ORACLE ACCOUNTS PAYABLE

Release 12 Upgrade Considerations New features in Release 12 of Oracle Payables

AGENDA
y y y y y y y y

Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables

AGENDA
y y y y y y y y

Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables

SUPPLIERS IN THE TRADING COMMUNITY ARCHITECTURE (TCA) The Trading Community Model: Is a highly flexible architecture y Allows you to model real world entities in your trading community y Allows you to accurately represent complex relationships among entities y Is the core data model for trading partners used by Oracle E-Business Suite applications y .

TCA SECURITY BY FUNCTIONAL AREAS Function Security Payables Attributes Purchasing Attributes Receivables Attributes .

AND ACCOUNTS Bank Accounts are: Centrally defined y Managed and secured y Include the legal ownership and operating unit access for each bank account y . BRANCHES.PAYMENT BANKS.

SUPPLIER BANK ACCOUNTS Enhancements to supplier bank accounts include: Removal of some processing restrictions y Greater control and security y The bank account is tied directly to the trading partner y Notification when trying to inactivate a bank account that is associated with unpaid invoices or pay runs that are in process y .

COLLABORATION WITH SUPPLIERS TO RESOLVE DISPUTES Disputes are communicated and negotiations can be suggested to the Supplier y Suppliers are able to: y Accept suggested changes Withdraw their invoice Submit a counter proposal Negotiate online via iSupplier Portal y All changes and comments are tracked in Payables .

INVOICE REQUESTS Invoice Requests are: Invoices entered by Suppliers via iSupplier Portal where a purchase order has not been obtained y Are visible in Oracle Payables y Are not paid or accounted until the invoice can be verified and approved y .

IMPLEMENTATION CONSIDERATIONS End user training for new UI y Update supplier information with additional information y .

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

or allowed with the agreement of the Tax Authority y .DEFERRED RECOVERABILITY Accounting process where tax recovery is reported when the invoice is paid y Accrual (and therefore the settlement and/or reporting) of recoverable taxes is delayed due to special tax rules either enforced by the Tax Authority.

DEFERRED RECOVERABILITY FEATURES Accurate reporting and accounting of pending recoverable tax amounts y Automatic accrual of recoverable tax amounts upon payment y .

DEFERRED RECOVERABILITY BENEFITS y y Global Readiness Adhere to international tax laws Streamlined Operations. and Lower Costs Automatic accrual of recoverable tax amounts obviates need for manual transfers after payment transactions Propensity for manual error is reduced y Improved Fiscal Discipline Accounts reflect transactions that have occurred Automated accounting reduces auditing time . Operational Excellence.

DEFERRED RECOVERABILITY PROCESS PART 1: SET UP AND INVOICE Payables Invoice Entry Process 1 Tax Set Up Invoice Header Invoice Lines Invoice Distributions Tax (Includes Interim Recoverable Tax Distribution Account) Tax Engine Invoice details E-Business Tax Account Subledger Accounting Non Recoverable Tax Expense/Asset X.XX Accounts Payable Liability X.XX Interim (deferred) Recoverable Tax X.XX X.XX .

Record Distributions Account Subledger Accounting Accounts Payable Liability X.XX Cash Clearing X.DEFERRED RECOVERABILITY PROCESS PART 2: SET UP AND PAYMENT Payables Payment Process 2 Payment Invoices Invoices Invoices E-Business Tax Invoices with Deferred Recoverability ? Invoice details Recoverable Tax Distribution Accounts Tax Set Up Calculate Recoverable Amounts.XX Optional Set Up .XX Interim (deferred) Recoverable Tax X.XX Recoverable Tax X.

SETUP TAXES WITH DEFERRED RECOVERABILITY Level Allow Tax Recovery Default Recovery Settlement Deferred Deferred ‡Tax Expense ‡Recoverable Tax ‡Interim Tax (used for Accrual Based accounting only) Tax Accounts Regime Tax Tax Status Tax Rate Deferred Deferred .

