Account Payables

Account Payables – Contents

1. Overview Oracle Payables

1.1 Interface Information With Other Modules
1.2 Business Process Flow
1.3 Setup Values, Defaults & Cotrols Flow
2. Setup Options
2.1 Financial
2.2 Payable
3. Defining Suppliers & Supplier Sites
4. Defining Banks/Bank Accounts (Internal/Customer/Supplier):

5. Defining Distribution Sets

5.1 Full Type
5.2 Skeleton Type
6. Defining Payment Terms
6.1 Discount Method
6.2 Immediate Method
6.3 Proxima Method
6.4 Periodical Payment Method
7. AP Work Benches
7.1 Types Of Payments
7.1.1 Quick
7.1.2 Manual
7.1.3 Refund
7.1.4 Pay In Full
7.2 Types Of Invoices
7.2.1 Standard
7.2.2 Debit Memo
7.2.3 Credit Memo
7.2.4 Mixed
7.2.5 Prepayment
7.2.6 Expense Report
7.2.7 Recurring
7.2.8 P.O. Default
7.2.9 Quick Match
7.2.10 Pay On Receipt
7.2.11 Interest
7.3 Batch Payments
Account Payables .

OVERVIEW
ORACLE PAYABLES
AP is a complete payable solution module that helps to process invoices &
payments quickly & efficiently.
Account Payables .

Interface Information:

1. HRMS :

2. PURCHASE :

3. ASSETS :

4. CASH MGMT :

5. PROJECTS :

6. G.L. :

Business Process Flow in AP:

Supplier

Invoice
Account Payables .

Validation

Payment

Posting

Accounts Payables include two fully integrated workbenches, the Invoice Workbench and the
Payment Workbench.

1. You enter, adjust, and review invoices and invoice batches in the
Invoice Workbench.

2. You create, adjust, and review payments and payment batches in the
Payments Workbench.

SetUp Values, Defaults & Controls Flow in AP :

Account Payables .

Payables Super User Menu(AP_Navigate_GUI12):

Account Payables .

· SETUP OPTIONS
 Defining Options (Financial & Payable):
 Financial Options:
Setup  Options  Financials
Account Payables .

1. Accounting:
Enter the number of future periods you use in your set of books. Payables
uses this value to limit the number of future periods you can maintain in the
Control Payables Periods window. You can enter invoices in future periods
Enter the default GL Accounts for all new suppliers you define. You can
override this value during supplier entry.

2. Supplier – Entry:

Enter the options in this region will be used to control supplier entry and
purchase order matching.

3. Supplier – Payables:

Enter the options in this region, except for Receipt Acceptance Days, are
used as default values for the Payment region of the Suppliers window.
The supplier values default to new supplier sites for the supplier, which
default to new invoices for the supplier site. You can override these values
during entry of the supplier, supplier site, and invoice.

4. Supplier – Purchasing:

Enter the options in this region, except for Inventory Organization, are
used as default values for the Purchasing region of the Suppliers window.
Defaulting sequence and overriding concept is same as above said.

5. Encumbrance:
To use encumbrance accountin, you must install Payables, Purchasing, and General
Ledger Use this region to enable encumbrance accounting and to specify the default
encumbrance types Payables assigns to your invoices, and Purchasing assigns to
your requisitions and purchase orders. Oracle Financials provides two predefined
encumbrance types that you can use to identify requisition, purchase order, and
invoice encumbrances: Commitment and Obligation.

6. Tax:

Enter the options in this region, are used as default tax codes, company
region details for the type of VAT, Recovery tax rate value, rounding rules
and minimum accountable tax amount for the tax calculation.

7. Human Resources:
Account Payables .

Enter the options and defaults in this region for entering employee
information in the Enter Person window.

 Payable Options:

Setup  Options  Payables

1. Accounting Methods:

Accounting Methods. Method(s) used to create accounting entries for

your transactions in accordance with cash basis, accrual basis, or both
(combined basis) accounting methods.

Automatic Offset Method. Enable Automatic Offsets by selecting Balancing or

Account as your Offset Method if you want Payables to automatically create
balancing accounting entries for your invoice and payment transactions.
2. Transfer to GL:
Account Payables .

Use this region to set defaults for submission of the Payables Transfer to
General Ledger Process. If you use Oracle General Ledger you can also set
defaults for submitting Invoice Import, which transfers accounting lines to Oracle
General Ledger.

3. Payment Accounting:

Account For Payment: Choose when you want to create payment accounting
entries. You can select one or both options.
Payables creates the accounting entries, depending on how the Account for Payment option
is set. This accounting assumes you use accrual basis accounting. You specify the GL
accounts when you define the payment document.

Account For Gain/Loss: Select the time at which you will record currency gains
or losses for foreign currency payments. If you selected Account For Payment
When Payment Clears above, then the system enables the When Payment
Clears option here and you cannot update it.
The combination of Payables options you select and your accounting method
control which gain and loss accounting entries Payables creates.

Calculate Gain/Loss. Select the transaction level at which you want to calculate
foreign currency gains and losses.

Use Future Dated Payment Account. You can define a future dated payment
account at both the supplier site and the payment document level. This option
controls which account Payables will use to create accounting entries for future
dated payments.

4. Currency:

Set-up required values in this region if you are entering invoices and making
payments in a currency that different from other than functional currency.

5. Supplier:

Use this region to enter defaults for the Suppliers window. These values then
default to the Supplier Site, and then to the invoice. You can override these
defaults at any time.

6. Invoice:

Use Batch Controls. Enable this option to enable use of the Invoice Batches.
Account Payables .

