OUM

Business Process Design

Accounts Payables

Author: Muhammad Zubair Jamil

Creation Date: 03 March 2021
Last Updated: 03 March 2021
Version: 1.0
Status: Draft

Approvals:

Client Project Manager

APPSLINK Project Manager

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Document Control

Change Record

Date Author Version Change Reference

03-Mar-21 Muhammad Zubair Jamil Draft 1.0

Reviewers

Name Position

Tasweer ur Rehman

Distribution

Name Position Location

1 Library Master
2 PMO
3 Financial Team

Note to Holders:
If you receive an electronic copy of this document and print it out, please write your name
on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover, for
document control purposes.

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Contents
PURPOSE ......................................................................................................................... 4
GENERAL ......................................................................................................................... 5
OVERVIEW ........................................................................................................................... 5
SUPPLIER MANAGEMENT ........................................................................................................ 5
SUPPLIER MASTER ........................................................................................................... 7
SUPPLIER MASTER MANAGEMENT – ORACLE PROCESS FLOW ........................................................ 8
INVOICE PROCESSING ..................................................................................................... 9
SUPPLIER INVOICES ................................................................................................................ 9
INVOICE MATCHING ............................................................................................................. 10
INVOICE APPROVAL .............................................................................................................. 10
SUPPLIER INVOICES IN ORACLE PAYABLES .................................................................... 11
PREPAYMENT / ADVANCES TO SUPPLIERS – ORACLE PROCESS FLOW ............................................. 14
PAYMENT PROCESSING ................................................................................................. 15
PAYMENT PROCESSING ......................................................................................................... 15
PAYABLES PAYMENT PROCESSING ................................................................................ 16
PAYABLES PAYMENT PROCESSING – ORACLE PROCESS FLOW ....................................................... 17
STOP / VOIDING PAYMENT – ORACLE PROCESS FLOW ................................................................ 18
TAXES ............................................................................................................................ 19
WITHHOLDING TAXES ........................................................................................................... 19
PAYABLES TAXATION .................................................................................................... 20
MANAGE TAXES ON PAYABLES INVOICES – ORACLE PROCESS FLOW .............................................. 21
PERIOD PROCESSING ..................................................................................................... 22
OPEN/CLOSE PERIODS .......................................................................................................... 22
PERIOD CLOSING IN PAYABLES ...................................................................................... 23
PAYABLES PERIOD CLOSING – ORACLE PROCESS FLOW................................................................ 24
REPORTING REQUIREMENTS ......................................................................................... 25
REPORTS AND RELATED FORMATS ........................................................................................... 25
MISCELLANEOUS ........................................................................................................... 25
APPLICATION CONFIGURATION QUESTIONNAIRES ....................................................... 26
APPLICATION CONFIGURATION QUESTIONNAIRES ....................................................... 26
OPEN AND CLOSED ISSUES ............................................................................................ 29
OPEN POINTS ..................................................................................................................... 29
CLOSED POINTS ................................................................................................................... 29
GAP LOG............................................................................................................................ 29
DESIGN FEEDBACK ............................................................................................................... 29

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Purpose
The purpose of this document is to present process flows that will be applicable to the Clients' business process in Oracle Fusion Applications.
Information gathered during the user's sessions are also made part of this design document and presented together with the Oracle Standard
Process Flows based on Modern Best Practices as applicable to the Client. The structure of the document ensures that information gathered
from the Key Users is followed by the relevant Oracle Process Flow so that the users are able to relate to the Process as per standard features
available in Oracle.

This document will become standard baseline for the configuration of all Legal Entities in scope and for the training sessions. Detailed training
material will be shared on the basis of approved design.

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No. Information Gathering Questions Answers Gap

1 General
1.1 Overview
1.1.1 Describe at high-level your Accounts Payable processes. Current process is manual. In Oracle Fusion Invoices
should be matched with PO receipts. Payments can
How many different types of Payables processes are being be made as stand alone or in batches.
managed by the Payables Department?
Following are the processes being followed currently
for creation of Payables Invoices in system:

− Invoice against Receipts

− Petty Cash
− Unmatched Invoice entered directly in
system

Invoice Approval is as per DOA. In Oracle Fusion,

separate flows will be required for Receipt matched
and other non-receipt matched invoices.

