecting the relevant option from the list that shows the address. If you enter an Inactive Date in the Inactive On field. . Select Setup ±> Payment ±> Banks. as shown ± The Banks Form 4. then after this date. EDI Location: Indicates the Electronic Data Interchange location code for the bank. ii. from the main menu. 3. type the name of the bank branch with whom you do business. Type a name for your bank in the Name field.To define a bank and bank accounts: 2. The system uses this number to identify the bank in payment formats that use electronic payment methods. type an Alternate Name. The Electronic Data Interchange (EDI) ID: Used only by Oracle Energy module. The following is the List of Values: i.

Enter the bank account number in the Number field. Enter the account code for your Cash Account in the GL Account tab. Select either Internal or Supplier in the Account Use field. Allow Zero Payments: Allows you to generate zero-amount payments from this bank account if this option is enabled. The Bank Accounts window opens. Alternate Account Holder: Indicates an alternate name of a person or an organization that is responsible for this bank account. EFT Requestor ID: Indicates a number assigned by the bank and represents the numeric identifier of the person or the organization that is responsible for generating the account's electronic payment. 9. When you start a payment batch using the bank account. Enter the name of the contact person for your bank account in the bank in the Account Contact tab. Enter the type of bank account. Multiple Currency Payments: Allows you to pay invoices in foreign currencies if this option is enabled. Account Holder: Indicates the name of the organization or the employee who is responsible for this account. You may also enter combinations for your cash clearing. iv. You can only enable this option if you have enabled Use Multiple Currencies while defining Payable Options and this bank account is in your functional currency. Click the Bank Accounts button. iii. Payables uses this value as the default value that can be overridden. 8. confirmed receipts. . 10. bank errors. Realized Loss: Enables you to enter the GL account where you need to record the losses realized while making payments denominated in the non-functional currency. vi. such as Checking in the Name field. Maximum Outlay: Indicates the largest currency outlay that you allow for a payment batch for this bank account. such as electronic in the Account Type field. Enter values for the following fields in the Payables tab: i. If the total outlay of a payment batch exceeds its maximum outlay. Minimum Payment: Indicates the lowest payment amount that you allow in a payment batch. Enter values in the following fields of the Account Holder tab: i.6. iii. 7. bank charges. and Future dated payment accounts. Maximum Payment: Indicates the largest payment amount that you allow in a payment batch. Realized Gain: Enables you to enter the GL account where you need to record the gains realized while making payments denominated in the non-functional currency. Payables shows a warning but allows you to process the payment batch. ii. vii. Enter a name for your Account. ii. v.

The documents are of two types. . 11. ii. ii. Click the Payable Documents button. Pooled Account: Enables you to use Automatic Offsets and to associate multiple organizations with this bank account if this option is enabled. v. Document Category: Enables Payables to predefine a document category for each payment method for a payment document if the Sequential Numbering System Profile option is enabled. Last Available: Indicates the last payment number available for a payment document. vi. define values for the following fields: i. Computer Generated: Used for payment batches or quick payments. Disbursement Types. When the next payment is created. iii.viii. The Payment Documents window opens. Document Name: Type a name for the document. Last Used: Defines the last payment number you used to create a payment. enter the GL account code for your Cash Clearing. 12. vii. Every time a payment is created. iv. iii. Use this type for payments that you generate outside Payables but need to record in Payables. Define values for the following fields in the Additional Information tab: i. and Bank Errors accounts. If you have typed 1000 in this field. Bank Charges. it will have a number immediately succeeding the Last Used number. Setup Checks: Enables the system to print a certain number of checks at the beginning of each payment batch or Quick payment. recorded and combined. Payment Format: Used by Payables to format payments for a payment document. Recorded Document: Is a payment document that is used only for manual payments. In the Document Information tab. Payables automatically updates this field. iv. The value in this field allows alignment of the printer. Payment Method: Used by Payables to select the payment method associated with the format type selected by you. Combined Document: Is a payment document that uses both manual and computer generated payments. In the GL Accounts tab. the payment you create will bear the number 1000.

You need to assign a payment program to a payment format and then assign the payment format to a payment document for a bank account. To use a custom payment program. If you use the predefined payment programs provided by Payables. How to Define Automatic Payment Programs Payment programs enable you to create payment documents. Payables predefine one program for building payments and many standard programs for formatting payments. You can define payment programs using the Automatic Payment Programs window. or creating a payment remittance advice. and finally define it in Payables. You can select the predefined programs when you define a payment format. Allowed. To define a Payment Format: 3. creating a payment. You can attach a Remittance Advice program to a payment format. The Payment Programs window enables you to define whether a program is for building payments. you must create one payment program using Oracle Reports.In the Future Dated Payments tab. Oracle Payables supports three payment program types: Build Payments Format payments Remittance Advice Each payment format requires a Build Payments and a Format Payments program. Define Payment Formats for the four payment methods used by Oracle Payables. register it. select among the Not Allowed. or use the programs as templates for creating your own custom payment programs. If you select Allowed or Mandatory. each payment format has to be unique for that payment method. you can enter the future dated payment account in the Account field. as shown - . in the Future Date Use field. Select Setup ±> Payment ±> Formats from the main menu. you do not need to perform the set up steps. Select Setup ±> Payment ±> Programs from the main menu. The programs determine how Payables creates and formats payable documents. While each payment method can have multiple formats. if required. and Mandatory options. It also predefines a program for creating a separate remittance advice for payments. How to Define Payment Formats You need to define and attach a payment format to the payment document in the Bank window. The Payment Formats form opens.