Confirm Date as Invoice Number. If you enable this option, then during invoice entry
when you accept the invoice date as the default for invoice number.

Allow Online Approval. Enable this option if you want to allow users to submit
Payables Approval in the Invoices window and the Invoice Batches window.

Allow Adjustments to Paid Invoices. Enable this option if you want to allow
users to update the distributions of a paid invoice.

Recalculate Scheduled Payment. Payables calculates scheduled payments

using a start date and payment terms.

Allow Document Category Override. Enable this option if you want to allow
users to override the default Document Category assigned to an invoice by
Payables.

Automatically Create Freight Distribution. If you enable this option, Payables

checks the Create Freight Distribution check box in the Invoices.

Freight Account. If you enable the Automatically Create Freight Distribution

Payables option, you must enter a freight account. Payables uses this account as
the default freight account for an invoice. You can override this account during
invoice entry.

GL Date Basis. The date you want Payables to use as the default accounting
date for invoices during invoice entry.

Invoice Date. Invoice date you enter during invoice entry.

System Date. Current date for your Payables system. The date you enter the
invoice.
Goods Received/Invoice Date. Date that you enter in the Date Goods Received
field. If no value is entered, then the invoice date is used.

Goods Received/System Date. Date that you enter in the Date Goods Received
field. If no value is entered, then the system date is used.

Prepayment Settlement Days. Number of days you want Payables to add to the
system date to calculate a default settlement date for a prepayment. Payables
prevents you from applying the prepayment to an invoice until on or after the
settlement date.

7. Prepayment Payment Terms. Payment terms that you want to use for all
prepayments.
Account Payables .

8. Matching:

Allow Final Matching. Enable this option to allow final matching of purchase
order matched invoices.

Allow Distribution Level Matching. Enable this option if you want to allow
matching to purchase order distributions.

Allow Matching Account Override. Enable this option if you want to allow
override of the account for an invoice distribution created from matching to a
purchase order.

Transfer PO Descriptive Flexfield Information. Enable this option if you want

Payables to automatically transfer the descriptive flexfield information from the
purchase order distribution to the invoice distribution when you match an invoice
to a purchase order.

9. Interest:

Use this region to enable Automatic Interest Calculation and then enter
defaults, such as expense and liability accounts, for the interest invoices
Payables creates automatically when you pay overdue invoices.

10. Expense Reports:

Enter all required default values in this region, which derives to get the automatic
expense report invoice for the employee’s reimbursable payment. And also enter
Accounts to create the accounting entries at the time of invoice creation and
making payment.

11. Payment:

Bank Account. The internal bank account you use to disburse funds. Payables
uses this value as a default in the Payment windows.

Payment Batch Limit. The default maximum outlay amount Payables will pay
for each payment batch.

EFT User Number. The number which identifies you as a user of electronic
funds transfer services to your bank or clearing organization.
Account Payables .

Additional Pay Through Days. Number of days between your regular

payment batches.

Allow Document Category Override. Enable this option if you want to

allow users to override the default document category assigned to a
payment document by Payables.

Exclude Tax From Discount Calculation. If you enable this option,

Payables subtracts the tax amount from the invoice amount when it enters
the invoice amount applicable to discount in the Invoices window.

Method. The method you want Payables to use for distributing the
discounts you take when making payments.

Prorate Expense. Payables automatically prorates any discounts across

all the invoice distributions.

Prorate Tax. Payables automatically prorates a percentage of the

discount amount across the tax distributions.

System Account. Payables credits all discounts to the system Discount

Taken account you define in the Financials Options window.

Allow Print. If you enable this option, you can create Quick payments.

Allow Pre-Date. If you enable this option, Payables allows you to create
payments with a payment date before the system date for any payment
except a manual payment.

Allow Void and Reissue. If you enable this option, you can reissue a
Quick payment.

Allow Address Change. Enable this option if you want to allow users to address
a payment to an address other than the invoice's supplier site's address.

Allow Remit-to Account Override. Check this check box if you want to
allow users to change the default primary supplier site bank account
during Quick payment and payment batch creation

Use Bank Charges. If you want to use the Bank charge feature, enable
this option.

12. Invoice Tax:

Account Payables .

Require Tax Entry at Header. If you enable this option, Payables requires you
to enter a Tax Code and Tax Amount in the Invoices window when you enter an
invoice.

Use Automatic Tax Calculation. Select this option if you want to enable
Payables to automatically calculate and enter tax on invoices.

Calculation Level. If you enable the Use Automatic Tax Calculation option,
select the level at which you want Payables to automatically calculate sales tax.
This value defaults to new suppliers you enter.

Header. Automatically create tax distributions based on the Invoice Amount and
Tax Code in the Invoices window:

Tax Code. Automatically create tax distributions based on the distribution Amount, Tax
Code, and Includes Tax check box in the Distributions window. When calculating tax
amounts, group lines with the same tax code and Includes Tax check box setting
together, calculate tax, and then round the tax amount.

Line. Automatically create tax distributions based on the distribution Amount, Tax
Code, and Includes Tax check box in the Distributions window.

Allow Calculation Level Override. Enable this option if you want to allow users
to adjust the default value of the Calculation Level option for new and existing
suppliers.

Distribution Amounts Include Tax. Enable this option if you use Automatic Tax
Calculation at the Line level or Tax Code level, and you want the Distribution
Amounts Includes Tax check box to be enabled by default for all new suppliers
you enter.

Allow Override. If you enable the Allow Override option, you can override the
Distribution Amounts Include Tax check box default value for all suppliers.

13. With Holding Tax:

Use Withholding Tax. Select this option to enable Automatic Withholding Tax.