IMPLEMENTATION CONSIDERATIONS Common Module Dependency: y E-Business Tax The e-Business Tax engine is responsible for calculating tax amounts applicable to invoices. E-Business Tax configuration qualifies taxes with attributes to meet tax compliance requirements. . Common Module Interaction: y Subledger Accounting: A general tool to configure accounting entries and provide accounting reports.

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payable .

ENHANCED ASSET TRACKING y Enhanced Asset Tracking Item Description Manufacturer Model Serial Number Warranty Number y Enhanced Mass Additions Asset Book Asset Category IPV/ERV distributions .

y Improved accuracy of information . The Create Mass Additions process can now be submitted to select invoice distributions by specific Asset Book.ENHANCED ASSET TRACKING BENEFITS y Increased efficiency and reduced costs Asset information typically entered on a purchase order can now flow seamlessly into Payables and Assets.

ENHANCED ASSET TRACKING PROCESS PAYABLES PROCESS Enter Payables Invoice and match to Purchase Order or Import Purchasing matched invoice Payables retains asset information such as: manufacturer. serial number. including asset book and asset category Automated process Submit Create Mass Additions process to transfer assets to Oracle Assets . asset book and category Optionally update asset information on invoice line or distribution.

INVOICE LINES Invoice Lines: Represent goods or services as lines with distributions tied to each line y Facilitates the capture and transfer of pertinent information from Oracle Projects and Oracle Assets y Enables line level approval and matching between an invoice line and a purchase order shipment pay item y .

IMPLEMENTATION CONSIDERATIONS Do the enhanced asset tracking features require reevaluation of asset tracking policies? .

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

purchase order or standard invoice Oracle Loans: Loan Funding Disbursement Oracle Receivables: non-credit card Customer Refund Requests Payee y y Designated party to which the payment will be made A payee can be a supplier.PAYMENT REQUESTS KEY CONCEPTS Payment Request y A request for payment to Oracle Payables without requiring a supplier. borrower. or customer .

Payables Launches Workflow Payment Request No approval required Loans Payables applies holds. if necessary Account payables department approves request submits Receivables Pay .PAYMENT REQUESTS DESCRIPTION If requires approval.

PAYMENT REQUESTS BENEFITS y Benefits for Payables managers Ensures the Integrity of Supplier Master Do not complicate Supplier Master with non-supplier payees Provides visibility and control over items for payment processing Provides Payables transparency y Benefits for other E-Business Suite products Leverages the Payables product for all payment needs Leaves the required knowledge base in Payables without complicating your business model or employee structure Provides visibility into the current status .

PAYMENT REQUESTS PROCESS E-Business Suite Product Oracle Receivables Receipts On Account Credit Memos Payment Request Payment Request ID Oracle Loans Loans Report Payment Request Status Payment Verify Account Tax Approve Payables Payment Request .

ORACLE RECEIVABLES ² REFUND EXAMPLE ABC Company Ship Purchases: 3 Copy Machines Pay Payment Request for $350.00 Refund Payment Transacted to Payee Payment Manager Manages items to be paid Approve .00 View Status if needed Payment Request for $5000 Vision Corporation Payables Return Returns 1 Copy Machine for Refund Customer Receives Payment $5000.000 Vision Corporation Vision Corporation Receivables Manages Receivables Transactions for return Initiates Payables Request $5000.

000 Vision Loans Payables Sends Borrower Payment Loan Funded Payment Manager Visibility to all Payables¶ Liabilities Manages items to be paid Reports to Upper Management .FUNDS DISBURSEMENT PROCESS .000 from Vision Loans Fund Payment Request for $350.LOANS Vision Loans Application Processing Risk Management Approvals IGNF Foods Requests a Loan for 350.

PAYMENT REQUEST ² ADDITIONAL PAYABLES ACTIONS E-Business Suite Product Oracle Receivables Receipts On Account Credit Memos Oracle Loans Payment Voided Payment Loans Void Payment Request Cancelled Payment Request Payables Cancel .

PAYMENT REQUESTS: SYNCHRONIZING BETWEEN PRODUCTS y Payables provides the ability for requesting EBusiness Suite products to respond to actions taken on the payment request. Payables prevents: Deletion the Payment Request Update to many fields . These actions include: Canceling the payment request Voiding the payment y To ensure that the Payment Request details remain the in sync between Payables and the requesting EBusiness Suite product.

