Oracle Financials Cloud (Account Payables - AP) On-Hands Guide

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Oracle Financials Cloud

v.Nov2019
(Account Payables - AP)
On-Hands Guide

Account Payables 19D
Last Update Date: 27/Feb/2020
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Contents
Defining Enterprise Structures: Overview .................................................................................... 3
Legal Entities..................................................................................................................................... 7
Business Units: Let's Share Reference Data .............................................................................. 10
Introduce Basic Account Payables Concepts............................................................................. 12
Reference Data Sets and Sharing Methods ............................................................................... 13
Procurement Agent ....................................................................................................................... 16
Managing Common Options for Payables and Procurement ................................................ 18
Invoice Options ............................................................................................................................... 20
Payment Accounting Options ...................................................................................................... 25
Payment Terms .............................................................................................................................. 27
Create a Supplier and Supplier Site............................................................................................. 29
Banks, Branches and Accounts ................................................................................................... 34
Payment Concepts ......................................................................................................................... 38
Invoice Concepts ............................................................................................................................ 42
ADF Desktop Integration x FBDI .................................................................................................. 45
External Data Integration Services (FBDI) .................................................................................. 46
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Defining Enterprise Structures: Overview

An enterprise is a collection of legal entities sharing common control
and management. In short, it represents the hierarchy of an enterprise.
Oracle Applications have been designed to ensure your enterprise can

be modeled to meet legal and management objectives. The decisions
about your implementation of Oracle Applications are affected by your:
 Industry
 Business unit requirements for autonomy
 Business and accounting policies
 Business functions performed by business units and optionally,
centralized in shared service centers
 Locations of facilities
Every enterprise has three fundamental structures that describe its

operations and provide a basis for reporting.
 Legal
 Managerial
 Functional
These structures are implemented using the chart of accounts and

organization hierarchies. Many alternative hierarchies can be
implemented and used for reporting.
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In Oracle Fusion Applications, the Enterprise Performance and

Planning Business Process Model illustrates the major implementation
tasks that you perform to create your enterprise structures. This
process includes:
 Set Up Enterprise Structures business process, which consists of

implementation activities that span many product families.
 Information Technology, a second Business Process Model which
contains the Set Up Information Technology Management business
process.
 Define Reference Data Sharing, which is one of the activities in this
business process and is important in the implementation of the
enterprise structures. This activity creates the mechanism to
share reference data sets across multiple ledgers, business units,
and warehouses, reducing the administrative burden and
decreasing the time to implement.
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The following figure and tablet describe the Business Process Model
structures and activities.
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The table describes each BPM activity.
BPM Activities Description
Define Enterprise Define the enterprise to get the name of the deploying enterprise and the location of the headquarters.
Define Enterprise Define enterprise structures to represent an organization with one or more legal entities. Define organizations
Structures to represent each area of business within the enterprise.
Define Legal Define information for governing bodies that operate within a jurisdiction.
Jurisdictions and
Authorities
Define Legal Entities Define legal entities and legal reporting units for business activities handled by the Oracle Fusion
Applications.
Define Business Units Define business units of an enterprise to perform one or many business functions that can be rolled up in a
management hierarchy. A business unit can process transactions on behalf of many legal entities. Normally,
it has a manager, strategic objectives, a level of autonomy, and responsibility for its profit and loss.
Define Financial Define financial reporting structures, including organization structures, charts of accounts, organizational
Reporting Structures hierarchies, calendars, currencies and rates, ledgers, and document sequences which are used in organizing
the financial data of a company.
Define Chart of Define chart of accounts including hierarchies and values to enable tracking of financial transactions and
Accounts reporting at legal entity, cost center, account, and other segment levels.
Define Ledgers Define the primary accounting ledger and any secondary ledgers that provide an alternative accounting
representation of the financial data.
Define Accounting Define the accounting configuration that serves as a framework for how financial records are maintained for
Configurations an organization.
Define Facilities Define your manufacturing and storage facilities as Inventory Organizations if Oracle Fusion tracks
inventory balances there and Item Organizations if Oracle Fusion only tracks the items used in the facility but
not the balances.
Define Reference Data Define how reference data in the applications is partitioned and shared.
Sharing
Note: Some product-specific implementation activities are not listed here and depend on
the applications you are implementing. For example, you can implement Define Enterprise
Structures for Human Capital Management, Project Management, and Sales Management.
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Legal Entities
A legal entity is an entity unequivocally identified and given rights and
responsibilities under commercial law, through registration with the
territory's appropriate authority.
They have the following rights and responsibilities:
 Own property
 Trade
 Repay debt
 Account for themselves to company regulators, taxation
authorities, and owners according to rules specified in the
relevant legislation
Performed through balance sheets, income statements, specified

reports, and so on.
Their rights and responsibilities may be enforced through the judicial

system.
A legal entity has responsibility for elements of your enterprise for the
following reasons:
 Facilitating local compliance

 Minimizing the enterprise's tax liability
 Preparing for acquisitions or disposals of parts of the enterprise
 Isolating one area of the business from risks in another area
For example, your enterprise develops property and also leases

properties. You could operate the property development
business as a separate legal entity to limit risk to your leasing
business.
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No legal entities are predefined. You must create all legal entities that
apply to the enterprise you are setting up. Use the Manage Legal Entity
HCM Information task in the Setup and Maintenance work area.
When defining legal entities, you must consider the following:
 Roles of Legal Entities