Allow Manual Withholding. Enable this option to allow manual creation and
adjustments of Withholding Tax type distributions for your invoices.

Tax Group. The name of the withholding tax group that you would like to use as
the default withholding tax group for the new suppliers you enter.
Account Payables .

Apply Withholding Tax. Select the time at which you would like Payables to
apply withholding taxes to your supplier's invoices:
Never.
At Invoice Approval Time. At
Payment Time.

Withholding Amount Basis.

Include Discount Amount.
Include Tax Amount.

Create Withholding Invoice. Select the time at which you would like Payables
to automatically create withholding tax invoices to remit withheld taxes to tax
authorities:
Never.
At Invoice Approval Time. At
Payment Time.

14. Tax Defaults and Rules:

Use this region to set a hierarchy for Payables to use when it provides default
values for Tax Code fields.

Enforce Tax From Account. Enable this option if you want to enforce the
relationship between the tax code and the expense or asset account for
distributions.

Enforce Tax From Purchase Order. Enable this option if you want Payables to
honor the Taxable flag on the purchase order shipment, and if you want Invoice
Validation to verify that the invoice Tax Code value matches the Tax Code value on
the purchase order document that the invoice is matched to.

Tax Code Defaults

PO for Matched Invoices. Enable this option if you want to enable the Enforce
Tax from Purchase Order option in the Payables Options window

Supplier Site. Invoice Tax Code value you entered in the Invoice Tax region of
the Supplier Sites window.

Supplier. Invoice Tax Code value you entered in the Invoice Tax region of the
Suppliers window.

Account. Tax Code value you assigned to the expense or asset account in the
Tax Options window in General Ledger.
Account Payables .

Financials Options. Value you entered for Tax Code in the Financials Options
window.

Invoice Header. Value you enter for Tax Code in the Invoices window. This
source is used only for providing a default for invoice distributions.

Template. Template you use to create an invoice or invoice distributions:

Distribution Set, or expense report template.

Attention: If you use zero-rated taxes in Distribution Sets or expense report

templates to indicate that lines are non-taxable, then rank Template high in your
hierarchy to ensure that that the zero-rated taxes are not overwritten by other
sources.

15. Reports:

Accounts Payable Trial Balance Report:

Relieve Future Dated Payment Liability. This option controls whether

the Accounts Payable Trial Balance report includes as liabilities invoices
that you have paid with future dated payments.

When Payment is Issued. The report will not include as liabilities

any invoices paid with future dated payments.

When Payment Matures. The Accounts Payable Trial Balance

report will include as liabilities all invoices paid with future dated
payments, and they will remain on the report until payment
maturity.

When Payment Clears. The report will include as liabilities all

invoices paid with future dated payments, and they will remain on
the report until payment reconciliation.

Report Sorting: Sort by Alternate Fields: If you enable this option then
Payables sorts by values in the alternate fields whenever it sorts reports by
supplier name, supplier site name, and bank account name.
Account Payables .

 Defining Suppliers:
Defining a new Supplier

Suppliers  Entry

Supplier Name: Enter Supplier Name (User Defined)

Supplier Number: Will be taken as per the options from the Financial Options.

Alternate Name: This value is optional WRT Japan applications.

Taxpayer ID: Optionally enter supplier’s Tax (PAN) No.

Tax Registration No.: Optionally enter supplier’s business (Sales, VAT,
etc.) Tax Registration.
- General

Customer Number. (Optional) The number your supplier uses to identify your
enterprise. This number appears on the Oracle Purchasing standard purchase order.

Number. (Optional) Parent supplier number.

Parent Supplier Name. (Optional) Name of supplier's parent enterprise if supplier is

a franchise or subsidiary.

- Classification

Type. Type of supplier. Use Type to group suppliers for reporting purposes.
Account Payables .

Employee Name. Select the name of an active employee to link an employee to

the supplier.
Number. Will be taken as per the options from the Financial Options.

One Time. Enable to designate a supplier with whom you do not expect to do
repeat business.

SIC. Standard Industry Code.

Minority Owned. The minority group if the supplier is a minority- owned

business. You enter minority group codes for this list of values in the Oracle
Purchasing Lookups window.

Number. Employee number of the employee you have associated with the
supplier record.

Small Business. Check if supplier is small enterprises.

Woman Owned. Check if supplier business is owned by women.

- Accounting

Supplier accounting values default to all new supplier sites you enter for the supplier.
If you use the Multiple Organization Support feature, you can enter a value in this
field only at the supplier site level.

Distribution Set. Enter Default Distribution Set for all invoices entered for the
supplier site.

Liability. Change the Liability Account and description for a supplier site's
invoices specifically otherwise can continue with the values defaulted from the
Financials option for the Liability Account.

Prepayment. The supplier default for this field is the Financials option for the
Prepayment account. This default can be overridden.

Future Dated Payment. If you use future dated payments, enter the future dated
payment account you want to use.

- Control
Account Payables .

Invoice Tolerance.(Supplier Site level only). Use the Invoice Tolerances

window to define the matching and tax tolerances you want to allow for variances
between invoice, purchase order, receipt, and tax information.

Invoice Amount Limit. Enter an amount that this supplier’s invoice amount
should not exceed.

Invoice Match Option. Select whether you want to match invoices to purchase
orders or to purchase order receipts.
Purchase Order. Match invoices to purchase order shipments and/or
distributions.
Receipts. Match invoices to purchase order receipts.

Hold All Payments. Enable if all payments to this Supplier to be held.

Hold Unmatched Invoices. Enable if Invoice is not matched with Purchase

Order/Receipt at the time of Invoice Validation.

Hold Unvalidated Invoices. If enabled, Payables automatically applies a Supplier hold

to all unvalidated invoices entered for that site, including any invoices you import.