PAYMENT REQUESTS REPORTING Report Name Invoice Aging Report Invoice Approval Status Report Invoice Audit Listing By Voucher Number Invoice On Hold Report Open Items Revaluation Report Cash Requirement Report Change Includes Payment Requests in Aging Report Modified to show payment requests in the approval workflow process Expanded to include Payment Requests by sequential voucher number Expanded to include Payment Requests on Hold Modified to include Payment Requests in revaluating balances Includes Payment Requests for forecasting cash needs .

PAYMENT REQUESTS OPTIONAL SETUP
Oracle Payments
Payment Method Controls Payment Method Defaulting Rules Payment Instruction and Report Formats Payment Attribute Validations Payment Process Profiles Disbursement Options

Oracle Payments
Payables Options: Enable Invoice Approval Workflow

Approvals Management
Approval Rules AP Invoice Approval

PAYMENT REQUESTS MISCELLANEOUS SET UP
Document Sequencing - Payment Request Category y Payables and Financial Options
y

IMPLEMENTATION CONSIDERATIONS
Interactions with: y Oracle Payables & Payments y Oracle XML Publisher y Oracle Approvals Management / Workflow (Optional) y Oracle Loans; Oracle Receivables

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT INFORMATION Enhanced Payment Method Controls y Expanded Payment Attribute Availability and Defaulting y Configurable Payment Attribute Validation y Extensive Format and Reporting Capabilities y .

KEY CONCEPTS y Document Payable: A document to be paid by the deploying company (Payer) y Payee: The person or organization that is being paid y Payment Process Request: The process of requesting the payment processing for a group of invoices y Payment Instruction: Formatted payment information that is either transmitted to a financial institution for payment or used in-house to print check documents .

and print or communicate with the bank y . bank assignments. payment instructions and reporting. create instructions. and connectivity for electronic filing y Oracle Payments: E-Business Suite module leveraged to group invoices into payments.KEY CONCEPTS Payment Process Profile: Usage and grouping rules.

KEY CONCEPTS Payment Method: Document payable attribute that indicates how the payer is going to make the payment y The Payment Method.Based Payment Processing including: y Payment attribute validations executed on the invoice to catch errors early Payment attribute validation at payment time based on your processing choices to catch errors before they go out the door Data rich payment instructions and reporting . Banking Relationships. and Reporting Requirements drive Payment Method .

EVALUATE PAYMENT CHOICES ² REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS Vision Operations Payment Method Choices Banking Relationships Attributes to communicate to bank .

EVALUATE PAYMENT CHOICES ² REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location Reporting Requirements Reporting Requirements Vision Operations Payment Method Choices Banking Relationships Attributes to communicate to bank .

EVALUATE PAYMENT CHOICES ² REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location Reporting Requirements Vision Operations Payment Method Choices Reporting Requirements Attributes to communicate to bank Banking Relationships Payee Relationship Payee Preferences Payment Reconciliation to Open Debt .

EVALUATE PAYMENT CHOICES ² REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS Reporting Requirements Payment Method Policy Payee Payment Attributes Vision Operations Payment Processing Configuration Reporting Information and Styles Invoice Payment Banking Relationships Payee Relationship Payment Information .

ENHANCED PAYMENT METHOD CONTROLS DESCRIPTION Users can create new Payment Methods as needed y A Policy can be defined for the Payment Method usage based on: y Oracle Application Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location .

ENHANCED PAYMENT METHOD CONTROLS BENEFITS Provide the ability to set up multiple Payment Methods to meet specific business requirements y Controlled availability of Payment Methods y .

ENHANCED PAYMENT METHOD CONTROLS PROCESS ² ENTER PAYABLES DOCUMENT Supplier ‡ iSupplier Portal ‡ Import Payables Analyst ‡ Quick Invoice ‡ Invoice Workbench ‡ Recurring Invoices ‡ Pay On Receipt Import ‡ Payment Requests ‡ Expense Reports Employee: Decentralized Invoice Entry ‡ Payables Requests .

