12i Initiative

- Accounts Payable

Summary of New Features 
Legal Entity Architecture Multi Org Access Control (MOAC) Sub Ledger Accounting (SLA) User Interface for Supplier Entry and Maintenance through iSupplier Portal Invoice Lines Model with line level approvals for Invoice Distributions Separate Automated Processes for Contract Financing, Retainage, and Progress Terms


Summary of Changed Features Non PO Invoices Entered via iSupplier Portal Supplier Negotiation through iSupplier Portal Payments to Company or Individual that is not a supplier E-Business Disbursement Requests New Bank Account Model Enhancements in Payment processes Receivable and Payable Netting Oracle 2 .

A New Product Separated from Oracle Payables Oracle Payments as a New Product 3 .

The legal entity can be used as selection criteria when preparing pay runs. 4 .Legal Entity Architecture Legal Entity architecture provides users with the ability to model an enterprise s legal organizational structure and define rules and attributes specific to legal entities. Adoption of the Legal Entity architecture in transactions has enabled the use of the context of legal entities for statutory and other reporting. This will enable the tracking of the data from the legal perspective as Invoices and Payments indicate the operating unit and the legal entity owner of the transaction.

This will help companies that have implemented a Shared Services operating model to efficiently process business transactions. In Oracle Payables Multi-Org Access Control and Preferences allow users to enter invoices or batches of invoices for one operating unit. and report on data for an unlimited number of operating units within a single applications responsibility. Also invoices can be selected across operating units for payment processing within a single pay run. process. and then seamlessly enter invoices for another operating unit.Multi Org Access Control (MOAC) Multi-Org Access Control enables users of the applications to access. Data security is still maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.  Setup is more manageable and gathering information and running concurrent programs are more efficient. 5 .

e. 6 . accounting methods.Sub Ledger Accounting (SLA) This is a major change in Oracle Financials wherein concept of Set of Books is replaced by Ledger and Ledger Sets. It allows to have different accounting for the same transaction data in two different ledgers depending upon the accounting methods (principles) defined for that ledger The accounting entity involved can maintain multiple ledgers. each complying with a different set of accounting principles i. The data of all Sub Ledger Products such as Oracle payables will be accounted in SLA and then will be transferred to General Ledger either in summary or in detail.

Introduction of Survey Section to provide administrators with access to the results of questionnaires that the supplier has been asked to complete. Introduction of Purchasing Category assignments to designate the type of goods and services the supplier will supply.User Interface for Supplier Entry and Maintenance through iSupplier Portal New UI for Suppliers allows to maintain more clear terms and controls for trading relationship with supplier. Function Security can be used managing the attributes specific to particular functional areas such as Oracle Payables. Purchasing and Receiving Additional tax and legal registrations provide key information to meet reporting and compliance needs. 7 . either during self-registration or as part of profile maintenance through iSupplier Portal.

Furthermore. and attachments. it facilitates the capture and transfer of additional. Notifications for Line level approval provide view of Invoice including summary amounts.Invoice Lines Model with line level approvals for Invoice Distributions This is a key architectural change in Oracle payables This Model supports the representation of the goods or services as well as tax. Invoice approvals can be changed to Invoice Line level approvals. This feature also offers the ability for line level approval and matching between an invoice line and a purchase order shipment pay item. pertinent information to and from Oracle Projects and Oracle Assets. 8 . and other charges as lines with distributions tied to each line. or receipt. approver sequence. essential line information. Additional fields record attributes such as serial numbers and item descriptions. freight.

progressive payments depending upon work completed. in Oracle Payables. 9 . are supported in Oracle Payables when recording invoices and managing payment execution during the lifetime of the contract Oracle Payables ensures that the amounts initially financed as advance are recovered by automatically applying financing to subsequent invoices per the specific terms captured in the purchase order. to be paid. Suppliers entering a work confirmation directly in Oracle iSupplier Portal have a receipt recorded in Oracle Receiving. such as advance payments. automatically retains the invoice amount as per the purchase order on invoices coming in and supports the retainage release and payment process. Pay on Receipt terms recorded on the purchase order are translated into a selfbilled invoice. In such contracts some portion of the Invoices is required to be retained till the work finally gets approved. Payables. and Progress Terms Various terms and conditions of Fixed Price Contract. based on setups.Separate Automated Processes for Contract Financing. Retainage.

Invoice Requests are visible in Oracle Payables but are not paid or accounted until the invoice can be verified and approved. 10 .Non PO Invoices Entered via iSupplier Portal Invoices entered by Suppliers via iSupplier Portal where a purchase order has not been obtained are represented as Invoice Requests.