Payment Hold Reason. The reason you are applying an invoice hold to an invoice.

- Payment

All supplier payment values default to new supplier sites you enter. Supplier site values
default to invoices. You can override any payment defaults during supplier site entry,
except Allow Interest Invoices, which does not display in the Supplier Sites window.
The defaults in the Supplier Payment region come from the defaults you enter in
the Financials Options window, except the default for Pay Group and Allow
Interest Invoices, which come from the Payables Options window, and the default
for Exclude Freight From Discount, which is always No.

Terms. Payment terms used to schedule payments for an invoice. The system
uses payment terms to automatically calculate due dates, discount dates, and
discount amounts for each invoice you enter.
Pay Group. Pay Group assigned to a supplier.
Payment Priority. A number, between 1 (high) and 99 (low), which represents
the priority of payment.
Remittance E-mail.(Site Level only). The destination e-mail address for
remittance information.

Invoice Currency. The supplier invoice currency.

Account Payables .

Payment Currency. Same as above invoice currency. Change may require when
Invoice currency is associated with EURO.

Terms Date Basis. Date from which Payables calculates a scheduled payment for a
supplier. The default is one of the following Payables option you defined for Terms Date
Basis.
System / Goods Received / Invoice / Invoice Received

Pay Date Basis. The Pay Date Basis for a supplier determines the pay date for a
supplier's invoices.
Due / Discount

Payment Method. The method you use most frequently to pay this supplier's invoices:
Check. You can pay with a manual payment, a Quick payment, or in a payment
batch.
Electronic. Pay electronic payments either through the e-Commerce Gateway,
or by delivering a payment batch file to your bank.
Wire. Manually record an external wire transfer of funds between your bank and
your supplier's bank.
Clearing. Record invoice payments to internal suppliers.

Always Take Discount. Enable this option to have Payables always take an available
discount for a supplier, regardless of when you pay the invoice.

Exclude Freight From Discount. If this option is enabled for an invoice, Payables
automatically subtracts the freight amount entered on the invoice header from the invoice
amount when calculating the invoice amount subject to discount.

Allow Interest Invoices.(Header Level only) 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.

Attention AR.(Site Level only) Enable to have "Attention Accounts Receivable"

printed on your checks immediately below the supplier site name and before the
address if your payment formatting program allows it. Payables also prints this legend
on your supplier mailing labels.

Pay Alone. If this option is enabled for an invoice, Payables creates a separate
payment for each invoice.
Bank Charge Bearer. Indicate whether you or your supplier pays bank charges for
electronic payments. If your supplier pays, indicate whether your supplier uses the
standard or negotiated rate. This information is used in the Define Bank Charges
window. See: Bank Charges. This field is not visible if you do not enable the Use Bank
Charges Payables option.
Account Payables .

Internal. You pay bank charges.

Supplier/Negotiated. Your supplier pays bank charges at a negotiated rate.
Supplier/Standard. Your supplier pays bank charges at a standard rate.

- Bank Accounts
Use this region to record the supplier bank accounts that your suppliers and supplier
sites use for electronic payment transactions.

EDI (Electronic Data Interchange)

If you pay this supplier with electronic payments, enter the following information
for your supplier.

EDI Location.(only at the supplier site). Electronic Data Interchange (EDI)

location code for this supplier site.

EDI ID Number. This field is used only by Oracle Energy, if you have installed it,
and it appears only at the supplier site.

Payment Method. How the electronic payment will be made.

Payment Format. Indicates type of information being transmitted with the funds
if the Payment Method is ACH.
This field is enterable only if you select ACH in the Payment Method field.

Remittance Method. Party responsible for sending the remittance advice to the payee.

Remittance Instruction. Text of specific wire or other electronic payment

instructions for an intermediary or recipient financial institution (optional).

Transaction Handling. Standard EDI transaction code (ANSI ASC X12)

designating the action to be taken by all parties.

C. Payment Accompanies Remittance Advice.

D. Make Payment Only.

I. Remittance Information Only.

U. Split Payment and Remittance.

Z. Other Handling.

- Invoice Tax Code.

Account Payables .

Tax code or tax group that represents the tax charges you generally receive on
invoices from a supplier.

Use Offset Taxes. You can use offset taxes to record taxes on invoices while
offsetting the tax liability. You can associate offset taxes with sales or user-defined
taxes in the Tax Codes window.

Automatic Calculation
Calculation Level. Select the level at which you want Payables to automatically
calculate tax for this supplier or supplier site.

Header. Automatically calculate the tax amount and create tax distributions
based on the Invoice Amount and Tax Code in the Invoices window.

Line. Automatically create tax distributions based on the Distribution Amount,

Tax Code, and Includes Tax check box in the Distributions window. Calculate
amounts at the line level.

Tax Code. Automatically create tax distributions based on the Distribution

Amount, Tax Code, and Includes Tax check box in the Distributions window.
Calculate amounts at the tax code level.

None. Disable automatic tax calculation for this supplier or supplier site.

Allow Calculation Level Override. This field applies to the Calculation Level for tax.

Rounding Rule. If you use automatic tax calculation, select the method for the
system to use to round the automatically-calculated tax amount.

Up. Round up. For example, round Rs.10.677 to Rs.10.68

Down. Round down. For example, round Rs.10.677 to Rs.10.67

Nearest. Round to the nearest number, and if the difference between Up and
Down is equal, round Up. For example, round Rs.10.677 to Rs.10.68.

Distribution Amounts Include Tax. Enable this option if you use automatic tax
calculation at the Tax Code or Line level, and you want Payables to subtract the
calculated tax from distributions when Payables automatically creates tax distributions.

