AP Student Guide 1 PDF

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Oracle Financials Cloud: Payables
Fundamentals
Student Guide
D94173GC10
Edition 1.0 | January 2016 | D94598
Learn more from Oracle University at oracle.com/education/

Author Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
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Contents
1 Procure to Pay Overview

Objectives 1-2
Procure to Pay Lifecycle 1-3
Oracle Financials Cloud: Procure to Pay Process 1-4
RFQs and Quotations 1-5
Requisitions 1-7
Suppliers 1-9 ble
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Purchase Orders 1-11
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Receiving 1-13
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Invoicing 1-15
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Payment 1-17
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Overview of Application Integration 1-18
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Vision Corporation Structure Diagram 1-19
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Vision Corporation’s Business Unit Positioning in the Procure to Pay Flow 1-20
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Vision Corporation Distribution Structure 1-22
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Summary 1-23
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2 Payables Overview
V ad 2-2cens
Objectives
a m to Pay li Lifecycle 2-3
t h y Procure
Mu Overview of Payables Processes 2-4

Supplier Entry 2-5
Invoice Entry 2-6
Overview of Payment 2-7
Overview of Payables Integration 2-8
Payables Integration with Purchasing 2-12
Payables Integration with Receivables 2-13
Payables Integration with Cash Management 2-14
Payables Integration with Supplier Portal 2-15
Payables Integration with Payments 2-16
Payables Integration with Assets 2-17
Payables Integration with Projects 2-19
Payables Integration with Human Resources 2-20
Payables Integration with Subledger Accounting and General Ledger 2-21
Payables Integration with Expenses 2-22
iii
Payables Integration with Fusion Tax 2-23
Payables Integration with BPM Worklist 2-24
Fusion Differentiators 2-25
Payables Dashboard 2-27
Summary 2-29
3 Suppliers
Objectives 3-2
How Oracle Financials Cloud Applications Use Supplier Information 3-4
Overview of Suppliers 3-5
Supplier Model 3-6
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Supplier Sites and Procurement Business Units 3-7
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Supplier Site: Site Assignments 3-8 an s
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Supplier Controls 3-9
Finding/Creating Suppliers 3-11 a
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Entering Basic Supplier Information 3-12
Supplier: Organization 3-14 o m
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Supplier: Business Classification 3-15
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Suppliers: Products and Services 3-16
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Supplier: Transaction Tax 3-17
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Supplier: Income Tax 3-18
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Supplier Information: Payment Details 3-19
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Supplier: Banking Accounts 3-20
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Supplier: Address Book and Contact Directory 3-21
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M u Supplier Site: General 3-22
Supplier Site: Purchasing 3-23
Supplier Site: Receiving 3-25
Supplier Site: Invoicing 3-27
Supplier Site: Tax and Accounting 3-29
Maintaining Supplier and Supplier Site Information 3-31
Adjusting Suppliers: Adding a New Supplier Site 3-32
Approving Supplier Requests 3-33
Avoiding Duplicate Suppliers 3-35
Merging Suppliers 3-36
Additional Implementation Considerations: Supplier Naming Conventions 3-38
Additional Implementation Considerations: Supplier Naming Convention
Examples 3-40
Manage Procurement Agents 3-42
Summary 3-44
iv
4 Invoices
Objectives 4-2
Overview of Invoices 4-4
Default Options for Payables and Procurement 4-5

Payables Security: Function Security 4-6
Payables Security: Data Security 4-8
Invoice Processing Overview 4-9
Invoice Types 4-11
Entering Invoices Manually 4-13
Integrated Imaging Solution 4-14
Automated Invoice Processing Flow 4-16
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Creating Invoices Automatically 4-18
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Payment Requests 4-19 ans
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Self Service Invoices 4-21
Electronic Invoices 4-22 a
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Managing Payment Terms 4-24 h a
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Types of Payment Terms 4-25 o m
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Reference Data Sharing 4-27
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Accounting Date Basis 4-28
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Invoice Structure 4-29
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Entering Basic Invoices in the Invoice Workbench 4-31
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Entering Invoice Header Information 4-32
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Entering Invoice Line Information: Line Types 4-34
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Entering Invoice Line Information: Other Attributes 4-36
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M u Entering Distributions 4-38
Distribution Sets 4-40
Entering Distribution Types 4-42
Entering Freight Distributions 4-43
Tax Distributions 4-44
Installments 4-45
Entering Purchase Order and Receipt Matched Invoices 4-47
Match Approval Level Options 4-49
Matching to a Purchase Order 4-51
Matching to Purchase Order Shipments 4-52
Matching to Purchase Order Distributions 4-53
Matching to Receipts and Receipt Lines 4-54
Corrections 4-56
Price Correction Example 4-57
Final Matching 4-58
Types of Accounting Flows 4-59
v
Matching to Distributions for Assets 4-60
Matching to Distributions for Expenses 4-61
Matching to Distributions for Inventory 4-62
Defining Purchase Order Matching Tolerances (Optional) 4-63
Defining Tax Tolerances (Optional) 4-67

Invoice Validation 4-68
Invoice Validation Process 4-69
Invoice Approval 4-71
Approval 4-72
Invoice Approval Workflow 4-74
Holds and Releases 4-76
Applying Holds to Invoices 4-78
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Applying Holds to Installments 4-79
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Releasing Invoice Holds 4-80 an s
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Releasing Installment Holds 4-81
Summary 4-82
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5 Payments o m
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Objectives 5-2
Procure to Pay Lifecycle 5-3 i
Invoice Payment Overviewdd i@ his
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5-4
u tva forusPayments
Overview of Disbursements
Disbursementsi m Overview
(Process to 5-6
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n Practices for Organizational Structure and Payment
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Key Decision
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Payments Terminology 5-9
Setting Up Payment Formats 5-11
Setting Up Transmission Configurations 5-13
Key Decision and Best Practices for Using Transmission Configurations 5-14
Key Decision and Best Practices for Using Transmission Protocols 5-15
Payment System Concepts 5-16
Payment System Transmission Requirements 5-19
Payment Method Concepts 5-20
Setting Up Funds Disbursement Payment Methods 5-21
Setting Up Payment Method Defaulting Rules 5-22
Seeded Payment Methods 5-24
Payment Process Profile Concepts 5-26
Managing Payment Process Profiles 5-27
Setting Up Payment Process Profiles 5-29
Creating Usage Rules for a Payment Process Profile 5-31
Bank Account Model 5-32
vi
Entering Bank and Bank Branch Information 5-33
Entering Bank Account Information 5-34
Defining Payment Documents 5-38
Payment Creation 5-40
Single Payment 5-41

Creating Quick Payments 5-42
Processing Stop Payments for Single Payments 5-44
Voiding Single Payments 5-46
Processing Multiple Payments: Overview 5-48
Payment Process Request (PPR) 5-49
Payment Process Request Payment Creation Flow 5-50
Creating Payment Process Request Templates 5-51
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Specifying Payment Process Request Template Header Information 5-52
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Specifying Payment Process Request Template Payment Selection Criteria 5-53
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Key Decision and Best Practices for Payment Selection Criteria 5-55
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Specifying Payment Process Request Template Payment Attributes 5-57
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Automating the Payment Process Request Template Process 5-59
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Specifying Validation Failure Criteria for the Payment Process Request
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Template 5-60
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Submitting the Cash Requirement Report 5-61
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Submitting a Standard Payment Process Request 5-62
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Scheduling a Payment Process Request 5-63
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Reviewing or Modifying Selected Invoices 5-64
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Building Payments 5-65
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Creating and Transmitting Electronic Payment Instructions 5-66
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M u Printing Payments 5-67
Spoiled Pre-numbered Payment Document 5-68
Confirming Payments 5-69
Processing Refunds 5-70
Entering Refunds 5-71
Refunds for Prepayments 5-72
Voiding Refunds 5-73
Canceling Payment Process Requests in the Payments Manager 5-74
Cross-Currency Payments 5-75
Third-Party Payments 5-78
Centralized Payment Processing Across Business Units 5-80
Payment Service Models 5-81
Payment Service Model: Dedicated 5-82
Payment Service Model: Self Service 5-83
Payment Service Model: Dedicated and Self Service 5-84
Prepayments Overview 5-85
vii
Applying and Releasing Holds on Prepayments 5-86
Applying Prepayments to Invoices and Payment Requests 5-87
Canceling Prepayments 5-88
Reconciling Payments with Cash Management 5-89
Summary 5-90
6 Withholding Tax
Objectives 6-2
Withholding Tax Overview 6-3
Manage Tax Reporting and Withholding Tax Options 6-4
Defining Tax Codes for Withholding Taxes 6-6
Withholding Tax Classifications 6-9
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Withholding Tax Certificates and Exceptions 6-10
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Withholding Taxes for Suppliers 6-11 ans
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Creating Withholding Tax Calculation Points 6-12
Withholding Tax when Applying Prepayments 6-13 a
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Creating Withholding Tax Invoices 6-14 h a
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Summary 6-15 o m
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7 Payables Reporting i nฺib Stude
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Objectives 7-2
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Fusion Payables Predefined s
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BI Publisher Reports
a dd en7-5se
m V lReports
Invoices Reports
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Payments Reports 7-7
Income Tax and Withholding Reports 7-8
Period Close Reports 7-9
Oracle Transactional BI Reports 7-10
Invoices: Folder 7-11
Payments: Folder 7-12
Income Tax and Withholding: Folder 7-13
Period Close: Folder 7-14
Payables to Ledger Reconciliation Report 7-15
Oracle Transactional BI Key Features 7-16
Oracle Transactional BI Architecture 7-18
Oracle Business Intelligence Publisher 7-20
Oracle Business Intelligence Publisher: End-to-End View 7-21
Summary 7-23
viii
1
Procure to Pay Overview ble

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Objectives
After completing this lesson, you should be able to:

• Describe the procure to pay process flow.
• Describe the key areas in the procure to pay process.

• Describe how the procure to pay process fits into the
Financials Cloud applications family.
• Understand business units positioning in the Procure to Pay
flow.
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• Understand the service provider model. sfe a n
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Oracle Financials Cloud: Payables Fundamentals 1 - 2

Procure to Pay Lifecycle
Requisitions
Catalog
Content Purchase
Management Orders
(POs)
Ordering
Request for Receiving
Quotes Sourcing
(RFQs)/ ble
Quotations
Invoice/
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Supplier a s
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Performance
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The graphic
a li the Procure to Pay Lifecycle.
m describes
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u
Sourcing
M • Request for quote
• Supplier selection
• Contract negotiations and awards
• Catalog content management
Ordering
• Requisition and purchase order generation
• Purchase order management and fulfillment
• Payment
Reporting and Analysis
• Supplier performance
• Commodity analysis
• Internal compliance
• Robust intelligence gathering
• Decision support
• Process functionality

Oracle Financials Cloud: Procure to Pay Process
Demand Source
Purchase RFQ Supplier Quotation

requisition
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Order Receive Enter a n s
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Oraclea m to Pay
Procure li Process
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thgraphic explains the Oracle Financials Cloud Procure to Pay Process.
M u
The
• Demand: The procurement process generates and manages requests for the purchase
of goods. The demand for purchase items may be a one-time event or may recur in
either predictable or random time intervals.
• Source: The procurement sourcing process covers the business activities related to the
search, qualification, and selection of suitable suppliers for requested goods and
services.
• Order: The procurement ordering process includes purchase order placement by the
buying organization and purchase order execution by the supplying organization.
• Receive: The receipt process acknowledges that a purchase order has been duly
executed. For orders of physical goods, it will typically include the receipt, inspection
and delivery of the goods to inventory or to another designated location. For orders of
services, it will typically consist of a notification from the requester or the approving
person that the service has been performed as agreed.
• Invoice: The invoice process includes entering supplier invoices.
• Pay: The payment process consists of those activities involved in the payment for
ordered goods and services.

RFQs and Quotations
Imported
requisitions Requisition
pool
Automatically create
PO
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Supplier ฺc o tG Quotation
lists RFQ ฺibm den
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The graphic li the Request for Quotation and Quotation functionality in Procurement
m describes
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Process.
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MPurchasing provides you with request for quotation (RFQ), and quotation features to handle
your sourcing needs. You can create an RFQ from requisitions, match supplier quotations to
your RFQ, and automatically copy quotation information to purchase orders. Purchasing
provides complete reporting to control your requests for quotations and evaluate supplier
responses.
Quotations can be:
• Entered manually
• Copied from an RFQ
With Purchasing, you can:
• Identify requisitions that require supplier quotations and automatically create an RFQ.
• Create an RFQ with or without approved requisitions so that you can plan ahead for
your future procurement requirements.
• Record supplier quotations from a catalog, telephone conversation, or response from
your request for quotation. You can also receive quotations electronically.

• Review, analyze, and approve supplier quotations that you want available to reference
on purchase orders and requisitions. You are also able to evaluate your suppliers based
on quotation information.
• Receive automatic notification when a quotation or request for quotation approaches
expiration.
• Review quotation information online when creating purchase orders or requisitions and
copy specific quotation information to a purchase order or requisition.
• Source the items for which you negotiated purchase agreements automatically. If you
created Sourcing Rules and Approved Supplier List entries for the items, supplier
information can be entered automatically in the Requisitions window when you create
requisitions. You can also place supplier information for items onto blanket purchase
order releases.
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Requisitions
Demand
Inventory Other Systems
Import/reschedule
requisitions
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Approval
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Requisition
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a m illustrates
The graphic li the demand for goods and services.
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Mrequisitions torepresent
Requisitions demand for goods or services. Whether you want to provide online
everyone in the organization or limit the number of users who have access to
the system, Purchasing is flexible enough to meet the needs of your organization. With online
requisitions, you can centralize your purchasing department, source your requisition with the
best suppliers, and ensure that you obtain the appropriate management approval before
creating purchase orders from requisitions.
Requisitions for goods and services:
• Can be generated from Inventory Application
• May be entered manually through My Information Region under Navigator
• May be entered using Self Service Procurement Application
• May be imported from external systems
• Create, edit, and review requisition information on-line. Enter suggested supplier
information, delivery instructions, multiple accounting distributions, and notes to buyers,
approvers, and receivers.
• Know who approves requisitions and whether they are in the approval, purchasing,
receiving, or delivery stage.

• Route requisitions according to your approval structure. Set authorization limits by
amount, charge account, item category, and location.
• Review and approve requisitions that need your approval. See the full requisition detail
and review the action history before you approve a requisition.
• Print requisitions for off-line review and approval. Track the status of requisitions through
the approval process.
• Automatically source requisitions from outstanding blanket purchase agreements or

quotations you have received from suppliers.
• Create requisitions quickly and easily for commonly purchased items.
• Provide attachments as notes on requisition headers and lines.
• Assign requisition lines to buyers and review buyer assignments for requisition lines.
• Forward all requisitions awaiting approval from one approver to an alternate approver.
Within your security and approval constraints, you are also able to reroute requisitions
from one approver to another whenever you want. ble
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Suppliers
Purchase RFQ
requisition Quotation
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Purchase
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The graphic li the suppliers and different roles they play in Payables process.
m illustrates
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thmust define a supplier before performing most activities within Purchasing and Payables.
u
You
M • You optionally enter a recommended supplier on a requisition.
• You need a supplier to issue a request for quotation.
• You use that same supplier when you enter a quotation.
• You need supplier information for purchase orders.
• You receive goods or services from suppliers.
• You return goods to suppliers.
• You must pay the supplier for the goods or services purchased.
Set up suppliers to record information about individuals and companies you purchase goods
and services from. You can designate supplier sites as pay sites, purchasing sites, RFQ sites,
or procurement card sites. For example, for a single supplier, you can buy from several
different sites and send payments to several different sites.

Note that the basic supplier definition is now managed by Trading Community Architecture
(TCA), which is the central engine for managing Trading Partner information. TCA provides a
single common definition that can be used to identify customers, suppliers, and organizations
that provide you with goods or services, and are in turn, a customer of your own products or
services. The TCA repository stores the key elements that define an organization, identity,
business locations, and key contacts, so that different Oracle products use a common trading
partner definition.
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Purchase Orders
Approve
Manually create Automatically create

PO
Generate orders
Maintain documents
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Accept Revise Control
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Receive against PO
i nฺib Stude Match invoices in
Payables
di @ is
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( m u ou Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
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V
mOrders li
a
Purchase
y
u
Thethgraphic explains how a purchase order is created, goods are received, and the invoices
M are paid.
Oracle Fusion Purchasing provides the following purchase order types: purchase order,
blanket purchase agreement, and contract purchase agreement.
Note that your organization can change the names of these documents to suit your business
needs, but in their basic form the following describes their function:
Purchase Order
You generally create a purchase order for a one-time purchase of various items. You create a
purchase order when you know the details of the goods or services that you require,
estimated costs, quantities, delivery schedules, and accounting distributions.
Blanket Purchase Agreement
You create blanket purchase agreements when you know the details of the goods or services
you plan to buy from a specific supplier in a period, but you do not yet know the detail of your
delivery schedules. You can use blanket purchase agreements to specify negotiated prices
for your items before actually purchasing them. Prices for items can be negotiated on a
blanket purchase agreement by a procurement business unit which can then be made
available to multiple requisitioning business units.

Contract Purchase Agreement
You create a contract purchase agreement with your supplier to agree on specific terms and
conditions without indicating the goods and services that you will be purchasing. You can later
issue purchase orders referencing your contracts using terms negotiated on a contract
purchase agreement by a procurement business unit which can then be made available to
multiple requisitioning business units.
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Receiving
Shipment
Supplier Transfer Inventory
ble
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Receive Deliver a n s
Shop
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Order Entry o
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Internal ฺ i b m den
Inventory shipment @in Inspect S tu Expense
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V li different processes involved in receiving.
m describes
a
The graphic
y
u th Warehouse Management, you can process receipts from suppliers, receipts from other
Using
Mwarehouses or inventory organizations, in-transit shipments and receipts due to customer
returns. You can search for expected receipts based on a purchase order or a customer
return recorded through Distributed Order Orchestration and then process them to their final
destination whether it is Inventory, Expense or Shop Floor. Purchasing lets you control the
items you order through receiving, inspection, transfer, and internal delivery. You can use
these features to control the quantity, quality, and internal delivery of the items you receive.
• Use routing controls at the organization, supplier, item, or order level to enforce material
movement through receiving. For example, you can require inspection for some items
and dock-to-stock receipt for others.
• Define receiving tolerances at the organization, supplier, item, and order level, with the
lowest level overriding previous levels. You can define tolerances for receipt quantity,
on-time delivery, and receiving location. You can assign looser tolerances to low-value
items. You can set enforcement options to ignore, warn the user, or reject transactions
that violate the tolerances.

• Use blind receiving to improve accuracy in the receiving process. With this option, the
quantity due for each shipment does not show and quantity control tolerances are
ignored.
• Use Express and Cascade receiving to process certain types of receipts more quickly.
• Use Advance Shipping Notices (ASNs) to save time in processing receipts.
• Record receipt of unordered items based on your item, supplier, or organization
defaults. For example, if your organization does not allow receipt of unordered items,
you should not be able to enter a receipt unless it can be matched to a purchase order
shipment.
• Record the receipt of predefined substitute items.
• Record the receipt of services and labor.
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Invoicing
Receive
invoices If appropriate, match invoice

to purchase order or receipt
PO Invoice e
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Import/Enter sfe
invoice
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Enter basic a
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Enter detailed m ฺc nt G
information i nฺib Stude
Maintain invoices File invoices
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Invoicingm li
y
thgraphic describes the process involved in Invoicing.
M u
The
Oracle Fusion Payables supports a variety of invoice entry methods.
• Scanning: Use the Oracle Financials Cloud Automated Invoice Processing to support
scanning of invoices for paperless processing and routing.
• Manual: Enter complex invoices with sophisticated defaulting and matching logic to
match to purchase orders or receipts. View invoice information, such as invoice status,
installments, holds, payments, and applied prepayments. Drill down to the original
purchase order or receipt.
• For high volume invoice entry that does not require extensive online validation, use
spreadsheet invoice entry. You can enter invoices using the spreadsheet from the
Create Invoice in Spreadsheet task or the spreadsheet template from the Oracle
Enterprise Repository for Oracle Financials Cloud Applications.
• Self-Service: The Oracle Financials Cloud Supplier Portal allows suppliers to enter their
own invoices. Invoices that are not matched to purchase orders are routed through
workflow approval rules that you can configure. Invoices can be automatically created
when suppliers create an Advance Shipment Billing Notice (ASBN).

• Automated: To alleviate the workload of your payables staff, there are many ways in
which invoices can be created automatically. Use the Evaluated Receipt Settlement
(ERS) process to automatically create an invoice in Payables upon receipt and the
Return to Supplier (RTS) feature to automatically create debit memos when you return
goods to your supplier. Payables automatically creates invoices from expense reports
entered by employees in Oracle Fusion Expenses.
• Electronic: Payables supports B2B XML invoice web service and provides an open
interface to import invoices from another system.

Regardless of the invoice entry method that you use, Payables supports foreign currency
conversion, automatic tax calculation including withholding tax, invoice approval, online
accounting, and multiple accounting representations.
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Payment
Modify payments:
Select • Remove/add invoices

validated • Modify payment details
invoice
Pay invoice Format payments:
• Print checks
• Load EFT data
Run
Record manual Pay run
payment Validate payments:
a b le
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Create quick • Update invoice ra n s
t
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The graphic
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Mmake effective payment decisions, stay in control of payments to suppliers and employees,
and keep your accounting records up-to-date so that you always know your cash position.
Payables integrates with Oracle Payments, the payment engine, to handle every form of
payment, including checks, manual payments, wire transfers, bank drafts, and electronic
funds transfers. Payables also integrates with Oracle Fusion Cash Management to support
automatic or manual reconciliation of your payments with bank statements sent by the bank.
Through Payables, you can:
• Ensure duplicate invoice payments never occur.
• Pay only invoices that are due, and automatically take the maximum discount available.
• Select invoices for payment using a wide variety of criteria.
• Record stop payments.
• Record void payments.
• Review information on the status of every payment online.
• Process positive pay.

Overview of Application Integration
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This diagram li to capture the complex interaction of Oracle Financials Cloud
th y
Applications resulting from the Procurement process. The key applications that are integrated
u
Mto perform this process are:
• Human Capital Management: Employees are defined in Oracle Fusion Human Capital
Management and required to define procurement agents.
• Financials: Enterprise structures are defined within Oracle Fusion Financials. Oracle
Fusion General Ledger receives accounting information from many Oracle applications.
When implementing Oracle Financials Cloud Applications, creating a Ledger consisting
of an accounting calendar, currency and chart of accounts is one of the first steps that
must be completed before setting up other applications.
• Supply Chain Management: Procurement applications can use items defined in Oracle
Fusion Inventory and use item information from Oracle Fusion Product Information
Management.
• Customer Relationship Management: Supplier trading community information is
integrated into Oracle Fusion Supplier Portal. Oracle Fusion Enterprise Contracts
provides the foundation for Oracle Fusion Procurement Contracts.
• Project Management: Procurement applications can reference projects entered in
Oracle Fusion Project Portfolio Management.

Vision Corporation Structure Diagram
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This isa
y mmodel thatli your team has designed and uses numerical values to provide a sample
the
u th
representation of your structure. The model includes the following recommendations:
MCreate three separate ledgers representing your separate legal entities.
• Vision US Inc.
• Vision France Inc.
• Vision United Kingdom Ltd.
Consolidate results for your high technology business across the enterprise in a corporate
consolidation ledger.
Process all US, UK and France general and administrative costs processed by the Shared
Service Center Corporate Business Unit.
Shared service centers are supported in two ways.
• Service provider model: Allows a business unit to act as a service provider to client
business units, so that the personnel in a shared service center can process
transactions on behalf of client business units.
• Business unit security: Allows shared service center personnel to process
transactions for other business units.

Vision Corporation’s Business Unit Positioning in the
Procure to Pay Flow
Entity Name Legal Entity Value
US1 BU US 1 LE 1 BSV 101
US 2 BU US 1 LE 2 BSV 102
France BU France BSV 311

ble
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UK BU United Kingdom BSV 303ns
- t r a
Corporate BU Vision n on 103*
BSV
Shared Service Center Corporation s a
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Note:
ฺ c om t Gu
Payables Department
ฺ i b m d e n
All Entities Cost Center 723
i n Stu
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a
A business i
m unit can lperform many business functions in Oracle Financials Cloud Applications.
h y
utbusiness function represents a business process, or an activity that can be performed by
MApeople working within a business unit and describes how a business unit is used. The
following business functions exist in Oracle Financials Cloud applications:
• Billing and revenue management
• Collections management
• Customer contract management
• Customer payments
• Expense management
• Incentive compensation
• Marketing
• Materials management
• Inventory management
• Order fulfillment orchestration
• Payables invoicing

• Payables payments
• Procurement
• Procurement contract management
• Project accounting
• Receiving
• Requisitioning
• Sales
Vision US Company provides High Technology sales through the US BU1 Business Unit.
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Vision Corporation Distribution Structure
Entity Type Entity Name Distribution

Structure
Distribution Center US Distribution Inventory

Center Organization
Warehouse Seattle Inventory
Organization
Warehouse Atlanta Inventory
Organization
Distribution Center EMEA Distribution Inventory ble
Center Organization fe ra
Warehouse Bristol t
Inventory r a ns
-
aInventory non
Organization
Warehouse Marseille a s ฺ
h iOrganization
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List of Items Common
ฺ i b mItemden Item Master
@ inMasterStu Organization
i
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t o us Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
a ddi ense
V ic distribution structure of your Vision Corporation entities. The following
a m
The chart illustrateslthe
thy expand on the data in the chart.
statements
u
M • Distribution centers and warehouses are used to receive and ship out the high tech
products your firm sells.
• Item master organization and inventory organizations can be added if you are tracking
your inventory transactions in Oracle Fusion Applications.