1.2 Supplier Management

1.2.1 Do you categorize your vendors? What is the basis for your Yes. Will require it in Oracle as well.
vendor category breakdown?

1.2.2 Do you have a single consolidated vendor list across all entities? Vendor list is available in soft form. Around 400+
vendors.

There are 2 kind of vendors Individual (250 +) and

entities (200).

1.2.3 How do you handle vendor numbering? Not maintaining it currently.

Following numbering scheme can be followed.

Starting Vendor Number: 1xxxx

• 10001
• 10002

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No. Information Gathering Questions Answers Gap

• 10003

1.2.4 What are the usual payment terms and are those defaulted on 30 days mostly. Keep it standard.
suppliers?

1.2.5 Do you have multiple supplier GL accounts (liability, Yes. Data will be provided as part of supplier master.
prepayment etc.) codes based on category of supplier or single
GL account

1.2.6 What additional information you maintain related to vendors? If needed, will be added to data master sheet.

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Supplier Master
Suppliers will be maintained in a central repository Oracle Fusion that can be share across all entities/ business units. Supplier will be registered
in Oracle either by supplier users or the user from within the Organization. Supplier registration will go through the necessary approvals before
a supplier becomes authorized for spending. Supplier profile includes detailed level information about supplier to be captured. Some of the
information that will be captured at supplier registration include the following:

• Supplier Name
• Tax Registration Number (where applicable)
• Address and Sites
• Registrations and Certificates
• Products and Services Supplier deals in
• Supplier Contacts
• Bank Details

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Supplier Master Management – Oracle Process Flow
Legend:
Process owner(s) Procurement Department
Manual process Data Manual Document

System Oracle Fusion Payables, Supplier Portal

Decision Start / End Database

Process Supplier Registration Document System Process Validation

Title: Supplier Registration Process

Administrator
Procurement
Application

Publish/Share
Start Supplier Registration
URL

Enter Required Information on

Registration Pages
Save for Later
Organization Details
Potential Supplier
(External User)

Contacts & Contact User Account

Addresses & Business Classification

Bank Account Information Submit the

Registration Request
Attachments

Review Information Notify Supplier or

Supplier Adminstrator

and Make Changes If Approved? Yes Internal User of the

Necessary Approval
Yes

No
End
Notify Supplier or
Request to
NO Rejected? Yes Internal User of the
Resubmit?
Approval

NO

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No. Information Gathering Questions Answers Gap

2 Invoice Processing
2.1 Supplier Invoices
2.1.1 Do you require batch control to manage invoice entry? No, it should be optional.

2.1.2 How many invoices per period do you enter? The maximum number of invoices entered during a
month is 100 per entity.

2.1.3 Can you identify any frequently used expense distributions Bills, Freelance fees, Office Expenses.
within your current system (for example, rent or telephone
payments)?

2.1.4 How do you treat prepaid expenses and their amortization? Prepaid expenses are amortized on monthly basis.

2.1.5 Do you process prepayment? Yes.

2.1.6 Do you track your invoice with assets to capitalize? Yes.

2.1.7 What is your document sequence pattern/practice for payables Document Sequence will be maintained at legal
invoices? Do you maintain separate sequence for each entity as per below format:
business unit?
Sequence Name: Legal Entity-INV-YEAR

Visioneers LLC-INV-2021

Sequence No: Company Value – YEAR- XXXXXX

10221000001

2.1.8 Do you need invoice accounting before sending it for approval? No, Invoice accounting should be after approval.

2.1.9 How do you assess the invoice due date (i.e., invoice date, It is based on Invoice Received Date.
invoice received date, GL date etc.)

2.1.10 Do you control that no duplicate invoice number should be Yes. The system should be setup to have this
recorded against same supplier? control in place.

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No. Information Gathering Questions Answers Gap

2.2 Invoice Matching

2.2.1 Do you match your AP invoices with the POs? Not currently. In Oracle Fusion all invoices should be
matched to receipts.

2.2.2 How do you match purchase order information to AP invoice 3-Way matching is required.
information?

2.2.3 Do you currently have any tolerance levels for matching? 0% tolerance should be set.
(Price Tolerance, Quantity Ordered Tolerance, Quantity
Received Tolerance, or Tax Tolerance?)