- Withholding Tax.
Enter withholding tax information for a supplier and supplier site.
Account Payables .

Allow Withholding Tax. Enable to allow withholding taxes for the supplier and
supplier site.
Withholding Tax Group. A default withholding Tax Group.

- Tax Reporting.

Income Tax details of the Supplier who resides in US. (Only At Header Level).

Income Tax Reporting Site. (Only At Site Level).

Enable check box to select a site as the reporting site for 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.

Tax Registration Number. (Only At Site Level).

Tax registration number, for example, a supplier's value-added tax (VAT)
registration number.

- Purchasing.

All supplier purchasing values default to new supplier sites you enter.

Ship-To Location. Location where a supplier sends shipments for goods/services.

Bill-To Location. Location to which a supplier sends the invoice for goods or services.

Ship Via. Freight carrier you use with a supplier.

FOB. Free-on-Board (FOB) code for a supplier.

Freight Terms. You negotiate freight terms with a supplier to determine whether
you or the supplier pays for freight charges on goods you order from a supplier

Purchase Order Hold. If you enable this option for a supplier, and you also enable the
Enforce Supplier Hold option in the Control region of the Purchasing Options window,
then you can create a purchase order for the supplier, but you cannot approve the
purchase order. To release this hold, deselect Purchase Order Hold here.

Purchasing Hold Reason. Reason you are preventing approval of purchase

orders for a supplier.
Account Payables .

Create Debit Memo From RTS Transaction. Enable this option if you want the
system to automatically create a debit memo in Payables when you enter a
Return To Supplier (RTS) in Purchasing.

Transportation Arranged (Only at site level).

Country of Origin. Country in which a product was manufactured.

Self Billing Region (Only at site level).

Enter information in these fields if you have installed Purchasing and use
the self-billing features to create invoices on behalf of your suppliers.
.
Pay On. You can enter a value for the Pay On field only if the supplier site
is a purchasing site.
Receipt. If you want to use the Pay on Receipt AutoInvoice
Program to automatically create invoices based on receipts you
enter for this supplier site, enter Receipt.
Alternate Pay Site. Pay site to be used as the supplier site when the
system creates self-billing invoices for this supplier
Invoice Summary Level. Enter the level at which you want to consolidate
invoices for this supplier site when you submit the Pay on Receipt
AutoInvoice Program:
Create Debit Memo From RTS Transaction. Enable this option if you
want the ystem to automatically create a debit memo in Payables when
you enter a Return To Supplier (RTS) in Purchasing.
Gapless Invoice Numbering. If you enable Gapless Invoice Numbering,
then you must also enter a Selling Company Identifier.
Selling Company Identifier.. This is the identifier for the supplier site.

- Receiving (Only at site level)

All supplier receiving values default to new purchase orders you enter for a supplier.
You can override any receiving defaults during purchase order entry.

Enforce Ship-to Location. The value you enter in this field determines whether the
receiving location must be the same as the ship-to location:

Receipt Routing. Default receipt routing that you assign goods: Direct Delivery,
Inspection Required, or Standard Receipt.

Match Approval Level. If you use Oracle Payables with Oracle Purchasing or
another integrated purchasing product, you can perform online matching of invoices
and original purchase orders or purchase order receipts.
Account Payables .

Quantity Received Tolerance. Maximum over-receipt tolerance percentage. During receiving,

Oracle Purchasing uses the over-receipt tolerance percentage and the over-receipt control action to
determine how to handle receipts that exceed the over-receipt tolerance.

Quantity Received Exception. How Purchasing handles receipts that exceed the
Quantity Received Tolerance: None / Reject / Warning.

Days Early/Late Receipt Allowed. Maximum acceptable number of days early/late for
receipts.

Receipt Date Exception. How Purchasing handles receipts that are earlier or later than
the allowed number of days selected. None / Reject / Warning.

 Defining Supplier Site

Click On Site sites

Supplier Site Creation:

Enter at least one supplier site mandatory. Enter the supplier site name and address.
Account Payables .

- General

Pay. Supplier site to which you send payment of an invoice. You cannot enter an
invoice for a supplier site that is not defined as a pay site.

Primary Pay. Default pay site. This pay site defaults as the pay site value in the
Invoices window.

RFQ Only. Enable if you do not allow entering purchase orders for a supplier site.
An RFQ Only site is a site from which you receive quotations.

Purchasing. Supplier site from which you order goods or services.

Procurement Card. Supplier site that accepts the credit card brands of your
procurement cards.
Customer Number. The number your supplier uses to identify your enterprise. This
number appears on the Oracle Purchasing Printed Purchasing Order Report.

Shipping Network Location. Physical location of the supplier site. The location
that you enter in this field appears on the list of values for the Ship To Location
field in Oracle Purchasing's Purchase Order window. Purchasing uses this
information when it receives outside processing items

Supplier Notification Method. Primary way you send purchase orders to the

supplier. Communication. Enter the contact details of the Supplier site.

- Contacts
Enter the contact persons and other details of the Supplier site.

- Accounting
- Control
- Payment
- Bank Accounts
- EDI
- Invoice Tax
- Withholding Tax
- Tax Reporting
- Purchasing
- Receiving
Defaults for all the above options carries from the Supplier Header Level.

SAVE & CLOSE

Account Payables .

 Defining Banks/Bank Accounts (Internal/Customer/Supplier):

Setup  Payments  Banks

Enter details of the Bank. / Clearing House

Account Payables .