Summary
In this lesson, you should have learned how to:

• Describe the procure to pay process flow.
• Describe the key areas in the procure to pay process.

• Describe how the procure to pay process fits into the
Financials Cloud applications family.
• Understand business units positioning in the Procure to Pay
flow.
ra ble
• Understand the service provider model. sfe a n
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2
Payables Overview ble

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Objectives

• Describe the Payables process flow.
• Describe the key areas in the Payables process.

• Identify Payables integration points.
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Requisitions
Catalog
Content
Management Purchase
Orders
Ordering
RFQs/
Sourcing Receiving
Quotations
Invoice/ ble
Analysis fe ra
Payment
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Overview of Payables Processes
Enter supplier Import/Enter invoice Validate invoice
Pay invoice
ble
fe ra
A/P
an s
100,000
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60,000
a
10,000 no
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Transfer information o
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Create accounting
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The graphic li the Payable processes.
m describes
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thuse Oracle Fusion Payables related five major business functions:
u
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M • Supplier entry
• Invoice import and or entry
• Invoice validation
• Invoice payment
• Invoice and payment accounting
To enter and pay invoices, first enter suppliers and supplier sites. Payables processes many
different invoice types including standard invoices, credit memos, debit memos and Payment
Request. After invoices are entered and validated, they can be paid.
After invoices are validated or paid, subledger accounting entries are generated in Subledger
Accounting and those entries are transferred to General Ledger.

Supplier Entry

Pay invoice
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The graphic li how a supplier is created.
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th Oracle Fusion Purchasing, you can:
u
Through
M • Enter suppliers, their addresses, and business information such as payment terms,
payment method, and supplier bank account information.
• Enter supplier sites and related data, which defaults to invoices entered for that site.
• Review supplier information online, such as supplier balance.
• Merge duplicate suppliers.

Invoice Entry

Optionally Pay invoice

match to PO ble
or receipt fe ra
A/P
an s
100,000
n - t r
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60,000
10,000
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The graphic li how an invoice is entered.
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thcan enter invoices through:
u
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M • Manual entry: Manually enter invoices Using Create Invoices Page.
• Scanned Invoices: A scanned invoice is an invoice that is processed through the
Oracle Fusion Payables integrated imaging solution.
• Import: The Payables Open Interface Import program imports invoices from the
Payables Open Interfaces table.
• Automatically generated: Oracle Fusion Payables automatically generates some
invoice types including: withholding tax invoices to pay tax authorities, interest invoices,
and payment on receipt invoices.
• Spreadsheet invoices: You can use Oracle Fusion Payables to generate regularly
scheduled invoices such as rent, through spreadsheet.
• Matching: You can match most invoices to purchase orders or receipts. You can group
manually entered and imported invoices in invoice batches.

Overview of Payment
Modify payments:
Select • Remove/add invoices

validated • Modify payment details
invoice
Pay invoice Format payments:
• Print checks
• Load EFT data
Run
Record manual Pay run
Confirm payments:
payment
• Confirm checks ra ble
• Update invoice n s fe
Create manual r a
payment outside Create • Payment history
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Payables single
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a m providesli an overview of Payments.
The graphic
y
u th invoices are validated, they can be paid. Payables provides the information that you
Once
Mneed to make effective payment decisions, stay in control of payments to suppliers and
employees, and keep your accounting records up-to-date so that you always know your cash
position. Payables handles every form of payment, including checks, manual payments, wire
transfers, bank drafts, and electronic funds transfers. Fusion Payables integrates with Fusion
Payments to define payment methods, and integrates with Oracle Fusion Cash Management
to support automatic or manual reconciliation of your payments with bank statements sent by
the bank.
With Payables you can:
• Ensure duplicate invoice payments never occur
• Pay only invoices that are due, and automatically take the maximum discount available
• Select invoices for payment using a wide variety of criteria
• Record stop payments
• Record void payments
• Review information on line on the status of every payment
• Process positive pay

Overview of Payables Integration
Cash
Purchasing Receivables Management
ble
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Projects Payables n - t r
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ฺib tudSupplier
Assets i n S Portal
i @
Payments s
v a dd e thi
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( m t o
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m V lic
h y a
The graphic lists all the applications that Payables integrates with.
ut
MPurchasing/Self service Procurement
• Accounting from matched purchase orders
• Suppliers
• Procurement cards
• Purchase orders
Receivables
• Payment Requests
Cash Management
• Banks
• Bank codes
• Payment clearing
• Cash forecasting

Supplier Portal
• View invoices
• View payments
• Submit invoices
• Update supplier information
Payments
• Payment Methods
Assets
• Invoice distributions for asset purchases
Projects
• Project, task, expenditure type, expenditure organization
• Invoice distributions
• Invoice distribution adjustments ble
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Overview of Payables Integration
Human Subledger General

Resources Accounting Ledger
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m lists theliapplications Payables integrates with.
a
The graphic
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u th Resources
Human
M • Employees
• Locations
Subledger Accounting
• Subledger accounting for invoices, payments and clearing
General Ledger
• Ledgers
• Exchange rates
• Accounting flexfield
• Currency
Expenses
• Expense reports
Fusion Tax
• Tax rules
• Transaction tax

Product Management
• Item information
Business Process Execution Language
• Validate and approve imported invoices and invoices entered in Supplier Portal
• Procurement cards
• Credit cards
• Expense reports
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Payables Integration with Purchasing
Match and
1 Update Qty
Billed
ble
Payables Purchasing/ fe ra
Copy a n s
2 Self Service
t r
Accounting on-
Procurement
s an
POs Suppliers ) ha idPCards
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The graphic li Payables integration with Oracle Purchasing.
m describes
y
th and Update Qty Billed (1)
M u
Match
Enter an invoice and match it to a purchase order to update the quantity billed against the
purchase order.
Copy Accounting (2)
During the match process, accounting stored with the purchase order distribution is copied to
the invoice.

Payables Integration with Receivables
Submit
Payment
Requests
ble
fe ra
Payables an s
Receivables n - t r
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The graphic li Payables integration with Oracle Receivables.
m describes
y
th Requests
M u
Payment
You can submit requests for payment from Oracle Receivables. These requests are
considered Payment Request Invoices. You can then use standard Payables features, such
as invoice approval workflow, to process the payment request.

Payables Integration with Cash Management
Cash Flow
1
Data
Payables Cash ble

Reconcile Management fe ra
2 s
Payments
- t r an
no n
Bank Codes Banks a
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The graphic li Payables integration with Oracle Cash Management
m describes
y
th Flow Data (1)
M u
Cash
Cash outflows (payments) and inflows (refunds) are used to create cash forecasts.
Reconcile Payments (2)
Use Cash Management to manually clear payments or import bank statements and
automatically clear payments.

Payables Integration with Supplier Portal
Invoice
2 Status
Submit PO-Matched Supplier

Payables 1 and Unmatched Invoices Portal e
ra bl
sfe
Invoice Supplier - t r an
n
Request Info a no
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The graphic li Payables integration with the Supplier Portal.
m describes
y
th PO-Matched and Unmatched Invoices (1)
M u
Submit
Suppliers who have been granted an Supplier Portal account can submit PO-Matched and
Unmatched Invoices for approval. Payables considers Invoices that are submitted through
Supplier Portal, “Invoice Requests”. Invoice Requests must be approved using the Invoice
Approval Workflow before they become standard invoices in Payables.
Invoice Status (2)
When a supplier submits an invoice through Supplier Portal, the supplier can use Supplier
Portal to view the current status of the invoice. In addition, suppliers can update their address
and contact information as required.

Payables Integration with Payments
Payment Methods
Payables Payments
Payment ble
Pay Runs Documents fe ra
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The graphic li Payables integration with Oracle Payments.
m describes
y
th Methods
M u
Payment
Use Oracle Payments to set up the payment methods used to disburse funds to suppliers.
You can also choose to use the payment document and pay run functionality provided by
Payments.

Payables Integration with Assets
Create Post
1 Mass 3 Mass
Additions Additions
ble
Payables FA Mass Assets fe ra
Additions an s
Prepare n - t r
2 Mass a n
o
Suppliers ) uide has ฺ
Additions
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The graphic li Payables integration with the Assets.
m describes
y
th Mass Additions (1)
M u
Create
Run the Mass Additions Create program after payables invoice distributions have been
transferred from Subledger Accounting to General Ledger (although the journals do not need
to be posted). To be transferred, invoice distributions must:
• Be transferred to General Ledger
• Have a clearing account associated with an asset category
• Have the track as asset flag checked
• Have a GL Date on or before the date you specify when running the process will be
transferred to the FA_Mass_Additions table.
Prepare Mass Additions (2)
Prepare transferred invoice distributions to become assets. You can perform tasks like
merging and splitting invoice distributions. For example, you may purchase 10 computers, 10
warranties and 10 software licenses on three separate invoices. You can merge the
computers with the warranties and licenses and subsequently split them into 10 different
assets with unique asset numbers (each asset would represent 1/10 the cost of the
warranties, 1/10 the cost of the computers and 1/10 the cost of the licenses). This program is
run in Oracle Assets.

Post Mass Additions (3)
Use the Post Mass Additions to Assets program to create assets from mass addition lines in
with a queue of POST using the data you entered in the Mass Additions window. This
program is run in Oracle Assets.
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Payables Integration with Projects
Invoice
1 Distributions
ble
Payables Projects
fe ra
2
Adjustments
an s
and Expense Reports
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The graphic li Payables integration with Oracle Projects.
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y
th Distributions (1)
M u
Invoice
Use the Integration between Payables and Projects, to move project related invoice
distributions from Subledger Accounting to Projects.
Adjustments and Expense Reports (2)
If you make any adjustments to expense report expenditure items in Oracle Projects, you do
not interface the adjustments to Oracle Payables. Instead, you send the adjustments to
Oracle Subledger Accounting. You can still enter project-related expense reports in Oracle
Expenses. In addition, you can import costed and accounted expense reports into Oracle
Projects using transaction import.

Payables Integration with Human Resources
Employees
Payables 1 Human
Resources
ble
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Employees
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The graphic li Payables integration with Human Resources.
m describes
y
thenter an expense report using Expenses and create them as payment requests later, you
u
To
Muse employees that are predefined and shared with Human Resources.

Payables Integration with Subledger Accounting and
General Ledger
Create Transfer to
1 Accounting 2 General
Ledger
ble
Subledger General fe ra
Payables
Accounting Ledger ran
s
o n -t
s an
Ledger )
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The graphic li Payables integration with Subledger Accounting and General Ledger..
m describes
y
th Accounting (1)
M u
Create
Create subledger accounting entries online or manually using the Create Accounting
program.
Transfer to General Ledger (2)
Transfer subledger accounting entries from Subledger Accounting into General Ledger. The
Post process in General Ledger updates account balances. Once ledgers are posted, you can
perform account analysis, subledger drill down and run financial statements.

Payables Integration with Expenses
Expense
Payables 1 Expenses
Reports
Employees Templates ble

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The graphic li Payables integration with Expenses.
th y
u
Mdisconnectedcan(Excel
Employees create and submit expense reports using either the standard (web browser) or
spreadsheet) expense reporting methods. Managers review expense
reports online and can approve them or reject them. Predefined spending limits are
associated with managers who approve expense reports.
If the manager has sufficient spending authority, the expense report can be approved. If the
manager does not have sufficient spending authority, a notification is sent to forward the
expense report based on rules defined in BPM.
When the expense report is approved, it is sent to the Accounts Payable department for
receipt review if any expenditures require original receipts. Once approved by management
and the Accounts Payable department (if required), the expense reports are pushes as
Payment Requests to Fusion Payables

Payables Integration with Fusion Tax
View Tax
Calculate
1 Tax
2 Summary
and Details
ble
fe ra
a n s
Fusion Taxon-
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Payables
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The graphic li Payables integration with Fusion Tax.
y
th Payables integrates with Oracle Fusion Tax, the Oracle Applications tax engine, to
u
Oracle
Mprovide tax services for invoices. With this integration, Fusion Tax provides a central
repository for your invoice tax requirements. Fusion Tax does not provide tax services for
Withholding Taxes or 1099 Income Taxes. Fusion Tax provides tax services for the following
categories of Payables invoices:
• Standard Invoices - includes Standard, Credit Memos, and Debit Memos
• Prepayment Invoices
• Payment Requests
Each of these categories maps to an event class in Fusion Tax.
Fusion Tax uses your tax setups as well as information from the invoice header and line level
(the tax drivers) to determine the applicable taxes, tax statuses, tax rates, taxable basis,
calculations, rounding, and tolerance for each invoice. The tax drivers Fusion Tax uses to
calculate taxes can differ depending on the category of invoice and the parties involved. For
example, for a Standard invoice in the U.S., the Location ID and Place of Supply on the
invoice are used to determine the applicable State and County Sales Taxes.
For more information see the tax module or the Fusion Tax User Guide.

Payables Integration with BPM Worklist
• Requisition Approvals
• Expense Report Approvals
• Purchase Order Approvals

• Invoice Approval Workflow
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Fusion Differentiators
Information Driven Out-of-box

Dashboards and Work Areas Imaging Integration
Embedded User Productivity ble

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Dashboards: li
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exception based management reporting where information is pushed to the users.
• Dashboards bring information from a variety of sources so users know exactly what
transactions they need to monitor, what actions they need to take, and who to ask for
information—all from a single location.
• Instead of running multiple queries, searching for data, or running reports, the data is all
in one place. Users simple need to log into their dashboards and work areas to see what
they need to do that day.
• AP dashboard is designed for AP Manager, and lets him manage all Payables activities
across Invoicing and Payment areas.
Similarly, for AP Specialist and AP Supervisor job roles there is Invoice and Payment
work areas that gives them at-a-glance view of invoices and payments that they need to
monitor or act upon.
• Besides this features like Collaboration, Secure Enterprise Search, Tagging, allow users
to look for information without leaving the page. Work areas have left hand task panes to
let you launch tasks and reports without having to navigate to a menu.

Imaging Integration:
• We took the best in class capabilities across our acquisitions and incorporated them in
our product suite.
How many people of you over here have implemented an end-to-end imaging solution?
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Payables Dashboard
Obtain a count of issues to understand work volume.
What I need
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• Collaborate directly with iparticipants
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mPayableslidashboard that serves as a centralized cockpit to proactively monitor
Here’sa the
th y
exceptions during invoice and payment processing. It answers the question:
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<Build 1>
“What do I need to do?”
In the top portion, you can see the invoices requiring attention.
<Build 2>
These are invoices that require my approval, are pending approval from others, are rejected
and on hold. During month-end close, I can see which invoices still haven’t been approved
and who to pester to expedite approval so I can complete invoice processing.
We also have Payment Process Requests that require attention as well. This section provides
immediate access to payment processes in motion, highlighting next actions needed.
Typically, companies perform straight-through payment processing based on a schedule they
define. By preemptively pushing payment process requests that have issues to users, they
can immediately remove processing bottlenecks and expedite payments.

<Build 3, 4, and 5>
They also answer the question, “Who can help me?”
Often times, users are spending considerable time trying to find someone’s contact
information. Here, and in most places throughout our UIs, we push the participant’s contact
information to you. In this example, we have the Requester information. Here, if the manager
who is trying to approve an invoice wants to ask the originator a question, he can instantly IM,
Email, or phone the Requestor about questionable transactions. It’s all right here at his finger
tips.
<Build 6>
Notice that we have a number on each tab to help you understand the work volume and help
you prioritize your tasks for the day.
<Build 7>
Lastly, dashboards and work areas remind you of what you need to know.
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Here, we have placed stop payment requests to the bank. It is useful for me to be reminded of
s
this because eventually I will need to void the payment or release the stop depending on what
an
the bank tells me.
n - t r
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Lastly, we have suppliers on payment hold. This reminds me that all of this supplier’s invoices
a
will be ignored during payment processing.
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Summary

• Describe the Payables process flow.
• Describe the key areas in the Payables process.

• Identify Payables integration points.
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Objectives

• Define suppliers and supplier sites.
• Manage procurement agents.
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Requisitions
Catalog
Content
Management Purchase
Orders
Ordering
RFQs/ Receiving
Sourcing
Quotations
Invoice/ ble
Analysis fe ra
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How Oracle Financials Cloud Applications Use
Supplier Information
Payables Assets
Purchasing
Supplier ble
Portal fe ra
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Suppliers
Mrepository called the Trading Community Architecture (TCA). TCA provides a single, common
definition that can be used to identify customers, suppliers, and organizations that provide you
with goods or services, and are in turn, a customer of your own products or services. The
TCA repository stores the key elements that define an organization, identity, business
locations, and key contacts, so that different Oracle products use a common trading partner
definition.
Applications that share supplier information are:
• Purchasing: Purchasing uses supplier defaults, such as freight terms and shipping
details, on requisitions, purchase orders, requests for quotations, etc.
• Payables: Payables uses supplier defaults, such as method of payment and bank
account information, during invoice entry and payment processing.
• Assets: Assets maintains the supplier name and number for each asset record.
• Trading Community Architecture: All supplier information is defined in Trading
Community Architecture.
• Supplier Portal: Supplier Portal allows you to grant access to suppliers to review order,
receipt, and payment details for the supplier. Suppliers can enter planned (with PO) or
unplanned (without PO) invoices and update supplier information.

Overview of Suppliers
Import/Enter
Enter supplier invoice Validate invoice
Pay invoice
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The graphic li creating and using suppliers.
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thup suppliers in the Suppliers page to record information about companies and individuals
u
Set
Mfrom whom you purchase goods and services
When you enter a supplier that does business from multiple locations, you enter common
supplier information (supplier quick update information) only once, and you enter supplier
sites for each location (supplier address). For example, for a single supplier, you can buy from
several different addresses and send payments to several different addresses. Suppliers can
have multiple addresses and each address can be used by one or many business units
through a supplier site record.
After you define suppliers, you can use them when you import/enter invoices and create
purchasing documents.

Supplier Model
Suppliers are modeled as global entities and not created within a

business unit or within any other organizational context.
Supplier Sites:
• Are associated with a procurement business unit.
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• Represent the relationship between a procurement business n s fe
unit and a supplier. - t r a
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• Set terms, controls, and policies, which govern
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Supplier Sites and Procurement Business Units
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Edit Supplier li
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Suppliers
In this example, the supplier Advanced Corp has a site called AC US1, which is associated
with the procurement business unit US1 Business Unit.

Supplier Site: Site Assignments
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In the example li the client business unit USA1 Business Unit, which is also the sold-to
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th unit, is assigned to the site AC USA1. Therefore, the business unit USA1 Business
business
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MUnit can create requisitions and process invoices for this site.
In most cases, the client business unit and sold-to business unit are the same. In certain
instances, due to tax or legal reasons, the client business unit may only perform
requisitioning, and another business unit acts as the sold-to business unit and assumes
liability for purchases.
• When a different sold-to business unit acts as an agent for the client business unit, you
must create an additional assignment for the sold-to business unit to process invoices.
The list of sold-to business units that you can select for a given client business unit is
determined by the Intercompany Transaction Flow setup.
When the client business unit and sold-to business unit are different, you must accrue
purchase orders on receipt.

Supplier Controls
Control supplier information using:

• Security
• Numbering
• Duplicate Supplier Entry
• Setup Options (defaults)
• Tax Defaults
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You can a m li information using:
control supplier
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Security
Using Role based security defined through Authorization Policy Manager you can enable or
disable access to specific Supplier pages. For example, you can restrict access to Supplier
banking information. You can also grant users full or read-only access to Supplier pages.
Numbering
Set Specify Supplier Numbering task, in Define Supplier Configuration Task list to
Automatically control supplier numbering by allowing the system to automatically assign
supplier numbers for you.
Duplicate Supplier Entry
If you have duplicate suppliers (for example, Orion Corp. and Orion Inc.), use Supplier Merge
to merge the records into a single supplier record. When you merge suppliers you can update
the associated purchase orders and invoices so they reference the merged supplier. It is
recommended that you use a naming convention to prevent accidentally entering duplicate
entries.

Setup Options
Use the Manage Common Options for Payables and Procurement, Manage Invoice Options,
Manage Payment Options, and Manage Tax Reporting and Withholding Tax Options to
control the supplier defaults. Setting these options speed your supplier, purchase order, and
invoice entry. When you enter a purchase order or invoice, the system defaults values to the
corresponding fields based on the supplier and supplier site selected if not overridden at the
Supplier Level. You can override most defaults during supplier, purchase order, or invoice
entry.
Tax Defaults
For each supplier you can specify the following tax default information:
• Income Tax defaults
- Taxpayer ID
- Allow Withholding Tax
- Federal or State Reportable ble
fe ra
• Transaction Tax defaults
ans
- Default Reporting Country and Registration Number
n - t r
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- Set Invoice Values as Tax Inclusive h a s ฺ
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For each supplier site, you can also determine t u
S you allow the site to Update
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Transaction Tax. If you set this option,
e thcan override calculated transaction tax values for
the supplier site.
( m u ou
For each supplier, dyou e t the Allow Withholding Tax at the supplier or supplier site
i can senable
level.
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Finding/Creating Suppliers
You can find suppliers by using the Search region of the Manage
Suppliers page. You can create a supplier by using either the
Manage Suppliers page or the Create Supplier task.
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FindingaSuppliers li
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ththe Search region of the Manage Suppliers page to enter a wide variety of search criteria
M u
Use
including:
• Supplier Name
• Supplier Number
• Alternate Name
• Review Type
• Tax Registration Number
• Taxpayer ID
• DUNS number
From the Manage Suppliers Page you can Create New Suppliers.

Entering Basic Supplier Information
Standard supplier • Supplier Type
• Name Stevens and Co

• Number 46018
• Taxpayer ID or ble
FEIN 52-1234567 • Tax Registration Number fe ra
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• Inactive On h a s01-AUG-2010
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Supplier
You can create Organization or Individual type suppliers.
Name
Suppliers should provide their official business name for entry. Names must be unique and
can be updated if necessary.
Number
Automatically generated by the system when you save the record.
Taxpayer ID
If the supplier is a corporation or partnership, use the federal identification number. If the
supplier is an individual, use a social security number. Optionally enter the value-added tax
(VAT) registration number in the Tax Registration Number field if you are entering a VAT
supplier.
Inactive On
Prevent entry of invoices and purchase orders for specific suppliers after a certain date by
entering a date in the Inactive On field in the Suppliers: Organization

Entering Basic Supplier Information
Prospective Spend Authorized

Supplier Supplier
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• Prospective: li the supplier to participate in sourcing negotiations and supplier
Allows
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th qualifications, but will not allow the supplier to be available for ordering and invoicing.
M u
• Spend Authorized: Indicates that the supplier is ready for ordering and invoicing. A
request is initiated for a supplier to become spend authorized in one of the following
ways:
- User requests prospective supplier to be promoted to spend authorized from the
supplier record.
- Prospective supplier is awarded negotiation.
- Supplier with intention of a spend authorized business relationship is created from
an approved registration request.

Supplier: Organization
• Parent Supplier Name

– Must already be defined to select
• Number
– Parent supplier number
Parent e
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Enter the li
mfollowing information in the Suppliers: Organization Tab.
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ut Supplier Name and Number
MParent
You can record the relationship between a franchise or subsidiary and its parent company by
recording a value for the Parent Supplier Name field. Use the Vendor Affiliated Structure
Listing to report relationships you’ve defined.
Additional Information
You can also enter additional organization information, such as year established, legal
structure, total employees, tax and financial information, as well as include attachments of
relevant supplier information such as documentation on supplier goods and services.

Supplier: Business Classification
Name Type
Hal’s Supplies Office Supplies
Adams for Board Donations
Minority Owned
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The graphic li the Supplier business classification.
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thcan enable the applicable business classifications to each supplier to categorize and
u
You
Mreport on subsets of suppliers. For example, you may have legal requirements to which you
must adhere that differentiate between types of suppliers or for which a particular supplier
must be certified.
The system pre delivers a set of business classifications. You cannot delete or update the
Minority Owned, Woman Owned, and Small Business classifications, but you can add,
remove, or update other values, as needed.
Alternatively, through the Supplier Portal you can allow the supplier to access the list and
claim the classifications themselves.

Suppliers: Products and Services
Computer/ Manufacturing
Technical
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The graphic li the Supplier products and services.
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thProducts and Services Tab allow you to categorize the types of goods and services that
u
The
Meach supplier can provide. Typically, this categorization is something that you would ask the
supplier to do themselves through Supplier Portal. Buying organizations can use the category
details provided by suppliers to help generate invitation lists for RFQs and for reporting.
The system indicates newly claimed categories by a Pending status and these categories
need to be reviewed by a Supplier administrator. The supplier cannot see the status and does
not receive any notifications. If the product and service categories have been set up in a
hierarchy, users can select a parent category or child categories. If a parent category is
selected, the system automatically selects all of the child categories for that product or
service.

Supplier: Transaction Tax
• Allow Tax Applicability

• Rounding Rule
• Set Invoice Values as Tax Inclusive

• Tax Registrations
• Allow Offset Taxes
• Tax Classifications
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Use thea m
Suppliers: li
Transaction Tax Tab to enter tax details. The options you select for a
h y
ut site.default to the new supplier Addresses you enter, then default to invoices you enter for
supplier
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Allow Tax Applicability
Enable this option, if you want to automatically calculate taxes for this supplier or supplier site.
Allow Offset Taxes
Enable this option if you want to allow calculation of offset taxes with this supplier or supplier
site.
Tax Classification
If applicable, enter the fiscal classifications for your supplier here.
You can also enter the tax registrations (for example, a supplier's value-added tax (VAT)
registration number). You enter a tax registration number for a supplier if it is required to pay
or report on Value-Added Taxes (VAT).