´Checkµ) If you need to override the default. You can define a default payment method for the Supplier Site (for example. .ENHANCED PAYMENT METHOD CONTROLS PROCESS ² ENTER PAYABLES DOCUMENT y y y y y Payment Method defaults based on your configuration. The attributes on invoices meet requirements to default the payment method via the Defaulting Rules. the List of Values displays the Payment Methods that meet the Usage Rules defined for the Payment Methods. The Disbursement System Options allow for the Payee·s default to override.

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING ² DEFINITION Payment attributes are items on the document payable that play a role in: Successful payment processing of a document payable y Reporting requirements y Payee payment and remittance y .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING DESCRIPTION Global Descriptive Flexfields (GDFs) for payment and remittance processing are now available as fields on the invoice y Payee Payment Processing Preferences for Defaulting y Bills Payable (Promissory Notes. Future Dated Payments) defined for the Payee y .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING ² BENEFITS Enhance supplier/payee relationships y Minimize data entry y Facilitate payee·s reconciliation of payments and open debts y Satisfy reporting requirements y .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING ² ENTER PAYABLES DOCUMENT Supplier ‡ iSupplier Portal ‡ Import Payables Analyst ‡ Quick Invoice ‡ Invoice Workbench ‡ Recurring Invoices ‡ Pay On Receipt Import ‡ Payment Requests ‡ Expense Reports Employee: Decentralized Invoice Entry ‡ Payables Requests .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING PAYMENT ATTRIBUTES DEFAULTING
For Payables users, the Invoice Workbench is accessed through the folder form technology. y The Payment Method, Remit To Bank Account Number and Name, and Remittance Messages are used to default to the Scheduled Payments. y Users can enter the Unique Remittance Identifier and Check Digit per invoice and Remittance Messages per scheduled payment.
y

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - UI
Quick Invoices: The Quick Invoices UI also has the same capabilities as Payment Attributes Defaulting y Payment Attributes for Recurring Invoices default under the Payment Tab. The Payment Tab values are transferred to the subsequent invoices that are created.
y

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION DESCRIPTION
y

Enhanced Invoice Entry Validation
Configure validation on the Payment Method to meet your business needs Analyze and resolve validation issues upfront at invoiceentry time

y

Enhanced Payment Processing Validation
Configure validation on the Payment Format and Payment Process Profile to meet your business needs Payment Manager can analyze and resolve validation exceptions or Automatically remove the Invoices to resolve issues while keeping payment processing streamlined

On time Payments y Reduce Problem/Resolution Costs y Reduce Check Stock Waste Catch Errors before send the file to the bank .CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION BENEFITS Increased Payment Process Efficiency .

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: SCHEDULED PAYMENT HOLDS Find and resolve payment related issues upfront during Invoice entry: Payment Method Validation General Tab: Scheduled Payment Holds y Scheduled Payments Tab: Hold Details y .

y The Invoices on Hold Report lists: y Payment schedule holds for payment method validation Invoice entry status Imported invoice status .CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: INVOICE ON HOLD REPORT The Invoice on Hold report is a tool to identify and analyze all the invoice holds including scheduled payment holds.

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES During the payment process. determine how you would like payment level validation issues to be handled. y . determine what should happen if validation errors occur. y Separately. y The Payment Template User Interface is used when scheduling Payment Process Requests and can be used when submitting an ´on demandµ pay run allowing you to override the template value when you submit.

you are directed to the correct UI to manage the action by clicking on the Start Action icon y . including validation errors y The Pending Actions area displays payment process requests with validation errors y Based on the Payment Process Request Status.CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES The Payables Payment Manager Home Page displays Payment Process Requests that Require Actions.

you can: y y y y y View the last 10 Payment Process Requests. which are automatically displayed Show Request Details to see payment instruction details Search/ See Current Status Navigate directly to the Action Page if Required Cancel Requests .) In addition.CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES Use the Payables Payment Process Requests Tab to display rejected or manually removed scheduled payments (invoices.