 Types of Legal Entities
 Registrations
 Payroll Statutory Units for Retirees
 Reporting Establishments
 Additional Reporting Information
Roles of Legal Entities
In configuring your enterprise structure, the contracting party on any

transaction is always the legal entity. Individual legal entities:
 Own the assets of the enterprise

 Record sales and pay taxes on those sales
 Make purchases and incur expenses
 Perform other transactions
Legal entities must comply with the regulations of jurisdictions, in

which they register.
For example, US companies can register in one state and do business

in others states.
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To support local reporting requirements, you create and register legal

reporting units.
You are required to publish specific and periodic disclosures of your

legal entities' operations based on the different jurisdictions'
requirements. Certain annual or more frequent accounting reports are
referred to as statutory or external reporting. These reports must be
filed with specified national and regulatory authorities.
For example, your publicly owned entities (corporations) are required

to file quarterly and annual reports, as well as other periodic reports,
with the Securities and Exchange Commission (SEC), which enforces
statutory reporting requirements for public corporations. Individual
entities privately held or held by public companies do not have to file
separately.
Disclosure requirements are diverse. For example, your local entities

may have to file locally to comply with local regulations in US dollars,
as well as being included in your enterprise's reporting requirements in
different currency.
A legal entity can represent all or part of your enterprise's management

framework.
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Business Units: Let's Share Reference Data

So What Is a Business Unit?
A business unit is a unit of an enterprise that performs one or

many "business functions" that can be rolled up in a management
hierarchy. A business unit can process transactions on behalf of
many "legal entities". Normally, it has a manager, strategic objectives,
a level of autonomy, and responsibility for its profit and loss. Roll
business units up into "divisions" if you structure your "chart of
accounts" with this type of hierarchy.
Business units process transactions using "reference data sets" that

reflect your business rules and policies and can differ from country to
country. With Oracle Fusion Application functionality, you can share
reference data, such as payment terms and transaction types, across
business units, or you can have each business unit manage its own set
depending on the level at which you want to enforce common policies.
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In summary, use business units for:

 Management reporting
 Transaction processing
 Transactional data security
 Reference data sharing and definition
The Oracle Fusion Applications business unit model provides the

following advantages:
 Enables flexible implementation

 Provides consistent entity that controls and reports on transactions
 Shares sets of reference data across applications
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Introduce Basic Account Payables Concepts
When a company purchases goods and services from a supplier or

creditor on credit that needs to be paid back in a short period of time,
the accounting entry is known as Accounts Payable (AP). On a balance
sheet, it appears under current liabilities. In a company, an AP
department is responsible for making payments owed by the company
to suppliers and other creditors.
KEY TAKEAWAYS
 Accounts payable are amounts due to vendors or suppliers for
goods or services received that have not yet been paid for.
 The sum of all outstanding amounts owed to vendors is shown as
the accounts payable balance on the company's balance sheet.
 The increase or decrease in total AP from the prior period appears
on the cash flow statement.
 Management may choose to pay its outstanding bills as close to
their due dates as possible in order to improve cash flow.
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Reference Data Sets and Sharing Methods
Reference Data Sets

Reference data sharing facilitates sharing of configuration data such
as jobs and payment terms, across organizational divisions or business
units.
The reference Data Set is a concept in Oracle Fusion Application and
are logical groups which provides the enterprise to decide which
business unit access the reference data groups, such as grades,
locations, Tax Classification codes, AR & AP payment terms,
departments, and jobs.
The reference data sharing functionality supports operations in
multiple ledgers, business units, and warehouses. As a result, there is a
reduction in the administrative burden and the time to implement new
business units. For example, you can share sales methods, or
transaction types across business units. You may also share certain
other data across asset books, cost organizations, or project units.
Oracle fusion provides a default Reference Data set which can be
used across all Business units. However, we can define our own
Reference data sets.
Below are the tasks involved to define Common Application
Configuration under defining Enterprise structure for Reference Data
Set:
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Define Reference Data Sharing

 Manage Reference Data Sets
 Manage Set Assignments for Set Determinant Type
Main advantage of using Reference Data Sharing is to helps

organizations share common transactional data without unnecessary
duplication.
Reference data sharing helps to:
 Create reference sets across tables or lookup types.

 Share information and data processing options among the
determinant types, such as business unit or asset book.
 Create separate sets and subsets for each business unit depending
upon its business requirement.
 Create common sets or subsets to enable sharing reference data
between several business units, without the need for duplicating the
reference data.
Note: Oracle Fusion Applications contains a reference data set called

Enterprise. Define any reference data that affects your entire enterprise
in this set. Also update the data set going forward as you create new
reference data items.
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Manage Reference Data Partitions
Define reference data and divide the data into partitions called
reference data sets. Assign the reference data sets based on business
needs across organizational entities. Oracle Fusion Applications
contain two predefined sets: Common and Enterprise.
We can create more reference data sets based on your business and
data sharing requirements.
Common: Used globally across the organization as a common set.
Shared: Used by a few business units, that work with similar data and
therefore share the sets.
Enterprise specific: Unique to that business unit and not shared by

any other business unit within that organization. Add the Enterprise Set
to the Receivables Payment Term, Prepayment, defined by line of
business and used only by that line of business irrespective of the
country or region where it operates.
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Procurement Agent
Use the Manage Procurement Agents task to create and maintain a
procurement agent's access to procurement functionality for a
business unit. You can find the task in the Purchase Agreements and
Purchase Orders work areas.
You can implement document security for individual document types

such as purchase orders, purchase agreements, and requisitions. You
can also control a procurement agent's access to manage activities for
suppliers, negotiations, catalog content, and business intelligence
spend data.
Key aspects for managing procurement agents are:
 Understanding what a procurement agent is.