2.2.4 What is the internal approval process for an invoice in your DOA will be provided as part of Data Templates.
organization at present?

2.2.5 Do you accrue your receipts of goods or service to the General Yes
Ledger?

2.2.6 Do you have budgetary control on Payables invoices? Yes

2.2.7 How do you manage if actual expenses are exceeding budget? Warning should be displayed except for some
accounts / cost categories where entry should not be
allowed.

2.2.8 How do you handle foreign currency payable invoice? Are you Please refer to GL BPQ.
maintaining daily rates for the said transaction to convert the
value in functional currency?

2.3 Invoice Approval

2.3.1 Do you need invoice to be approved before payment? Yes. But for employee expense invoice approval is
not required.
2.3.2 Do you want invoice to be accounted before it is sent for No
approval?

2.3.3 What is the approval cycle for the invoices? Refer to 2.2.4

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Supplier Invoices in Oracle Payables
Supplier invoices will be entered in Oracle Payables to record the supplier invoices pertaining to goods or services received whether a Purchase
Order has been raised or not. Invoices will go through the approval flow before a payment is processed in the system. Payment terms will be
defined in the system which will be updated on invoices. As per selected payment terms invoice due date will be calculated.

Different types of invoices that will be entered in the system are as follows:

Standard Invoice: 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 towards goods or services.

Debit Memo: An invoice you enter to record a credit for a supplier, from whom credit memo is not received.

Prepayment Invoice: A type of invoice you enter to pay an advance payment for expenses to a supplier or employee.

Oracle Payables lets you capture all the attributes of the real-life invoice documents you receive from your suppliers. When you enter an invoice
in Payables, the invoice information is divided between the invoice header, invoice lines, distributions and installments.

Invoice can be entered in Payables either manually or through spreadsheet. Using spreadsheet functionality users can upload invoices in bulk.

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Page 12 of 29
Payables Invoice Management – Oracle Process Flow-
Process owner(s) Accounts Payables and Finance Legend:

Manual process Data Validation

System Procurements, Accounts Payables and General Accounting
Decision Start / End

Process Payables Invoice Management Process Overview Document System Process

Title: Payables Invoice Management Process Overview

Is Invoice
Create Match Invoice
required to be
Individual Yes with PO
matched with
Invoice Receipt
PO Create
No Accounting
Accounts Payable Department

Enter Lines,
Individual Validate
Start Distribution Invoice Validated
Invoices
and Project

Create No
Un Matched
Individual or Is Invoice to
Multiple Invoices hold
Mass Recurring Mass Be Cancelled
Invoice via Invoice Placed
Invoice
Spreadsheet on Hold
Yes Yes
Create
Multiple Correct Error(s)
Recurring Update Invoice or Match Cancel Invoice
Invoices via
Spreadsheet Invoice

No
Invoice cannot be paid Yes
Without approval Invoice
Approval
End
Approvers

No

Invoice
Approved?

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Prepayment / Advances to Suppliers – Oracle Process Flow

Accounts Payables and Finance Legend:

Process owner(s)
Manual process Data Validation
System Procurements, Accounts Payables and General Accounting
Decision Start / End

Process Payables Invoice Management Process Overview Document System Process

Title: Payables Invoice Management Process Overview

Create
Start
Accounts Payable Department

Prepayment Correct Errors

Create
Accounting

Enter
Enter
Prepayment Validate Invoice Invoice Place Process
Prepayment No
Invoice Invoice Validated? On Hold Payment
Invoice Lines
Header

Yes
Prepayment
Update
Yes Available for
Invoice
Application

Invoice cannot be
Approvers

Paid Without
Approval Invoice Invoice
Approval Approved?
End

No

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No. Information Gathering Questions Answers Gap

3 Payment Processing
3.1 Payment Processing
3.1.1 What are the different payment methods being used for Check, Wire, Credit Card, Petty Cash, PayPal
payment e.g., checks, wire etc.?

3.1.2 Is there a requirement to use computer generated checks? Yes.

Check formats will be provided to APPSLINK Team.

3.1.3 Is/will there be a requirement to use multiple currencies? Yes

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Payables Payment Processing
Payments can be processed in Payables using any of the following methods:

• Pay in Full: This option will be used where full amount of the invoice is to be paid in single payment.