 Click on Bank Account and Enter details of the Bank A/c and select Bank
Account: Internal

 Click on Payable Document and

Enter -> Document Information:
Document Name: <Your Account Check
Name> Disbursement Type: <select
Combined> Payment: <Check – USD>
-> Additional Information Last
Used:<Enter ‘0’>
Last Available:<Enter ‘50’>

SAVE & CLOSE

 Defining Distribution Sets:

Account Payables .

Setup  Invoices  Distribution Sets

Distribution Sets are two types – Full & Skeleton.
Full Distribution Sets to create distributions with set percentage amounts, or use
Skeleton Distribution Sets to create distributions with no set distribution amounts.

- Full Type:

Name: <Enter Distribution set name> Type: [FULL]

Description: <Enter Description>

Num: <Enter a Serial No. of Distribution Lines>

% : <Enter ratio value of the Invoice Gross amount for this Distribution
Line> Project Related: If this Distribution is related to a specific project then
enter details Account: <Enter concerned GL A/c Code Combination of the
Distribution Line> Description: <Enter Description>
Income Tax Type: <Select Income Tax Type>
Account Payables .

Tax Code: <Select Tax Code>

{Enter all required Distribution lines as set for the Invoice}

SAVE & CLOSE

- Skeleton Type:

Name: <Enter Distribution set name> Type: [SKELETON]

Description: <Enter Description>

Num: <Enter a Serial No. of Distribution Lines>

% : <Enter ‘0’ for this Distribution Line>
Project Related: If this Distribution is related to a specific project then enter
details Account: <Enter concerned GL A/c Code Combination of the
Distribution Line> Description: <Enter Description>
Income Tax Type: <Select Income Tax
Type> Tax Code: <Select Tax Code>
{Enter all required Distribution lines as set for the Invoice}

SAVE & CLOSE

 Defining Payment Terms:

In the Payment Terms window, you define payment terms that you can assign
to an invoice to automatically create scheduled payments when you submit
Payables Invoice Validation for the invoice. You can define payment terms to
create multiple scheduled payment lines and multiple levels of discounts. You
can create an unlimited number of payment terms.
Payment terms have one or more payment terms lines, each of which creates
one scheduled payment. Each payment terms line and each corresponding
scheduled payment has a due date or a discount date based.: Examples
Account Payables .

Setup  Invoices  Payment Terms

- Discount Method
Name : 2 / 10 Net 45
Description: If the payment made before 10 days will get 2 % discount
otherwise due date is 45 days from the date of Terms Date.
Effective Day: 13-Sep-2007 (from this day onwards only can be applied)
Cut-Off Day:
-- Rank: --

Due:
%Due/Amount: 100 (Either of the column to be given. % Enter Ratio
against the Invoice amount on which to be applied / Enter a fixed amount
on which to be applied)
Calendar: --
Fixed Date: -- (Enter date as a due date without considering of Terms Date)
Days: 45
Account Payables .

Day of Month: --(used for Proxima Terms)

Months Ahead: --(used for Proxima Terms)
First Discount
%Discount:
2 Days: 10

SAVE & CLOSE

- Immediate Method
Name : 50% immediate, Net 30
Description: 50% Down Payment and rest 50% can be paid upto 30 days.
Effective Day: 13-Sep-2007 (this day onwards only can be applied)
Cut-Off Day:
-- Rank: --

Due:
%Due/Amount: 50 (Either of the column to be given. % Enter Ratio
against the Invoice amount on which to be applied / Enter a fixed amount
on which to be applied)
Calendar: --
Fixed Date: -- (Enter date as a due date without considering of Terms Date)
Days: 0
Day of Month: --(used for Proxima Terms)
Months Ahead: --(used for Proxima Terms)

Go to Next line:-

%Due/Amount: 50 (Either of the column to be given. % Enter Ratio

against the Invoice amount on which to be applied / Enter a fixed amount
on which to be applied)
Calendar: --
Fixed Date: -- (Enter date as a due date without considering of Terms Date)
Days: 30
Day of Month: --(used for Proxima Terms)
Months Ahead: --(used for Proxima Terms)

SAVE & CLOSE

- Proxima Method
Name : Proxima Terms
Description: (Credit Card type Payment Terms): Payment Cycle starts on
every 15th of the month (Cut-Off) and the due date will be 30th of the month in
which the payment cycle ends.
Account Payables .

Effective Day: 13-Sep-2007 (from this day onwards only can be applied)
Cut-Off Day:
15 Rank: --
Due:
%Due/Amount: 100
Calendar: --
Fixed Date: -- (Enter date as a due date without considering of Terms Date)
Days: --
Day of Month: 30
Months Ahead: 0

SAVE & CLOSE

- Periodical Payment Method

Name : Periodical Payment
Description: Making payment once after the whole period. The periods and its
due dates are defined in the Spl. Calendar.
Effective Day: 13-Sep-2007 (from this day onwards only can be applied)
Cut-Off Day:
-- Rank: --

Due:
%Due/Amount: 100
Calendar: <Enter Spl. Calendar Name>
Fixed Date: --
Days: --
Day of Month: --
Months Ahead: --

SAVE & CLOSE

 AP WORK-BENCHES (INVOICE & PAYMENT)

Types of Invoices:

- General
· Standard allows only positive amounts in invoice amount fields
· Debit Memo enters by the company to reduce the liability towards supplier. It
allows only negative amounts in invoice amount fields
· Credit Memo document receives from the supplier and entered to reduce the
liability towards supplier. It allows only negative amounts in invoice amount fields
Account Payables .