 Implementing document security.
 Navigating to the Manage Procurement Agents task.
What is a Procurement Agent?

Procurement agents are typically users with procurement roles such
as:
 Buyer
 Catalog Administrator
 Category Manager
 Procurement Contract Administrator
 Procurement Manager
 Supplier Administrator
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 Supplier Manager
 Supplier Qualification
They have procurement job responsibilities in the buying organization,

such as creating purchase agreements, purchase orders, and related
procurement functions. You must set up these users as procurement
agents for them to manage procurement documents and perform
other procurement actions.
Implement Document Security

The key elements for setting up procurement agent document
security are:
 Assigning the agent to a procurement business unit.
 Enabling the agent's access to procurement actions.
 Defining the agent's access levels to other agents' documents.
Locate the Manage Procurement Agents Task

Depending on your role and permissions, you can use the Manage
Procurement Agents task in the following work areas:
 Setup and Maintenance work area, Procurement offering,
Procurement Foundation functional area.
 Purchase Agreements and Purchase Orders work areas.
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Managing Common Options for Payables and

Procurement
...
For invoice business units, you can set options common to the
procure-to-pay business flow on the Manage Common Options for
Payables and Procurement page, that are used by both Payables and
Procurement, such as the default liability account and whether to
accrue expense items at time of receipt or at period end.
The common options are grouped into the following categories:
 Default distributions
 Automatic offsets
 Currency conversion
 Expense accruals
 Self-billed invoices
 Legal entity information
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Default Distributions
Default distributions are used to define the various accounts applicable

for accounting for payables transactions. Invoices may get some
distributions from supplier site assignments and others from the
common options setup.
Currency Conversion
This table lists the options you can set for currency conversion.
Option Description
Require If enabled, you must provide a conversion rate whenever you enter an invoice or a payment in a currency other than the ledger currency. If you
conversion rate maintain daily rates, the rate is automatically supplied based on the date and rate type that you enter. If daily rates don't exist for that date and rate
entry type, you can't enter or save the transaction. If the conversion rate type is User, then you must enter a conversion rate. You can't create accounting
entries for, or pay foreign currency invoices without conversion rates.
If you don't enable this option, you can enter conversion rates manually on invoices and payments, or submit the Apply Missing Conversion Rates
process. When you create a bills payable document, you must still provide a maturity rate, rate type, and date.
Conversion rate This setting provides the default conversion rate type when you enter invoices or create payments. You can change the conversion rate type at
type invoice entry or payment creation time.
Realized Gain or These distributions represent the default realized gain and loss accounts for payments from each of your bank accounts. If the conversion rate
Loss Distributions changes between invoice entry and payment time, the realized gain or loss is automatically calculated and recorded to these accounts.
Expense Accruals
Determine when to accrue for expense items.
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Invoice Options
...
Invoice options are settings and default values that control how
invoices are processed for an invoice business unit. You set invoice
options on the Manage Invoice Options page.
Invoice Entry and Matching Options

The following table describes the invoice entry options. You can also
set some of these options on a supplier. The invoice options are used
unless the supplier has a different default value.
Option On Supplier Description

Setup?
Require invoice grouping No Requires you to enter the name of a group when creating an invoice.
Allow document category No Allows override of the invoice document category if the Sequencing By ledger
override option is set to Ledger or Legal entity.
Caution: If the ledger option is set to No Sequencing:
 A document category isn't assigned to the invoice.

 You can't set this option or enter a document category on the invoice.
Allow adjustments to paid No Lets you cancel or add lines to paid invoices. In addition,you can undo a match
invoices to a purchase order that's not finally matched and match the invoice to a
different purchase order.
Caution: You can't modify distributions because accounting would be affected.
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Allow remit-to supplier No Allows override of the remit-to supplier name and address on invoice
override for third-party installments for suppliers with third-party relationships.
payments
Recalculate invoice No Recalculates Installments during the invoice validation process.