Flexible.EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING .BENEFITS Reduce Reaction Time to Changing Banking Relationships . Adaptable Payment Instruction Formats y Facilitate Payee·s reconciliation of payments and open debts y Satisfy Reporting Requirements y .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING Access the following setup pages from the Payment Administrator page: XML Publisher Format Templates y Formats y Payment Process Profiles y XML Publisher Templates Formats Payment Process Profiles .

create your new version and register it XML Publisher Templates via this XML Publisher page y Formats Payment Process Profiles .PAYMENT INSTRUCTION FORMATS AND REPORTING XML PUBLISHER TEMPLATES The Payment Instruction Register Template includes the Unique Remittance Identifier y To create a different report layout or include different data elements.

PAYMENT INSTRUCTION FORMATS & REPORTING XML PUBLISHER TEMPLATES XML Publisher Templates Formats Payment Process Profiles .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING The Formats page ties the XML Publisher Template to the Payment Disbursement Remittance Formats and Reports. y There are many types of formats available: y Payment Instructions Payment Instruction Accompanying Letter Positive Pay File Regulatory Reporting Payment Instruction Register Separate Remittance Advice. which can later be assigned to the Payment Process Profile XML Publisher Templates Formats Payment Process Profiles .

FORMATS & REPORTING PAYMENT PROCESS Specify Usage Rules: Payment Methods ties the Payment Method to Payment Process Profiles y The Payment Process Profile is where you tie in your list of Payment Methods that can use this profile. y XML Publisher Templates Formats Payment Process Profiles .

FORMATS AND REPORTING PAYMENT PROCESS
Specify Payment Creation Grouping Rules on the Payment Creation tab y Optionally Group by Document Payment Attributes y The payment attributes on your invoices can be used as grouping rules when ´building or assemblingµ each payment
y

This may be required to meet your bank·s format needs or for your reports

XML Publisher Templates

Formats

Payment Process Profiles

FORMATS & REPORTING PAYMENT PROCESS

Use the Payment Process Profiles screen to specify Payment Instruction Grouping Rules, including by Payment Attributes such as:
Payment Reason y Bills Payable Payment Methods
y
XML Publisher Templates

Formats

Payment Process Profiles

FORMATS AND REPORTING PAYMENT PROCESS
The Payment Instruction Format is assigned on the Payment Instruction Format tab y You can assign:
y

The Payment Instruction Accompanying Letter format

XML Publisher Templates

Formats

Payment Process Profiles

FORMATS & REPORTING PAYMENT PROCESS Use the Reporting Tab to assign the formats for the: Payment Instruction Register y Positive Pay File y Separate Remittance Advice y XML Publisher Templates Formats Payment Process Profiles .

SETUP PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT y Configurable Payment Attribute Validation View available validations Payment methods Payment process format Payment process profile y Expanded Payment Method Instruction formats and reporting Controls Defaulting .

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP SETUP Payment Method y View Validations Payment Method Payment Instruction Format Payment Process Profile Payment Instruction Format Payment Process Profile .

One Payment Process Profile (one Payment Instruction Format ² one set of reports) y One Method. One Payment Process Profile (one Payment Instruction Format ² one set of reports) .CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP CONSIDERATION When y determining how to configure Payment Attribute Validation. Many Payment Process Profiles (each with one Payment Instruction Format ² one set of reports) y Many Methods. consider the Three Models: One Method.

y Validation Points are: y Document Payment Payment Instruction Payment Method Payment Format Payment Process Profile . y Validation Points indicate when the validation can occur and controls the list of values on Payment Methods and Formats.CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: VIEW AVAILABLE VALIDATIONS Validations can be assigned to Payment Methods and Payment Instruction Formats.

Payment Format Payment Process Profile . choose a Field Name from the list of values. assign a validation name. y Based on the field name. assign predefined validations or configure your own. y When configuring your own validations.CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP ² PAYMENT METHODS Direct y Deposit Payment Method In the validations area. Payment Method For example. you can specify that the Payee·s bank account is required and can be only integers and that a Payment Reason is required.

