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AP Hold Resolution Workflow Whitepaper PDF
AP Hold Resolution Workflow Whitepaper PDF
White Paper
Objective
How to use AP Hold Resolution workflow in Oracle Payables Release R12.X.X
Scope/Out of Scope
In this white paper we will cover followings:
a) Setup in Oracle Payables to enable AP Hold Resolution Workflow
b) Configure AME (Approval Management Engine) to use AP Hold Resolution Workflow
c) Guide explaining how to use AP Hold Resolution Workflow for Business transaction
This paper does not cover:
a) How and why System places hold on Invoice
b) Details of Generic AME setup
c) Supplier contact directory setup
Terms Used
AME : Approval Management Engine
Invoice : Oracle Payable Invoice
PO : Purchase Order Transaction
Matching Hold : Holds resulting due to discrepancy between Purchase Order and Invoice
Methodology
AP Hold Resolution Workflow can be used to automate resolution (releasing) of Hold by using
workflow. By using AP Hold Resolution, the hold details can be routed to a designated user for
his/her decision on how to release the hold. User can take decision on notification like release the
Hold, correct the invoice data to get the hold released, check / negotiate with supplier if there is any
discrepancy in Invoice sent by supplier etc. There may be many business scenarios arising in this
flow. To explain the feature we will discuss Matching Hold Resolution/Negotiation which covers
wider spectrum of the feature.
Business Example
To explain Matching Hold Resolution/Negotiation we will take business example , go through
different steps to complete business flow and to get the hold released by using workflow.
1) Supplier Cancels the Invoice: Due to discrepancy in Suppliers invoice, system places a
matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the
discrepancy corrected, after review of discrepancy supplier finds mistake and decides to
cancel the invoice. Following different activities would be performed in sequence:
a. Raise Purchase Order to buy material from supplier.
b. Supplier delivers Material.
c. Supplier sends Invoice. (To generate discrepancy we will have supplier invoice for
quantity more than delivered)
d. Record the Invoice as sent by supplier
e. On performing validation of Invoice, system places Quantity Received hold
(Matching hold) as Quantity of Invoice is more than quantity received
f. Notification about discrepancy between PO and Invoice goes to Buyer of PO
g. Buyer reviews the data and decides to Negotiate with Supplier on Discrepancy
h. Supplier reviews the negotiation and decides to cancels the invoice.
i. In Payables Invoice gets cancelled automatically.
2) Supplier Accepts the Negotiation: Due to discrepancy in Suppliers invoice, system places a
matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the
discrepancy corrected, after review of discrepancy supplier finds mistake and decides to
accept the negotiation. Following different activities would be performed in sequence:
a. Raise Purchase Order to buy material from supplier.
b. Supplier delivers material.
Setup in Payables
To use workflow for a specific Invoice Hold, hold definition need to be configured.
Navigation: Payables> Setup> Invoice> Hold and Release Names
Query the Hold for which we want to use AP Hold Resolution Workflow.
Enable Initiate Workflow. This makes the respective Hold to be eligible for Hold resolution
workflow.
Notify After: Value for this determines, when the hold notification to be sent to respective one who is
supposed to resolve the hold. If its set to zero, then the moment system places hold, system notifies
the respective one for hold resolution.
Remind After: Value for this is used to determine, after how many days a reminder notification would
be sent to approver.
As per above definition of Hold, Qty Rec is selected for Hold Resolution workflow. This particular hold is
related to Tolerances configured, hence lets review respective Tolerance set up.
Navigation: Payables>Setup>Invoice>Tolerance
Navigation: Payables>Suppliers>Entry
Query the supplier
Note:
Value for Invoice Tolerance: SAN-GOODS
Note:
Username:sanjay.p.prasad@oracle.com
This is contact e mail id of the supplier, same is taken as user name for suppliers log in. Name of the Supplier
contact is Sanjay Prasad. The moment Supplier contact is created, system automatically creates FND User,
Respective user created would be discussed in Setup in System Adminstrator Section.
This completes setup in Payables.