7. if you want to group payments by due date. Enable the format for multiple currency payments. select a separate remittance program. Also mention if you want it printed before or after the payment document. Switch responsibility to Oracle Payables. Enter the number of invoices that should appear on your remittance advice for this payment format. 6. The Payments window opens. Specify whether you need the payment format to print a remittance advice on a payment by the radio button. 2. 5. If you selected none for remittance advice. Enter the name of the payment format you are defining in the Payment Format field. How to Create a Manual Payment Prerequisite: You need to create an Invoice. Select a Build Payments Program and a Format Payments Program. 4. To create a manual payment: 1. or select a single currency. 8. as shown - . While saving. Select Payments ±> Entry ±> Payments from the main menu.The Payment Formats Form 2. This name will appear in a list of values in the Payment Documents window. Select the required payment method in the Payment Method field. 9. Enable the Group by Due Date check box. 3. note the Invoice number. Enables Zero Amount Payments check box only if you want the payment format to pay zero amount payment. Log on to the system.

Save and close the Payments form. 11. Select Manual in the Type field. Select the bank account you created in the Bank Account field. It then prints the checks on a printer that you choose. Type a Payment Date. 4. Click the Enter/Adjust Invoices button.The Payments Form 3. In the Invoice Number field. To create a quick payment: 10. 5. payables reserves that type and no other user can use that document type until you complete the payment process. Quick Payment allows the selection of specific invoices that you need to pay. 8. The Select Invoice window opens. Select Invoices ±> Entry ±> Invoice Batches. 7. In the Supplier field. Select the document you created from the Banks window in the Document field. Prerequisite: Create an Invoice and note the invoice number. enter the supplier to whom this payment is being made. 6. Query the invoice batch. from the main menu. Click the Invoices button . The Document Number field will populate automatically. How to Create a Quick Payment Feature The Oracle Payable feature allows you to create an automatic payment program on demand. Note When you select a document type. select the number of invoice that you created and against which you are making this payment.

Click the Refresh Data button and then click the View Output button to view the output online. select the Invoice on which Quick Payment is to be made. create a few invoices. Click the Find button. 3. In the Invoices window. In the Invoices window. 16. 5. 15. Select the name of your bank account in the Bank Account field. To create a payment batch: 6. Select the Pay in Full check box and then click OK. . The Payments window is displayed. Select Pay Group in the Pay Group field. A concurrent request is activated. The Payment Batches window opens. 13. Select the Format check box and then click OK. Click the Invoices button. 17. How to Create a Payment Batch Prerequisite: Explore to the Invoice Batches window. 14. Enter a name for the Payment Batch in the Batch Name field and enter the Payment Date as today's date. select the Pay Group that you used to create the invoice batch. Click the Actions button. This will enable you to identify the invoices that will be included in the Payment Batch.12. Note the ID number of the request and click OK. Click the Actions button. Create a new invoice batch. 4. as shown ± The Payment Batches Form 2. In the Pay Group field. Select Quick in the Type field and select your bank account In the Bank Account field. Select Payments ±> Entry ±> Payment Batches. Select the name of your document in the Document field. Select View ±> Requests to view the output of the concurrent request generated.

7. You can view the output of this concurrent request. Select the following check boxes in this window: i. 5. 3. A concurrent request is activated. you need to contact your bank and request a stop payment. The Status field should have changed from the NEW to the BUILT option. Select the Print Now check box. A concurrent request is activated. The Status field should now have been updated from the BUILT option to the FORMATTED option. Select Invoices ii. Printed. Open the Payment Batches window. Click the Find button.6. Click the Refresh Data button and then click the View Output button to view the output online. To record a stop payment in Oracle Payables: . Click the Confirm button and then click OK. In the Status field. The Status field should have the value. Re-query your Payment Batch. Enter a date that is 60 days in advance to the Current date in the Pay Through Date field. 2. Click OK. 10. Save the data. 3. Select View ±> Requests from the main menu. Query your Payment Batch. Query your Payment Batch. 9. Re-query your Payment Batch. The Format check box appears selected. 7. Click the Actions button. How to Process Stop Payments To stop a payment. 6. Note Ensure that In the Payment Batch Actions window. The Payment Batch Actions window opens. Click OK. Print Preliminary Register 2. View the Checks online and note the last Check number. 4. The Confirm Payment Batch window opens. Go back to the Payment Batches window. type the last Check number that you noted. To Format and print the Payment Batch: 1. Click the Actions button. the FORMATTED option changes to the CONFIRMED option. The Payment Batch Action window opens. Build Payments iii. the Confirm check box is already selected. Click the Actions button. Click OK. 8. Open the Payment Batches window. Note the request ID number and then click OK. Go back to the Payment Batches window. In the To field.

Open the Payments window. 2. 4. To release a Stop Payment made earlier on a payment line: 1. Click the Actions button. Select the Initiate Stop check box in the Payments Action window. Open the Payments window.7. Open the Payments window by selecting Payments ±> Entry ±> Payments. Voiding Payments Voiding a payment automatically reverses the accounting and payment records. To make a payment void: 1. To change the Void and the GL date that are used for accounting distributions: i. Save and click OK. Click the Actions button. Save and click Ok. ii. Search for payment records. Save and then click OK. 3. 9. Select None from the Invoice Action field to change the status of the related invoice to Unpaid. Select cancel for the Invoice action to cancel all related invoices and reset the amounts to zero. Select the Release Stop check box in the Payment Actions window. Query the form to find the payment line on which a stop payment has been applied earlier. 3. iii. . 4. 8. 2. This method resets the status of the invoice to Unpaid. Query the form for the Payment line on which a stop payment is to be made. Click the Actions button. Select the Void check box in the Payment Actions window. Select Hold for Invoices Action and select a hold name in the Hold window to apply a hold to the related invoices. You may also need to change the Void and the GL date that you want Payables to use for the accounting distributions.

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