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS FORMAT Payment Instruction Formats: Pre-defined Validations for your use y User-defined Validations provide flexibility y Optionally Use User-defined Validations to Supplement Payment Method Pre-defined Validations y Payment Format Payment Process Profile .

bank accounts.CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS PROFILE Payment Process Profiles include: y y y y y The type of processing (electronic or in-house printing) Use controls based on a list of payment methods. first party legal entities. and currencies Payment instruction and reporting formats Payment system configuration Payment Method Payment creation rules Payment Format Payment Process Profile .

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING SETUP SETUP XML Publisher Templates Use ´Out of the Boxµ Payment Instruction Formats and Reports or Configure XML Templates y Assign to your Payment Process Profiles y Payment Formats Payment Process Profiles .

ENHANCED PAYMENT METHOD CONTROLS SETUP SETUP Define Payment Methods y Define Payment Method Defaulting Rules y Specify Payment Method defaulting mechanism y Assign Payment Methods to the Payee y Payment Methods Payment Method Defaulting Rules Disbursement System Options Payee Payment Method Assignment .

Payment Reasons.SETUP Define Delivery Channels. and Bank Instruction Codes y Define Payee Payment Attributes y Tailor Invoice Entry UI with Oracle Folder Forms y SETUP Delivery Channels. Bank Instruction Codes Payee Payment Attributes Folders . Payment Reasons.EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING .

IMPLEMENTATION CONSIDERATIONS Oracle Payables & Payments y XML Publisher y .

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

SELF ASSESSED TAX DESCRIPTION Self assessed taxes are taxes which need to be reported but are not a liability to the supplier y The purchaser is responsible for calculating and remitting the tax y .

SELF ASSESSED TAX FEATURES Predefined or manual determination of Self Assessed Tax y Determine recoverable & non-recoverable portions of self assessed tax amounts y Reporting and accounting for Self Assessed Tax amounts y Reporting and accounting for Self Assessed Tax Liabilities y .

SELF ASSESSED TAX BENEFITS y Improved Fiscal Discipline Maintain an audit trail for the tax amounts and the invoices they tie to More granular and accurate accounting y Improved Operational Excellence Reduced propensity for human error .

SELF ASSESSED TAX PREDETERMINED PROCESS Payables Invoice Invoice Header Invoice Lines Tax Summary Tax (Self Assessed) Tax Engine Invoice details E-Business Tax Configuration Stored Accounting Information Subledger Accounting Non Recoverable tax X.XX .XX Recoverable Tax X.XX Self Assessed Liabilities X.

PREDETERMINED Set up y y y y y Set up Invoice Tax calculation Accounting Reporting Invoice Calculate tax Account Report .SELF ASSESSED TAX PROCESS ² 1.

however. Payables users can also update or enter these values Set up y The lines region displays some of the new columns added to help derive tax.SELF ASSESSED TAX: PREDETERMINED PROCESS ² INVOICE ENTRY Use the Payables· Invoice Workbench to enter invoice header and lines information y Many tax drivers default onto the transaction. including: Invoice y Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification Calculate tax Account Report .

including determining if the tax should be self Set up assessed y Invoice Calculate tax Account Report . click the ´Calculate Taxµ button on the Lines tab y The E-Business Tax Service engine calculates tax based on it·s configuration.SELF ASSESSED TAX: PREDETERMINED PROCESS ² CALCULATE TAX To view the calculated tax.

SELF ASSESSED TAX: PREDETERMINED PROCESS ² CALCULATE TAX EXAMPLE Vision Invoice Invoice Amount = $1000 Self Assessed Tax Amount = $50 Set up Suppliers Invoice Subtotal = $1000 Tax = $0 Total = $1000 Invoice Calculate tax Account Report .

SELF ASSESSED TAX: PREDETERMINED PROCESS ² CALCULATE TAX On y y y y y y y y the Lines tab. you can click the Tax Details button to view tax details such as: Tax Regime Code Tax Jurisdiction Tax Status Rate Name Rate Tax Amount Whether the tax is self assessed Set up Invoice Calculate tax Account Report .

view the accounting by choosing Reports ² View Accounting from the menu bar y Personalize the View to meet your needs y Leverage Subledger Accounting to tailor Set up journal & journal line descriptions and account derivation rules Invoice y Calculate tax Account Report .SELF ASSESSED TAX PROCESS ² ACCOUNT After validating and accounting the invoice.