installments
Hold unmatched invoices Yes Applies a Matching Required hold to invoices that aren't matched to purchase
orders or receipts.
Note: You can set this option on a supplier to: Yes, No, Default from Payables
Options.
Receipt acceptance days No Specifies the number of days to add to the goods received date when
recalculating installments.
Invoice currency Yes Provides the default invoice currency.
Payment currency Yes Provides the default payment currency.
Pay group Yes Provides the default group used when paying invoices.
Payment priority Yes Provides the default priority for paying invoices.
Payment terms Yes Provides the default payment terms.
Terms date basis Yes Provides the default basis for determining the terms date.
Pay date basis Yes Provides the default basis for determining the pay date.
Accounting date basis No Provides the default basis for determining the accounting date.
Budget date basis No Provides the default basis for determining the budget date.
The following table describes the options for matching invoices to

purchase orders, receipts, and consumption advice documents. You
can also set some of these options on a supplier. The invoice options
are used unless the supplier has a different default value.
Option On Description
Supplier
Setup?
Allow final matching No Lets you perform a final match when matching to a purchase order, or when adjusting a
matched invoice distribution.
Allow matching No Allows override of the invoice distribution that's created from matching an invoice to a
distribution override purchase order.
Caution: You can't override the distribution for a matched invoice if you accrue at
receipt. You also can't override the distribution if the purchase order is projects-
related, and the item destination for the purchase order distribution is inventory.
Transfer PO No Transfers descriptive flexfield information from the purchase order distribution to the
distribution additional invoice distribution when you match to a purchase order.
information
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Note: If you enable this option, ensure that the flexfield structures for the purchase
order distributions and the invoice distributions are the same.
Quantity tolerances Yes Provides the default quantity-based tolerance set.
Amount tolerances Yes Provides the default amount-based tolerance set
Discounts
The following table describes the discount options. You can set some
of these options on a supplier to: Yes, No, Default from Payables
Options.

Setup?
Exclude tax from Yes Subtracts tax from the invoice when calculating the discountable amount for
calculation an installment.
Caution: You can't set the discount allocation method option to Tax lines and
single distribution.
Exclude freight from Yes Subtracts freight from the invoice when calculating the discountable amount
calculation for an installment.
Discount allocation No Determines how discounts are allocated across invoice distributions.
method
Always take discount Yes Takes the available discount for a supplier, regardless of when you pay the
invoice.
Prepayments
The following table describes the prepayment options.
Option On Description
Supplier
Setup?
Payment terms No Provides the default payment terms for a prepayment.
Settlement days Yes Specifies the number of days to add to the system date to calculate the settlement date.
Note: You can't apply a prepayment to an invoice until on, or after, the settlement date.
Use distribution from No Builds the distribution combination for the matched invoice distribution using
purchase order information from the supplier and purchase order. The prepayment distribution on the
supplier provides the natural account segment and the purchase order distribution
combination provides the rest of the segment values.
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Show available No Displays the available prepayments during invoice entry.
prepayments during
invoice entry
Approvals
You can use the invoice approval workflow to automate the invoice
approval process. The workflow determines if an invoice requires
approval and if so, routes the invoice to the approvers, who can then
approve or reject the invoice.
The following table describes the approval options.
Option Description
Enable invoice Sends invoices through the approval workflow. Invoices can't be paid until they're approved.
approval
Require validation Sends invoices through the approval workflow after the invoices are checked for completeness by the
before approval validation process.
Accounting Choose your accounting preference for the invoices.

Preference  Account regardless of approval status: Account the invoices regardless of the approval status.
 Require accounting before approval: Only invoices that are accounted are sent through the approval
process.
 Require approval before accounting: Only invoices that are approved are accounted.
Allow force approval Allows managers to override the workflow and manually approve invoices. For example, you might
want to force approve if the workflow doesn't complete, or you have the authority to pay without using
the workflow.
Interest
This table lists the options you can set for interest on overdue invoices.

Setup?
Create interest Yes Calculates interest on overdue invoices and creates interest invoices. You can set this
invoices option on a supplier to: Yes, No, Default from Payables Options.
Minimum interest No The minimum amount of calculated interest that sets the threshold for creating an interest
amount invoice. Interest invoices that do not meet the minimum interest amount are not created.
Interest allocation No Allocates interest across invoice distributions.

method
Interest expense No Identifies the distribution combination used if allocating interest expense to a single
distribution distribution.
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Payment Requests
The following table describes the payment request options.
Option Description
Payment terms Provides the default payment terms.
Pay group Provides the default pay group used when paying a prepayment.
Payment priority Provides the default payment priority used when paying a prepayment.
Self-Service Invoices
The following table describes the options you can set for invoices
created through Oracle Fusion Supplier Portal.
Option Description
Limit invoice to single purchase order Limits an invoice to the schedules belonging to a single purchase order.
Allow invoice backdating Allows a supplier to enter an invoice for a date in the past.
Allow unit price change for quantity- Allows a supplier to enter a unit price on an invoice that's different from the unit
based matches price on the purchase order.
Note: You can use the Create Chart of Accounts, Ledger, Legal Entities,
and Business Units in Spreadsheet task to automate your invoice
options setup.
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Payment Accounting Options
...
On the Manage Payment Options page, set the Payment Accounting
option to determine when payment accounting entries are created.
Tip: Carefully consider this setting at implementation time. After you

set this option, the only change you can make is from accounting At
Payment Issue to accounting At Payment Issue and Clearing.
Select from the following options:
 At payment issue
 At payment clearing
 At payment issue and clearing
At Payment Issue
With this setting, the liability account is debited and the cash account
is credited when a payment is created. For a bills payable payment, the
credit is to the bills payable account. Then at payment maturity, the
bills payable account is debited and the cash account is credited.
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Realized gain or loss is calculated at payment creation and for a bills

payable payment, at payment maturity.
At Payment Clearing
With this setting, the liability account is debited and the cash account
is credited when the payment clears. Realized gain or loss is calculated
at payment clearing.
At Payment Issue and Clearing

With this setting, accounting entries are created at:
 Issue time: The liability account is debited and the cash clearing
account is credited. For a bills payable payment, the credit is to the
bills payable account. Then at payment maturity, the bills payable
account is debited and the cash clearing account is credited.
 Clearing time: The cash clearing account is debited and the cash
account is credited.
Note: Realized gain or loss is calculated at all points mentioned.