• Create Payment: Single payment for supplier by selecting invoices to pay. Amount to pay for each invoice can be updated.

• Payment Batches: Using payment process request functionality to select all the due invoices based on a specific selection criterion.
Using this process an invoice can be paid fully as well as partially.

If required, payment can be voided to cancel the payment for any reason including data entry mistake.

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Payables Payment Processing – Oracle Process Flow
Accounts Payables and Finance Legend:
Process owner(s)
Manual process Data Validation
System Accounts Payables and General Accounting
Decision Start / End

Process Payables Payment Processing Overview Document System Process

Title: Payment Processing Overview

Payment Can Only Be

Created for Approved Invoices

Pay in Full (Single /

Multiple Invoices
Start Using Invoice
Accounts Payable Department

Workbench)

Create Single
Payment (Partial / Build and
Create Payable Validate and Create
Full Using Format End
Invoices Approve Invoices Accounting
Payment Payments
Workbench)

Execute Payment Check / Wire

Process Request Transfer
for Mass
Payments

Only Approved Invoices

Will be Selected for
Run Payment Payables Selected Payment
Process Request Installment Report

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Stop / Voiding Payment – Oracle Process Flow

Accounts Payables and Finance Legend:

Process owner(s)
Manual process Data Validation
System Accounts Payables and General Accounting
Decision Start / End

Process Stop / Voiding Payment Process Overview Document System Process

Title: Stop / Voiding Payment Processing Overview

Start
Accounts Payable Department

Stop or Void Initiate Stop Release Stop

Stop Void or Release Release
Payment Payment on Payment

End

Void Void Payment Void

Reissue or Re-Issue
Re-issue
Cancel Invoice Payment

Cancel Cancel Invoice

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No. Information Gathering Questions Answers Revisit

4 Taxes
4.1 Sales/Value Added Taxes
4.1.1 Do you have taxes applicable on your Supplier invoices? Yes, Standard UAE VAT

4.2 Withholding Taxes

4.2.1 Do you have withholding tax on Supplier payables invoices or No
their payments?

4.2.2 What is / are name of the withholding tax authorities? No

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Payables Taxation
Taxes for Payable transactions will be determined by evaluating the transaction information in the context of applicable tax configuration.
Following are the four broad processes involved in determination of taxes, and are listed in the order in which they're evaluated:

• Determine applicable tax regimes and taxes

• Tax status and rate
• Tax calculation
• Tax recovery

Value Added Tax (VAT) of taxes will be configured for at Visioneers.

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Manage Taxes on Payables Invoices – Oracle Process Flow

Accounts Payables and Finance Legend:

Process owner(s)
Manual process Data Validation
System Accounts Payables and General Accounting
Decision Start / End
Database
Process Value Added Tax Process Overview Document System Process

Title: Value Added Tax Process Overview

Administrator
System

Define VAT Codes VAT Taxes

Select the
Accounts Payables Department

VAT Code exist Yes Appropriate VAT

Code

Start
Yes Un matched Invoice
Hold

Tax Codes VAT Register

Enter Supplier Automatically VAT Information
Validate Invoice
Invoices Defaults from PO / requires Change
Supplier Master

Create Payment
Approvers

Invoice cannot be paid

Without approval
Invoice Approval End

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No. Information Gathering Questions Answers Revisit

5 Period Processing
5.1 Open/Close Periods
5.1.1 How often do you "post" accounting information to your General Should be scheduled once daily or twice in a day.
Ledger? Is it at the time of individual transaction entry or
periodically which could be daily, weekly or monthly?

5.1.2 Do you post (or wish to post) in detail or in summary to the Detailed
General Ledger?

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Period Closing in Payables
Oracle ERP cloud has the concept of accounting periods in nearly all the modules. There is a control in the system where an accounting
transaction can only be entered in Open or a future enterable period.

Users can proceed with period closure once the data entry, including invoice entry and payment processing, for the given period is complete.
User has to ensure that all transactions have been accounted, transferred and posted to General Ledger. If there are any exceptions, user need
to resolve those before the accounting period for Payables is successfully closed.

In certain cases, if required, an adjustment/ accounting entry is to be posted to previously closed period the authorized user will open the period
to allow posting of back dated entries.