Supplier: Income Tax
• Allow Withholding Tax

• Withholding Tax Group
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If you do m li
not allow withholding tax for a supplier, you cannot allow withholding tax for any of
h y
ut supplier's
the
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sites. If you disable withholding tax at the supplier site, you will not be able to
withholding taxes for any invoices entered for this supplier site.

Supplier Information: Payment Details
• Payment Method Check

Electronic
Outsourced Check
Wire
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• Pay Each Document fe ra
1 to 1 Individually an s
Invoice Check n - t r
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The graphic li the Supplier information payment details.
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ththe Supplier: Payment Tab to specify the general payment details and payment attributes
u
Use
Mfor the supplier and supplier sites.
Payment Method
The Payment Method is the form of payment used for each supplier invoice. Options include
check, electronic, wire, or outsourced check. Wire payments are done manually to reflect
external wire transfers made between your bank and your supplier’s bank.
Pay Each Document Alone
If the Pay Each Document Alone option is enabled, a separate payment is created for each
invoice. If it is not enabled, a single payment is made for multiple invoices.

Supplier: Banking Accounts
• Name
• Number
• Primary
• Currency
• Start/End Dates
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Operating Account fe ra
#432198-77 an s
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The graphic li the Supplier banking details.
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ththe Supplier: Bank Accounts Tab under Payments to define the bank accounts used for
u
Use
Mmaking payments to suppliers.
You can select the name and number of the bank account from the list of values that includes
all active supplier type bank accounts or you can create a new bank account.
For each supplier and supplier site that has bank account assignments, you must designate a
primary bank account. The primary bank account is used by Payables as a default when you
pay this supplier electronically. You may override the default if necessary.
Using Supplier Portal, suppliers can access their banking information and, if given the
appropriate security privilege, make changes to the details. The Supplier administrator can
either approve the account or set the status to Verify. You can use the Verify status while you
pre note the account or perform other activities for verifying an account with your bank.

Supplier: Address Book and Contact Directory
Supplier
Tokyo Paris New York
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Purchasing site Purchasing site
o to site
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m describesli the address book and contact directory for Supplier.
a
The graphic
y
u
Forthevery supplier, you can create an unlimited number of supplier sites with different
M addresses and contacts. You can buy from several different sites while sending the payments
to only one site.
Define how supplier sites can be used by setting the purpose for the supplier address:
• Remit to: You can import and or enter invoices for and make payments to the site.
• Ordering: You can create purchase orders for the site.
• RFQ or Bidding: You can create request for quotations or Bids in Purchasing for the
site.
Note: Since suppliers are stored in TCA, the address details for a supplier may be used by
other Oracle products. Take great care when removing supplier addresses. If the address is
inactivated, the system no longer associates it to any contacts, and any bank account
assignments to the address are inactivated.
For each supplier site, you can enter contact information (name, address, telephone) specific
to that site. Contact information is for your reference only.
If you implemented Supplier Portal's Supplier Profile Management tools, suppliers can enter
address book information online, creating any number of new addresses, modifying the
details for existing addresses, and indicating how each address is used.

Supplier Site: General
• Income Tax Reporting Site

• Customer Number
Your Company Your Supplier

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Supplier – General li
m
y
th Tax Reporting Site: Enable this option to set the supplier site as the reporting site for
M u
Income
a supplier. This reporting supplier site's address is printed on the 1099 form, and included in
the 1099 Electronic Media Payables requires exactly one tax reporting site for each 1099
supplier for income tax reporting purposes.
You can choose only one supplier site as the income tax reporting site for a supplier.
Payables requires a tax reporting site for each 1099 supplier for income tax reporting
purposes.
Customer Number: The number your supplier uses to identify your company or organization.
This number appears on purchase documents

Supplier Site: Purchasing
• Communication Method
• Hold all new purchasing documents
• Hold Reason
• Pay On Receipt
• Alternate Pay Site
• Invoice Summary Level
• Create Debit Memo from return
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• Gapless Invoice Numbering n s fe
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• Carrier n on
• Freight Terms s a
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• Free-on-Board (FOB)
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Communication
a Method
h y
ut option helps you chose the communication method used to communicate.
MThis
Hold all new purchasing documents
All supplier purchasing values default to new supplier sites you enter. Supplier site values
default to all new purchase orders and purchase requisitions. You can override any
purchasing defaults during supplier site entry and purchasing document entry.
Hold Reason
If a supplier is placed on Hold, the system will allow you to create a purchase order for the
supplier, but you will not be able to approve it until you release the hold. If you use this option,
use a descriptive explanation in the Reason field to explain the reason for the hold.
Pay On Receipt
The Pay on Receipt functionality allows you to create invoices based on receipts and
purchase order information in the system. This functionality is generally used with suppliers
who send ASNs (Advance Shipment Notices) and ASBNs (Advance Shipping and Billing
Notices).
Alternate Pay Site
Pay site to be used as the supplier site when the system creates self-billing invoices for this
supplier. This list of values is limited to active pay sites for the supplier.

Invoice Summary Level
The level at which you want to consolidate invoices for this supplier site when you submit the
Pay on Receipt Auto Invoice Program.
Create Debit Memo from returns
If you enable the Create Debit Memo from returns option, you will have the option of allowing
Workflow to automatically create a debit memo when processing a return to supplier.
Carrier
Carrier allows you to indicate a preferred carrier that you’d like the supplier to use when
shipping to you.
Freight Terms
Freight Terms indicate whether you or your supplier pays the freight charges for the goods
you ordered.
FOB
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Free on Board (FOB) indicates the point at which ownership of the goods and services,
well as the cost of any damage or loss, transfers from the supplier to you. ra n s
Country of Origin o n -t
Country in which the product was manufactured. s an
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Supplier Site: Receiving
• Ship-To Exception Action

• Receipt Routing
• Over-receipt Tolerance
• Over-receipt Action
• Early/Late Receipt Tolerance in Days
• Receipt Date Exception
• Allow Substitute Receipts ble
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• Allow Unordered Receipts an s
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Ship-Toa m i
ExceptionlAction
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th for the Enforce Ship-To Location include none, warning and reject.
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Values
• Reject prevents entry of the receipt in the system.
• Warning provides a message of the discrepancy, but will allow the receipt entry to
continue.
• None allows the receipt to be entered and will not provide a warning message of the
discrepancy.
Receipt Routing
Receipt routing indicates which default location will be used at the point of initial receipt and
generally the number of steps it takes for the item to reach its final destination. Below are the
options available.
• Direct Delivery: 1 step to the final destination
• Standard Receipt: 2 steps: 1st to receiving, then to the final destination
• Inspection Required: 3 steps: 1st to receiving, next to inspection, then to the final
destination

Over-receipt Tolerance
The maximum acceptable over-receipt tolerance percentage.
Over-receipt Action
The action to be taken when the quantity received tolerance is exceeded.
Early/ Late Receipt Tolerance in Days
The window within which delivery will be allowed.
Receipt Date Exception

The action to be taken when delivery occurs outside of this window.
Allow Substitute Receipts
If Allow Substitute Receipts is enabled, receivers can receive previously defined substitute
items in place of ordered items.
Allow Unordered Receipts e
Allow Unordered Receipts permits receivers to acknowledge receipt of unordered items. If ra bl
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enabled, you will need to later research and match the unordered receipts to the appropriate
r
purchase order. If you allow Unordered receipts, you will always be able to record the fact that
no n
a physical receipt was processed giving full visibility to the transaction.
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Supplier Site: Invoicing
• Controls • Terms
• Payment Hold Controls – Priority
– Payment Terms
– Pay Date Basis
– Pay Group
– Always Take Discount
– Exclude Freight From
Discount ra ble
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– Create Interest Invoice
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Use thea m li Invoicing Region to specify the defaults and controls for supplier
Supplier site:
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th and to specify the payment details related to supplier invoices.
invoices
u
MInvoice Amount Limit
If you enter an invoice for a supplier site that exceeds a pre-specified invoice amount limit,
Payables will automatically place the invoice on an Amount Hold during the Invoice Validation
process.
Invoice Match Option
The Invoice Match Option determines whether or not you intend to match invoices for this
supplier against purchase orders or receipts.
Match Approval Level
The Match Approval Level indicates what information will be compared to determine whether an
invoice can be validated or not. Options are:
• 2-Way: Purchase order and invoice quantities must match within tolerance before the
corresponding invoice can be paid. The receipt close tolerance should be set to 0% to
allow the system to automatically close fully received lines.
• 3-Way: Purchase order, receipt, and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
• 4-Way: Purchase order, receipt, accepted, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.

Select the Hold All Invoices option to prevent any invoices entered for the supplier site from
being selected for payment processing.
Hold Unvalidated Invoices
If the Hold Unvalidated Invoices option is selected, Payables will automatically apply a
Supplier hold to all invoices as they are entered.
Hold Unmatched Invoices
If the Hold Unmatched Invoices option is selected, Payables will automatically apply a
Matching Required hold to all unmatched invoices.
Payment Hold Reason
The reason you are applying a payment hold to an invoice.
Payment Priority
A number, 1 to 99 (1 being the highest, 99 being the lowest), which represents the priority of
payment. The system uses the Supplier Site value to automatically assign a Payment Priority
to an invoice's scheduled payment(s) during invoice entry. ble
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Payment Terms
ans
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The system uses payment terms to automatically calculate due dates, discount dates, and
n
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discount amounts for each invoice in order to schedule payments. Additional Payment terms
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can be added to the list of values through Manage Payment Terms Task.
Terms Date Basis
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The Terms Date Basis is the date you select for Payables to use as the basis for calculating
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the scheduled payment. Below are the options available listed in order from the earliest date
selection to the most recent date selection.
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• Invoice Received
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• System (Date)
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Pay Date Basis
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The Pay Date Basis determines if the system will create a payment at the end of the discount
period or by the due date.
Pay Group
The default for this field is the Payables option you define for Pay Group. You can override
this default during supplier site entry or invoice entry.
Always Take Discount
Enable the Always Take Discount option as Yes to have Payables always pay the discounted
amount regardless of whether payment is made within the discount period or not.
Exclude Freight from Discount
If you select the Exclude Freight from Discount option as Yes, the system will exclude freight
prior to calculating discounts.
Create Interest Invoice
If you select the Create Interest Invoice option as Yes, the system will automatically create
invoices for interest. If this option is enabled, Payables calculates interest for the supplier's
overdue invoices and creates corresponding interest invoices when you pay the overdue
invoices.

Supplier Site: Tax and Accounting
Supplier accounting values default to all new supplier sites you

enter for the supplier. Supplier site accounting values default to all
new invoices for the supplier site. You can override any
accounting defaults during supplier site entry and invoice entry.
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Supplier
y mSite – SiteliAssignments – Tax and Accounting
u
Useththe Supplier: Tax and Accounting region on Site Assignments tab to define Withholding
M Tax Group and default accounting information for your suppliers and supplier sites.
Liability
The Liability Account and description for a supplier site’s invoices.
Prepayment
The supplier default for this field is the Financials option for the Prepayment account.
Bills Payable
If you use bills payable (future dated payments), enter the account you want to use. The
Financials option value defaults to new suppliers, and the supplier value defaults to new
supplier sites. You can override these defaults. When Payables creates a future dated
payment, it uses the future dated payment account from either the supplier site or the
payment document, depending on which option you select in the Payment Accounting region
of the Payables Options window.
If you relieve liability for future dated payments when the payment is issued, then use an
asset account. If you relieve liability at clearing time, then use a liability account.

Distribution Set
The default Distribution Set for all invoices entered for the supplier site. Distribution Sets are
used to expedite entry of distribution lines on invoices.
• Full distribution sets will automatically create distribution lines with both account
numbers and currency amounts.
• Skeleton distribution sets will automatically create distribution lines with only account
numbers and you must provide the currency amounts.

Define additional Distribution Sets for the list of values using Manage Distribution Set Task.
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Maintaining Supplier and Supplier Site Information
• Changed values default only to new documents that you

subsequently create.
• Where should you make the change?
Check
Supplier Electronic
ble
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Existing Site A Existing Site B New n o C
Site
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The graphic li maintaining supplier and supplier site information.
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th values default only to new documents that you subsequently create. If you want the
u
Changed
Mchanges to affect existing sites, then you must make the changes directly to the site. If you
want the changes to affect both existing and new sites, then make the changes to both the
supplier and any existing supplier sites.

Adjusting Suppliers: Adding a New Supplier Site
Enter the Supplier Site and address information. The Site Name
will not appear on documents you send to the supplier; it is for
your reference when you select a supplier site from a list of

values during transaction entry.
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Approving Supplier Requests
Suppliers with Supplier Portal accounts can request updates to

their supplier information. All supplier requests must be approved
before the supplier record is updated.
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If you implemented li Supplier Portal, suppliers with Supplier Portal accounts can
Oracle
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th updates to the following supplier information:
request
u
M • Address information
• Names of main contacts
• Business classifications
• Banking details
• Purchasing and Payables defaults
• Tax details
• Category information about the goods and services suppliers provide to their
Procurement Agents.

You can view pending supplier update requests in the To Do region of the Suppliers page.
Only the nominated next approver can update and Approve or Reject the request. General
administrators, those with access to the pages, can review details but cannot save any
changes. The requests are broken down by type:
• New Supplier Requests: Each new supplier invited to use Supplier Portal creates a
New Supplier Request. Suppliers that have not responded to the invitation are listed
with a status of Supplier to Provide Details. As an administrator, you can fill out the
details on behalf of the supplier if you need to approve them. Those prospective
suppliers who have responded to the invitation and registered their details are listed as
Pending Approval and can be reviewed and approved by the administrators identified in
the approval flow hierarchy.
• Prospective Supplier Registrations: The requests from walk-up supplier registrations.
Suppliers can save in-process requests which appear as Draft requests. Those that
have been submitted show as Pending Approval.
• Address, Contact, Business Classification, or Products and Services Requests: ble
The requests submitted by any supplier. fe ra
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• Bank Account Requests: The bank account request updates submitted by any
n - t r
supplier.
a no
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• The numbers next to the requests indicate the number of new account requests and
also the number of assignment requests.
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Avoiding Duplicate Suppliers
• Before setting up a new supplier, verify it does not already

exist.
• The system requires unique supplier names, and relies

heavily on strong naming conventions.
• Benefits of avoiding duplicate supplier entry
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XYZ Inc XYZ Inc i nฺib SThe t u dSun Sun Inc Sun Co
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Beforeasetting up new suppliers or new sites, verify that the supplier or supplier site does not
h y
t exist. Potential duplicate suppliers can be identified through the following methods:
already
Mu • Perform a Find or query on the supplier name
• Submit and review the Suppliers Report
Implement a naming convention to avoid duplicate entries. Avoiding duplicate supplier entry
can benefit your company by:
• Preventing duplicate invoices and payments
• Providing accurate supplier reporting
• Improving system performance
If duplicate entries are found, consider using the Supplier Merge functionality to correct and
consolidate records.

Merging Suppliers
Run Report Identify duplicate ABC ABC

suppliers Corporation Corp
Use Supplier e
Merge Utility ra bl
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Maintain audit Review
i ฺib tude ABC
merge
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results
d i Corporation
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m describes li merging Suppliers.
a
The graphic
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u thSupplier Merge Process is a utility used to maintain supplier records. A supplier record is
The
Mnot explicitly merged by the user, it is only merged as a result of all its sites being successfully
merged. Supplier sites can be merged within the same supplier or between two suppliers. A
supplier record is not explicitly merged by the user, it is only merged as a result of all its sites
being successfully merged. Additionally, the supplier merge process results in updates to
transactions when the site is referenced on an order, for example, is merged to another site.
Once a merge is completed, it cannot be undone. The supplier is made inactive (in case of
supplier merge) and supplier site is made inactive (in case of supplier site merge).
Impacts of Supplier or Supplier Site Merge
The following are impacts of supplier merge:
• All contacts of the supplier are merged.
• All products and services categories are merged.
• All sites are merged (this is a prerequisite for supplier merge).
The following are impacts of supplier site merge:
• All contacts associated with the site are merged.

If the contact has a user account for the Merged-from supplier, the contact will not be able to
see any information in Oracle Fusion Supplier Portal about the Merged-to supplier initially. If
the contact requires access to the Merged-to supplier, then the user account for the Merged-
from supplier contact must be inactivated first before activating the account for the contact in
the Merged-to supplier.
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Additional Implementation Considerations: Supplier
Naming Conventions
• Benefits:
– Prevent duplicate invoices and payments
– Improve system performance and supplier inquiries

– Provide accurate supplier reporting
• Who should develop the naming conventions?
• Document with sign-off by authorized approver(s)
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Purchasing Payables o
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Suppliers li
mnaming conventions, as well as supplier site naming conventions, are critical to the
t h y
efficiency of the purchasing and payables operations.
MuExamples of administrative inefficiencies and increased costs due to a poorly maintained
supplier list are:
• You issue more purchase orders or releases than necessary. If pricing is on a non-
cumulative basis, volume discounts may be lost when in fact you’re entitled to them.
• You issue more payments than necessary and therefore have a larger reconciliation
effort.
• You may review volume purchases with suppliers above a defined dollar amount to
identify opportunities for better price negotiations. If a supplier had erroneously been
entered twice, they may be missed when separately they don’t exceed the amount, but if
entered correctly as a single supplier they exceed the amount.
• A poorly maintained supplier list can cost the organization volume discounts they are
entitled to, as well as incurring administrative costs associated with maintaining a larger
supplier list than is necessary.

Remember to include all interested parties in the development of supplier naming conventions
- Purchasing, Payables, Assets, others? If you’re implementing with a phased approach -
maybe Assets is scheduled for Phase 2 of your implementation, for example - you should still
consult all parties. This will ensure that the organizational goals are considered above
individual unit goals, as well as ensuring that both immediate and long term system
implementation goals are considered. Agree upon naming conventions, document them and
then obtain sign-off by authorized approvers.
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Additional Implementation Considerations: Supplier
Naming Convention Examples
Examples
• Exact spelling decided for easily misspelled suppliers
• Exact spelling for top ten priority suppliers

• Determine use of case (CAPS, Title Case)
• List approved abbreviations
• Determine use of punctuation and special characters
• Site name structure
ra ble
• Address format n s fe
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You may li
mconsider providing the exact spelling you’ll use for suppliers whose names are easily
h y
ut be spelled
misspelled.
Mmay
Duplicate suppliers are often found for companies such as IBM or AT&T which
out or may be entered with or without spaces or punctuation. To ensure close
management of critical suppliers, you may document the spelling for your top ten suppliers.
You will improve your success of locating supplier records more efficiently if you:
• Use a standard case, whether it is all capital letters or title case.
• Use approved abbreviations, even if sufficient space is available to spell out the word.
For example, use “Inc” for Incorporated or “Co” for Company.
• Standardize rules of punctuating. You may decide to eliminate punctuation due to the
limited number of characters available for the suppler name and the supplier site name.
Any structure being considered for the site name must be brief as there are only 15 characters
available. An example of a possible structure for the site name might include the following:
SS-CCCCCCCC-##
Sequentially assigned number to accommodate multiple sites in the same city
• Eight character city name/abbreviation
• Two digit federal post office abbreviation

You may also want to refer to the US Postal Service’s web site on the address standards
applicable to your business when you determine your address standards for entering street,
city, state and zip. This may provide an opportunity to obtain lower pricing on your postage
costs due to properly addressed mail produced directly from the system.
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Manage Procurement Agents
Grant Access to Procurement Actions and Documents

• Manage Requisitions
• Manage Purchase Orders

• Manage Purchase Agreements
• Manage Negotiations
• Manage Catalog Content
• Manage Suppliers
ra ble
• Manage Approved Supplier List Entries n s fe
- t r a
• Analysis Spend non a
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Use theaCreate li
m Procurement Agent page to control a procurement agent's access to
h y
ut
procurement
Mdocument
activities for a business unit. You can implement document security for individual
types. You can also control a procurement agent's access to activities such as
suppliers, approved supplier list entries, and business intelligence spend data through the
settings on this page.
In order for procurement agents to manage procurement documents and perform other
actions, the following data security setup needs to be completed.
• Procurement agents need to be assigned to procurement business units responsible for
managing the documents and performing the actions.
• Buyers, Category Managers, Procurement Managers and Procurement Contract
Administrators need to be given permission for the action in these procurement business
units.
• For example: A buyer is granted a permission to Manage Purchase Orders, in order to
create, view and modify their own purchase orders.

• In addition, Procurement Managers can be granted access to other agents’ documents.
The level of access can be controlled based on business needs.
- View access allows the agent to only search and view other agents’ documents.
- Modify access allows the agent to also make and submit changes to the other
agents’ documents.
- Full access allows the agent full control on other agents’ documents, which include
view, modify, as well as control actions like delete, finally close, and cancel.
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Summary

• Define suppliers and supplier sites.
• Manage procurement agents.
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4
Invoices ble
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Objectives

• Understand the key features of invoicing.
• Describe the invoice workbench structure.

• Understand invoice distribution methods.
• Perform invoice validation.
• Understand invoice approval.
• Apply and release holds. ble
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Requisitions
Catalog
Content
Management Purchase
Orders
Ordering
RFQs/ Receiving
Quotations Sourcing
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Analysis Invoice/
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Payment
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Supplier a no
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Management
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Supplier
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Overview of Invoices
Import/Enter
Enter supplier invoice Validate invoice
Pay invoice
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Match to PO fe ra
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Create PO n - t r
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Create
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ฺaccounting
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entries de
Subledger
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Enter requisition
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a m describes
The graphic li Invoice overview.
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thinvoice is an itemized list of goods shipped or services rendered, with an account of all
u
An
Mcosts. Oracle Fusion Payables lets you capture all the attributes of the real-life invoice
documents you receive from your suppliers. You can import invoices from external sources
(other Oracle applications or Third Party applications) using the Payables Open Interface, or
you can enter them in Payables, using the Invoice Workbench or Spreadsheet mode.

Default Options for Payables and Procurement
Common Options for Payment Options

Payables and Procurement
Invoicing Options Withholding Tax Options
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li
mDefault Options
SettingaUp
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thcan setups some default options to speed up the data entry by the end user. The default
M u
You
options can be defined as:
• Common Options for Payables and Procurement
• Invoice Options
• Payment Options
• Withholding Tax Options
Refer to Implementing Oracle Financials Cloud guide for more information.

Payables Security: Function Security
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Functions li inaccessible to users unless users are provisioned with the roles
mand data are
th y
necessary to gain access.
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Function Security
The predefined Oracle Fusion Payables job roles are configured to maintain segregation of
duties for managing suppliers, creating invoices, force approving invoices, and creating
payments.

Payables Security: Function Security
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a mlists someliof the Payables duty roles and shows how duties are segregated across
This table
y
throles.
job
u
MFor example, the Accounts Payable Specialist has the Payables Invoice Creation Duty and
can create invoices, but does not have the Payables Payment Creation Duty, so cannot pay
them.
You can provide business users with view-only access to Payables transactions using the
duty roles Payables Invoice Review Duty and Payables Payment Review Duty. These duty
roles allow users to perform necessary research in the application while limiting their ability to
enter or update transactions.

Payables Security: Data Security
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Generate i business units and reference data sets using predefined data role
mdata roleslfor
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templates. The above table summarizes the data roles required for Payables and the security
u
Maccess that the data roles grant.
Before you perform the tasks in the Define Payables task list, configure the following common
tasks for Oracle Fusion Payables:
• Manage reference data sets.
• Verify data role generation.
• Provision roles to implementation users for sets.
• Manage business unit set assignments.
• Assign the business unit business function Payables Invoicing.

Invoice Processing Overview
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Oraclea Fusion li supports a variety of invoice entry methods.
m Payables
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Manual
Use Oracle Fusion Automated Invoice Processing to support scanning of invoices for
paperless processing and routing. Enter complex invoices with sophisticated defaulting and
matching logic to match to purchase orders or receipts. View invoice information, such as
invoice status, installments, holds, payments, and applied prepayments. Drill down to the
original purchase order or receipt.
For high volume invoice entry that does not require extensive online validation, use
spreadsheet invoice entry. You can enter invoices using the spreadsheet from the Create
Invoice in Spreadsheet task or the spreadsheet template from the Oracle Enterprise
Repository for Oracle Fusion Applications.
Self-Service
Oracle Fusion Supplier Portal allows suppliers to enter their own invoices. Invoices that are
not matched to purchase orders are routed through workflow approval rules that you can
configure. Invoices can be automatically created when suppliers create an Advance Shipment
Billing Notice (ASBN).

Automated
To alleviate the workload of your payables staff, there are many ways in which invoices can
be created automatically. Use the Evaluated Receipt Settlement (ERS) process to
automatically create an invoice in Payables upon receipt and the Return to Supplier (RTS)
feature to automatically create debit memos when you return goods to your supplier.
Payables automatically creates invoices from expense reports entered by employees in
Oracle Fusion Expenses.
Electronic
Payables supports B2B XML invoice web service and provides an open interface to import
invoices from another system.
Regardless of the invoice entry method that you use, Payables supports foreign currency
conversion, automatic tax calculation including withholding tax, invoice approval, online
accounting, and multiple accounting representations.
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Invoice Types
• Standard • Payment Request

• Credit Memo • Prepayment
• Debit Memo • Withholding Tax

• Standard invoice request • Interest
• Credit memo invoice
request
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The graphic li types.
m lists Invoice
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Standard
An invoice from a supplier representing an amount due for goods or services purchased.
Standard invoices can be either matched to a purchase order or not matched.
Credit Memo
A memo from a supplier representing a credit amount toward goods or services.
Debit Memo
An invoice you enter to record a credit for a supplier who does not send you a credit memo.
Standard Invoice Request
An invoice submitted without a purchase order by a supplier through Oracle Fusion Supplier
Portal that is pending review and approval by the appropriate persons within the deploying
company.
Credit Memo Invoice Request
A credit submitted without a purchase order by a supplier through Oracle Fusion Supplier
Portal that is pending review and approval by the appropriate persons within the deploying
company.