Note: You can use the Create Chart of Accounts, Ledger, Legal Entities,
and Business Units in Spreadsheet task to automate your payment
options setup.
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Payment Terms
Payment terms are used to automatically create invoice installments.

You can define payment terms to create multiple installments and
multiple levels of discounts.
Payment terms consist of one or more lines, each of which creates one
invoice installment. When you define a payment term, you can specify
either percentages or fixed amounts. A payment term line can have up
to three discounts. Each line and corresponding installment have a due
date and up to three discount dates. Each line and corresponding
installment also have due or discount amounts. You can assign a
payment term to one or more sets to share that payment term across
business units.
Tip: If you change the payment terms on an invoice, the installments

are automatically recalculated and you must reenter any manual
adjustments made previously.
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Payment Terms Due Dates and Discount Dates
Payment terms due dates and discount dates are based on one of the
following methods:
 Fixed Date: A specific day, month, and year that an installment is

due for payment.
 Days: A number of days added to the invoice terms date.
 Calendar: A Payables calendar that's divided into periods. You can
assign a due date to the period that includes the invoice terms date.
You can assign due dates to avoid weekends, holidays, and so on.
You can't assign calendar-based terms to an invoice if a period isn't
defined for the terms date.
 Day of Month: A type of payment term with the following attributes:
o Day of Month: A specific day of the month when an installment is
due for payment. For example, enter 15 to schedule payment on
the fifteenth day of the month. Enter 31 to schedule payment for
the last day of the month, including months with less than 31 days.
o Cutoff Day: The day of the month after which the installment due
and discount dates advance to a future month. If you don't specify
a cutoff day, the current accounting month is used to determine
due and discount dates.
o Months Ahead: The number that's used to determine the month
the installment is due. If you enter 0 and the terms date is the same
as, or later than, the cutoff day, the installment is due the following
month.
For example, a payment term has a Cutoff Day of 11, the Day of Month
is 15, and Months Ahead is 0. If you enter an invoice with a terms date
of January 12, the installment is due February 15. If you enter an invoice
with a terms date of January 10, the installment is due January 15. If the
terms date is January 12 and Months Ahead is set to 1, the installment
is due March 15.
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Create a Supplier and Supplier Site
Creating suppliers and supplier sites is an essential part of the

procurement process. A supplier is modeled as a global entity. It is not
created within a business unit or any other organizational context. A
procurement business unit establishes a relationship with a supplier
through the creation of a site which maintains internal controls for how
to procure to pay transactions are executed with the supplier.
Supplier Administrators use the Suppliers Work Area Overview page to

perform day-to-day supplier maintenance and administration
activities.
The overview page provides the Supplier Administrator with the

supplier information needed to carry out tasks ranging from routine
maintenance, to event driven administrative responsibilities. In
addition, the overview page contains reports that highlight supplier
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issues requiring attention and provides easy access to maintain and

update supplier records. From the overview page, the Supplier
Administrator can quickly get in touch with a contact for a supplier
reported to require communication by accessing the Actions menu.
Create Site
Sites are created in a procurement BU. A procurement BU represents a

specific purchasing or sourcing organization that is responsible for
establishing and maintaining supplier relationships. The site allows a
specific procurement BU to set terms, controls, and policies which
govern how procure to pay transactions are executed between its client
BUs and the supplier. Many of these site attributes are optional must
be set only when there is a need to deviate from a BU level policy. For
example, the supplier might require more restrictive receipt and
invoice tolerances. Procurement policy terms and controls that are
defined for a supplier are maintained at the supplier site level.
The following information defines the site:
 Procurement BU
 Site name
 Site address
 Site purposes: Purchasing, Pay, Procurement Card, Primary Pay,
and Sourcing Only.
When a new site is created, the site purposes are set by default, based
on the address purposes. The address purposes reflect the sales
functions that the supplier claims to perform at their location, whereas
the site purpose indicates the equivalent procurement functions the
buying organization transacts with the location, which can be a subset
of the address purposes.
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Note: If the address is both RFQ and Ordering, then the site maps to a
purpose of Purchasing, because sites with the Purchasing purpose are
used in both purchasing and sourcing transactions.
Sites also feature an Additional Details region to capture additional

information that can be defined by the buying organization. This
information is referred to as descriptive flexfield information.
Use the subtabs on the Sites page to configure the controls that
determine how purchasing, receiving and invoicing transactions are
executed with the supplier.
Subtabs on the Sites page include:
 General: User can provide additional identifier information

