First Cut Training

Accounts Payable Overview Training

On
Oracle Applications

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 Agenda
1. Introduction

1.1 Payables Overview

1.2 Integration With Sub-Ledgers
1.3 Process Flow
1.4 Payable Cycle

2. Supplier Definition
3. Invoices
4. Payments
5. Accounting & Reporting

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 Payables Overview
Oracle Payables consists of four major functions:

Set Up Suppliers

.... Enter and Approve Invoices

Payment of Invoices

Accounting & Reporting

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 Integration With Sub-Ledgers
Workflow
HR

PA
PM

AP FA
PO

GL
INV

Oracle EDI

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 Process Flow
Oracle Cash
Oracle Purchasing Oracle Inventory Oracle Payables
Management
Place Orders
Requisition
Receive Goods Manage the Payables Process
Purchase Order Raise a Receipt
Record Invoices Received

Inspection Validate and

Approve
Invoices
Store Goods
Pay Invoices

Account & Transfer to

General Ledger

Update Account Reconcile

Balances Payments

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 Payables Cycle
Enter/Interface Approve Create
invoices Invoices Payments
or batches

Match to PO

Reconcile
Payments

Transfer to Create Journal

General Ledger Entries

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 Supplier Definition
Suppliers:

•Define suppliers to record information about companies and individuals from whom
we purchase goods and services.

•Define different Supplier Sites for each operational location of the supplier.

•Classify Supplier based on nature of Business Transactions for various reporting

purposes.

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 Supplier Definition

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 Supplier Definition

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 Invoices
Invoice Workbench

•Invoice Workbench is used to record invoices received from suppliers.

•Enter Invoice in Batches or Individually.

•Enter Invoices of Different Types as per the Business Requirement E.g Standard Invoice, Credit
Memo etc.

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 Invoices
Invoice Types
Standard Invoice from vendor for good/services purchased
Credit Memo Memo from a vendor for credit towards goods /services
Debit Memo Memo to a vendor for debit towards goods /services
Expense Report Invoice for employee business related expenses
PO Default Invoice you enter for matching to PO, enter PO number,
and payables automatically defaults supplier information
Prepayments Invoice to pay an advance payment for expenses to
employees and suppliers.
Withholding Tax Invoice entered to remit taxes withheld to the appropriate
tax authority
Quick Match Enter PO number, payables automatically defaults
supplier information and matches to each shipment on the PO
Mixed Can enter both +ve and -ve amount to match to PO and Invoices

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 Invoices
Invoice Batches

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 Invoices
Invoice Workbench

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 Invoices
PO Matched with Invoice

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 Invoices
Invoice Enquiry

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 Invoices
Recurring Invoices

You can enter invoices for periodic expenses which are repetitive. This can be used
for those types of expenses for which you may not receive invoices, such as
Rent. To enter recurring invoices, first define a recurring invoice template, then
create invoices based on the template.

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 Invoices
Recurring Invoices

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 Invoices
Expense Reports
Use the Expense Reports window in Payables to enter Employee expenses such as
Reimbursements of Travel Expenses etc.,

1.Expense Reports can be submitted by your enterprise's employees using Oracle Internet
Expenses.

2.Expense Reports entered in Oracle Projects and then transferred from Projects to
Payables.

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 Invoices
Expense Reports

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 Invoices

Invoice Approval Workflow

The Invoice Approval Workflow automates your invoice approval process.

Based on 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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 Payments
Payment Methods

There are four types of Payment methods

1.Check :
Payment in a payment batch, Quick payment, or manual payment.

2.Clearing:
Payment method you use to account for intercompany expenses when you do not actually
disburse funds through banks.

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 Payments

3.Electronic:
You pay electronic payments either through the e–Commerce Gateway, or by delivering a
payment batch file to your bank. For both methods, Payables creates a file during payment
batch creation.

4.Wire:
A payment method where you pay invoices outside of Payables by notifying your bank that
you want to debit your account and credit your supplier’s account with appropriate funds.
You provide your bank with your supplier’s bank information, and your bank sends you
confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of
the payment.

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 Payments
Payment Types

There four types payment types

1.Manual:
When you create a payment outside of Payables, for example, using a typed
check or wire transfer, within Payables you can record the payment and update
the invoices that you paid. Also use this method to pay invoices with the Clearing
payment method.

2.Quick:
You can create and print a computer generated payment to pay a supplier for one
or more invoices. You can also create a check, save it, then print it later.

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 Payments

3.Batch/Batch Sets:
Use payment batches to create payments for multiple invoices that meet selection criteria
you specify. You can use payment batch sets and payment batch templates to predefine
payment batch criteria for payment batches you frequently process.

4.Refund:
When a supplier or employee sends you a refund for an invoice payment you have made,
you can record the refund in Payables. A refund closes out an outstanding credit balance,
so you are actually making a negative payment for a credit balance.

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 Payments

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 Accounting & Reporting

Create accounting entries by submitting Payables Accounting Process Report or create

entries from the transaction window for a specific invoice, invoice batch, payment,
or payment batch.

View Accounting Lines: View Accounting for transactions in AP

Update Accounting Entries. In this window you can update accounts on any
accounting entries that were created with invalid accounts or with errors.

View Encumbrance and Funds Available information in AP

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 Accounting & Reporting
View Accounting Lines

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 Accounting & Reporting
PAYABLES GENERAL LEDGER

2 3
GL Interface Journal
Accounting Entries
Run: Payables Run:
Transfer to GL Journal
Import
1
Run:Payables
Accounting Process

Transactions

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 Accounting & Reporting
Accounting Reports
Accounts Payable Trial Balance Report
Payables Account Analysis Report
Payables Accounting Entries Report
Payables Accounting Process Report
Unaccounted Transactions Report
Key Indicators Report
Key Indicators Current Activity Report
Key Indicators State–of–the–System Report
Payment Reports
Cash Requirement Report
Final Payment Register
Payment Register
Invoice Reports
Invoice Aging Report
Invoice Register
Prepayment Status Report

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