11 . Additionally. Suppliers are able to accept the suggested changes. All changes and comments entered during the negotiation are tracked in Payables and can be viewed at any time. disputes are communicated and negotiations can be suggested to the Supplier. Suppliers are able to negotiate online via iSupplier Portal. The negotiation continues until the issues are finally resolved. or submit their counter proposal. withdraw their invoice.Supplier Negotiation through iSupplier Portal Information about the Invoices on Hold due to some disputes can be communicated to supplier through iSupplier Portal Leveraging workflow notification.

Oracle Loans can take advantage of this feature for loan disbursements to borrowers and Oracle Receivables for customer refunds. Currently.Payments to Company or Individual that is not a supplier Oracle E-Business Disbursement Requests New Functionality of Disbursement Requests Disbursement Requests are requests to make a payment to a company or individual that is not a supplier. Oracle E-Business Suite products may submit the request as already approved or take advantage of Oracle Payables Approval Workflow. 12 .

Oracle Payroll. which provides significant benefits in key areas like reconciliation that previously required managing multiple account records for these types of purposes. Oracle Cash Management. reconciliation options in Cash Management. Oracle Receivables. 13 .New Bank Account Model The New Bank Account Model provides a single access point for defining and managing internal bank accounts for Oracle Payables. can now be defined at the bank account level. Additionally. One or more Organizations are granted usage rights. Bank account access for each application is explicit for internal security and control purposes. A single Legal Entity is granted ownership of each internal bank account. providing even more flexibility and control of that process. Each account is associated with a Bank and Bank Branch defined in Oracle s common Trading Community Architecture (TCA). and Oracle Treasury.

This enables quick identification of invoices that need resolution so they can be included in the pay run. Pay run invoice selection criteria and processing requirements can be saved in a template to be reused and/or scheduled. Pay run can be included in a request set to group other programs or reports with pay run processing. modify. Ability to view invoices that matched the invoice selection criteria but could not be selected because they were not validated or approved.Enhancements in Payment processes Improved Toolset for Payment Manager A new Selected Invoices page displays summary and detail information used to view and analyze invoices selected in a pay run. Powerful search tools to improve online inquiry to invoices that user may want to review. 14 . or remove.

A review process and trading partner approval afford further verification to support the netting event. and withholding taxes prior to determining the final netting amount. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts. When a trading partner is both a customer and a supplier. late fees.  Netting Agreements add trading partner terms as well as deploying company controls. 15 .Receivable and Payable Netting This is Possible through Oracle s common Trading Community Architecture (TCA). its possible to offset open receivables against open payables items.

bank account transfers from Oracle Cash Management. currencies. As the new central payment engine. Oracle Payments processes invoice payments from Oracle Payables.Oracle Payments as a New Product With Oracle Payments as a separate product companies will be able to efficiently centralize the payment process across multiple organizations. 16 . aggregation of payments into files. which will be obsolete as of Release 12. but Oracle Payments now handles all creation and validation of payments. Oracle Payments offers functionality previously released as Oracle iPayment.0. and so on. and settlements against credit cards and bank accounts from Oracle Receivables. The approval and selection of invoices for payment remains in Oracle Payables. Oracle Payments provides the infrastructure needed to connect these applications and others with third party payment systems and financial institutions. and regions. format and transmission of files.

this information was held separately in different applications such as in the Oracle Purchasing supplier and the Oracle Payables bank account entities. These formats are created as templates in Oracle XML Publisher. Payment validation rules are associated with Payment Formats which can be implemented using a flexible framework that allows a user to add new rules and the timings of the rules. and it is not provided. and applied to an XML data file produced by Oracle Payments. In release 11i. a similar format template can be copied to use it as the basis for creating the new format. Oracle Payments offers a library of payment formats that support various types of payment files and messages. When a format is required.Oracle Payments as a New Product Cont. 17 . One major change is that Oracle Payments also acts as a data repository which stores all of the party s payment information and its payment instruments (such as credit cards and bank accounts).

The dashboard allows payment administrators to manage every aspect of the process across multiple organizations from the same place. electronic funds transfer. Earlier in Oracle Payables payment batch process required the submission of the invoice selection process to be segregated according to the way the invoices needed to be paid (printed checks.Oracle Payments as a New Product Cont. different formats. and so on). Oracle Payments funds disbursement process allows the invoice selection process in Oracle Payables and other products to be neutral to the way documents will be paid. Oracle Payments offers a new user dashboard for managing the funds disbursement process. Now. 18 .

If Security Profiles for Org Access are changed. will it affect the processing or reporting of transactions already entered with earlier security profiles? 19 .Questions In SLA. whether its possible to have to different ledgers with different Chart of Accounts under one ledger set? Under the Invoice Line Model. if line level approval is required by two different users? New Bank Account Model works under Multi Org Access Control. how does the invoice approval workflow will work.

Thanks 20 .

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