Prepayment
A type of invoice you enter to pay an advance payment for expenses to a supplier or
employee.
Payment Request
An invoice representing an amount due to an employee for business-related expenses and
refunds due to your customers.
Withholding Tax
An invoice you enter to remit taxes withheld to the appropriate tax authority.
Interest
If you allow interest invoices, payables will automatically calculate interest for overdue
invoices and create interest invoices for selected suppliers.
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Entering Invoices Manually
You can manually enter invoices into Payables using:

• Invoice Workbench
• In Spreadsheet
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You cana m li supplier invoices in either the Invoice Workbench or through
manually enter
th y
spreadsheet. You can match to purchase orders when entering these invoices.
u
MInvoice Workbench
(Invoices window, Distributions window, and the associated windows). Use the Invoice
Workbench to enter any invoice directly into the Payables system. Use this window when
entering an invoice that needs immediate action, such as payment.
Creating Invoices in a Spreadsheet
For high volume invoice entry that does not require extensive online validation, use
spreadsheet invoice entry. You can enter invoices using the spreadsheet from the Create
Invoice in Spreadsheet task or the spreadsheet template from the Oracle Enterprise
Repository for Oracle Financials Cloud Applications

Integrated Imaging Solution
Mailroom Clerk Payables Specialist
Document Capture & Create Invoice Invoice Work Area

Recognition
Select an image and
complete entry
Scanned invoices pushed to
AP Specialist’s work area
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Invoice Image
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Routing Process
IPM Server
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Paper a still integrallifor invoice creation in many AP departments and hinders the process
is m
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automation that is needed for both efficiency and compliance.
M u
In Fusion, we are able to take advantage of some technology acquisitions that we have made
to provide a fully functional imaging integration capability.
Captovation that provides products that streamline the process of capturing mission-critical
content for access from within business applications and processes.
Combining Captovation with Oracle Imaging and Process Management, Oracle Content
Management, Oracle BPEL Process Manager and Financials Cloud applications, will allow
Oracle to be the only vendor that can provide customers with a fully integrated solution for
automating business flows like paper based invoice entry.
Let me walk you through the flow:
• So as you see on the screen, we have two roles that we will focus on. The first is that of
the mail room clerk who will be responsible for scanning in invoices that come in.
• The mail room role can be centralized or totally distributed meaning mail room clerks all
over the country scanning in the invoices or invoices that may be faxed in; which will
then get captured and sent to a central repository.

Captovation now named Oracle Document Capture that will be able to intelligently capture
pieces of information from the scanned image.
• With very little to no training, the system is able to intelligently grab information via OCR
capabilities to extract the correct information such as invoice #, PO#, supplier, etc.) and
then route the image through a image processing and management server. This is
Stellent now called IPM product.
• Images are then routed using a BPEL using routing rules which could be by supplier,
amount or any other combination to the appropriate Payables Specialist who will see a
list of invoices scanned and ready to be entered in his queue on the Invoice work area.
• The tight integration Imaging allows you to access the image from Payables’ invoice
work area to complete data entry.
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Automated Invoice Processing Flow
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a m imagingliprocess begins with invoices arriving in the mail room or by e-mail. For
The invoice
y
throom invoices, imaging specialists:
mail
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M • Prepare and sort the invoices based on parameters, such as geography, invoice
amount, and due date.
• Scan the invoices and review the images in the batch.
• Optionally use the indexing feature in Document Capture to enter additional attributes,
which can be used to route the invoice images to accounts payables specialists for
invoice entry. The attributes are based on business requirements and might not be part
of the invoice.
For e-mail invoices, imaging specialists:
• Review the invoice images that suppliers send by e-mail.
• Optionally enter additional attributes in the e-mail subject to route the invoice images to
the appropriate accounts payables specialists for entry.
• Send the e-mail, either by reattaching the invoice images, or by forwarding the original
e-mail from the supplier, to a designated e-mail account for import by the Document
Capture Import Server.

Images are then sent over a network file share to a central Forms Recognition server for
intelligent data recognition and extraction. Any invoices that fail data extraction or validation
can optionally be sent to the Forms Recognition Verifier for manual resolution.
Once data recognition is complete, the invoice images are sent to Imaging for storage and
routing to accounts payable specialists using Oracle BPEL Process Manager workflows.
Payables specialists view the list of scanned images for invoice entry in the Scanned Invoices
region of the Invoices work area, and proceed with invoice entry using dual monitors where
the invoice entry page is displayed on one monitor, and the image is displayed on the other.
During invoice entry, key invoice header attributes are already prepopulated with the data
extracted by Forms Recognition, reducing entry time and data entry errors.
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Creating Invoices Automatically
Your system can create the following types of invoices:

• Return to Supplier Invoices
• Self-Billed Evaluated Receipt Settlement

• Expense Reports
• Customer Refunds
• Intercompany
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Following li can be generated automatically:
mtype of Invoices
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•th Return to Supplier Invoices
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• ERS Invoices
• Expense Reports
• Customer Refunds
• Intercompany

Payment Requests
If requires
approval,
Payables
launches
Workflow
Submits Account payables
Receivables
Payment department approves
Request request
No approval
ble
required
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Expenses an s
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Payables
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applies holds,
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The graphic li Payment requests.
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thcan use Payables to disburse funds to a party (a payee) who is not defined as a trading
u
You
Mpartner in your supplier master. Fusion Applications, such as Receivables and Expenses, can
submit disbursement requests to Payables, where you can disburse the funds and manage
the payment process using the payment management features that are available in Payables.
When a disbursement request is submitted to Payables, it is recorded as a payment request.
Using payment requests you can:
• Approve payment requests using the Invoice Approval Process
• Account for payment requests, through Payables' integration with Oracle Subledger
Accounting
• Calculate and manage tax, through Payables' integration with Oracle Fusion Tax
• Pay and report on payment requests
You can submit a payment request from another application, for example, from Receivables
to pay a customer for an On Account Credit Memo. You can track the progress of the
payment request in the originating application. Once the payment request is approved, you
can report and audit the payment request in Payables.

You can only submit a payment request from other applications; you cannot enter a payment
request for a payee directly in Payables.
The payment request process is as follows:
1. Submit a request to disburse funds from another application, such as Receivables or
Expenses. Note that you cannot submit a payment request in Payables.
2. Payables automatically creates a payment request, in real-time.
3. Once the payment request is created, you can search for it just as you would search for
an invoice. Enter Payment Request in the Type field and enter the payee name in the
Trading Partner field. Note that because the payee is not a supplier, do not enter a
Supplier Number.
4. If the payment request requires approval, use the Invoice Approval Process to approve
payment requests.
5. Payables applies holds to the payment request if there are any exceptions.
6. Once the holds are released and the payment request is approved, it can be paid as a ble
single payment or as part of a payment run. Once the payment request is paid, yourfe ra
ans
auditors can view the request to disburse funds in the originating application and the
payment request in Payables. n - t r
a no
Once you enter a payment request, you cannot delete the payment request or update the
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payment request fields. If necessary, you can cancel the payment request or void the
m
o
payment, just as you would for an invoice. Payables notifies the originating application to
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respond to these actions. m
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Self Service Invoices
Payables
launches
Without PO Workflow
Supplier enters Invoice Account payables

invoice in Request department approves
Supplier Portal request
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With PO an s
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Payables User m ) uide
enters invoice Invoice mฺc
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The graphicm describesli self service Invoices.
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thinvoice that a supplier enters through Oracle Fusion Supplier Portal.
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An
Self-service invoices that are matched to a purchase order are recorded as standard invoices
or credit memos in Oracle Fusion Payables.
Self-service invoices that are not matched to a purchase order are recorded as invoice
requests. Invoice requests must be approved using the Invoice Approval process before
becoming standard invoices or credit memos in Payables.

Electronic Invoices
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Oraclea m Payables
Fusion li provides an inbound Oracle B2B flow for receiving invoices in XML
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th from suppliers.
format
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Oracle B2B Server is an Oracle SOA Suite component that manages the interactions between
trading partners, such as suppliers and deploying companies. Trading partners can
communicate electronically by sending documents in XML format using B2B. B2B XML
invoices use the same XML standard developed by the Open Applications Group (OAG),
171_Process_Invoice_002 (version 7.2.1).
Settings That Affect B2B XML Invoice Processing
A customer or deploying company has an agreement with a supplier to receive invoices in
OAG XML format.
The customer configures B2B for receiving electronic communications from the supplier and
assigns a B2B Site Code to the supplier for the supplier site that is configured to send B2B
invoices. In the invoice header of the invoice payload, the supplier has to provide the B2B Site
Code. The exact element where the B2B Site Code should be populated
is <PARTNER><PARTNRIDX> where <PARTNER><PARTNRTYPE> = Supplier. This B2B
Site Code is used to derive the internal supplier ID and site ID used by the customer.
The supplier registers in Oracle Supplier Network (OSN) and prepares an invoice payload in
OAG format to send to the customer.

The XML invoice process has the following limitations:
• All invoices in one XML message must be from the same supplier and supplier site.
• Tax only invoices are not supported.
• New fields cannot be added in the user area. Only descriptive flexfields are supported in
the user area.
• The order of the invoice lines within an invoice in the invoice payload may not be
preserved. Invoices created from the payload always have item lines appearing first,
followed by charge lines, and then followed by tax lines.
The following invoices structures are supported:
<PROCESS_INVOICE>
INVHEADER (Invoice header.)
INVLINE (Item line.)
INVCHARGE (Freight or miscellaneous charge line.) e
INVTAX within INVLINE (This tax line has the same LINE_GROUP_NUMBER as the ra bl
s fe
Item line.)
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n
INVTAX (This tax line does not have a LINE_GROUP_NUMBER because it is prorated
no
across all taxable Item lines in this invoice.) a
</PROCESS_INVOICE> h a s ฺ
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The following invoice structures are not supported:com G
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• INVTAX and INVCHARGE within INVHEADER
• INVCHARGE within INVLINE i@i
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Managing Payment Terms
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Paymenta li to automatically create installments on an invoice with up to three
mterms are used
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th of discount. You can define payment terms to create multiple installments and multiple
levels
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Mlevels of discounts. Share payment terms across business units through set assignment.
Payment terms consist of one or more lines, each of which creates one invoice installment.
Each payment term line and corresponding installment have a due date and up to three
discount dates. Each payment term line and corresponding installment also have due or
discount amounts. When you define payment terms, you specify either percentages or fixed
amounts.
This figure shows the components of a payment term. Each payment term consists of one or
more lines, and each line can have up to three discounts. Assign payment terms to one or
more sets to share them across business units.
Note: If you update the payment terms on an invoice, Oracle Fusion Payables immediately
recalculates the installments for the invoice. You must re-enter any manual adjustments you
made to the previous installment.

Types of Payment Terms
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You cana m li types of payment terms. This table above describes each type of
define different
y
th term.
payment
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MThe following payment terms are predefined and assigned to the Common set.
• Immediate: Scheduled for payment immediately.
• 2/10 Net 30: Two percent discount deducted if paid within 10 days, remainder paid 30
days from invoice terms date.
• Net 30: Payment due in 30 days.
• Net Monthly Account: Payment due on last day of the month following the one in
which the invoice is dated.
• End Current Month: Pay by end of current month.
Important
The first time that you configure common options and save the Manage Common Options for
Payables and Procurement page for a business unit, a default record for the Manage Invoice
Options task is automatically created at the same time. The Payment Terms field on the
Manage Invoice Options page is a required field and the invoice options record is saved using
the predefined payment term Immediate.
Before you proceed with the Manage Common Options for Payables and Procurement task,
you must:
• Generate the data role for the reference data set that is assigned to the business unit.
• Provision the data role for the reference data set to the implementer.
• Assign the reference data set for the business unit to the payment term Immediate.
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Reference Data Sharing
ble
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Paymenta li
mterms are enabled for reference data sharing using the method of assignment to
h y
ut sets,
multiple
MPayment
no common values allowed. The predefined reference group is called Payables
Terms and the determinant type is business unit. Assign payment terms to one or
more reference data sets and share them across business units. A payment term must be
assigned a set before the payment term can be used.
Assigning Sets to Business Units
When you define a business unit, you assign the business unit a default set. The default set
becomes the set for the reference group Payables Payment Terms. Use the Manage
Business Unit Set Assignment task to change the default set.
In this example above, for business unit USA1 Business Unit, the reference data set name
USA1 BU Set is assigned to the reference data object Payables Payment Terms.

Accounting Date Basis
Invoice date,
Accounting system date, or
Date Basis invoice received

Invoice Option date
Determines default
Invoice GL e
date ra bl
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Defaults to
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Distribution
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GL date
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Assigning i
ma Default lAccounting Date Basis
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ut
MPayables determines the accounting period in which an invoice or payment is included by
comparing the invoice or payment GL date to the ranges of dates you have defined for your
accounting periods in your accounting calendar. The default accounting date is based on the
Accounting Date Invoice option. Payables automatically defaults this GL date to new invoice
distributions added to the invoice. You can change the GL date for individual invoice lines.
The GL date is stored at the invoice header so if you were to add additional invoice lines, the
GL dates on the lines would be the same as the date on the invoice header.
The Accounting date for each invoice defaults based on one of the following options:
• Invoice date
• System date
• Goods Received or Invoice Date
• Goods Received or System Date

Invoice Structure
Invoice Header
Invoice
Invoice Lines
Installments
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Distributions
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The graphic li invoice structure.
m describes
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th Header
M u
Invoice
The invoice header defines the common information about the invoice: invoice number and
date, supplier information, remittance information, and payment terms. Information specified
at the invoice header level defaults down to the line level. You can override the header level
information for individual lines, as required.
Invoice Lines
The invoice lines define the details of the goods and services as well as the tax, freight, and
miscellaneous charges invoiced by the supplier. There can be multiple invoice lines for each
invoice header. The Lines tab of the Invoice Workbench captures all of the details for the
invoice line necessary for accounting, as well as for cross-product integration with other
Financial Cloud applications, such as Assets, Inventory, Projects, Purchasing, and
Receivables.
For each invoice, you can manually enter invoice lines, or you can automatically generate
lines by matching the invoice to a purchase order shipment, pay item, or receipt.
Distributions
Distribution details include invoice accounting details, the GL date, charge accounts, and
project information. An invoice line can have one or more invoice distributions.

Installments
Installments include information, such as invoice due dates, due amounts, discount dates,
and payment methods. The dates and amounts are calculated based on the payment terms
and terms date basis on the invoice header. An invoice can have one or more installments.
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Entering Basic Invoices in the Invoice Workbench
Invoice Header
Invoice
Invoice Lines
Installments
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Distributions a no
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The graphic li basic invoices in the Invoice Workbench.
y
th invoices are any invoices that are not matched to a purchase order, receipt, or credit
u
Basic
Mmemo.
To enter basic invoices in the invoice workbench, enter data for each of the elements in the
basic invoice structure:
• Invoice Header
• Invoice Installments
• Invoice Lines
• Distributions

Entering Invoice Header Information
• Business Unit
• Invoice Type
Invoice Header
• Supplier Name
• Supplier Number
• Supplier Site
• Invoice Date Invoice
Invoice Lines
Installments
• Invoice Number ble
fe ra
• Amount an s
n - t r
• Description o
nDistributions
• Payment Terms
a
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• Payment Method o m
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The graphic li invoice header information.
m describes
y
th > Payables > Invoices
M u
Navigator
Business Unit
Determines the Business Unit to which the transaction belongs. Based on the Business Unit
the Ledger components such as COA, Calendar, Currency and Sub Ledger Accounting
Method are identified for the transaction.
Invoice Type
Determines characteristics of the invoice. Examples are Standard, Credit Memo, Debit Memo,
and so on.
Supplier Name/Supplier Number
Enter the Supplier Name or Supplier Number.
Supplier Site
Enter the supplier site to which you will send payment of the invoice. Payables will use the
address for this site on the payment.

Invoice Date
Enter the invoice date. Payables might use the invoice date you enter as the Terms Date or
GL Date default for an invoice, depending on how your Payables Options are set up. If your
Accounting Date Option is set to Invoice (Date), you must enter an invoice date that is in an
open or future period.
Invoice Number
Enter the Invoice Number from the invoice your supplier sent you or accept the Payables
default (today’s date) by tabbing through the field. Payables will not allow you to enter
duplicate invoice numbers for the same supplier.
Amount
Enter the full invoice amount including tax, freight and miscellaneous expenses.
Description
Optionally enter the Description of your invoice. This will appear on remittance advice for the e
payment and may appear in your general ledger. ra bl
Payment Terms n fe
s
r a
-t dates, and
Payables uses payment terms to automatically calculate due dates, discount o n
discount amounts for each invoice you enter. Payment terms will default
s a n from the supplier
site.
) ha ideฺ
Payment Method
ฺ c om t Gu
i
The invoice payment method you use most ฺfrequently.b m dThis e n will default from the supplier site.
If you have to frequently override the payment
@ in method,
S tu consider changing the default at the
supplier site level. i
dd e thi s
v a
t a manual
• Check: You can payuwith
( m t o us payment, a Quick payment, or in a payment run.
• Electronic: You
a d di generate
n s e an electronic payment file that you deliver to your bank to
payments. e
create V
m l i c Use Electronic if the invoice will be paid using EFT or EDI.
a Used to manually record a wire transfer of funds between your bank and your
• yWire:
h
t
Mu supplier’s bank.
Note: To access Payment Method, payment priority, pay group and other options related to
payments Click Invoice Actions > Manage Installments

Entering Invoice Line Information: Line Types
• Type
– Item
Invoice Header
– Freight
– Miscellaneous
– Tax
• Amount Invoice
Invoice Lines
Installments
ble
fe ra
an s
n - t r
o
nDistributions
a
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a m describes
The graphic li invoice line information.
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thLines region of the Invoices page allows you to enter and review the details for an
u
The
Minvoice. You can enter four possible line types: Item, Freight, Miscellaneous, and Tax. Other
line types, such as withholding lines are automatically generated by the system.
Item Lines
Item lines capture the details of the goods and services billed on your invoice.
Freight and Miscellaneous Lines
Freight lines capture the details of your freight charges. Freight charges can be allocated to
Item lines as required.
Miscellaneous lines capture the details of other charges on your invoices such as installation
or service. Like Freight lines, Miscellaneous lines can be allocated to Item lines.

Tax lines
Payables integrates with Oracle Fusion Tax to automatically determine and calculate the
applicable tax lines for your invoices. Fusion Tax uses your tax setup, plus fields on the
invoice header and lines, known as tax drivers, to determine which taxes should be applied to
the invoice, to calculate the tax using the appropriate tax rates, and to determine whether or
not the tax is recoverable or non-recoverable. In general, Fusion tax creates the necessary
tax lines and distributions for the invoice and allocates tax; however, if your tax setup permits,
you can update the tax lines or manually enter tax lines.
Amount
The amount of the invoice line.
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Entering Invoice Line Information: Other Attributes
• GL Date
• Account
Invoice Header
• Track as Asset
• Description
• Accounted
• Project/Task/Expenditure Invoice
Invoice Lines
Installments
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The graphic li invoice line information.
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While
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such as Assets, Inventory, Projects, Purchasing, and Receivables.
GL Date
The GL Date defaults from the invoice header GL Date. You can override the default and
change the GL Date for the line to any date in an open or future period. Payables uses the GL
Date to derive the accounting period that the charge will impact.
If you change the GL Date in the Invoices window, Payables does not change the GL Date for
existing invoice distributions. If you want to update the GL Date for an invoice, use the
Distributions window to change the GL Date for each invoice distribution.
Account
Account to charge when you create an accounting entry for this line; usually an expense,
asset or accrual account. If you match to a purchase order or enter project related information,
this account will be built automatically. If you match to a purchase order with a destination
type of Expense, the matching process will copy the PO Charge account onto the line of the
invoice. If you match to a purchase order shipment with a destination type of Inventory, this
account will be the accrual account built when the purchase order was entered.

Track as Asset
If you enter an asset type charge account, Payables automatically enables the Track as Asset
check box and you cannot change it. If you enter an expense account and want to transfer the
distribution for this line to Assets, enable the Track as Asset check box. It is important to note
that just because the Track as Asset box becomes checked, does not mean the distribution
line will be sent to fixed assets.
Description
Description of the line. This description does not appear on the payment document
remittance. For manually entered items, the default value is the invoice description. For lines
created by purchase order matching, the default value is the description of the purchase order
line.
Accounted
Payables displays Yes or No to indicate if accounting entries have been created for the
distribution. ble
Project/Task/Expenditure fe ra
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If you have Projects installed, associate an invoice with a project to charge the expenditures
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on an invoice to a specific project, task, and organization. The system uses the project
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Entering Distributions
Manual Distribution
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The graphic li entering distributions.
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Invoice
Manual Entry
Click the Distributions link in the lines region to manually add the distributions to the invoice.
Distribution Set
Specify a distribution set for the invoice. A distribution set is a template for invoice
distributions. When you specify a distribution set for an invoice, Payables automatically
creates invoice distributions based on the distribution set.
Matching
Match the invoice to a purchase order or receipt and creates invoice distributions.
Invoice Validation
If you are using automatic withholding tax or automatic tax calculation, the Validation process
can automatically create the necessary tax distributions.

Allocation
Use the Allocation window to create freight and miscellaneous distributions. Individual freight
distributions can be added by specifying the distribution amounts.
Changing Invoice Distributions
Changing the distribution combination on the Manage Distributions page does not change the
distribution combination on an invoice line. The distribution combination on an invoice line
provides a default value for the Manage Distributions page.
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Distribution Sets
Use a Distribution Set to automatically enter distributions for an

invoice when you are not matching it to a purchase order. You
can create:
• Full Distribution Sets
• Skeleton Distribution Sets
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You cana m li Distribution Set to a supplier site so Payables uses it for every
assign a default
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invoice
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For example, you can create a Distribution Set for an advertising supplier that allocates
advertising expense on an invoice to four advertising departments.
Full Distribution Sets
Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton
Distribution Sets to create distributions with no set distribution amounts. For example, a Full
Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility
expense account and 30% to the Administration facility expense account.
Skeleton Distribution Sets
A Skeleton Distribution Set for the same invoice would create one distribution for the Sales
facility expense account and one distribution for the Administration facility expense account,
leaving the amounts zero. You could then enter amounts during invoice entry depending on
variables such as that month’s headcount for each group.

Importing Invoices with Distribution Sets
If you are importing invoices, enter a Distribution Set before you import the invoice record.
You can provide account information from only one of the following sources or the invoice will
be rejected during import: Distribution Set, purchase order, Account field, allocation of a non–
Item type line, or Projects information. Import will reject the invoice record if you use a
Skeleton Distribution Set and use the Allocate feature for the same line.
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Entering Distribution Types
• Type:
– Item
Invoice Header
– Freight
– Miscellaneous
– Tax
– Withholding Invoice
Invoice Lines
– Prepayment Installments
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InvoiceaDistribution li Types
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The
Type
Select a distribution Type as Item, Freight, or Miscellaneous.
In addition to the Item, Freight, Miscellaneous, and Tax types, described previously, you can
also have the following distribution types.
• Withholding: Records the amount of taxes withheld from an invoice.
• Prepayment: Records the amount of a prepayment applied to an invoice.
• Amount: The amount of the distribution.

Entering Freight Distributions
There are two ways to create freight distributions:

• Allocate freight across invoice distributions
• Manually enter freight distributions
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Allocate a m
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h enter distribution type as Freight and specify the amount and charge account or
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In
optionally you can use the Line level Actions > Allocations Option to automatically create
freight, or miscellaneous distributions.

Tax Distributions
Tax distributions are automatically created when you click

Calculate Tax or when you validate the invoice.
Withholding Tax distributions are automatically created when you

validate the invoice.
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Tax distributions areliautomatically created when you click Calculate Tax or when you Validate
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thinvoice.
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Installments
• Installment Holds
• Due Date
Invoice Header
• Gross Amount
• Priority
Invoice
Invoice Lines
Installments
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The graphic li Installments.
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th invoice may have one or more Installments that are created based on the payment
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Mterms when the invoice header is saved. Use Manage Installments, in Invoice Actions, to
review or adjust dates and amounts of all installments, including discount schedules, for an
invoice. You can also schedule and create partial payments and place one or more
installments on installment hold.
Place Hold
Click this if you want to apply a payment hold on the installment line. If a installment is on
hold, then Payables does not create a payment for that installment until you release hold.
Due Date
During invoice entry, Payables automatically schedules payment for each invoice based on
the Payment Terms and Terms Date you enter for the invoice. Payables uses the payment
terms definition to calculate the due date, discount date, and the discount amount for each
installment. For example, if an invoice has payment terms of Net 30, Payables calculates the
due date as 30 days after the Terms Date. You can assign default payment terms to a
supplier site.