including a customer number, which is the internal number the
supplier uses to identify the buying organization, alternate site
name, and a tax reporting indicator.
 Purchasing: User can define purchasing terms for this site including
communication details, self-billing information, freight, and hold
controls.
 Receiving: Provide information relating to receiving controls such
as overreceipt tolerance, early receipt tolerance, receipt routing and
so on
 Invoicing: Define invoicing controls and terms such as invoice
currency, payment currency, invoice-related holds, match approval
levels, payment terms, pay date basis and so on.
 Payments: Define supplier bank accounts, preferred payment
methods, and other payment processing attributes for the site. Bank
account information is used for paying supplier invoices by
electronic funds transfer (EFT).
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On-Hands Guide
 Site Assignments: Maintain the set of client BUs that can use the
site for purchasing and invoicing purposes.
Site Assignments
Site assignments control which client BUs can transact with the site. In
addition, the sold-to BU associated with the client BU is defined. Sold-
to BU represents the organization that assumes the liability for the
purchases made on behalf of the client BU. In most cases, the client BU
and the sold-to BU are the same. However, users can set up a different
sold-to BU for a specific client if required.
The premise of the site assignment model is to leverage the centralized

procurement organization which negotiates terms and sets policy
controls. These terms and controls established for a supplier site are
used by the client BUs as a result of being assigned to the site. Without
the site assignment model each client BU would be forced to establish
its own relationship with the supplier. The service provider relationship
between the client BU and procurement BU is defined in the business
unit setup.
Creating a Site Assignment
There are two ways to create site assignments. You can manually
create one assignment at a time by selecting the specific client BU, or
you can use autocreate.
Every supplier site must have an active assignment to create

transactions against the site, such as purchase orders or invoices. In
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On-Hands Guide
other words, if a site assignment does not exist or is inactive, you

cannot create transactions for that supplier site.
In a site assignment, only Client BU and Sold-to BU are required values.

To create a site assignment for a client BU, provide the following
information:
 Client BU: Select the appropriate BU from the list of all requisitioning
and invoicing BUs that are serviced by the procurement BU.
 Sold-to BU: If the selected BU performs invoicing, then the same BU
can be used as the Sold-to BU. However, in certain instances due to
tax or legal reasons the client BU may only perform requisitioning
with the supplier and another BU assumes the liability for the
purchases. In this case a different sold-to BU is selected. The list of
sold-to BUs that can be selected for a given client BU is determined
by the Intercompany Transaction Flow setup. In addition, when a
separate Sold-to BU acts as an agent to the client BU an assignment
must be created for the sold-to BU in order for the BU to process
invoices.
 Legal Entity: Read-only field based on the sold-to BU selected.
 Ship-to Location: Identifies the default shipping location used on
purchasing documents for the client BU.
 Bill-to Location: Identifies the default billing location used on
purchasing documents for the sold-to BU.
 Inactive Date: Determines when the assignment record is no longer
active.
 Withholding tax information: Indicate whether withholding tax is
enabled for the assignment and if yes, identify the tax group in
which it is classified.
 Accounting information: Provide accounting information for the
sold-to BUs for defaulting during invoice creation.
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On-Hands Guide
Banks, Branches and Accounts
Banks, branches and accounts fit together on the premise of the Bank
Account model. The Bank Account model enables you to define and
keep track of all bank accounts in one place.
The Bank Account Model can explicitly grant account access to

multiple business units, functions, and users. Consider the following
when you set up bank accounts:
 Assign a unique general ledger cash account to each account,

and use it to record all cash transactions for the account. This
facilitates book to bank reconciliation.
 Grant bank account security. Bank account security consists of
bank account use security, bank account access security, and
user and role security.
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Account Use
Account Use refers to accounts created for:
 Oracle Fusion Payables

 Oracle Fusion Receivables
 Oracle Fusion Payroll
Select the appropriate use or uses when creating an account in one or

more of these applications.
Account Access
Payables and Receivables account access is secured by business unit.

Before the bank account is ready for use by Payables or Receivables,
you must:
 Select the appropriate use for the application.

 Grant access to one or more business units.
Banks
Creating a bank is the first step in the bank account creation. You can:
 Search for existing banks to view and update

 Create a new bank from an existing party
Consider the following:
 The option to create from an existing party is implicitly

implemented by the matching option.
 The option is available only after the existing party has been
found with the same bank.
 If you select the matching option, the page repopulates the
information from the matched party.
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Branches
Once you have created your bank, the next step is creating a branch or
branches associated to the bank. The matching option is also available
when creating branches. To create a new branch without using the
matching option, manually enter the required information. You can
also define other branch- related attributes in the same page.
If you don't use the matching option when an existing party is found, a
branch with the same party name is created.
Accounts
The four areas associated with defining an account are:
 General information
 Control of the account
 Security and access to the account
 Business unit assignment
Once the bank and branch are created, proceed to the bank account
setup by doing the following:
 Select the bank branch you want to associate to your bank

account.
 Assign the owner of the bank account.
Note: To create a bank account for Payables or Receivables, add the

