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

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

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

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

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

an Invoice will not be raised on a Tax variance hold if the tax distribution amount entered ranges from USD 9. and the tax tolerance is 5%. Type 1 for the first distribution line. 6. Oracle Payables checks whether the invoice matches the purchase order or the receipt within the purchase order tolerance limits you have set. based on the invoice amount including the tax. allow variances between invoices. Note You can create as many distribution lines as you need. select Setup ±> Invoice ±> Tolerances from the main menu. the tax rate is 10%. For example. but ensure that the total of the values of the % field equals 100.5 to USD 10. and obtains receipts and tax information. When you submit the invoice with a tax amount for approval. In this case. To define Invoice Tolerances. When you submit an invoice for approval.5. Enter a name for the set. Payables calculates the tolerance. Save and close the Distribution Sets form. as shown- . Payables checks whether the invoice tax amount equals the calculated tax amount within the tolerance limits you have defined. Type the account code to which this distribution line belongs in the Account field. Invoice Tolerances The Invoice Tolerances window allows the end user to define acceptable tolerances. 3. For example. If you define a percentage-based tolerance. You can define tolerances in percent or absolute terms. 4.2. 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. if the value exceeds the tolerance levels defined in the Invoice Tolerances window. purchase orders. the invoice amount is USD 100. Click the Num field. you can enter depart 001. The Invoice Tolerances form opens. 5.

The Invoice Approvals form opens.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. such as APPROVED. from the main menu. Select Setup ±> Invoices ±> Approvals. and release rules. as shown - The Invoice Approvals Form . To define Invoice Approval code: 1. You can create hold rules. such as APPROVAL REQUIRED.

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

you may need to apply a payment immediately upon entering the invoice information and you can do it from the same window. Select Switch Responsibility -> Payables. Log on to the system. 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. Invoice Workbench You can enter invoice information using either the Invoice Workbench or the Invoice Gateway. You can also use the Invoice Workbench to perform an action on the invoice immediately after entering it.Overview of the Invoicing Process Invoice Gateway vs. as shown - The Invoice Batches Form . The Invoice Batches form opens. 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. The Invoice Gateway enables Purchase Order matching and applying prepayments to invoices being entered. 2. from the main menu. from the main menu. Select Invoices ±> Entry ±> Invoice Batches. For example. How to Enter an Invoice To create a Purchase Invoice batch and to enter a Purchase invoice: 1.

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

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

Enter your supplier and press Tab to go to the Invoice Date field. 8. Select Invoices ±> Entry ±> Invoice Batches. Click the Distribution Set field. The Distributions window opens where you can see that the distribution for your invoice is complete. 4. 7. Enter Type as Standard. Click the Scheduled Payments button. Save date in the Invoice form. Open the Invoice Batches window. 5. the Payables module uses the Payment Terms and the Term date specified to automatically schedule payments. Enter the name of your invoice batch. 5.2. Click the Distribution button. 9. 2. Type an invoice date. The Invoice form opens. Click the Invoices button in the Invoice Batches window. as - The Scheduled Payments Form . 6. The Payment Terms parameters enable you to calculate the due date for the invoice. 4. To create a scheduled payment for an invoice: 1. from the top menu. How to Create a Scheduled Payment After entering an Invoice. Save and close the Invoice Batches form. The Invoices form opens. Select View -> Find. Select the distribution set that you have created earlier and save. Click the Invoice button. Enter a Standard invoice using a distribution set. 3. Select View ±> Find to query the Invoice Batch from the top menu. Enter the invoice number and invoice amount. The Invoice Batches form opens with the invoice batch. The Invoice Batches window opens. The Find Invoice Batches window opens. 3. and the discount amount for each scheduled payment. The Scheduled Payments form opens. Click the Find button. the discount date.

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

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

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

as - The Find Purchase Orders for Matching Form 8. Save and close the Match to Purchase Orders form.7. The Find Purchase Orders for Matching form opens. The Match to Purchase Orders form opens. Accept the default PO number. Select the Match check box and click the Match button. . Click the Match button. as shown- The Match to Purchase Orders Form 9. Click the Find button.

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

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

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

vii. When you start a payment batch using the bank account. bank errors. Enter values in the following fields of the Account Holder tab: i. Enter a name for your Account. 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. bank charges. 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. v. 9. Enter the type of bank account. ii. Multiple Currency Payments: Allows you to pay invoices in foreign currencies if this option is enabled. . confirmed receipts. iv. 8. 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. If the total outlay of a payment batch exceeds its maximum outlay. Enter values for the following fields in the Payables tab: i. Maximum Outlay: Indicates the largest currency outlay that you allow for a payment batch for this bank account. Account Holder: Indicates the name of the organization or the employee who is responsible for this account. such as Checking in the Name field. Enter the name of the contact person for your bank account in the bank in the Account Contact tab. 10. such as electronic in the Account Type field. Payables shows a warning but allows you to process the payment batch. iii. Enter the bank account number in the Number field. Payables uses this value as the default value that can be overridden. and Future dated payment accounts. vi. Alternate Account Holder: Indicates an alternate name of a person or an organization that is responsible for this bank account. Enter the account code for your Cash Account in the GL Account tab. 7. ii. Maximum Payment: Indicates the largest payment amount that you allow in a payment batch. You may also enter combinations for your cash clearing. Minimum Payment: Indicates the lowest payment amount that you allow in a payment batch. 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.6. 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. iii. Click the Bank Accounts button. The Bank Accounts window opens.

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

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

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

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

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

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

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

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