Gross Amount
Gross amount due for the installment, displayed in the invoice currency. Payables subtracts
the discount amount, automatic withholding amount, and prepayment amount from the gross
amount to calculate the payment amount.
Priority
A number, between 1 (high) and 99 (low), that represents the priority of payment. The value
for this field defaults from the supplier site. You can enter a payment priority range as a
criteria for selecting invoices for a payment run.
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Entering Purchase Order and Receipt Matched Invoices
Match invoices to:

• Purchase order
• Purchase order shipments

• Purchase order distributions
• Purchase order receipts and receipt lines
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You can m li to purchase orders to ensure that you pay only for the goods that you
match invoices
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have
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Purchase order shipment match
Based on the quantity invoiced, Payables prorates the match amount across all non-fully
billed purchase order distributions associated with the purchase order shipments you match
to.
Receipt match
Reasons to use match to receipt:
• Matching to receipts allows you to pay only for goods you receive.
• Any exchange rate variance that results from matching is likely to be smaller because
the time between the receipt and invoice will probably be less than the time between the
purchase order and invoice.
• Matching an invoice for freight or miscellaneous charges to a material receipt is required
for accurate costing data if you use periodic costing.
Note that you can also only pay for what you receive by using Match to PO and letting the
invoice go on hold if the receipt is not in.

Purchase Order Distribution Match
If you are billed for only a portion of a shipment, you may want to match at the distribution
level to ensure you charge the correct account. If you choose not to match to the distributions,
Payables prorates the match amount across the available distributions for that shipment.
Price Correction
You may want to record a price correction for a purchase order shipment if you receive an
invoice from the supplier that is an adjustment to the unit price of an invoice you previously
matched to that purchase order shipment. Price corrections adjust the unit price without
adjusting the quantity billed on the purchase order.
Reasons to use price correction:
• You use a price correction when a supplier sends an invoice for a change in unit price
for an invoice you have already matched to a purchase order. If you simply enter an
invoice for a unit price increase or a credit/debit memo for a unit price decrease without
using price correction, invoice price variances will not be accurate.
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• You can enter and match an invoice to record a price increase, or you can enter and fe ra
match a credit memo or debit memo to record a price decrease. ans
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• Use a price correction to adjust the invoiced unit price of previously matched purchase
order shipments, distributions, or receipts without adjusting the quantity billed.
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Note: Price corrections are very different from overriding the unit
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invoice to a purchase order. When you are enteringcan
ฺ o invoice
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Match Approval Level Options
Invoice PO
Quantity Billed Quantity Ordered

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The graphic li match approval level options.
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thmatch approval level defaults to purchase order shipment lines when the purchase order
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Mis entered. You can override the default on the purchase order shipment. If you find that you
are frequently overriding this value, change the default at the supplier site level.
If an item is used on the PO, the match approval level will default from the item and will
override the supplier site. If the Item match approval level for the Item = Receipt required,
then it results in a 3-way match. If the Item match approval level for the Item = Inspection
required, then it results in a 4-way match.
When quantities and prices exceed specific tolerances you define, the Payables Validation
process will place a matching hold on the invoice. You can configure matching holds so
manual override is not possible in the Invoice Holds and Release Names window.
2-Way (Invoice to Purchase Order)
• Quantity billed vs. quantity ordered on shipment line
• Invoice unit price vs. purchase order line unit price

3-Way (Invoice to Purchase Order and Receipt)
• 2-Way match criteria AND
• Quantity billed vs. quantity received
• Item = Receipt Required
4-Way (Invoice to Purchase Order and Receipt and Inspection)
• 3-Way match criteria AND
• Quantity billed vs. quantity accepted

Note: Quantity accepted = (Quantity received - quantity rejected)
• Item = Inspection Required
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Matching to a Purchase Order
Header
PO information Supplier information
Detail
Item line 1
Shipment line 1
Distribution line 1
Distribution line 2 ble
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The graphic li matching to a Purchase Order.
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th your billed (invoice) items to the original purchase orders, purchase order distributions
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Match
Mor receipts to ensure that you pay only for the goods or services you ordered. If you are billed
for an item in excess of the amount and quantity tolerances you define in the Invoice
Tolerances window, the Payables Validation process applies a hold to the invoice. Invoice
holds prevent payment.
You can match a single invoice to multiple purchase order shipments and distributions, or you
can match multiple invoices to a single purchase order shipment or distribution provided the
supplier is the same on all purchase orders.
When you match an invoice to a purchase order or receipt, Payables creates invoice lines and
distributions using the purchase order distribution accounting information. You cannot delete
invoice lines or distributions that were created through matching. If you match an invoice to
the wrong purchase order, either reverse the individual distributions and then rematch to the
correct purchase order, or cancel the invoice.

Matching to Purchase Order Shipments
10 Items on Scheduled Shipment
10 to be shipped to Dept 110
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The graphic li matching to Purchase Order shipments.
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th on the quantity invoiced, Payables prorates the match amount across all non-fully
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Based
Mbilled purchase order distributions associated with the purchase order shipments you match
to. When the invoice is matched to the shipment, all 6 items will be charged to department
110.

Matching to Purchase Order Distributions

• 7 to be sent to Dept 110
• 3 to be sent to Dept 120 120
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Purchase li
morder distribution match
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ut graphic describes matching to purchase order distributions.
MThe
If you are billed for only a portion of a shipment, you might want to match at the distribution
level to ensure you charge the correct account. If you choose not to match at the distribution
level, Payables prorates the match amount across the available distributions for that
shipment. To illustrate this, assume that 10 items are ordered on a purchase order shipment.
Of the 10 items ordered, 7 should be delivered to department 110 and 3 should be delivered
to department 120.
If all 10 items are shipped, then match to the shipment. Two distributions are created on the
invoice allocating 7/10 of the cost to department 110 and 3/10 of the cost to department 120.
If only 6 items are shipped and all 6 delivered to 110, you must use distribution matching to
make sure the cost for all 6 units is allocated to department 110. If you matched to shipment
in this case, then 7/10 of the cost would be allocated to department 110 and 3/10 of the cost
would be allocated to department 120.

Matching to Receipts and Receipt Lines

• 10 to be shipped to Dept 110
Search for PO Match Details

Receipts Recorded on PO e
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V li option is set to Receipt for the purchase order shipment you will not
minvoice match
When the
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be
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M The value on the purchase order shipment controls what you match to. The value can be set
to either Purchase Order or Receipt.
• Purchase Order: Match invoices to purchase orders.
• Receipt: Match invoices to purchase order receipts. Keep in mind that in order to match
to a purchase order with a match approval level of receipt, the receipt must be
processed before you attempt to match the invoice. The same information that is
maintained on the purchase order when you use the invoice match option of Purchase
Order is maintained on the purchase order when you use a invoice match option of
Receipt.
Reasons to match to receipt:
• Matching to receipts allows you to pay only for goods you receive.
• Exchange rate variance is likely to be smaller because the time between the receipt and
invoice is less than the time between the purchase order and invoice.
• When you allocate freight or miscellaneous charges to an invoice distribution line
matched to a receipt, the acquisition cost of the material will be more accurately
reflected if you are using periodic costing.

If you are matching to a receipt line, then when you match to receipt, you can select the
specific line that you want to match to.
Note that you can also only pay for what you receive by using Match to PO and letting the
invoice go on hold if the receipt is not in.
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Corrections
You can enter price, quantity, or amount corrections, depending

on the type of purchase order line you are correcting:
• Goods
• Services
• Rate Services
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You cana enter price,liquantity, or amount corrections on your invoices.
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Price
Price corrections adjust the unit price of an invoice that was matched to a purchase order or
receipt. Price correction invoices do not adjust the billed quantity on the purchase order.
Create a credit or debit memo for a correction that represents a price decrease. Create a
standard invoice for a correction that represents a price increase.
Quantity Corrections
Quantity corrections adjust the quantity of an invoice that was matched to a purchase order or
receipt. Quantity correction invoices do not adjust the unit price on a purchase order. Create a
credit or debit memo for a quantity correction. You can allocate purchase order distributions
for a quantity correction.
Amount Corrections
Amount corrections adjust the amount of an invoice that was matched to a services-based
purchase order or receipt. Amount corrections can also adjust the amount of an unmatched
invoice. Create a credit or debit memo for a negative amount correction. Create a standard
invoice for a positive amount correction.

Price Correction Example
IPV = $10
1 Qty Billed = 5
Match
Invoice PO
5 Units @
5 Units @ Total QTY Billed = 5
$10/Unit
$12/Unit Total IPV = 0
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The graphic li price correction example.
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thexample, you may want to record a price correction for a purchase order shipment if you
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For
Mreceive an invoice from the supplier that is an adjustment to the unit price of an invoice you
previously matched to that purchase order shipment. Price corrections adjust the unit price
without adjusting the quantity billed on the purchase order.
In this example, the original invoice is overbilled by $2/unit. The invoice was within tolerance
so it was matched and paid. After the invoice price variance (IPV) was discovered, the buyer
contacted the supplier who agreed to issue a credit memo to offset the over billed amount.
The credit memo could be entered into the system without using the price correct
functionality, but the invoice price variance offset would not be reflected. Using the price
correction functionality corrects the invoice price variance but does not increment the quantity
billed against the purchase order shipment.
Note: The IPV is calculated as (invoice unit price - purchase order line unit price) x quantity
invoiced.

Final Matching
During matching, select the Final Match option to indicate that no

more invoices should be matched to the purchase order.
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If you select li and you match to a purchase order, the closure status of the entire
m Final Match
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th order is changed to Finally Closed when you validate the invoice. If you match to a
purchase
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Mpurchase order shipment, the closure status of the shipment is changed to Finally Closed
when you validate the invoice.
In Purchasing, you can finally close a purchase order at the following levels: header, release,
line, or shipment. When you finally close a purchase order at one level then all sublevels are
also finally closed. No further actions can be performed against a purchase order level that is
finally closed.
If an invoice is matched to a purchase order shipment and the purchase order shipment
becomes finally closed before the invoice is validated, then Payables applies a Finally Closed
PO hold on the invoice. You cannot manually release this hold. You must reverse the match
in the Distributions window and revalidate the invoice to release this hold. You can then
match the invoice to a different purchase order or enter distributions manually.
Note: You cannot final match to a purchase order when you are matching to receipts. Also,
you cannot final match a prepayment.

Types of Accounting Flows
• Asset account
• Expense account
• Accrual account
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Matching to Distributions for Assets
Match
PO
Invoice 01-000-1570-0000-000
Asset Clearing
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V li matching to distributions for Assets.
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The graphic
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u thcharge account on the purchase order for an item that will be capitalized and depreciated
The
Mis a balance sheet account and will be a clearing account associated with an asset category
(like COMPUTER-PC) in Assets. After matching, the asset clearing account will be on the
distribution for the invoice. When the asset is prepared and posted to Assets, the clearing
account is cleared and the asset cost account associated with the asset category is charged
for the cost of the asset. Payables will transfer the asset clearing account to the general
ledger and Assets will transfer the clearing account clearing entry and the asset cost entry.

Matching to Distributions for Expenses
Match PO
Invoice 01-110-7740-0000-000
Expense
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m describes li matching to distributions for Expenses.
a
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Moffice supplies) is an income statement account. After matching, the expense account is
transferred to the invoice distribution if you are accruing at period end. When accounting is
transferred to the general ledger, the amount charged to the expense account can be reported
on the income statement.

Matching to Distributions for Inventory
Match PO
Invoice 01-000-1410-0000-000
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u
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Mbalance sheet account and will be a material clearing account associated with an inventory
organization in Inventory. After matching, the Inventory AP Accrual Account will be on the
distribution for the invoice. When the receipt is processed the AP Accrual Account (uninvoiced
receipts account) is credited. When booking the invoice and matching, the receipt is now
invoiced and the balance in the AP Accrual Account must be cleared. At receipt, Purchasing
will transfer the accrual to the AP Accrual Account (a credit) and after matching, Payables will
transfer the clearing entry to the AP Accrual Account as part of the Transfer Journals to GL
process.

Defining Purchase Order Matching Tolerances
(Optional)
Quantity Based Amount Based

Ordered Percentage Ordered Percentage
Maximum Ordered Maximum Ordered
Received Percentage Received Percentage
Maximum Received Conversion Rate Amount
Price Percentage Total Amount ra ble
Conversion Rate Amount sfe a n
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Invoiceatolerances li
determine whether matching holds are placed on an invoice for variances
h y
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Mprocess
invoice, purchase order, and receipt information. When you run the invoice validation
an invoice matched to a purchase order or receipt, validation checks that the
invoice matches the purchase order or receipt within the matching tolerances you define.
For example, if the billed amount for an item exceeds the amount or quantity tolerances, then
invoice validation applies holds to the invoice and prevents payment until the holds are
released.
There are two types of tolerances. You can define tolerances based on quantity or amount.
For each type of tolerance, specify percentages or amounts. Once you define your tolerances,
assign them to a supplier site.
Quantity Based
Quantity-based tolerances apply to invoices that you match to a purchase order where the
match basis on the invoice is quantity. You can define the following quantity-based
tolerances:
• Ordered Percentage: The percentage difference above the purchase order schedule
line ordered quantity that you allow suppliers to invoice. The invoice validation process
checks the billed quantity against the ordered quantity without taking price into
consideration.

• Maximum Ordered: The quantity difference above the purchase order schedule line
ordered quantity that you allow suppliers to invoice. The invoice validation process
checks the billed quantity against the ordered quantity without taking price into
consideration. Enter a maximum ordered quantity tolerance only if most of your
purchase orders are for the same relative value.
• Received Percentage: The percentage difference above the purchase order schedule
line received quantity that you allow suppliers to invoice. The invoice validation process
checks the billed quantity against the received quantity without taking price into
consideration.
• Maximum Received: The quantity difference above the purchase order schedule line
received quantity that you allow suppliers to invoice. The invoice validation process
checks the billed quantity against the received quantity without taking price into
consideration. Enter a maximum quantity tolerance only if most of your purchase orders
are for the same relative value.
• Price Percentage: The percentage difference above the purchase order schedule line ble
unit price that you allow suppliers to invoice. fe ra
ans
•
n - t r
Conversion Rate Amount: The amount of variance you allow between an invoice
a no
amount and the amount of the purchase order schedule that it is matched to. Invoice
validation compares the ledger currency of each, based on the invoice and purchase
h a s ฺ
order conversion rates respectively. Enter a conversion rate amount tolerance only if
m ) uide
you enter foreign currency invoices in Oracle Fusion Payables.
o
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Schedule Amount: The amount of variance you allow between all invoice amounts in
i nฺib Stude
the transaction currency matched to a schedule, and the amount of the purchase order
schedule.
d di@ his
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Total Amount: The total amount of variance you allow for both the Conversion Rate
d i (m e to
Amount variance and the Schedule Amount combined. If you do not use foreign
ad cens
currency, do not enter a value for this tolerance.
V
am li
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Defining Purchase Order Matching Tolerances
(Optional)
Quantity Based Amount Based

Ordered Percentage Ordered Percentage
Maximum Ordered Maximum Ordered
Received Percentage Received Percentage
Maximum Received Conversion Rate Amount
Price Percentage Total Amount ra ble
Conversion Rate Amount sfe a n
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Amount-based tolerances apply to invoices that you match to a purchase order where the
match basis on the invoice is amount. You can define the following amount-based tolerances:
• Ordered Percentage: The percentage difference above the purchase order schedule
line ordered amount that you allow suppliers to invoice. The invoice validation process
checks the billed amount against the ordered amount.
• Maximum Ordered: The amount difference above the purchase order schedule line
ordered amount that you allow suppliers to invoice. The invoice validation process
checks the billed amount against the ordered amount.
• Received Percentage: The percentage difference above the purchase order schedule
line received amount that you allow suppliers to invoice. The invoice validation process
checks the billed amount against the received amount.

• Conversion Rate Amount: The amount of variance you allow between an invoice
amount and the amount of the purchase order schedule that it is matched to. Invoice
validation compares the ledger currency of each, based on the invoice and purchase
order conversion rates, respectively. Enter a conversion rate amount tolerance only if
you enter foreign currency invoices in Payables.
• Total Amount: The total amount of variance you allow for both the Conversion Rate
Amount variance and the Schedule Amount combined. If you do not use foreign
currency, do not enter a value for this tolerance.
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Defining Tax Tolerances (Optional)
• Tax %
• Tax amount range
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Tax tolerances li to determine whether Fusion Tax places a tax hold on an invoice due
to
y
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tthe
u
MA tax tolerance is the acceptable variance between the calculated tax amount on an invoice
and the override tax amount entered by the user. If the variance between these two amounts
exceeds the tolerances you specify, then Fusion Tax places the invoice on hold.
To define tax tolerances, you must first set the Allow Override for Calculated Tax Lines option.
Setting the Allow Override for Calculated Tax Lines option lets you override automatically
calculated tax lines on transactions. You use tax tolerances to define the limits of user
override.
If an invoice exceeds these tolerances, Fusion Tax will apply a hold to it during Invoice
Validation.

Invoice Validation
• Validates invoices online or in batch

• Automatically calculates tax
• Calculates withholding and adjust installment amounts

• Checks variance and tolerance limits
• Applies holds
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a m Validation
• Invoice li validates the matching, tax, period status, exchange rate, and
y
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u
M exception invoices.
• Tax lines and distributions are created by Fusion Tax integration based on tax
determinants on invoice lines.
• You can manually release certain invoice holds even if you have not resolved the
matching error condition.
• Other system holds cannot be manually released. Once the error condition is fixed, the
invoice can be validated again to release the holds.
• You can identify all invoices that Payables has not yet reviewed with Invoice Validation
by submitting the Invoice Register for un-validated invoices only.

Invoice Validation Process
Enter or import invoices Optionally

match to PO
Receive invoices or receipt
electronically or
in the mail
Validate invoice View invoice
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a m describes
The graphic li Invoice Validation process.
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u
Before
MInvoice Validation for the invoice in one of two ways:
• System: Submit the Invoice Validation process.
• Online: Use the Validate button in Invoice Actions window.
Whether you validate an invoice online by selecting the Validate invoice action, or as part of a
batch, by running the Validate Payables Invoice process, the invoice validation process:
• Generates distributions based on:
- Line information such as default distributions, distribution sets, and overlay
distributions
- Freight or miscellaneous charge allocations
• Calculates tax
• Creates tax lines and distributions

• Calculates withholding
• Creates withholding invoices
• Checks for variances between ordered, received, and invoiced quantities or amounts
• Applies or releases holds
• Validates project information
• Checks conversion rate information
• Checks period status
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Invoice Approval
• Flexible approval rules

• Special approval for unmatched self-service invoices
• Force approve for Payables Manager

• View audit trail of approval history of an invoice
• Approve invoices from multiple UIs:
– Worklist
– Dashboard ble
– Work area fe ra
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– Manage Invoices n - t r
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• Enforce li Policy through Invoice Approval
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• Improve control and auditability
• Control unplanned purchases

Approval
The Invoice Approval Workflow process can be submitted before

or after validation, unless the Require Validation Before Approval
Payables option is enabled.
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If you are li
musing the Invoice Approval workflow, you can perform the following actions on the
h y
ut
Manage
Mapproval
Invoices and Edit Invoices pages to initiate the approval process and handle
exceptions:
• Initiate approval
• Stop approval
• Hold from approval
• Force approve
• Resubmit for approval
Initiate Approval
To submit an invoice for approval, select the Initiate approval action. You can select this
action when the Approval Status on an invoice is Required. The workflow process starts and
routes the invoice to the applicable approver who then approves or rejects the invoice.
The Approval Status on the invoice is updated to Initiated.

Stop Approval
To stop the approval process for an invoice, select the Stop approval action. You can select
this action when the Approval Status on an invoice is Initiated. The application cancels all
pending workflow processes and all open notifications associated with the invoice.
The Approval Status on the invoice is updated to Stopped.
Hold from Approval
To delay the approval process for an invoice, select the Hold from approval action. You can
select this action when the Approval Status on an invoice is Required. The Approval
Status on the invoice is updated to Held from approval. The invoice still requires approval
before it can be paid and you must initiate approval for the invoice at a later time.
Force Approve
To force approve an invoice, for example if the invoice must be paid immediately, select
the Force approve action. Before you can select this action, you must have the appropriate
privileges and the Allow force approval option on the Manage Invoice Options page must be bl e
enabled. The Approval Status on the invoice is updated to Manually approved. fe ra
ans
Resubmit for Approval
n - t r
no
To resubmit an invoice for approval, select the Resubmit for approval action. You can select
a
this action when:
h a s ฺ
o m u ideapproved, and at least
The Approval Status on an invoice is Workflow approved )or Manually
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one of the following invoice attributes has changed:
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• Invoice amount
i nฺib Stude
• Line amount
d di@ his
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• Distribution seti (m to
• Tax amount
d
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• Line
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MThe Approval Status on an invoice is one of the following:
• Rejected
• Stopped
• Held from approval
• Resubmit for approval

Invoice Approval Workflow
The Invoice Approval Workflow process automates your invoice

approval process. Based on the rules you define, the workflow
determines if an invoice needs approval, who the approvers are,

and in what order approvers should approve payment of the
invoice.
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Invoicea m
Approval li
Workflow
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M u
Oracle
extensions (AMX) of the Oracle SOA Suite and the Oracle Business Process Management
(BPM) Suite.
Payables provides predefined workflows for invoice request approval, invoice approval, and
holds resolution. Some predefined workflows can be configured in the BPM worklist, other
workflows are not updatable.
Invoice Request Approval
An invoice request is an unmatched invoice created in Oracle Fusion Supplier Portal that is
pending approval by the requester. Once approved, the invoice request is converted to an
invoice. Payables uses the predefined task and rule set FinApInvoiceApproval:
InvoiceRequestApprovalRuleSet, which you can configure.
Invoice Approval
If you enable invoice approval, Payables uses the predefined task and rule set
FinApInvoiceApproval: InvoiceApprovalRuleSet, which you can configure.

Holds Resolution
You can optionally resolve user-releasable holds through a workflow. To enable the holds
resolution workflow for a hold, you set the holds resolution options on the hold. The workflow
for these holds is initiated when:
Invoice validation places a hold
• You manually place a hold on the Create or Edit Invoice pages
• You void a payment and specify to place the invoice on hold

• You submit invoice import and specify to place a hold on all imported invoices
ble
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Holds and Releases
Manually
Supplier Site Hold Description
Releasable?
• System holds When you validate an
• Manual holds
invoice, Payables applies

an Amount hold on an
Invoice amount limit Yes
invoice if the invoice
– Supplier site hold amount exceeds the limit
specified.
– Invoice hold Payables prevents you
from selecting the
– Installment hold supplier site for payment
All invoices No
in a payment process
request or in a Quick
payment.
When you validate an
ble
invoice, Payables applies
a Matching
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Unmatched invoices required hold on
an Yes s
invoices that are not
n - t r
no
matched to a purchase
order or receipt.
a
s ฺ When you validate an
h a
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o m a Supplier hold on
m ฺcinvoices nt G
Unvalidated Yes
invoices created after you
enable this hold. You can
i nฺib Stude still pay invoices that

were previously entered
d di@ his and validated.
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Typesa ofm li
Holds: Explained
y
th are constraints that Oracle Fusion Payables automatically applies to an invoice or
M u
Holds
supplier, or that you manually place on an invoice, to prevent payment and, in some cases,
creation of accounting entries.
You can release some holds manually and Payables provides a predefined holds resolution
workflow for manually releasable holds. Other holds require that you fix the exception
condition before Payables releases the hold.
The different types of holds are as follows:
• Invoice holds
• Installment holds
• Supplier site holds
• System holds
Invoice Holds
Invoice holds are holds that you manually place on an invoice. Payables provides predefined
holds, but you can define your own holds on the Manage Holds and Releases page. Payables
does not automatically release holds that you apply manually. You must release them
manually.

Installment Holds
Installment holds are holds that you manually place on an installment to prevent payment.
For example, a supplier sends you an invoice for two desks and delivers only one. You can
partially pay the invoice by splitting the installment and placing a hold on one installment. You
can manually release the hold after you receive the second desk, making the installment
available for payment.
Note
You can review installment holds on the Manage Installments page, or in the Invoices
Requiring Attention region on the Invoice Overview page.
Supplier Site Holds
Supplier site holds are holds on a supplier site that prevent payment of a supplier's invoices.
Set supplier holds on the Invoicing tab on the Create and Edit Site pages.
This table above describes the holds you can set for a supplier site. e
System Holds ra bl
s fe
- t r an
System holds are holds that Payables automatically applies for exception conditions when
you validate an invoice.
no n
a
An example of a system hold is the Distribution variance hold. If the sum of the invoice
s ฺ
h a
) uide
distribution amounts does not equal the invoice line amount, Payables applies a Distribution
variance hold. o m G
m ฺc and n t
You cannot manually place system holds onฺian
n b ude
invoice, you cannot manually release
i
certain system holds. Instead, you must correct the t
S exception
@ the iinvoice condition by updating the
d i
d e th
invoice or purchase order, and validating s to release the hold. For example, to
resolve a Distribution variance v a
t hold,uadjust
s the distribution amounts, then validate the invoice
m u o
again.
d d i ( se t
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Some system holds
c n manually released, such as holds for matching exceptions.
ebe
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Applying Holds to Invoices
User
Hold Type Definable
Account Hold Reason No
Future Period Hold Type No
Insufficient Information No
Invoice Hold Reason Yes ble
fe ra
Invoice Line Reason Yes s
Matching Hold Reason No - t r an
o n
Variance Hold Reason an No s
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Use thea m
Manage li Holds and Releases page to define the names that you use to
Invoice
y
th place and release holds on invoices. Associate names of holds with an invoice hold
manually
u
Mtype and names of releases with an invoice release type. Assign the hold name you define to
an invoice to place the invoice on hold. You cannot pay an invoice that has a hold applied to
it. Use release names to remove the holds you applied.
Determine whether to allow accounting entry creation for the hold names you define. For
example, if you assign a hold name that does not allow accounting to an invoice, you cannot
create accounting entries for the invoice until you remove the hold. If you want to use the
holds and releases you define in the Holds Resolution workflow process, specify additional
hold and release name attributes.
Oracle Fusion Payables predefines hold and release types along with hold and release
names that it uses during the invoice validation process. You can query the predefined types
and names on the Manage Invoice Holds and Release page, but you cannot modify them.
Invoice Hold Types
This table lists the predefined hold types and whether you can define hold names for them.