SELF ASSESSED TAX PROCESS ² ACCOUNT You can customize what is displayed on the Subledger Journal Entry Lines page y You can also configure Subledger Accounting for account derivation and journal & journal line descriptions y Self assessed rows are not shown in the Set up Invoice Workbench Distributions Window because they are not represented on the Invoice supplier·s invoice y Calculate tax Account Report .

giving you the flexibility to configure the layout and report type at any time y Reports include: Set up Account Analysis Report Open Account Balance Listing report Invoice Calculate tax Account Report y Gives you flexibility to configure: XML Publisher Report Layout XML Publisher Report Type .SELF ASSESSED TAX SETUP ² REPORTING CHOICES Subledger y Accounting: Provides reports for your accounting activity y Reports use XML Publisher.

SELF ASSESSED TAX SETUP ² REPORTING CHOICES y To create a definition for the Open Account Balance Listing report . navigate to the Setup ² Subledger Accounting ² Open Accounting Balances Listing Definitions You can optionally create a definition for yourself assessed tax liability account Set up Invoice Calculate tax Account Report y You have the flexibility to configure Open Account Balances Listing: Report Definition .

SELF ASSESSED TAX PROCESS ² REPORT Account Analysis Report Set up Invoice Calculate tax Open Account Balance Listing Report Account Report .

XX .XX Recoverable Tax X.XX Self Assessed Liabilities X.SELF ASSESSED TAX MANUAL DETERMINATION PROCESS Payables Invoice Invoice Header Invoice Lines Tax Summary Tax (Payable to Supplier) Tax (Self Assessed) Tax Engine Invoice details E-Business Tax Configuration Stored Accounting Information Subledger Accounting Non Recoverable tax X.

SELF ASSESSED TAX PROCESS ² 2. MANUAL DETERMINATION y y y y y y Set Up Invoice Tax Calculation Manual Tax Update Accounting and Accrual Reporting Set up Invoice Calculate tax Manual Update Account Report .

The ´Allow Override for Calculated Tax Linesµ can be set for the Set up configuration owner and application event Invoice class or on a particular Tax Other Controls and Defaults you set include: Calculate Allow Override and Entry of Inclusive Tax Lines Allow Entry of Manual Tax Lines Allow Mass Creation of Jurisdictions tax Manual Update Account Report .E-BUSINESS TAX CONTROLS y y y You can set Configuration Owner Tax Options Tax Managers determine if they would like to allow tax to be updated or not.SELF ASSESSED TAX: MANUAL DETERMINATION SET UP .

Payables users can also update or Invoice enter these values y The lines region displays some of the new Calculate tax columns added to help derive tax. Set up however. including: y Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification Manual Update Account Report .SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS ² INVOICE ENTRY Use the Payables· Invoice Workbench to enter invoice header and lines information y Many tax drivers default onto the transaction.

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS ² CALCULATE TAX To view the calculated tax immediately. click the ´Calculate Taxµ button on the Lines tab y The E-Business Tax Service engine calculates tax based on it·s configuration Set up y Invoice Calculate tax Manual Update Account Report .

Invoice lines do not total the Invoice header amount (Line 1) Item Type= $1000 (Line 2) Tax Type = $50 Total Gross = $1050 Total Net = $1050 Tax = $0 Total = $1000 Invoice Calculate tax Manual Update Account Report .SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS ² CALCULATE TAX EXAMPLE Invoice Header Invoice Amount = $1000 Tax Amount = $50 Set up Suppliers Invoice Supplier¶s Tax initially calculated for $50.

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS ² CALCULATE TAX EXAMPLE Invoice Header Invoice Amount = $1000 Self Assessed Tax Amount = $50 Set up Suppliers Invoice (Line 1) Item Type= $1000 Total Gross = $1000 Total Net = $1000 Manual Update Account Report Invoice Calculate tax .