Business Unit Access first for the business units to use the bank
account.
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Consider the following:
 The Oracle Fusion Account Payables or Receivables accounts are

identified by the business unit.
 The Oracle Fusion Payroll accounts are identified by the legal
entity.
 The program, Inactivates Banks and Bank Branches allows you to
inactivate all banks and bank branches that have no active
internal and external bank accounts.
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Payment Concepts
In Oracle Fusion Payments, setting up a payment system is mandatory
if your company wants to transmit electronic payments or funds
capture transactions to a payment system or a bank. The payment
system can be the bank where your company has its bank accounts or
it can be a third-party processor or gateway that connects your
company to a financial network. The purpose of setting up a payment
system is to define the external organization that Payments uses to
process your funds capture and disbursement transactions.
Payment systems are not required for printed disbursement payments,

such as checks, but may be required for related services, such as a
positive pay report.
Setting up a payment system includes the following actions:
 Selecting a gateway or processor payment system

 Considering best practices
 Defining a payment system
 Specifying payment system settings
 Understanding payment system accounts
Defining a Payment System
In the Setup and Maintenance work area, use the following to define a
payment system:
 Offering: Financials
 Functional Area: Payments
 Task: Manage Payment Systems
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On the Manage Payment Systems page, click Create. The Create

Payment System page appears.
When you set up a payment system on the Create Payment System

page, specify the following:
 Types of payment instruments the payment system supports for

funds capture transactions
 Data file formats and transmission protocols accepted by the
payment system
 Settings required by the payment system
 Settings required by the tokenization provider if your company
has enabled tokenization
Note: Setting up a payment system may be required, even for

transmitting a payment file offline by downloading it to your local drive
and then e-mailing it to your payment system or bank. The payment
system and payment system account setup capture several attributes,
which are passed in the payment file or settlement batch message.
Without these attributes, a payment file is invalid and rejected by bank.
Specifying Payment System Settings
In the Settings Required by Payment System section, specify the

settings that the payment system requires from each internal payer or
payee. These settings can be used to identify the internal payer or
payee as a client of the payment system or to provide other processing
information. You can specify the type of data required for each setting
and decide whether it is advisable to secure the setting's values by
masking.
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On-Hands Guide
Understanding Payment System Accounts
You define your company's account with the payment system on the
Edit Payment System Accounts page. The payment system account
contains a value for each of the attributes required by the payment
system. For example, the payment system may require a Submitter ID
and Submitter Password to be included in any message sent to it.
You can configure a secure payment system account by entering a

password. For secured settings, the values captured in the payment
system account are masked.
Payment Actions, Types, and Statuses
The actions that you can take on a payment depend on the type and
status of that payment.
This table lists each payment action and the applicable payment types
and statuses.
Action Types Statuses
Void Payment process request, Quick, Manual, Refund Negotiable, Issued, Stop initiated
Initiate stop Payment process request, Quick, Manual, Refund Negotiable, Issued
Cancel stop Payment process request, Quick, Manual, Refund Stop initiated
Add or remove invoices Manual Negotiable, Issued
Reissue Quick Negotiable
Print remittance Payment process request, Quick, Manual, Refund Negotiable, Issued, Cleared, Stop initiated, Voided
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Caution: You can't:
 Void a payment for a prepayment that's applied. You must first

unapply the prepayment, then void the payment.
 Initiate a stop payment for a prepayment that's applied.
 Reissue a payment for invoice documents with a bills payable or
electronic payment method.
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Invoice Concepts
Use the Invoices landing page to perform various task when processing
invoices. You can focus on invoices that require your attention through
one of the 6 infolets displayed on the Invoices landing page.
You can view and edit the incomplete invoices, view the ones recently
added, view or release holds and approvals, and review prepayments
and payments due.
Start by signing in, clicking the Payables icon, and then click on the
Invoices icon. This brings you to the Invoices landing page where the
following infolets are displayed and described:
 Scanned: Invoices that have been recorded in the application

through scanning and are incomplete.
 Recent: The number of invoices that have been updated and
recently added.
 Holds: Displays the number of invoices put on hold and categorized
by the type of holds that have been applied.
 Approvals: Invoices are displayed that are going through the
various approval stages defined by you.
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 Prepayments: Displayed in aging buckets defined by you are the

available prepayments for invoices.
 Payments: Indicates by currency the total amount due for payment.
Viewing the overall status of the invoices allows you to take the
appropriate action to process the invoices. You can perform the
following actions for each infolet:
 Scanned invoices are arranged in aging buckets, when you click

on any of the numbers those invoices are displayed in a table.
Notice they are assigned to a specialist for processing. If you are
the specialist you can process the invoice accordingly. In the
event they are assigned to other specialist you can follow-up with
them on processing the invoice.
 Recent invoices that are were updated or created in the last 7
days are displayed. The slice shows the portion of invoices that
still need to be validated. Clicking on the number displays those
invoices in the subsequent table.
 The Holds infolet indicates the types of holds placed on the
invoice. The invoice data needs to be corrected to resolve the
validation holds. Holds are displayed by the type and require
review and release, usually by a manager. Clicking the linked type
displays those invoices in the subsequent table.
 The Approvals infolet displays invoices pending, others, and
rejected approvals. You may have invoices you can approve, you
can track the pending approvals from other, and those that have
been rejected. Clicking on the category displays the invoices in
the subsequent table.
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 Prepayments categorize available prepayment that can be

applied to invoices. Categorizing them is based on aging buckets
defined by you, the number of available payments are displayed
in each aging bucket. Clicking on the number in the bucket
displays the invoices in the subsequent table.
 The Payments infolet displays the total amount due for invoices
in the next 7 days. Clicking the amount displays the invoices due
in the subsequent table.
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ADF Desktop Integration x FBDI
ADF FBDI
Recommended for low to Recommended for high volume data
medium volume data import
Use MS Excel as an interface to Load data from flat files that are
access and import data into placed on a secure FTP server into
Fusion Application interface table
Supports descriptive flexfield Enterprise Scheduler Service (ESS)
(DFF) and key flexfield data jobs move data to Fusion Application
base tables
Interface tables and the processing
job descriptions can be found in
Oracle Enterprise Repository (OER)
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External Data Integration Services (FBDI)