Applying Holds to Installments
$1000.00
Invoice
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Hold Due Date Gross Amount fe ra
a n s
04-APR-2007 900on-
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04-MAY-2007 s
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The graphic li applying holds to installments.
y
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u
You
Min the installments window. For example, to pay 90% of an invoice now and 10% of an invoice
at a future date, enter the invoice and create a split payment schedule; one representing 90%
of the invoice amount and the other representing 10% of the invoice amount. Enable the Hold
check box for the payment schedule representing the 10%.

Releasing Invoice Holds
User
Release Type
Definable
Account Release Reason No
Future Period Release No
Hold Quick Release Reason Yes
Invoice Quick Release bl e
Yes fe ra
Reason a n s
Invoice Release Reason Yes - t r
n on
Matching Release Reason Yes s a
Sufficient Information ) ha ideฺ
No
Variance Release Reason ฺ c om Yes
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m Types
InvoiceaRelease li
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thtable lists the predefined release types and whether you can define release names for
M u
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them.

Releasing Installment Holds
$1000.00
Invoice
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Hold Due Date Gross Amount fe ra
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04-APR-2007 900on-
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The graphic li releasing holds to Installments.
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Mclicking Release Hold icon.

Summary

• Understand the key features of invoicing.
• Describe the invoice workbench structure.

• Understand invoice distribution methods.
• Perform invoice validation.
• Understand invoice approval.
• Apply and release holds. ble
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5
Payments ble
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Objectives

• Describe the key features of payments.
• Describe the process of setting up payments.

• Understand the payment processing options.
• Perform, review, and adjust payments.
• Create, apply, and release holds on prepayments.
ble
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Requisitions
Catalog
Content
Purchase
Management
Orders
Ordering
RFQs/ Receiving
Quotations Sourcing
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Invoice/
fe ra
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n - t r
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Supplier
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) Reporting
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Invoice Payment Overview
Enter Enter Validate

supplier invoice invoice
Pay invoices
A/P ble
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60,000
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Transfer ฺ c om t Gu
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information to ฺ i b d e n
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General Ledger @ in Sentries tu
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t o us Copyright © 2016, Oracle and/or its affiliates. All rights reserved.
a ddi ense
m V lic
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The graphic describes the Invoice Payment overview.
ut
MPayables provides a variety of features for fast, controlled payment processing.
With Payables you can do the following:
• Make payments from your disbursement bank accounts in multiple ways: printed
checks, wire, or through a variety of electronic payments, including electronic funds
transfer (EFT).
• Create single payments manually or by computer-generation.
• Create multiple payments automatically.
• Pay only invoices that are due and automatically take the maximum discount available.
• Select invoices for payment, using a variety of criteria, and create payments
automatically.
• Ensure that duplicate invoice payments do not occur.
• Review information online for the status of payments.

Overview of Disbursements for Payments
As the central payment engine, Payments processes:

• Transactions, such as invoice payments from Oracle Fusion
Payables.
• Settlements against credit cards and bank accounts from
Oracle Fusion Receivables.
Payments provides the infrastructure needed to connect these
applications, and others, with payment systems and financial
institutions. ra ble
n s fe
The centralization of payment processing in Payments offers
- t r a
many benefits to your company. Your company can n n
oefficiently
centralize the payment process across multiples a
business units,
) a
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currencies, and geographical regions. om u
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The Payments li
m Disbursements module includes selected disbursement setups of Payments.
h y
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Disbursement
Msuppliers.
is the process of paying funds owed by your company to creditors, such as
A payment can take:
• An electronic form, such as EFT or wire.
• A printed form, such as a check.
The Define Disbursements activity allows you to configure the disbursement of funds by:
• Setting up payment methods with validations.
• Setting up payment process profiles.

Disbursements Process Overview
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Oraclea m Payments
Fusion li is a product in Oracle Financials Cloud, which serves as a
th y
disbursement and funds capture engine for other Oracle Financials Cloud applications. As the
u
Mcentral payment engine, Payments processes:
• Transactions, such as invoice payments from Oracle Fusion Payables.
• Settlements against credit cards and bank accounts from Oracle Fusion Receivables.
• Payments provides the infrastructure needed to connect these applications, and others,
with payment systems and financial institutions.
The centralization of payment processing in Payments offers many benefits to your company.
Your company can efficiently centralize the payment process across multiple business units,
currencies, and geographical regions.

Key Decision and Best Practices for Organizational
Structure and Payment Process
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Key Decision: li
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h payment processing organizational structure centralized, decentralized, or a payment
tmy
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Is
Mfactory?
Best Practice:
• Advantages of decentralized processing:
- Enables each business unit to create its own payment process.
- Enables each business unit to decide who and when to pay.
• Advantages of centralized processing:
- Reduces manpower costs by centralizing payment process decisions and
exception handling.
- Reduces payment processing costs by pooling payments into fewer payment files.
- Efficiencies of scale allow some users to specialize in payment processing.
• Advantages of a payment factory:
- Enables each business unit to decide who and when to pay.
- Reduces payment processing costs by pooling payments into fewer payment files.

Key Decision:
How much of the payment process should I automate?
Best Practice:
Any combination of manual and automated steps can be used. It is not desirable to be
completely automated or completely manual. The best practice is to automate everything
except manual review of either selected invoices or proposed payments.
• Advantages of straight through processing:

- Fewer touch points require less effort.
- Exceptions are handled outside the payment process, whereas good payments
are not held up by the few exceptions.
• Advantages of tight manual control:
- Allows manual review and confirmation of payments in process.
- Allows steps to be manually initiated to accommodate specific timing needs.
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Payments Terminology
Key Concepts in Oracle Payables
Key Concepts
Document Payable
Pay Run/Payment Process Request
Payee
Payment Instruction
Payment Process Profile ra ble
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Payment Process Request Template tra
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Payment Format an
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Key Payment li
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thgraphic lists the Key Payment terminology.
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The
The following concepts are applicable to setups and the disbursements process.
• Payment method: The method, such as electronic or check, by which your company,
pays a supplier invoice, customer refund, or employee expense report.
• Validations: Rules used to verify that transactions are valid and contain all required
attributes before further processing is performed. Validations can be performed on
documents payable, payments, or payment files.
• Payment process profile: Defines how Oracle Fusion Payments manages the
document payable, payment, and payment file throughout the payment process steps.
• Payment process request: A grouping of documents payable selected for payment
processing. This grouping is originated by the invoice selection process. The payment
process request contains one or more documents payable to be paid and optional
payment processing instructions.
• Document payable: A transaction, such as an invoice, that is selected for payment.
Typically, these are represented by Oracle Fusion Payables invoice payment
installments. Similar documents payable are grouped together into payments during the
payment process.

• Payment: A transfer of funds to a supplier, customer (for refunds), or employee (for
expense reimbursements).
• Payment creation rules: User-defined rules for grouping documents payable into
payments.
• Payment file: A grouping of payments to be paid the same way, along with aggregate
payment information. The payment file is transmitted to a bank for further processing
and payment or printed as a check run.
• Payment file creation rules: User-defined rules for grouping payments into payment
files.
• Bank instructions: Codes and text that appear in the electronic payment, which are
used to provide additional payment processing instructions for the intended payment
system.
• Format: A data file on which an Oracle Business Intelligence Publisher (Oracle BI
Publisher) template is used that contains prescribed formatting attributes, such as e
a bl
location, font, and font size. Formats enable payment systems or financial institutions to
r
understand transactional messages. s fe
• - t r an
Transmission configuration: Specifies specific transmission details, which must be
associated with one transmission protocol. no n
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Payment system: A data file on which an Oracle Business Intelligence Publisher
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(Oracle BI Publisher) template is used that contains prescribed formatting attributes,
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such as location, font, and font size. Formats enable payment systems or financial
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Payment file register: A report that displays the contents of a payment file.
•
u tva use t
Positive pay: A document sent by your company to its payment system or bank to
d i (m e to
inform it of payments made by check.
•
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Separate remittance advice: A notice sent to an external payee that lists the invoices
li
your company has electronically paid to the external payee's bank account.
am
•th y Regulatory report: Reports required by a regulatory body, such as a level of
M u government, the central bank, or an individual bank.

Setting Up Payment Formats
A payment format is an entity that associates the BI Publisher

Template with the payment process. The purpose of setting up
payment formats is to:

• Assign validation sets
• Associate each payment format with a BI Publisher template
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The following li are applicable to formats:
m concepts
y
•th Format: A data file on which an Oracle Business Intelligence Publisher (Oracle BI
u
M Publisher) template is used that contains prescribed formatting attributes, such as data
location. Formats enable payment systems or financial institutions to understand
transactional messages.
• Data extract: Transactional data that is extracted from the Oracle Fusion Payments and
Oracle Fusion Receivables transactional tables. For the funds capture extract, data can
be from funds capture transactions, settlement batches and Receivables transactions.
For disbursement and related extracts, data comes from the payments, payment files,
and document payables tables.
• BI Publisher template: A document belonging to an Oracle application that defines the
layout of various types of formats according to formatting requirements of specific
financial institutions.
• You can use existing Oracle BI Publisher templates or modify them with minimal effort
by using a standard text editor, such as Microsoft Word. For example, when a payment
system or financial institution requires a change to its payment file format, the change
can be made quickly by modifying the appropriate Oracle BI Publisher template.

Message direction: Inbound from payment system to your company, or outbound, from your
company to your payment system.
Formatting Messages
Successful transmission of a message, whether a payment file, a positive pay file, or other
type of content, requires coordination between sender and receiver. The sender must format
the message according to payment system or regulatory specifications, so the receiver can
understand it and process it correctly.

The message must:
• Adhere to prescribed standards so it can navigate the transmission path to the receiver.
• Identify the sender and convey specific details about the relationship between the
sender and receiver.
• The transactional data that is available to the formatting process is contained in a data
extract. A format is applied to the data in a data extract and the result is a formatted file,
such as a payment file, positive pay file, or other output.
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Validations can be associated with formats and are used to ensure valid transaction s e
fdata.
t r a n
You can assign validations, whether predefined or user-defined, to validate-transactions that
use the format you are setting up. n o n
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Note: To set up Oracle Business Intelligence Publisher templates,
e ฺthe guide entitled
Oracle Fusion Middleware Report Designer's Guide form
o id Intelligence
Oracle Business
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http://docs.oracle.com/cd/E25054_01/bi.1111/e13881/toc.htm.
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Setting Up Transmission Configurations
A transmission configuration:
• Implements a specific transmission protocol
• Enables the delivery of a transaction to a specific payment

system or financial institution
This setup is only required for sending:
• Electronic payments to a payment system
• Positive pay files ble
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The following li are applicable to payments transmission:
m concepts
y
•th Transmission protocol: Defines the method of transmission. Examples include File
u
M Transfer Protocol and HTTP Put.
• Transmission configuration: Specifies specific transmission details, which must be
associated with one transmission protocol.
• Tunneling configuration: A type of transmission configuration that helps transmit data
through a transmission servlet that can securely connect to your payment system
without exposing internal data.
To set up a transmission configuration, the first step is performed on the Manage
Transmission Configurations page where you select a specific protocol, which is the method
of transmission.
The second step is performed on the Create Transmission Configuration page where you
enable electronic connectivity with your payment system by specifying parameter values for
the protocol you selected in the first step.

Key Decision and Best Practices for Using
Transmission Configurations
Key Decision: Which transmission configurations should I use for
payment processing?
Best Practice: You need two transmission configurations:

• A tunneling configuration to exit the fire wall
• A transmission configuration for the payment system server
Your transmission configuration must point to the tunneling
configuration.
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Note: The tunneling configuration should not point to
n s fe
any other tunneling configuration, including itself. -tra
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Key Decision and Best Practices for Using
Transmission Protocols
Key Decision: Which transmission protocols should I use for
payment processing?
Best Practice:
• Find out what your processing bank supports.
• Favor transmission protocols that are predefined in Oracle
Fusion Payments.
• Use funds capture process profiles for greater configurability le
in transmission and formatting. ra b
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Payment System Concepts
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Payment System Concepts
A payment system is an organization that provides financial

settlement services, such as:

• A bank at which the deploying company has its bank
accounts
• A third-party processor that connects deploying companies
with financial institutions
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SettingaUp
y mPaymentliSystems
u
Thethfollowing concepts are applicable to payment systems:
M • Payment system: An external organization that provides financial settlement services.
Payment systems process electronic funds capture transactions and disbursements.
The payment system can be the bank at which your company has its bank accounts or it
can be a third party processor that connects companies and financial institutions.
• Payment system account: An entity that represents your company's account with its
payment system.
• Processor payment system: A service provider that interacts directly with banks and
card institutions such as Visa, MasterCard, and American Express to process financial
transactions.
• Gateway payment system: A service provider that acts as an intermediary between
your company and a payment processor.
• Internal payee: Your company, which receives funds from customers by credit card
payments or direct debits to bank accounts.
• Internal payer: Your company, which makes disbursements. Your company disburses
funds to pay suppliers, to make customer refunds, and to reimburse employee
expenses.

• Payment instrument: A credit card, debit card, or bank account used by your company
to collect a payment from an external payer, such as a customer.
A payment system has specific transmission requirements, which are represented by the
following questions:
• What formats is it capable of receiving?
• What transmission protocols does it understand?
• What attributes does it require in the messages it receives to identify the sender or
process the message?
The payment system setup is mandatory if you want to transmit electronic payment
information. This is true, even when you transmit a payment file offline by downloading it and
then E-M ailing to your bank or payment system. The payment system and payment system
account setup capture several attributes, which are passed in the payment message. Without
these attributes, a payment file is invalid and rejected by bank.
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Payment System Transmission Requirements
A payment system has specific transmission requirements, which

are represented by the following questions:
• What formats is it capable of receiving?
• What transmission protocols does it understand?
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• What attributes does it require in the messages it receives n s feto
identify the sender or process the message? - t r a
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Payment Method Concepts
• Source product: The product that submitted the payment bl e

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request. a n s
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• Source document: The product from which a document
n on
a Payables and
originates, such as an invoice in Oracle Fusion
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a customer refund in Oracle Fusion Receivables.
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Setting Up Funds Disbursement Payment Methods
A funds disbursement payment method is a medium by which the

deploying company makes a payment to one or more suppliers,
customers, or employees.
Payments supports the following payment methods for funds
disbursement:
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The following li are applicable to payment methods:
m concepts
y
•th Payment method: The method, such as electronic or check, by which your company,
u
M pays a supplier invoice, customer refund, or employee expense report.
• Usage rules: Usage rules for payment methods determine which payment methods are
valid to be used on which documents payable.
• Validations: Rules used to verify that transactions are valid and contain all required
attributes before further processing is performed. Validations can be performed on
documents payable, payments, or payment files.
• Internal payee: Your company, which receives funds from customers by credit card
payments or direct debits to bank accounts.
• Payment method defaulting rule: Rule for determining which payment method is
defaulted by Payments onto the document payable during entry.
• Source product: Product that submitted the payment request.
• Source document: Product from which a document originates, such as an invoice in
Oracle Fusion Payables and a customer refund in Oracle Fusion Receivables.
Setting up disbursement payment methods is optional since Payments predefines many
payment methods.

Setting Up Payment Method Defaulting Rules
Payment method defaulting rules determine how payment

methods default onto a document payable, such as an invoice.
A payment method defaults onto an invoice when all specified

conditions are met.
Payment
method e
rules ra bl
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A payment li
mmethod defaulting rule determines which payment method defaults onto a source
h y
ut Receivables.
document,
MFusion
such as an invoice in Oracle Fusion Payables or a customer refund in Oracle
During setup of the payment method defaulting rules, you specify
conditions under which a payment method acts as a default.
Setting up a payment method defaulting rule is optional.
A payment method can default onto a source document based on:
• Source product.
• Business unit.
• First party legal entity.
• Transaction type.
• Whether domestic or foreign currency.
• Whether domestic or foreign payee location.
Oracle Fusion Payments applies the payment method defaulting rules in the prioritized order
you specify. For example, if the first rule is a match, Payments stops and defaults that rule’s
corresponding payment method onto the invoice. Further, suppose you specify that the
payment method for all documents processed by Payables is first, Check, and second, EFT.
In this case, if the conditions for payment method Check match those on the invoice, then
payment method Check defaults onto the invoice.

If the conditions for payment method Check do not match those on the invoice, then
Payments determines whether the conditions for payment method EFT matches. If the
conditions for payment method EFT match those on the invoice, then payment method EFT
defaults onto the invoice.
The following factors may, depending on setup and data, influence payment method
defaulting:
• Whether the option, Based Only on Payment Method Defaulting Rules Setup, or the
option, Override Defaulting Rules when Default Method Set for Payee, is selected as the
payment method default basis in the System Settings sub region or Business Unit Level
Override region on the Manage Disbursement System Options page.
• The prioritized order of the payment method defaulting rules.
• The content of the payment method defaulting rules, compared with the attributes of the
transaction.
• The defaults set in Oracle Fusion Payables for supplier, address, and supplier site.
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Seeded Payment Methods
Payment Method Definition

Check A paper check to print and send to a supplier
Outsourced Check Transmission of payment information to an

external party, such as your bank, that prints
checks on your behalf
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Electronic An EFT, EDI, or XML payment to the bank offe
a supplier a n s
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Wire an
A funds transfer initiated by contacting
s the
bank and requesting wire ) hapayment
i d e ฺ to the
bank of a suppliercom Gu
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The table i seeded Payment Methods.
mdescribeslthe
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th payment methods are seeded, but deploying companies can create their own payment
u
These
Mmethods.
Check: A paper check is printed and used as:
• One payment in a group of multiple payments
• A Quick payment
• A Manual payment
Outsourced check: This payment method is used to transmit payment information to an
external party, such as your bank, that will print checks on your behalf.
Electronic: You use the Electronic payment method to create instructions for your bank to
make payment to a supplier bank account. Typically, this communication is an electronic file
that instructs your disbursement bank to pay your suppliers, and is in the specific format that
your bank requires. Validations ensure that you have recorded supplier bank account
information when you use the Electronic payment method.
Wire: You can use the Wire payment method to manually record payment when you have
used a process outside of your Oracle Payables system to instruct your disbursement bank to
pay a supplier.

Payables does not require supplier bank account information when you use the Wire payment
method. When you define payment documents for these payments, Oracle recommends you
use the Recorded disbursement type because you are simply recording a payment made
outside of the system.
Note: It is recommended that you record the transaction with a Manual payment.
The system allows you to use any disbursement type. For example, some users who regularly
record Wire payments for multiple suppliers use payment documents with the Computer
Generated disbursement type, create an electronic pay run, and then delete the resulting
electronic file.
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Payment Process Profile Concepts
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Managing Payment Process Profiles
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Setting up payment process profiles is mandatory. a n s
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Payment Process Profile: A payment attribute assigned o
documents payable, which specifies how Payments
s a n manages
documents payable, payments, and payment ) hafiles
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Managing Payment Process Profiles
A payment process profile controls payment processing for the

disbursement flow and provides a blueprint to:
• Tie setups together.
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• Control usage of the payment process profile. n s fe
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• Specify payment formatting, printing, and transmission
on
behavior. a n
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• Control creation of payments and payment i d e
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• Automate report generation. ibm en
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Setting Up Payment Process Profiles
A payment process profile is a blueprint assigned to documents

payable, which specifies:
• All the rules for creating and disbursing payments

• How payments are processed
• Instructions for payment formatting and transmission
The purpose of setting up payment process profiles is to specify
the details of the payment process. e
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The following li are applicable to payment process profiles:
m concepts
y
•th Payment process profile: Defines how Oracle Fusion Payments manages the
u
M document payable, payment, and payment file throughout the payment process steps.
• Document payable: A transaction, such as an invoice, that is selected for payment.
Typically, these are represented by Oracle Fusion Payables invoice payment
installments. Similar documents payable are grouped together into payments during the
payment process.
• Payment process request: A grouping of documents payable selected for payment
processing. This grouping is originated by the invoice selection process. The payment
process request contains one or more documents payable to be paid and optional
payment processing instructions.
• Payment: A transfer of funds to a supplier, customer (for refunds), or employee (for
expense reimbursements).
• Payment file: A grouping of payments to be paid the same way, along with aggregate
payment information. The payment file is transmitted to a bank for further processing
and payment or printed as a check run.
• Payment file register: A report that displays the contents of a payment file.
• Positive pay: A document sent by your company to its payment system or bank to
• Payment file register: A report that displays the contents of a payment file.
• Positive pay: A document sent by your company to its payment system or bank to
• Separate remittance advice: A notice sent to an external payee that lists the invoices
your company has electronically paid to the external payee's bank account.
• Regulatory report: Reports required by a regulatory body, such as a level of
government, the central bank, or an individual bank.

• Payment document: A set of documents, such as check stock, on which checks and
promissory notes can be printed or written. Payment documents usually have security
features such as watermarks to prevent fraud. This term also refers to an individual
document, upon which a check or promissory note is printed.
• Default payment document: A concatenation of the name of a payment document that
a user created plus the name of the disbursement bank account that is assigned to the
newly created payment document. e
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Creating Usage Rules for a Payment Process Profile
By default, payment process profiles are available on all

transactions. However, by creating usage rules, you can limit the
use of a payment process profile based on the following

transaction conditions:
• Payment Method
ble
• Disbursement Bank Account fe ra
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• Business Unit a no
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• Currency
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a m the Use ofli Payment Process Profiles
Controlling
y
u th you set up a payment process profile, you specify the values on a transaction that are
When
M compatible with it. You can specify whether the payment process profile can be used on a
specific document payable based on its payment method, disbursement bank account,
business unit, and currency. For example, if the payment format associated with the payment
process profile only allows a specific currency, then enter that currency in the usage rules so
that the payment process profile can only be used on documents payable with the appropriate
currency.

Bank Account Model
Trading Community
Cash Management
Architecture (TCA)
Bank Payables
Receivables
Bank Branch Bank Account
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Payroll an s
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The graphic li the Bank Account Model.
m describes
y
th leverages Oracle Fusion Trading Community Architecture and Oracle Fusion Cash
u
Payables
MManagement to set up the bank accounts that you use to do business (internal bank
accounts). Banks and Bank Branches are created as parties in Trading Community
Architecture via the user interface in Oracle Fusion Cash Management. Bank Accounts are
defined in Oracle Fusion Cash Management. Each bank can have multiple branches and
each branch can have multiple accounts.
When you enable a bank account for use with Payables, you can associate the account with
multiple payment documents.
When you set up your suppliers, you can also set up supplier bank accounts.

Entering Bank and Bank Branch Information
Country
Bank Bank Name

Address
Contact
ble
Country & Bank
fe ra
Bank Branch Name
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Branch Type & Details n - t r
Branch Address a no
Contact
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The graphic li entering bank and bank branch information.
m describes
y
th Banks
M u
Entering
You can create a new bank or add bank details to an existing party defined in your Trading
Community.
For each bank, define the country in which the bank operates, the name of the bank, the bank
address(es), and contacts. Optionally, you can define additional bank information: Alternative
Bank Name, Short Bank Name, Bank Number, Description, Taxpayer ID, Tax Registration
Number, XML Messages Email, Inactive Date, and Context Value.
Entering Bank Branches
Each Bank can have more than one bank branch. When you create a bank branch, you can
create a new branch or add branch details to an existing party defined in your Trading
Community.
For each bank branch, define the country in which the bank operates, the bank the branch
belongs to, the branch name, the branch type, address(es), and contacts.
In addition to defining the branch type, you can define additional bank branch details:
Alternate Branch Name, Routing Transit Number, BIC, Bank Code, EDI Location, EFT
Number, Description, RFC Identifier, Inactive Date, and Context Value.

Entering Bank Account Information
Owner Bank Account Owner (LE)

Account Use
Name
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Information fe ra
Number
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Currency no
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The graphic li entering bank account information.
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th Account Owner: The bank account owner is the legal entity that owns the account.
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Bank
Account Use: Account use refers to the applications that are going to use this internal bank
account: Payables, Payroll, Receivables.
Information: You enter the name of the account, account number, currency, and description.
You should have the name of the account match the name on the bank’s records and then
use the description field to indicate how the account is used, for example, main disbursement
account. The account type is LOV field that you might use to indicate whether the account is a
savings or checking account or whether it’s a corporate or division account.
Optionally, enter or select the Alternate Account Name, Check Digit, Multiple Currencies
Allowed, International Bank Account Number (IBAN), Account Type, Account Suffix, EFT
Number, Secondary Account Reference, Account Holder, Alternate Account Holder,
Description, Active or Inactive.

General Controls
• Cash, Cash Clearing

• Bank Reconciliation Differences
• Foreign Exchange Charges, Agency Location Code
• Netting Account
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Payables Controls fe ra
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• Minimum/Maximum Payment, Allowa sZeroฺPayments
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General
Enter the cash account number that should be charged for payments made from this bank
account. You can also enter accounts for cash clearing, Reconciliation Differences and
agency location code that will be used when you reconcile with Oracle Cash Management. If
you specify these codes in the General Controls region, the accounts you specify will be used
as the default accounts for all applications that use this account. You can also specify whether
the bank account you are creating is a netting account. Note that you can specify Payables-
specific accounts later on.