Note:
Person: Employee Prasad1, Mr. Sanjay
User Name: SAN
User Definition of Supplier Contact:
Note:
Customer: Supplier Contact Name Sanjay Prasad
User Name: E mail id of the Supplier contact SANJAY.P.PRASAD@ORACLE.COM
Review AP_HOLDS_RESOLUTION_APPROVER_GROUP
Attribute Setup
Navigation: Approvals Management Business Analyst >Setup>Attribute
Review attribute HOLD_LOOKUP_CODE
As per above definition, this attribute derives hold_lookup_code for the specific hold placed on invoice
Condition Setup
Navigation: Approvals Management Business Analyst >Setup>Conditions
Review Condition HOLD_LOOKUP_CODE in (AMT ORD, AMT REC, PO REQUIRED, PRICE, QTY
ORD, QTY REC)
As per definition this condition refers the attribute HOLD_LOOKUP_CODE to get hold placed in invoice and
checks whether the hold on invoice is related to matching hold listed in the list shown above.
This completes set up in AME, in summary if hold look up code is in AMT ORD, AMT REC, PO
REQUIRED, PRICE, QTY ORD, QTY REC, approval is required from approver as per approver group
AP_HOLDS_RESOLUTION_APPROVER_GROUP
Business Flow 1
Step 1: Create PO
Business Activity: As per need, organization raises Purchase Order
Point to note:
Supplier: SUP100
Quantity: 10
Note:
Match approval level: 3-Way
Invoice Match Option: PO
Click on Distributions Button
Note:
Requester: Prasad1 , Mr. Sanjay. FND User attached to requestor is SAN(refer Setup in System Adminstrator
Section).
PO#7149 is approved
Click on Ok button
Received Quantity: 1
Note
PO#:7149
Invoice#TR270813-02
Click on Match Button
Note
Qty Invoiced: 2 (As mentioned earlier, supplier sent invoice for 2 Qty)
Click on Match button
Navigation: Actions>Validate
Click on Ok button
Click on Login
Note:
Followings are actionable item:
Acknowledge: In case requestor expect that hold should be released by system automatically when
supplier sends additional 1 quantity, select Acknowledge.
Release Hold: Use this action in case requestor accepts the discrepancy and agrees to release the
Hold.
Negotiate: After reviewing invoice data, requestor feels that Quantity sent in Invoice is not correct
so decides to negotiate on discrepancy identified.
As discussed earlier, the business flow we are testing, involves negotiation on invoice so lets do
followings:
Change quantity to 1 from 2
Select Supplier Contact from LOV
Click on Negotiate button.
Business Activity: Supplier reviews the discrepancy. Supplier realizes the mistake and decides to
cancel the invoice.
Navigation: User Log in Page
Note
Followings are actionable item:
Accept: Use this action if supplier agrees with change in quantity to 1 from 2 on invoice sent.
Cancel Invoice: Use this action if supplier agrees to cancel the invoice sent with an intent to send
new corrected invoice
Reassign: Use this action if supplier wants someone elses opinion.
As per the business flow we are discussing, lets Cancel the Invoice.
Business Flow 2
Till system routes Qty Rec hold to buyer, activities in this business flow is same as to respective
ones in Business Flow 1, hence elaboration in this section starts from Step 4 : Review Hold
Notification . Before we begine with Step 4 : Review Hold Notification , lets have look on
Invoice#TR260813-03 on which Qty Rec hold is placed:
Click on Login
As discussed earlier, the business flow we are testing involves negotiation on invoice lets do
followings:
Change quantity to 1 from 2
Select Supplier Contact from LOV
Click on Negotiate button.
This action sends notification to Supplier contact.
Business Activity: Supplier reviews the discrepancy. Supplier realizes the mistake and decides to
cancel the invoice.
Navigation: User Log in Page
Click on Login
1 2
Detail of the workflow can be analyzed as per requirement, would like to highlight few points here:
Legend 2:Is NegotiableHold?- At this node system checks if respective Hold a Negotiable Hold.
If the respective hold code is in 'PRICE', 'QTY ORD', 'QTY REC', 'AMT ORD', 'AMT REC'
System treats that as Negotiable hold. Any other hold is considered as its not a Negotiable
Hold and its processed as per definition in workflow shown above.
Legend 1: Get Supplier Contact- At this node system gets Suppliers contact details which we have defined in
Suppliers contact directory set up.
Respective Technical Code: AP_WORKFLOW_PKG. get_supplier_contact