· Mixed allows either positive or negative amounts in invoice amount fields. If

you select this type to enter an Invoice then you can enter either a Standard
invoice or Debit Memo or Credit Memo.
· Prepayment invoices are used for making advance payments to suppliers.
- Purchasing Module Related Invoices
· P.O.Default invoice that can be matched manually with P.O. shipment lines.
· Quick Match invoice that matches automatically with P.O. entire shipment lines.
· Pay On Receipt invoice is an auto generated. As soon we receive the material
from supplier in purchasing module, based on the information an invoice will be
generated and that can be validated in invoice work bench.

- Auto generating Invoices

· Expense Reports invoices are used to record reimbursable business related
expenses incurred by the employees.
· Recurring invoices generates at time for all the specified periods
according to defined Spl. Calendar.
· Interests invoices generates at the time of making past due payments so that, it clubs to
make the payment of the interest invoice amount with the original invoice amount
· Withholding Tax invoices generates by the amount that withheld from the
payment to the supplier, to make the payment to the Income Tax authorities.
 Types of Payments:
· Quick : To make payment through computer generated cheque and print.
· Manual: To record the transaction already paid.
· Refund: To Enter the details about the refunds.
Account Payables .

Invoices  Entry  Invoices

Account Payables .

· Standard Invoice

Type : Standard (Select)

Supplier : Supplier name(Select)
Supplier Num: displayed (Automatically)
Site: Supplier Site(Select)
Invoice Date:<Enter Invoice Date> Invoice
Num: < Enter Internal Invoice No.>
Invoice Curr: Default value (as per Supplier Site value)
Invoice Amount:<Enter Invoice Gross amount>
GL Date: Default date (as per the Invoice Date)
Payment Curr: Default value (as per Supplier Site)
Terms Date: Default date (As per Invoice Date)
Terms: Default terms (as per Supplier Site)
Payment Method: Default Method (as per Supplier Site)

Click On
Distribution
Num: <Enter Invoice Distribution Line No.>
Account Payables .

Type: Freight/Item/Miscellaneous/Tax (Select)

Amount:<Enter Distribution amount>
GL Date:Default date (Carried from the Invoice Header)
Account:<Enter GL A/c.Code Combination>

Note: Repeat the Entries for all lines of Distributions and ensure that
Distributions total amount must be equal to the Invoice amount entered.

SAVE & CLOSE

To Validate the Invoice

Click On
Actions…1

- Enable Validate Check Box.

OK
Account Payables .

Click On

NOTE: Find at General Tab Invoices Status Block Status Field  Validated

To Account for the Invoice

Click On
Actions…1
Account Payables .

- Enable Create Accounting Check Box.

Click On OK
 Account Payables .

NOTE1: Find at General Tab Invoices Status Block Accounted Field  Yes

NOTE2: You can view Journal Accounting Lines of the Invoice validated. At Menu bar ToolsView
Accounting
Account Payables .

To make Full Payment

Click On
Actions…1

- Enable Pay in Full Check Box. Click On OK

Account Payables .

NOTE3:- Directly moves to Payment Work Bench with all field values of the
Invoice work Bench.

NOTE1: Find at General Tab Invoices Status Block Accounted Field  Yes

CLOSE
To make Invoice Payment:
Payments  Entry  Payments
Account Payables .

Type: Quick/Manual/Refund (Select)

Bank Account: Bank Account (Select your Internal Bank)
Document: Check name (select)
Document Num: Displays (if it reserved in setups)
Payment Date: Defaults (the System Date)

Supplier: Supplier Name (select)

Supplier Num: Displays
Supplier Site: Supplier Site (select)

Click On
Enter/Adjust Invoices

Invoice No: Invoice No. (Select Inv. No. of the Particular Supplier)
Payment Amount: Displays the Invoice amount to be paid.( Can be changed the amount
field for the Partial amount. And select in the next line to club the another invoice amount.)

SAVE & CLOSE

Account Payables .

Click On

OK
Account Payables .
Account Payables .

· Debit/Credit Memo Invoices

Type : Debit/Credit Memo (Select)

Supplier : Supplier name(Select)
Supplier Num: displayed (Automatically)
Site: Supplier Site(Select)
Invoice Date:<Enter Invoice Date> Invoice
Num: < Enter Internal Invoice No.>
Invoice Curr: Default value (as per Supplier Site
value) Invoice Amount:<Enter Negative amount>
GL Date: Default date (as per the Invoice
Date) Payment Curr: Default value (as per
Supplier Site) Terms Date: Default date (As
per Invoice Date) Terms: Immediate
Payment Method: Default Method (as per Supplier Site)

Click On
Distribution
Num: <Enter Invoice Distribution Line No.>
Type: Freight/Item/Miscellaneous/Tax (Select)
Amount:<Enter Negative amount>
GL Date:Default date (Carried from the Invoice Header)
Account Payables .

Account:<Enter GL A/c.Code Combination>

Note: Repeat the Entries for all lines of Distributions and ensure that
Distributions total amount must be equal to the Invoice amount entered.

SAVE & CLOSE

To Validate the Debit/Credit Memo

Click On Actions…1

- Enable Validate Check Box.

Click On OK
NOTE: Find at General Tab Invoices Status Block Status Field  Validated

To Account for the Debit/Credit Memo

Click On Actions…1

- Enable Create Accounting Check Box.

Click On OK

NOTE1: Find at General Tab Invoices Status Block Accounted Field  Yes

NOTE2: You can view Journal Accounting Lines of the Invoice

validated. At Menu bar ToolsView Accounting

To record Full Refund

Click On
Actions…1

- Enable Pay in Full Check Box.

Account Payables .