Payables Controls Region
• Pooled Account: If you use Automatic Offsets and you want to associate multiple
companies with this bank account, then enable this option. When you enable the
Automatic Offsets Payables option, Payables creates one offsetting liability distribution
for each invoice distribution. If you pay an invoice from a pooled bank account, then
when Payables accounts for the invoice payment, Payables creates one corresponding
cash accounting entry for each liability distribution.
- In addition, Payables builds the cash account based on the Cash Account defined
for the bank account and the account segments of the liability lines.
- If you do not use a pooled account, then when the payment is accounted, a single
accounting entry is created for the Cash account, using the Cash Account that is
defined for the bank account without modifying any account segments.
• Minimum/Maximum Payment: Minimum/Maximum payment refers to the smallest and
largest payment amounts that you allow in a pay run. When you initiate a pay run using
the bank account, Payables uses the bank account’s Maximum Payment as a default. ble
You can override this default. fe ra
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• Allow Zero Payments: If you allow zero-amount payments from this bank account,
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enable this option.
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• Maximum Outlay: Maximum outlay is the largest currency outlay that you allow for a
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pay run for this bank account. If the total outlay of a pay run exceeds the maximum
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outlay for the pay run, Payables displays a warning, but allows you to continue
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processing the pay run. The Maximum Outlay for a bank account defaults from the
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Security
• Allow Access by Users or Roles
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Region li
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more roles. If you don’t want to restrict the access leave this option unchecked.
Business Unit Access Region
Assign the access of the bank account to one or more business units.

Defining Payment Documents
Payment documents are check stock on which checks and

promissory notes can be printed or written. They usually have
security features, such as watermarks, to prevent fraud.

Before you can use a bank account with a processing type of
Printed, you must:
• Create at least one payment document.
• Assign the payment document to a specific: e
– Bank account name ra bl
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– Bank account number
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– Bank and branch no n
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To define i
mpaymentsldocuments:
y
th Search for the bank account.
u1.
M 2. Edit the bank account and define the payment documents in the Payment Documents
region of the General Tab.
3. Click Create.
4. In the Name field, enter a name for the payment documents.
5. In the Paper Stock Type field, select Blank Stock for non-numbered check stock or Pre-
numbered Stock from the drop-down list.
6. If your check stock has an attached remittance stub, select the Attached Remittance
Stub check box.
7. If your check stock has an attached remittance stub, specify the number of lines per
remittance stub in the Number of Lines per Remittance Stub field.
8. In the Number of Setup Documents field, specify the number of checks you want to
allow for testing check stock setup.
9. In the Format field, select a check format from the list of values.
10. In the Payment Document Category field, select the type of payment document from the
list of values.

11. If your check stock is pre-numbered, enter the first and last document numbers in the
fields under the Document Numbers region.
12. If your organization uses a company checkbook, enter the appropriate information in the
Checkbooks region.
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Payment Creation
Increase flexibility and control with multiple ways to make payments

Payment Process Single Payments

Request Record one-off payments,
Group invoices automatically for manual payments, or refunds
batch payment processing
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Single Payment
• Accommodate last-minute supplier requests by quickly

creating off-cycle payments
– Have more flexibility and control over payment creation outside

of scheduled pay runs with the ability to select multiple invoices
for payment, regardless of their payment attributes
– Account and post to GL immediately
• Record refunds from suppliers against credit memos
• Ensure accurate reporting and accounting by recording ra ble
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CM NOTES: li use single payments UI to enter against a credit memo (refund
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Creating Quick Payments
Payments
Payment Payment Trading

Type Bank Account Num
Document Amount Partner/Site
Laser
Quick 1st National 7240 3510.00 XYZ Inc/Dallas
Checks
Select and Add Invoices
Select Invoices ble

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Minvoices. You can also create a check, save it, then print it later.
When you create a quick payment, you can select an invoice regardless of the payments’
terms and due date. For example, you can create a Quick payment for an invoice that is not
yet due.
Prerequisites
• Invoices must be validated, not cancelled, and without holds.
• If you are creating an electronic payment, you must assign supplier banks to your
supplier.
Formatting and Optionally printing the Check
• To format and print, first verify the payment document is in your printer, then select Print
Now, optionally change the printer name, and choose OK.
• To format only and print the check later, select Format and choose OK. When you are
ready to print, print from the Submit Requests window. You can use the Print Now
option in the Actions window to print only if you print immediately after formatting.

Quick Payment Restrictions
• Number of Invoices: You can only pay as many invoices as you defined for the
remittance advice of the payment document.
• Same Supplier Site: You can only select invoices that have the same supplier site as
the payment supplier site you enter. You can, however, change the payment mailing
address if the Allow Address Change option is enabled in the Single Payment region of
the Payment tab of the Payables Options window.
• Pay Alone Invoices: The system adjusts the list of values to ensure that you don't pay
a Pay Alone invoice when you pay multiple invoices. If you have selected an invoice for
payment and then select more invoices for payment, then Payables does not include
Pay Alone invoices on this list of values. If you select a Pay Alone invoice for Payment,
you cannot select more invoices.
• Paying In A Foreign Currency: You must pay in the same currency as the invoice. You
can enter and pay a foreign currency invoice only if the Use Multiple Currencies option
is enabled in the Currency tab of the Payables Options window, and you have defined a ble
multi-currency or foreign currency denominated bank account. fe ra
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• Cannot Stop Formatted Quick Payments: You cannot stop a Quick Payment before it
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has been formatted.
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Initiating Quick Payments from the Invoice Workbench
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In the Invoice Workbench, you can initiate quick payment m e invoices or one or
)of oneuoridmore
more scheduled payments. You do this by selecting
o
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t G you want to pay, clicking the
Actions button and selecting the Pay in Full
m
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de to the Payments window. The
i n S
Payment Type defaults as Quick. Payables
d d i@ hautomatically
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information for you, such as payment t and supplier/site name, and you skip the invoice
tva if uyousamount
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selection step you would perform
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The Quick Pay
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option requires definition of Quick Pay discounts and attach them to the
h y a It also requires the ability to change the Quick Pay options at the time of invoicing.
suppliers.
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u resolve the issue, the payment terms in payables now include definition of discounts in
MToabsolute terms. The payment terms now captures the Criteria for discount calculation by
comparing the higher or lower Percentage Discount and Discount Amounts.

Processing Stop Payments for Single Payments
Contact Bank
Request Stop Payment
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Processing li
m Stop Payments for Single Payments in the Payment Work Area
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ut graphic describes processing stop payments for Single Payments.
MThe
Stopping a Payment
• Contact bank and request stop payment.
• Find the payment online. On the Payments Page, select the payment and choose the
Actions button.
• In the Payment Actions region, select Initiate Stop.
• Choose the OK button to update the payment status to Stop Initiated.
Releasing a Stop on a Payment
• Find the payment online. On the Payments Page, select the payment and choose the
Actions button.
• In the Payment Actions region, select Release Stop.
• Choose the OK button to release the stop on the payment and reset the status to
Negotiable.

Stop Payment Restrictions
• Prepayments: You cannot initiate a stop payment on a payment document that pays a
prepayment that you have applied to an invoice. You must first unapply any
prepayments, and then you can stop payment.
• Quick Payments: You cannot initiate a stop payment on a Quick Payment that has
been formatted.
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Voiding Single Payments
Query Payment Invoice

Void Available for le
Payment erab
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Invoice anon sf
Invoice Action n - t r
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Voidinga m Payments
Single li in the Payment Work Area
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Voiding a Payment
Find the payment online, and from the Payments window, select the payment and choose the
Actions button. In the Payment Actions window, select Void. Review and optionally change
the void Date and the GL Date you want Payables to use for the accounting distributions.
• If you want to change the status of the related invoices to Unpaid, select None for the
Invoice Action. The invoices will be available for payment on a new payment.
• If you want to apply a hold to the related invoices, select Hold for the Invoice Action and
select a Hold Name in the Hold window. Payables voids the payment, resets the status
of the related invoices to Unpaid, and applies the hold you selected to the related
invoices.
• If you want to cancel all related invoices and reset their Amounts to zero, select Cancel
for the Invoice Action. Payables voids the payment and cancels the related invoices.

Voiding and Reissuing Quick Payments
You can:
• Void a Quick payment and automatically reissue payment for the same invoices
• Void the original payment and reissue a new Quick payment
Prerequisites
To void and reissue a Quick payment:
• Load and properly align your payment document in the printer.

• Find the Quick payment online, and from the Payments Page select the payment and
choose the Actions button.
• In the Payment Actions window, select Reissue. Enter the Payment Date and confirm
the New Check Number. Payables automatically selects Void for you. Review and
optionally update the void dates. Payables voids the selected Quick payment and
creates a new Quick payment to pay the invoices. e
Restrictions ra bl
s fe
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• Invoices Paid By Another Payment: When you void a payment, you cannot cancel a
n
related invoice if it was partially paid by a second payment. Instead, when you choose
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Cancel Invoice, the system applies an ”Invoice Cancel” hold to the invoice for your
a
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reference. You can release the hold manually in the Invoice Holds window.
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• Cancelling Associated Invoices: If you attempt to cancel an invoice that has been
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partially paid by another payment by using the Cancel Invoice Action, instead of
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cancelling the invoice, Payables applies an Invoice Cancel hold to the invoice. This hold
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• Cleared Payments: You cannot void a payment that the bank has already cleared.
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• Prepayments: You cannot void payment on a payment document that pays a
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prepayment that you have applied to an invoice. You must first un-apply any
V li
prepayments, and then you can void the payment.
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Note: Since you cannot reverse a void on a void payment, you should have the payment you
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want to void in your possession or proof that it has not cleared the bank or has been
destroyed before you record it as voided. You may also want to review the invoices paid by
that payment before you void it, to ensure that you are voiding the correct payment. You can
review these invoices in the Invoice Workbench.

Processing Multiple Payments: Overview
Payments • Create payment process

request templates
• Use templates to
The Payments work area automatically select invoices
enables you to perform the to pay
following payment actions: • Schedule pay runs
• Modify invoice selection and
payment amounts
• Initiate payment instructions ra ble
• View the status of paymentsnsfe
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• Void or record stop payments
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Payment Process Request (PPR)
Reduce disbursement costs by grouping large number of invoices

across the enterprise into payment batches and creating fewer
number of payment files.
Automatically select invoices across:

• Business units
• Legal entities
• Currencies
• Pay groups ra ble
e
• Payment methods nsf t r a
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• Increase payment efficiency by scheduling ) ha payment
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requests according to your needs. ฺ c om t Gu
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CM NOTES:
y m You canli run automated all the way from selecting invoices (actually invoice
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installments) all the way through check processing and payments file to the bank.
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Payment Process Request
Payment Creation Flow
Select Build Create and Format Transmit or Print
Invoices Payments Payment Files Payment Files
• Select invoices • Validate invoice  Initiate payment file  Initiate check

based on selection information required creation printing/payment
criteria for payment transmission
• Group payments into
• Calculate interest  Review invoice payment files • Print
and discount validation errors checks/transmit
• Validate payment files
• Group invoices into electronic
 Review selected  Review payment file
invoices payments payments
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 Review proposed
validation errors
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• Format payment files
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Documents
y m payablesli (invoices) are grouped into the same payment only if they have the
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• Payment method
• Payment format
CM NOTES: To start payment process you would define selection criteria (bullets in green are
the optional stopping points.
R12 Payment files are the same as payment instructions. Payment Files=Payment
Instructions.
Payment currency has to match either the bank currency or the functional currency.
Payment is still by Business Unit.
Oracle is not PCI compliant but it provides the tools (masking, encryption) for client to be PCI
compliant. The same applies to External Bank accounts.
Oracle provides a Central Repository for controlling encryption and masking.

Creating Payment Process Request Templates
Payment process request templates are

created to simplify pay run processing.
A template is used to select invoices for a pay ble

run and specifies the following: fe ra
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• Header information
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• Payment selection criteria
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• Payment attributes
• Processing instructions ) has ideฺ
• How validation failures will be handled o m G u
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Benefits
Payment process request templates enable you to:
• Minimize data entry by saving you from re-keying frequently used values, which
simplifies and expedites pay runs.
• Retrieve cash requirements for the invoices that will be selected for payment by running
the Schedule Cash Requirements Report.
• Schedule payment process requests to run on a repeating basis.
• Submit specific payment process requests by specifying a template that is used as a
parameter and which contains all the information needed for submitting the particular
payment process request.
• Use a template as a starting point for submitting pay runs

Specifying Payment Process Request Template Header
Information
The first step in creating a

Template payment process request

Header template is to specify template
header information.
Information
The information in a header
uniquely defines the template,
making it easy to query.
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Template.
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MName
You have to specify an unique name for every Payment Process Request Template.
Template Types
Templates can be categorized by types to enable you to quickly find the appropriate template.
Template types are particularly useful in large enterprises because templates are not
identified by organization unit.

Specifying Payment Process Request Template
Payment Selection Criteria
The next step in creating a

Invoice payment process request

Payment template is to specify invoice
selection criteria.
Criteria
Selection criteria determine
which invoices will be selected
for payment in the pay run.
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Template.
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MSelection Criteria subtab
The Scheduled Payment Selection Criteria subtab includes the following parameters that you
can use to limit the selection of invoices for a pay run:
• Supplier type (payee type, such as Company, Contractor, or Government)
• Payee (supplier)
• Payment method (such as Check, EFT, Wire, and Bills Payable)
Pay Through Days: This mandatory value determines the Pay Through Date on a payment
process request. It represents the additional number of days that Payables will select invoices
for payment. For example, if you enter a value of 4, it means that Payables will select invoices
for payment from the start date, which is derived from the Number of Pay From Days, with
payment dates from the Pay From Date up to 4 days into the future. The value that you enter
for the Additional Pay Through Days translates into a date that the system uses as the end
date of the range of payment dates for which invoices will be selected.
Payment Priority High/Low: Optionally, these values represent the highest and lowest
payment priority, respectively, for the selection of invoices. The default range is from 1-99 with
1 the highest payment priority and 99 the lowest.

Date Basis: You can select either Pay date or Due date. Due date option should be selected,
if you want to override supplier sites with a pay date basis set to discount and only pay
invoices with due dates.
Invoice Conversion Rate Type: Options include User or Not User.
Pay Groups: Optionally, you may wish to pay only specific groups in this pay run, such as
manufacturing suppliers, office supplies suppliers, or utility suppliers or you may elect to pay
all pay groups.

Specifying All or Specific Parameters of Payments for Pay Groups, Legal Entities, Payment
Currencies, and Business Units
The Scheduled Payment Selection Criteria subtab enables you to conveniently specify
multiple pay groups, payment currencies, legal entities, and Business Units from which the
template will select the scheduled payment invoices.
For example, if you select the All radio button for Business Units in the Scheduled Payment
Selection Criteria subtab, the selection process selects scheduled payments for all Business ble
Units for which you use the template to submit a request. fe ra
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If you select the Specify radio button in the Scheduled Payment Selection Criteria subtab, you
those Business Units. a no

can specify Business Units and the selection process only selects scheduled payments for
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Key Decision and Best Practices for Payment Selection
Criteria
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Key Decision: li
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Broad invoice selection criteria:
• Creates as few payment process requests as possible.
• Recommended for a Centralized Processing model.
• Payment process templates can be fewer and more generic.
Best practice: Ensure that only one payment process profile is active per unique set of
transactional attributes (business unit, payment method, disbursement bank account, and
currency).
Expenses can then derive the payment process profile automatically per payment, instead of
forcing all payments in a payment process request to have the same payment process profile.
Targeted invoice selection criteria:
• Recommended for a Decentralized or Payment Factory model.
• Allows different types of payments to be managed in separate processes, such as
expense reports on Monday, domestic supplier payments on Tuesday, and so on.

Targeted invoice selection criteria:
• Recommended for a Decentralized or Payment Factory model.
• Allows different types of payments to be managed in separate processes, such as
expense reports on Monday, domestic supplier payments on Tuesday, and so on.
Best practice: Create specific payment process templates for each type of payment using
pay groups, payment priorities, or other targeted selection criteria.
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Specifying Payment Process Request Template
Payment Attributes
The Payment Attributes region on
the Payment and Processing

Single Payment Options tab in creating a payment
Process Profile process request template is used to
specify payment attributes.
For a pay run, you can specify one
of the following:
– A single bank account and a
single payment process
profile ra ble
– Multiple bank accounts n s fe
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Mfrom to pay theBank
Disbursement Account: Select the bank account that you want to use to draw funds
selected invoices.
Note: If you wish to specify how all the documents payable in a pay run will be paid, specify a
single disbursement bank account and payment process profile. If you don’t specify bank
account or payment process profile, or mistakenly specify an inappropriate bank account or
payment process profile for a document payable, then the payment process pauses and
requires you to provide these values in the Complete Document Assignments: Payment
Process Request <name> page. An example of this would be where the user's selection
criteria selects an invoice that has a payment method that is not assigned to the specified
payment process profile.
If you leave this field blank, it will be populated when you select a payment process profile.
For a pay run, you do not need to specify only a single bank account or a single payment
process profile. Instead, you can manage a large group of selected documents payable in a
pay run by paying from multiple bank accounts and using different payment process profiles.
This occurs if you assigned the appropriate bank accounts and payment process profiles to
specific organizations.

Payment Document: Enter the document name of the check stock you want to use to print
checks.
Note: This field applies only to printed payments, such as checks.
Payment Process Profile: Select the payment process profile you wish to use for this
template.
Note: Leave this field blank if you will be using this template to select both printed and
electronic documents payable in a pay run. A payment process profile contains information
that specifies how Payables is to handle documents payable, such as invoices. The selection
of a payment process profile is determined by the payment method assigned to the
documents payable, whether printed or electronic. The payment method is assigned to the
payment process profile. Payment process profiles also include specifications for payment
formatting and transmission.
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Automating the Payment Process Request Template
Process
The Procession Options region in

creating a payment process request

template is used to specify the degree
Select Elements of Pay of pay run automation.
Run Automation The pay run process can specify
whether to:
– Review installments
– Review proposed payments
– Create payment files immediately
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The graphic li automating the Payment Process Request Template process.
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u
Review
Mselected and the status of the payment process request updates to Invoices Pending Review.
Review Proposed Payments: If you select this check box, the Build Payments program runs to
group the invoices into payments and the pay run pauses after payments have been built for
the payment administrator to review.
Create Payment files immediately: If you select this option, the system initiates the automatic
creation of payment instructions immediately after the payment process request completes.

Specifying Validation Failure Criteria for the Payment
Process Request Template
The Validation Failure Handling
region in creating a payment

process request template is used to
A Payment
specify how the system handles
Contains One or validation failure on the:
More Documents – Document level
– Payment level
Documents are invoices grouped
together to form a payment. A
payment contains one or more ra ble
documents. n s fe
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Submitting the Cash Requirement Report
Cash Requirement Report Can Be

Report Submitted
Before every pay run to
determine cash
Used to forecast your
requirements for the pay run
immediate cash needs for
invoice payments For next two or three pay
ra ble
runs to forecast cash
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The graphic li the Cash Requirement report.
m describes
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thrun the Cash Requirement Report, perform the following steps:
u
To
M 1. In the Manage Payment Process Request Template page, query the payment process
request template you want to use for the pay run.
2. For the appropriate template row, click Actions Submit Cash Requirements Report
option to run Cash Requirement Report.

Submitting a Standard Payment Process Request
Using the Payments Manager, you can manage a large group of

documents payable associated with the following:
• Multiple business units

• Multiple legal entities
• Multiple currencies and pay groups
• Multiple bank accounts
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a m paymentliprocess request typically contains multiple documents payable to be
A standard
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paid.
u
Mand then the payments are built into payment instructions for final disbursement, whether by
check or electronic transmission.
Payment setup enables pay runs to automatically derive the bank account and payment
process profile for each invoice during processing, based on its payment method, Business
Unit, and currency.

Scheduling a Payment Process Request
You can schedule a payment process request that selects

invoices using a specific payment process request template,
which will run:
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Schedulea li
mpayment process requests to run on a regular basis. You can schedule a request
as:th y
Mu 1. Search for your Payment Request Template on the Template Creation Page
2. Select the row for your Template
3. Choose Actions and select Schedule Requests
4. Click on Advanced Tab and either choose as soon as possible or using a schedule
option
5. Click on Submit.

Reviewing or Modifying Selected Invoices
By reviewing and modifying invoices that are selected for a pay

run, you can:
• Change the invoice amount or the discount taken

• Remove selected invoices from the payment process request
• Add invoices to the payment process request
• Review unselected invoices
• Recalculate interest, payment withholding, or exchange rates ble
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Building Payments
After you submit a payment process request, the Build

Payments program groups invoices together to build

payments.
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• Validates invoice information required for payment
n - t r
• Groups invoices into payments a no
• Assigns disbursement bank accounts and paymenth a s process
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Documents
y m payableliare grouped into the same payment only if they have the same:
u•th Payment process profile
M • Payment method
• Payment format
Grouping rules in the payment process profile can further help you control which invoices are
grouped together.

Creating and Transmitting Electronic Payment
Instructions
Payment instructions are a collection of payments that are
created by one of the following ways:
• Created automatically by the Create Payment Instructions

program
• Created after manual submission by you
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Electronic li
mpayment instructions are transmitted to a payment system automatically or it is
h y
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deferred,
Mare
based on the setup of the payment process profile. If electronic payment instructions
transmitted, you must manually initiate the transmission.
Payment File
Each payment instruction that is electronically transmitted to a payment system or financial
institution is associated with a payment file. This payment file contains data that tells the bank
or payment system how to make the payment. The following information is typically included
in electronically transmitted payment files:
• Number of payments to be made
• Amount of each payment
• First party payer and third party payee bank account information
• Name of payees

Printing Payments
Manage Payments
Search for Payment Document
Actions - Print Remittance
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Setup for Printed Payments:
n - t r
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Create Payment Process
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The following li in header region on the Create Payment Process Profile page impact
m settings
y
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printed
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M 1. Processing Type is Printed.
2. Default Payment Document
3. Send to File produces a formatted output file, which is printed outside of the Oracle E-
Business Suite.
4. Send to Printer
5. Automatically Print After Formatting
6. Default Printer
7. Payment File Format is where the user specifies the payment file format to use for the
printed payment file.

Spoiled Pre-numbered Payment Document
A spoiled payment document is one that was ruined during

printing and cannot be used. Pre-numbered payment documents
are those that have the document or check number already

printed on them.
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If you choose li perform both of the following steps:
m to reprint,
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M u 1.
document on the Reprint Payment Documents page.
2. Report the payment as issued on the Record Print Status page.
The application notes the spoiled pre-numbered payment document, associates the new
number with that payment, and reprints the new pre-numbered payment document.
If you choose not to reprint, mark the pre-numbered payment document as spoiled on the
Record Print Status page and then manually destroy the paper document.

Confirming Payments
When printed and electronic payments are confirmed, source

products are notified so they can perform any necessary
accounting actions. Printed and electronic payments are

considered complete as follows:
• Printed payments are complete when payment documents are
recorded as Printed.
• Electronic payments are automatically or manually marked
complete at points specified during the setup of payment rabl
e
process profiles. n s fe
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Confirming li
m Printed Payment File
h y
ut payments are considered confirmed when the payment documents are recorded as
MPrinted
printed on the Record Print Status page.
Once the payments in a payment file are confirmed, the source product is notified.
Simultaneously, you can no longer terminate the payment file. Instead, you must void any
payments with issues. The Terminate Payment Process action, therefore, does not appear on
any page that appears in the context of a payment file whose payments were confirmed.
Confirming Electronic Payment Files
A confirmed electronic payment file is one that is complete and considered done. Oracle
Fusion Payments must notify source products when payments are confirmed, so the source
products can perform necessary actions, such as accounting. The point at which an electronic
payment is considered confirmed depends on the deploying company's business practices, as
well as on what notification the payer's payment system supports, such as acknowledgment
and clearing.
Electronic payment files can be confirmed by:
• Specifying an automatic payment file confirmation point
• Manually confirming payment files

Processing Refunds
When a supplier or employee sends you a refund for an invoice

payment you have made, you can record the refund. A refund
closes an outstanding credit balance, so you are actually making

a negative payment for a credit balance.
The credit balance can consist of the outstanding balance of any
combination of the following documents, as long as the sum is
negative and equals the refund amount:
• Invoices ra ble
• Debit memos n s fe
- t r a
• Credit memos n on
s a
• Expense report h a eฺ
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li with a refund records each document as paid, and gives you a
m documents
Payingathese
y
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complete
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Example
Suppose you want to stop doing business with a supplier. You have an overall $100 credit
balance with the supplier. The supplier sends you a $100 refund for the credit balance, which
consists of a credit memo of $250 and an unpaid invoice of $150. You enter a $100 refund (a
$100 negative payment), and apply it to the invoice and credit memo.
After you apply the refund, the invoice and credit memo are recorded as paid, and you have
no outstanding documents for the supplier.
Impact of Recording a Refund
When you record a refund, Payables debits your cash or cash clearing account and credits
your expense or liability account, depending on whether you use cash or accrual accounting.
You can take discounts on payables documents you pay with a refund.
Note: If you withhold taxes at payment time, Payables does not automatically withhold taxes if
you pay with a refund.