Kindly note that General Ledger accounting period is the last period to be closed after making sure that the subledger periods are successfully
closed.

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Payables Period Closing – Oracle Process Flow
Accounts Payables and Finance Legend:
Process owner(s)
Manual process Data Validation
System Accounts Payables and General Accounting
Decision Start / End

Process Payables Period Close Process Overview Document System Process

Title: Payables Period Close Process Overview

Start
Ensure all the Run Create
Run Sub-Ledger
Transactions has Accounting and
Close Exception End
been Created and Transfer to GL
Report
Processecd Process
Accounts Payable Department

Reconcile Payables Open Next

Yes Exceptions Exist? No
to General Ledger Accounting Period

Close Current
No Reconciled? Yes
Period

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No. Information Gathering Questions Answers Revisit

6 Reporting Requirements
6.1 Reports and Related Formats
6.1.1 Please enclose a list of all reports used in the Accounts Payable Will be provided to Appslink
area Please annotate the report list with each report's
name/number, description, the type of users, frequency on
which these reports are generated.

7 Miscellaneous
7.1 What else needs to be discussed?

7.1.1 Other Applications used by AP. No.

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Application Configuration Questionnaires

Application Configuration Questionnaires

Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

AC:1 AP: 1.1 What would be your supplier Refer to 1.2.3

numbering sequence?

AC:2 AP: 1.2 Can you please enlist your business Supplier onboarding automated workflow process to be put in
classifications/ registrations? place.

Note: These are the various

registration information with start and
expiry date that client wants to
capture at the time of supplier
registration.

AC:3 AP: 1.3 What are different supplier types? Use standard.
Please enlist.

AC:4 AP: 1.4 Please provide different payment Use standard.

terms as per your company policy.

Please clarify:
AC:5 AP: 1.5 Please provide the values for specified Supplier Liability Account:
options: Prepayment Account:
Conversion Rate Variance Gain Account:
Conversion Rate Variance Loss Account:
Discount Taken Account:
Automatic offset allowed (Y/N): N

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Application Configuration Questionnaires
Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

Realized Gain Account:

Realized Loss Account:
Expense Accruals (Period End/Receipt): Receipt
Allow document category override: N
AC:6 AP: 1.6 Please provide the values for specified Allow adjustments to paid invoices: N
options: Default Payment Terms: 15 Days
Terms Date Basis (Sys, Invoice, Invoice Received): Invoice Date
Accounting Date Basis (Sys, Invoice, Invoice Received): System
Date
Budget Date Basis (Sys, Invoice, Accounting): Accounting
Allow matching distribution override (Y/N): N
Allow Discount Allowed (Y/N): Y
Discount Allocation Method (All Invoice lines, Single line): All
Allow Invoice Approval: Y

AC:7 AP: 1.7 Please provide the values for specified Allow payment date before the system date (Y/N): Y
options: Allow override of supplier site bank account (Y/N): N
Allow document category override (Y/N): N
Account for Payment (Payment Issue, Clearing, At payment
issue and clearing): Payment Issue and Clearing

AC:8 AP: 1.8 What would be your document ENTITY CODE – DOCUMENT TYPE – YEAR – XXXXX
sequence for Invoices and Payments?

AC:9 AP: 1.9 Please share you Invoice and Will be shared.
Payment Approval Matrix

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Application Configuration Questionnaires
Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

AC:10 AP: 1.10 How many different payment methods Check, Wire, Credit Card, Letter transfer, Other non-cash
you have? What would be your pay clearing account to close the invoice
group’s requirements?

AC:11 AP: 1.11 What is your bulk invoice selection Currently Not Applicable
criteria, based on each disbursement
bank (Using Pay through dates, Pay
Group(s), Supplier Type(s), Business
Unit(s) or using combination of
above)?

AC:12 AP: 1.14 What are your requirements for See relevant section above.
invoice hold(s)?

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Open and Closed Issues

Open Points
ID Description Status Responsibility Target Date Impact Date

6.1.1 Reporting Pack to be provided Open Mr. Farid

Closed Points
ID Issue Resolution Responsibility Target Date Closed Date

Gap Log
ID Gap Description Provided Solution Response Status

Design Feedback
ID Feedback/Comments Received From Appslink Response Status Received Closed
Date Date

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