Click On OK

NOTE3:- Directly moves to Payment Work Bench with all field values of the
Invoice work Bench.
NOTE1: Find at General Tab Invoices Status Block Accounted Field  Yes

CLOSE

To record Refunds:

Payments  Entry  Payments

Type: Refund (Select)

Bank Account: Bank Account (Select your Internal Bank)
Document: Check name (select)
Document Num: <Enter Cheque No.>
Payment Date: Defaults (the System Date)

Supplier: Supplier Name (select)

Supplier Num: Displays
Supplier Site: Supplier Site (select)

Click On
Enter/Adjust Invoices

Invoice No: Debit/Credit Memo No (Select Debit/Credit Memo No. of the Particular Supplier)
Payment Amount: Displays the Invoice amount to be paid.( Can be changed the amount
field for the Partial amount. And select in the next line to club the another invoice amount.)

SAVE & CLOSE

 Prepayment invoices are used for making advance payments to

suppliers. Two types of Prepayments.
1. Temporary (Default Prepayment): Can be adjusted with the forthcoming
invoices from the Supplier.
Account Payables .

2. Permanent.: Amount held with Supplier as if Deposit. Cannot be adjusted

with the forthcoming invoices from the supplier.

This type of invoice Validation and Payment can be done like Standard
Invoice.process but at the Invoice Entry
Type Prepayment(select)……..
Prepayment TypeTemporary /Permanent(Select)…

Adjustment of Prepayment amount with an Invoice.

- Enter Standard Invoice header and distribution details and save at Invoices Entry Invoices.

Adjust Prepayment before Validation

Click On
Actions…1

- Enable Apply/UnapplyPrepayment Check Box.

Click On OK
- Find a new form containing the details of the temporary prepayments invoices nos made before.
- Choose the Prepayment Invoice no. to Adjust
Apply: Enable Check Box
Amount to Apply:Default displays the available amount, Enter the amount to adjust

Click On
Apply/Unapply

NOTE: Find at General Tab Amount Paid Block Adjusted amount

at Scheduled Payments Tab  Payment Schedule blockAmount Remaining
 Amount to be Paid

Click On Actions…1
- Enable Validate Check Box.

Click On OK & Continue……………………

 Prepayment invoices are used for making advance payments to suppliers.

Expense Reports:
Account Payables .

1. Create Expense Report Template

Setup Invoices  Expense Report Template

Account Payables .

2. Run Request Expense Report Template Listing.

3. Assign Expense Report Template in Expense Report Tab at Payable Options.

4. Go to Invoices  Entry Expense Report

5. Enter Employee details and Expenses Details with the help of template and enter
corresponding Gl.A/c.Code Combinations.
Account Payables .

6. Remember the Invoice No. given in the above details.

7. Save & Close.

8. Run Request Expense Report Import.

Account Payables .
Account Payables .

9. In Paramaters give at Source field: Payables Expense Reports.

10. Retrieve Expense Report Invoice at Invoice Work Bench with the Invoice No. which
is noted earlier and can follow the due course required.

Recurring:

1. Create Special Calendar to define the periods.

Setup Calendar  Special Calendar
2. Create Recurring Invoice Template at
Invoices  Entry Recurring Invoices
3. Enter all the details related suppliers, spl.calendar, amount per invoice and formulaes
4. Click on Create Recurring Invoices..
5. Close
6. Go to Invoice Work Bench and observe that all Recurring Invoices are created
for all the periods.
7. Period wise can follow the due course required for the Invoices.

 Interest:
Account Payables .

1. Enter a standard invoice with back date.

2. Go to Payable optionsInterestenable Allow interest, Enter Liability and
Expense GL Accounts.
3. Retreive Supplier definition to whom you make interest payment
4. Go to Payment Tabenable allow interest invoices check box.
5. Go to Setup Payment Interest Rates
6. Enter the Rate of Interest and Period.
7. Go to Payment WorkBench and make the payment to this past due invoice.
8. Find an Interest Invoice, which is generated, validated and paid along with the
Original amount.

 P.O.Default:

1. Create Purchase Order with two shipment lines in Purchasing module.

2. Receive one shipment line items through standard routing.
3. Switch Responsibility to Payables
4. go to Invoices Entry  Invoices
5. Type: P.O.Default (Select) and enter rest all the details.
6. Select Match to Purchase Order
7. Manually select the shipment line and click on Match
8. Automatically the shipment lines matched will be populated to Invoice Distributions.
9. Now the Invoice is ready to go for next due courses.

 Quick Match:

1. Create Purchase Order with two shipment lines in Purchasing module.

2. Receive all shipment line items through standard routing.
3. Switch Responsibility to Payables
4. go to Invoices Entry  Invoices
5. Type: Quick Match (Select) and enter rest all the details.
6. Select Match to Purchase Order
7. Find auto checked shipment lines
8. click on Match
9. Automatically the same shipment lines matched will be populated to
Invoice Distributions.
10. Now the Invoice is ready to go for next due courses.

 Pay on Receipt:

1. Define a new supplier Suppliers Entry

2. Go to Control Tab and select Receipt in Invoice Match Option field.
3. Go to Supplier Site  Purchasing Tab  Self Billing Block
4. Enter value Receipt in Pay On field and Invoice Summery Level field.
Account Payables .

5. Enable Check Box Create Debit Memo from RTS Transaction.

6. Enter a value in Selling Company Indentifier.
7. Switch Responsibility to Purchasing
8. Create and Approve the Purchase Order with Direct Routing.
9. Receive the material. Receiving  Receipts.
10. Find that there are three Requests are executing.
11. After Successful completion of ‘Payables Open Interface’ Request, Click on Output Tab and note
the Invoice no. which is auto generated.
12. Switch Responsibility to Payables.
13. Go to Invoice Work Bench and Retrieve by the noted Invoice No.

-The End-