Entering Refunds
The Create Payment page is used to record a refund payment for

one or more outstanding Payables documents. This enables you
to close an open credit balance and maintain a full transaction

history for the supplier.
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The sum a m li
of the documents you select must:
t h y
Mu•• Equal the amount of the refund
Be in the same currency as the refund currency
You can identify negative supplier balances by submitting the Accounts Payable Trial Balance
Report with the parameter Negative Balances Only set to Yes.

Refunds for Prepayments
You may receive refunds from suppliers for prepayments you

have made to them, such as a refund for a deposit or repayment
of a travel advance.
If you receive a refund for a prepayment, enter an invoice and
apply the prepayment to it. Enter a debit memo for the invoice.
You can then pay the debit memo with the refund.
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Voiding Refunds
You can void a recorded refund just as you void any other
payment. Select the refund in the Payments window, choose the
Actions button, and use the Void option in the Payment Actions
window.
You can then re-enter the refund and pay any open invoices or
prepayments for the supplier.
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This feature does not integrate with Oracle Receivables or other receivables systems.

Canceling Payment Process Requests in the Payments
Manager
You can cancel a request for invoice selection by taking one of
these actions on the Payment Process Requests tab of the
Payments Manager.
In the Payment
Process Request:
Selected Scheduled
Payments page, click
the Terminate
ble
Request button.
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The graphic li canceling Payment Process Requests.
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Cross-Currency Payments
Create invoices with payment currency different from invoice

currency.
Create cross-currency payments by selecting invoices with

invoice currency different from payment currency.
Relieve liability in invoice currency and credit cash in payment
currency.
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Create invoices with payment currency different from invoice

currency.
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Create payments for invoices that have different invoice

currencies but the same payment currency using a Single
Payment.
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Third-Party Payments
A third-party payment is a payment that a company makes to a

designated party on behalf of the supplier on the invoice.
• Set third-party relationships

• Capture third party on invoices
• Make payments to third party
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Third-Party Payments
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Centralized Payment Processing Across Business Units
Centralized payment processing enables you to implement a

shared payment service model.
A single payment business unit provides payment services to

multiple invoice business units. That is, any business unit with the
Payables Payment business function can provide payment
services to other business units with the Payables Invoicing
business function.
The designated payment business unit processes invoices fromrabl
e
multiple invoice business units and generates a consolidated n s fe
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payment for a given supplier. on
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Payment Service Models
The different models of payment services that you can implement

are:
• Dedicated
• Self-Service
• Dedicated and Self-Service
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Payment Service Model: Dedicated
ble
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In a dedicated payment service model, the payment
m ) ubusiness
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m ฺ co nunit
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In a dedicated li service model, the payment business unit works solely as an
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outsourced payment processing unit to service other invoice business units.
M u

Payment Service Model: Self Service
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In a self-service model, the invoice business unit a
h s ฺ itself, acting
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In a self-service li the invoice business unit services itself, acting as its own payment
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service
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Payment Service Model: Dedicated and Self Service
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In a dedicated and self-service model, theopayment ide unit, in
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In a dedicated li
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itself,
Mu

Prepayments Overview
A prepayment is a type of invoice you enter to make an advance

payment to a supplier or employee.
For example, you need to pay a deposit on a lease, or pay an

employee an advance for travel expenses.
You can later apply the prepayment to one or more invoices or
expense reports you receive from the supplier or employee to
offset the amount paid to them.
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A supplier li an invoice that references a prepayment. If a supplier reduces the
mmight send
y
th amount by the amount of the prepayment and associated tax, you can use the
invoice
u
MPrepayment on Invoice feature to enter the invoice.
You can enter a prepayment invoice with application option enabled or disabled.
Allow Prepayment Application
Prepayments can be applied to invoices or expense reports you receive only if this option has
been enabled while entering an invoice. For example, you use a prepayment to pay a hotel a
catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to
reduce the invoice amount you pay.
You can also decide about the date before which the prepayment should not be applied.
Disallow Prepayment Application
You can avoid prepayment application to invoices by disabling this option. For example, you
use prepayment to pay a lease deposit for which you do not expect to be invoiced.

Applying and Releasing Holds on Prepayments
To prevent payment of a prepayment, you can apply one or more

holds to the prepayment or you can hold the scheduled payment
(installment).
You apply these holds as you would for any other invoice.
You release holds from a prepayment just as you would for any
other invoice.
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Applying Prepayments to Invoices and Payment
Requests
You can apply the available amount of Item type distributions
from a Temporary type prepayment to one or more invoices to
offset the amount you pay on the invoices.
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Pay a prepayment li as you would any other invoice. However, you cannot partially pay a
just
th y
prepayment; you must fully pay it. You must fully pay a prepayment before you can apply the
u
Mprepayment to an invoice.
If you entered the prepayment as a Permanent type and want to apply it, you can search the
prepayment on the Manage Invoices page and change the Prepayment Type to Temporary.

Canceling Prepayments
You can cancel prepayments if one of the following is true:

• They have not been paid.
• They have not been applied to invoices.

To cancel an applied prepayment, you must:
• Unapply the prepayment
• Void the payment document that paid the prepayment
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Reconciling Payments with Cash Management
With Oracle Fusion Cash Management, you can reconcile

payments created in Payables to your bank statements. When
you reconcile payments using Oracle Fusion Cash Management,

Cash Management updates the status of payments to
Reconciled.
Oracle Cash
Management ble
fe ra
Reconciles payments a n s
from
t r
Payables.
n on-
Updates s a
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c o m Guidpayments.
reconciled
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If you enable li for Payment When Payment Clears option in the Payables Options
m the Account
y
th the following accounting events generate reconciliation accounting entries when you
page,
u
Msubmit the Create Accounting process:
• The delay in the bank clearing of payments from the time of issuance to the time of
reconciliation
• Differences between the original payment amount and the cleared payment amount due
to exchange rate fluctuations, bank charges, or bank errors
• Reconciled payments
• Unreconciled payments
Important: You can reconcile foreign currency payments that have no exchange rates.
However, Oracle Subledger Accounting will not create reconciliation accounting entries. If you
enter the exchange rate in the GL Daily Rates table and then submit the AutoRate program,
the reconciliation accounting entries are created for payments that were reconciled without
exchange rates.

Summary

• Describe the key features of payments.
• Describe the process of setting up payments.

• Understand the payment processing options.
• Perform, review, and adjust payments.
• Create, apply, and release holds on prepayments.
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6
Withholding Tax ble

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Objectives

• Describe the withholding tax process.
• Use the withholding tax options.

• Create withholding tax invoices.
• Process automatic withholding tax invoices.
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Withholding Tax Overview
• You may be required to withhold taxes from your employee

expense reports and supplier invoices.
• Once you set up Payables to automatically withhold tax, you

can withhold tax either during Invoice Validation or during
payment processing.
• You can control all withholding tax options in the Manage Tax
Reporting and Withholding Tax Options page.
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a m automaticli withholding, assign a withholding tax group to an invoice or invoice line.
To perform
y
th the default withholding tax group from the supplier site or select another from a list of
Accept
u
Mvalues. To withhold tax, Payables creates one or more Withholding Tax type invoice
distributions. These distribution amounts are not included in the Distribution Total field. For
each invoice, Payables automatically updates the Withheld Amount field, and updates
scheduled payments to reflect the withholding. For example, for a Standard type invoice with
an amount of 100 and a withholding tax amount of 20, Payables creates Withholding Tax type
invoice distributions that total –20. The Distribution Total remains 100, and Payables updates
the Withheld Amount field to 20. Payables also updates the scheduled payments.
Review withheld amounts online or submit standard reports. For foreign currency invoices, the
withheld amount is calculated based on the functional currency amount of the invoice, and is
then converted back into the foreign currency. Therefore, due to rounding, it may be different
from the foreign currency invoice amount multiplied by the withholding tax rate.
Restrictions
• Adjustments To Invoices: If an invoice is paid or partially paid, then you cannot
reverse a withholding distribution.
• Foreign Currency: Payables will not create a payment for a foreign currency invoice if
the following conditions are true: the invoice has a withholding tax group assigned that is
set up with either a period limit or more than one amount range.

Manage Tax Reporting and Withholding Tax Options
• Select the Use Withholding Tax option to enable Automatic

Withholding Tax.
• If you enable this option, you have the option to allow your
suppliers and supplier sites to be subject to withholding tax.
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For ana
y m Class inli addition to the Apply Withholding Tax option, you can specify the
Event
th withholding tax options.
following
u
MProcess Transaction Taxes
Enable this option to calculate withholding tax on transaction tax lines.
Allow Manual Withholding
Enable this option to allow manual creation and adjustments of Withholding Tax type
distributions for your invoices.
Calculation Point
Select the time at which you would like Payables to apply withholding taxes to your supplier’s
invoices:
• Invoice
• Payment
• Both

Regime Determination Set
Select the template that determines the tax regime to use for all transactions belonging to this event
class. The options include WHTSTCC and WHTTAXREGIME.
Tax Invoice Creation Point
Specify the time when a tax authority invoice is generated
Include Discount
Determine if a deduction of a discount is applied to the taxable basis when the calculation point is
Payment.
Rounding Level
Apply rounding to calculated tax amounts once for each withholding tax rate per invoice or to the
calculated withholding tax amount on each invoice line
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Defining Tax Codes for Withholding Taxes
• Payables provides flexibility in defining withholding tax rates

with specific controls.
• Each tax code is defined within the context of a business unit,

country, tax regime code, tax, and tax status code.
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a
A withholding li is the name for a withholding tax rate. Withholding tax codes use
m tax code
y
th Fusion Tax's regime to rate setup structure.
Oracle
u
MRegime to rates include:
• Tax regime: The set of tax rules that determines the treatment of one or more taxes
administered by a tax authority. The common tax regime setup is one tax regime per
country per tax type. The tax requirements are administered by a government tax
authority for the entire country.
• Tax: The details for the taxes of a tax regime. Each separate tax in a tax regime
includes records for the tax statuses and tax rates that are used to calculate and report
on the tax.
• Tax status: The taxable nature of a product or service in the context of a transaction
and specific tax on the transaction. For example, one tax can have separate tax
statuses for standard, zero, exemptions, penalty, and reduced rates. You define all
applicable tax rates and their effective periods under the tax status.
• Tax rate: The rate specified for a tax status and is effective for a period of time. Set up a
tax rate record with applicable tax rate detail information per rate period. Rate periods
account for changes in tax rates over time.

Defining Tax Codes for Withholding Taxes
• When you define a withholding tax code, specify the tax rate
type to base the withholding tax calculation on a percentage
or rate schedule.
• The tax rate type values are:
– Percentage
– Gross amount rate schedule
– Withheld amount rate schedule
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For each rate type, the same withholding tax code can have different rate period details based
on effective periods. For
example, the withholding tax rate is 10 percent one year and 11 percent the following year.
Percentage
Select Percentage if a flat rate percentage is required rather than different rates for different
amount ranges. For example, if
withholding tax is deducted at a specified rate of 10 percent, create a percentage tax rate
code with a tax rate of 10 percent.
You can use percentage rates in conjunction with tax threshold controls that are defined at the
tax level. For example,
withholding for a specific tax is restricted to no more than 10,000 USD for a withholding tax
period
Gross Amount Rate Schedule e
ra bl
Select Gross amount rate schedule to apply different tax rate percentages for different invoice
amount ranges. You can n sfe
t r a
-invoice
n n
define the rate schedule at the document level or period level to includeoall amounts
from a supplier for a specified
s a
a
h idateaฺ rate of 10 percent for
period. For example, define a tax code that for each year )withholds
the first 10,000 USD in invoice
ฺ c om t Gu
ofm
amounts from a supplier. Then, define a rateฺib e
15 percent
d nafter the first 10,000 USD.
You can build document or period limits@ in ratetuschedule if necessary, by defining a To
into the S
amount for the highest amountadd
i h is
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range. u
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Withheld AmountdRate Schedule
V
m amount
Select Withheld
a li rate schedule to apply different tax rate percentages for different
y
th amount ranges. You
withheld
u
Mcan define the rate schedule at the document level or period level to include all invoice
amounts from a supplier for a specified
period. For example, define a tax code that for each year withholds at a rate of 10 percent for
the first 1,000 USD in withheld
amounts from a supplier. Then, define a rate of 15 percent after the first 1,000 USD.
You can build document or period limits into the rate schedule if necessary, by defining a To
amount for the highest amount
range.

Withholding Tax Classifications
Withholding tax classifications include one or more withholding

tax codes.
Define withholding tax classifications to associate one or more

withholding tax codes to a single transaction.
You can edit a withholding tax classification to add more tax
codes if needed.
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To useawithholding li codes, assign them to one or more withholding tax classifications.
tax
y
th you define a withholding tax
When
u
Mcode, you can enable the Create withholding tax classification option to automatically create a
classification for that tax
code. To handle rate exceptions, define withholding tax certificates for a withholding tax.
Applying Withholding Tax Classifications to an Invoice
For supplier sites that use withholding tax, the withholding tax classification that you define at
the supplier site assignment
level is used to populate the default tax classification on the invoice. You can override any
default withholding tax
classification.

Withholding Tax Certificates and Exceptions
You use the Withholding Tax Certificates page to define

Withholding Tax type tax code rate exceptions for a supplier site.
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You can a m li
define a certificate to specify a rate exception for a Withholding Tax type tax code for
h y
utinvoices of a supplier site.
all
MYou can also define a rate exception for a Withholding Tax type tax code for a single invoice.

Withholding Taxes for Suppliers
• You enable withholding taxes for a supplier in the Income Tax

region of the Suppliers page by selecting the Use Withholding
Tax check box.

• Select a default Withholding Tax Group that Payables will
default to all invoices you enter for the supplier or supplier
site.
• You then enable withholding tax on the Site Assignments tab
for each applicable site and select a withholding tax group for ra ble
the site. n s fe
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Creating Withholding Tax Calculation Points
Supports withholding calculation tax point at both invoice

validation and payment. The withholding tax could apply during
invoice validation or payment.
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Supports
y a mwithholdingli calculation tax point at both invoice validation and payment. The
u th
withholding tax could apply during invoice validation or payment.
M

Withholding Tax when Applying Prepayments
• If you use automatic withholding tax, Payables creates the

correct withholding tax lines and distributions.
• If your Withholding Tax option is set to Invoice, then you might

want to time the entry of the prepayment application before
the invoice is validated.
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If you apply li
m the prepayment before the invoice is validated, Payables creates a withholding
h y
ut distribution
tax
Mcreates
net of the prepayment amount. If you validate the invoice first, Payables
a withholding tax distribution based on the taxable invoice amount. When the
prepayment is applied then you will have to manually adjust the withholding tax amount and
the withholding invoice if your Withholding Tax Payables option is set to create withholding
invoice at invoice validation time or at payment time.

Creating Withholding Tax Invoices
After you apply withholding tax to an invoice, you can optionally

create invoices to remit the withheld tax to the tax authority.
ble
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Summary

• Describe the withholding tax process.
• Use the withholding tax options.

• Create withholding tax invoices.
• Process automatic withholding tax invoices.
ble
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7
Payables Reporting ble

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Objectives

• Describe and submit standard reports.
• Describe and submit ad hoc reports using Oracle

Transactional Business Intelligence (BI).
• Understand Business Intelligence (BI) Publisher.
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Fusion Payables Predefined Reports
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Oraclea Fusion li provides predefined reports for the following areas:
m Payables
y
•th Invoices
M u
• Prepayments
• Payments
• Income Tax and Withholding
• Period Close
• Reconciliation
Some reports are defined as Oracle Business Intelligence Publisher (Oracle BI Publisher)
reports and others are defined as Oracle Transactional Business Intelligence reports. The
reports are secured by duty roles.

BI Publisher Reports
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a m classifiedli as Oracle Business Intelligence Publisher (Oracle BI Publisher) are
The reports
y
u th
scheduled and run from the Scheduled Processes work area on the Navigator menu.
M 1. Click the Schedule New Process button.
2. Search on the Process Name.
3. Enter the desired parameters.
4. Enter the desired process options and schedule.
5. Click Submit.

Invoices Reports
ble
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Prepayment Reports
ble
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Payments Reports
ble
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Income Tax and Withholding Reports
ble
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Period Close Reports
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Oracle Transactional BI Reports
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The Oracle li BI reports are grouped into functional folders in the Oracle Business
m Transactional
th y
Intelligence Presentation Catalog. Run the reports from the Reports and Analytics work area.
M u

Invoices: Folder
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Payments: Folder
ble
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Income Tax and Withholding: Folder
ble
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Period Close: Folder
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Payables to Ledger Reconciliation Report
ble
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Oracle Transactional BI Key Features
Oracle Transactional BI:

• Provides strategic insight to the business, addressing
questions about operational responsibilities.

• Reports directly from the transactional tables and displays the
changes in real-time.
• Displays transactional analytics in various forms, such as
charts, tables, fields, labels, icons, inserted rows, and
columns. ra ble
e s f
r a n
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Oraclea m li BI is first and foremost an ad hoc reporting layer against the Oracle
Transactional
y
th transactional tables and balances cube, designed to allow you to build custom reports
Fusion
u
Mand perform ad hoc analysis as its main strength.
Oracle Transactional BI is included in Oracle Cloud applications and provides the following
key features.
Real Time Business Intelligence
1. Queries directly from Oracle Fusion tables, no need for data warehouse or a data store.
2. Ad hoc analysis using Oracle Business Intelligence Enterprise Edition (Oracle BI EE)
platform.
User Friendly
1. Folder structure similar to Oracle Cloud applications.
2. User interface (UI) labels propagated to the Oracle Business Intelligence (BI)
Presentation layer.
3. Calculated measures.
4. Minimal configuration.

Consistent Semantic Model and Extensible:
1. Hierarchies propagated to Oracle Business Intelligence (BI) from Oracle Cloud
applications.
2. United definition of key entities, such as Customer, Invoice, Date, Account, and so on.
3. Optimized schemas for reporting.
4. Architecture that leverages Oracle Cloud application concepts the applications, such as
flexfields, trees, security, and multilingual support (MLS) to extend the functionality.
A semantic model is a type of information model that supports the modeling of entities and
their relationships. Extensibility is a system design principle where the implementation takes
into consideration future growth.
Highly Interactive:
1. Allows users to add graphs, compose dashboards, and build ad hoc queries.
2. Utilizes Oracle Business Intelligence Enterprise Edition (BI EE) features such as alerts.
bl e
3. Passes data and contexts between Oracle Cloud applications and Oracle Business
fe ra
Intelligence (BI).
ans
Integrates with Oracle Cloud applications: n - t r
1. Single Sign-on. a no
2. Embedded content. h a s ฺ
m ) uide
o
3. Functional and data security obtained from the Oracle Cloud applications.
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Oracle Transactional BI Architecture
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Oraclea m liBI uses Oracle Business Intelligence Enterprise Edition (Oracle BI EE)
Transactional
th y
Technology. Oracle Transactional BI consists of the following components for Oracle
u
MFinancials Cloud:
Oracle BI Administration Tool: Used to design the metadata called the Repository (RPD) and
the repository files (.rpd). The Repository consists of three layers:
1. Physical layer: Defines the database table structure and their relationships. In Oracle
Transactional BI, application development framework (ADF) view objects (VOs) are
used as the physical source instead of the database tables. This has a twofold benefit:
- Update the same security model as Oracle Cloud Applications.
- Improves the performance of the queries through SQL pruning, which eliminates
some of the partitions from consideration during statement execution.
2. Business Model and Mapping layer: Organizes information by business model
specifying the logical dimensions and facts.
3. Presentation layer: Organizes the information by subject area, folders, and columns.
This is the user’s view of the business model.

Star Schemas designed for analysis and reporting. A star schema is data model which
resembles to star. There are one or more tables connected with multiple dimensional tables.
The center of the star consists of one or more fact tables and composite primary key is
pointing to different dimension tables.
A fact table is the central table in a star schema of a data warehouse. Fact tables contain
measures and link to one or more dimension tables. A fact table holds the data to be
analyzed, and a dimension table stores data about the ways in which the data in the fact table
can be analyzed. Thus, the fact table consists of two types of columns. The foreign keys
column allows joins with dimension tables, and the measures columns contain the data that is
being analyzed.
Sample Reports for a number of Financial areas with ad hoc query generation.
Business intelligence view objects (VOs) for a large number of operational tables in Oracle
Cloud Applications.
bl e
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Oracle Business Intelligence Publisher
ble
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Oraclea m
Business li
Intelligence Publisher (Oracle BI Publisher) supports diverse document
t h y
requirements with flexible customization capabilities, and predefined reports are also provided
Mtou meet your business reporting needs.
Key features include:
1. Support for multiple data sources.
2. Support for multiple output formats, including PDF, RTF, and HTML.
3. An online Layout Editor to quickly create and edit layouts.
4. Integration with familiar desktop tools for layout customization.
5. Report output delivery to multiple destinations, including printers, faxes, and e-mail
accounts.

Oracle Business Intelligence Publisher: End-to-End
View
ble
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a m
Data Sources li
y
th Oracle BI Publisher can extract data from multiple data sources including:
u1.
M 2. Any database or multiple databases.
3. Any enterprise resource planning (ERP) system.
4. Any extensible markup language (XML) web service.
5. Any XML data server.
6. Rich site summary (RSS) feeds.
7. External files.
Layout Tools
You can create report templates using:
1. An online browser.
2. Desktop tools, such as Microsoft Word.
3. Different layout templates that simplify the reporting architecture.

Output Formats
You can generate a wide range of output types and formats based on the template definitions,
and publish multiple times using the same data source.
For example, your company can create payment data in a single data extraction process, and
then from that process you can generate various output formats, including:
1. Microsoft Excel: Accountants and controllers can analyze the payment data in
Microsoft Excel.
2. HTML: Payment data can be published to a company portal using HTML.
3. PDF: Government reporting requires communication in PDF format.
4. XML: XML can be used for business to business (B2B) interaction and communication.
Delivery Destinations
Deliver generated documents using multiple delivery methods and channels of your choosing.
Protocols used for report delivery include: e
1. Internet Printing Protocol (IPP). ra bl
s fe
2. Common UNIX Printing System (CUPS).
- t r an
3. Internet Fax Protocol (IFP).
no n
4. SMTP e-mail protocol. a
s ฺ
5. WebDAV, FTP, SFTP. h a
) uide
o m
m ฺc nt G
i nฺib Stude
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Summary

• Describe and submit standard reports.
• Describe and submit ad hoc reports using Oracle

Transactional Business Intelligence (BI).
• Understand Business Intelligence (BI) Publisher.
ble
fe ra
an s
n - t r
a no
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o
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1 Procure to Pay Overview

Mu Overview of Payables Processes 2-4

Default Options for Payables and Procurement 4-5

Defining Tax Tolerances (Optional) 4-67

Single Payment 5-41

Procure to Pay Overview ble

After completing this lesson, you should be able to:

• Describe the key areas in the procure to pay process.

Oracle Financials Cloud: Payables Fundamentals 1 - 2

Oracle Financials Cloud: Payables Fundamentals 1 - 3

Purchase RFQ Supplier Quotation

Oracle Financials Cloud: Payables Fundamentals 1 - 4

Oracle Financials Cloud: Payables Fundamentals 1 - 5

Oracle Financials Cloud: Payables Fundamentals 1 - 6

Inventory Other Systems

Oracle Financials Cloud: Payables Fundamentals 1 - 7

• Automatically source requisitions from outstanding blanket purchase agreements or

Oracle Financials Cloud: Payables Fundamentals 1 - 8

Oracle Financials Cloud: Payables Fundamentals 1 - 9

Oracle Financials Cloud: Payables Fundamentals 1 - 10

Manually create Automatically create

Oracle Financials Cloud: Payables Fundamentals 1 - 11

Oracle Financials Cloud: Payables Fundamentals 1 - 12

Supplier Transfer Inventory

Oracle Financials Cloud: Payables Fundamentals 1 - 13

Oracle Financials Cloud: Payables Fundamentals 1 - 14

invoices If appropriate, match invoice

Oracle Financials Cloud: Payables Fundamentals 1 - 15

interface to import invoices from another system.

Oracle Financials Cloud: Payables Fundamentals 1 - 16

Select • Remove/add invoices

Oracle Financials Cloud: Payables Fundamentals 1 - 17

Oracle Financials Cloud: Payables Fundamentals 1 - 18

Oracle Financials Cloud: Payables Fundamentals 1 - 19

Entity Name Legal Entity Value

US1 BU US 1 LE 1 BSV 101

France BU France BSV 311

Oracle Financials Cloud: Payables Fundamentals 1 - 20

Oracle Financials Cloud: Payables Fundamentals 1 - 21

Entity Type Entity Name Distribution

Distribution Center US Distribution Inventory

Oracle Financials Cloud: Payables Fundamentals 1 - 22

In this lesson, you should have learned how to:

• Describe the key areas in the procure to pay process.

Oracle Financials Cloud: Payables Fundamentals 1 - 23

Payables Overview ble

After completing this lesson, you should be able to:

• Describe the key areas in the Payables process.

Oracle Financials Cloud: Payables Fundamentals 2 - 2

Oracle Financials Cloud: Payables Fundamentals 2 - 3

Enter supplier Import/Enter invoice Validate invoice

Oracle Financials Cloud: Payables Fundamentals 2 - 4

Enter supplier Import/Enter invoice Validate invoice

Oracle Financials Cloud: Payables Fundamentals 2 - 5

Enter supplier Import/Enter invoice Validate invoice

Optionally Pay invoice

Oracle Financials Cloud: Payables Fundamentals 2 - 6

Select • Remove/add invoices

Oracle Financials Cloud: Payables Fundamentals 2 - 7

Oracle Financials Cloud: Payables Fundamentals 2 - 8