Use External Data Integration Services for Oracle Cloud to load data
into Oracle Fusion Applications from external sources, such as legacy
systems and third-party applications.
External Data Integration Services for Oracle Cloud include the

following components:
 Templates to structure, format, and generate the data file

according to the requirements of the target application tables.
 File-based load process to load the data files into the interface
tables.
 Application-specific data import processes to transfer data from
interface tables to the application tables in your Oracle Fusion
Applications.
The following flow diagram outlines the steps involved in loading data
from external sources.
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Load Data Into Tables
Flat File Based Data Interface (FBDI)
Use the file-based data import feature to import large volumes of data
from third-party or other Oracle applications, or create new data in
Oracle Financials Cloud. For example, you can import journal entry
batches from legacy and third-party applications into the
GL_INTERFACE table using the JournalImportTemplate.xlsm template.
You can also use certain file-based data import features to update large
volumes of existing data in the application. For example, update the
descriptive details in the FA_DESCRIPTIVE_DETAILS_INT table using
the FixedAssetUpdateDescriptiveDetailTemplate.xlsm template.
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Load Data into Interface Tables
Perform the following steps to load data to the interface tables:
1. Download the relevant file-based data import template.

2. Enter data in the template.
3. Click the Generate CSV File button on the Instructions and CSV
Generation worksheet in the template to create the CSV files in a
zip file format.
4. Save the zip file locally.
5. Sign in to Oracle Applications Cloud.
6. From the Navigator menu, click File Import and Export in the
Tools section.
7. Click the Upload icon. Click Browse to search for and select the
zipped data file you saved.
8. Select the account for the applicable file-based import process.
9. Click Save and Close to transfer the zipped data file to the
Oracle Universal Content Management Cloud server.
10. Navigate to the Scheduled Processes page. Select your import
process and the locally saved data file and then submit the Load
Interface File for Import process to upload your data from the
CSV files to the interface tables.
Load Data into Product Tables
Perform the following steps to load data from the interface tables to
the product tables:
1. Navigate to the Scheduled Processes page.

2. Verify that the Load Interface File for Import process completed
successfully.
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3. Submit the product-specific import process.

4. Verify that the import process completed successfully.
Some examples of FBDI:
For additional details, see Using External Data Integration Services for
Oracle ERP Cloud (2102800.1) on My Oracle Support
(https://support.oracle.com).
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Last Update Date: 27/Feb/2020

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Defining Enterprise Structures: Overview

Oracle Applications have been designed to ensure your enterprise can

Every enterprise has three fundamental structures that describe its

These structures are implemented using the chart of accounts and

Oracle Financials Cloud

In Oracle Fusion Applications, the Enterprise Performance and

 Set Up Enterprise Structures business process, which consists of

Oracle Financials Cloud

Oracle Financials Cloud

The table describes each BPM activity.

BPM Activities Description

Oracle Financials Cloud

They have the following rights and responsibilities:

Performed through balance sheets, income statements, specified

Their rights and responsibilities may be enforced through the judicial

 Facilitating local compliance

For example, your enterprise develops property and also leases

Oracle Financials Cloud

When defining legal entities, you must consider the following:

 Roles of Legal Entities

Roles of Legal Entities

In configuring your enterprise structure, the contracting party on any

 Own the assets of the enterprise

Legal entities must comply with the regulations of jurisdictions, in

For example, US companies can register in one state and do business

Oracle Financials Cloud

To support local reporting requirements, you create and register legal

You are required to publish specific and periodic disclosures of your

For example, your publicly owned entities (corporations) are required

Disclosure requirements are diverse. For example, your local entities

A legal entity can represent all or part of your enterprise's management

Oracle Financials Cloud

Business Units: Let's Share Reference Data

A business unit is a unit of an enterprise that performs one or

Business units process transactions using "reference data sets" that

Oracle Financials Cloud

In summary, use business units for:

The Oracle Fusion Applications business unit model provides the

 Enables flexible implementation

Oracle Financials Cloud

Introduce Basic Account Payables Concepts

When a company purchases goods and services from a supplier or

Oracle Financials Cloud

Reference Data Sets and Sharing Methods

Reference Data Sets

Oracle Financials Cloud

Define Reference Data Sharing

Main advantage of using Reference Data Sharing is to helps

Reference data sharing helps to:

 Create reference sets across tables or lookup types.

Note: Oracle Fusion Applications contains a reference data set called

Oracle Financials Cloud

Manage Reference Data Partitions

Common: Used globally across the organization as a common set.

Enterprise specific: Unique to that business unit and not shared by

Oracle Financials Cloud

You can implement document security for individual document types