SETUP SELF ASESSED TAX First party tax y Supplier party tax y .

Regime y Registration. Tax Jurisdiction y Set up Invoice Calculate tax Account Report . PARTY TAX PROFILE You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels: Registration. Tax. Tax y Registration. Regime. Regime.SELF ASSESSED TAX: PREDETERMINED SET UP FIRST PARTY.

E-Business Tax returns applicable taxes for supplier invoices that fall within the level y For example. PARTY TAX PROFILE Enable Self Assessment on the Party Tax Profiles tab y By checking the Set for Self Assessment/Reverse Charge option at a particular level. all invoices to be taxed within that regime will be considered Self Assessed tax Set up Invoice Calculate tax Account Report .SELF ASSESSED TAX: PREDETERMINED SET UP ² FIRST PARTY. if you enable this option at the Registration ² Regime level.

SELF ASSESSED TAX: PREDETERMINED SET UP ² SUPPLIER PARTY TAX PROFILE You can also set up a particular supplier·s Party Tax Profile by doing either of the following: Use the Tax Managers responsibility to query a Third Party Set up y Navigate to the Tax Details page from the Supplier (Entry) pages from the Payables Responsibility y Invoice Calculate tax Account Report .

IMPLEMENTATION CONSIDERATIONS Common y Module Dependency: E-Business Tax The e Business Tax engine is responsible for calculating tax amounts applicable to invoices Also assists in automatically identifying taxes as self assessed and allows setting options for manual determination Common y Module Interaction: Subledger Accounting Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs .

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS An integrated solution to automate acquisition of complex services from Source through Payment. y Complex Service Contracts are characterized by: y High dollar value projects Long lead time delivery schedules Progress payments based on work completion Advances and progress based financing options Retainage options y Commodities / Industries of Interest Professional Services Engineering and Construction Aerospace and Defense .

and controls y Improved visibility into business. adherence to budgetary controls. history. financial. and compliance performance Real-time update of the purchase order. accounting and tax reporting provide transparency .ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS y Strengthened financial discipline and corporate governance Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within tolerance policies Providing workflow approval processing.

COMPLEX CONTRACT TERMS KEY CONCEPTS y Progress Payment Schedule Represents a schedule of services and work with associated payments Payments for progress made on a Progress Payment Schedule Refers to a specific work/service component of the Progress Payment Schedule. and its associated payment amount y y Progress Payments Pay Item .

Contract financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met. financing is given to aid in the completion of subsequent work y Contract Financing . Represents the rate at which costs incurred by the Contractor are reimbursed Typically used in Public Sector Contracts.COMPLEX CONTRACT TERMS KEY CONCEPTS y Progress Payment Rate Used on Cost Reimbursement Contract.

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service Source Requests for Services can originate from multiple sources: ± Facilities Manager ± Project Manager ± Field Engineer ± Architect Author Contract Advance Payment Track Progress Process Payment .

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service Source Author Contract Invite Suppliers to Sourcing Event Negotiate with Suppliers on: ± Complex Payment Terms ± Progress Payment Schedule ± Clauses & Deliverables Advance Payment Track Progress Process Payment .

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service Source Author Contract ± Award Contract to best Supplier ± Supplier and Contracting Officer sign off on Contract Advance Payment Track Progress Process Payment .

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service Source Author Contract ± Supplier requests the advance if provided for on the contract ± The advance amount is paid to the supplier Advance Payment Track Progress Process Payment .

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service ± Contractor reports progress ± Progress is certified by Facilities Manager. and/or Project Manager Source Author Contract Advance Payment Track Progress Process Payment .

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW Request for Service ± Contractor submits Invoice for Progress Payments and Contract Financing ± Retainage is applied ± Financing is recouped ± Payment is released Source Author Contract Advance Payment Track Progress Process Payment .

INTEGRATED PRODUCTS: HIGH LEVEL BUSINESS FLOW Oracle Projects Cost Collection Budget / Deliverables Advanced Procurement Request for Services Retainage Release Procurement for Complex Services Negotiate Invoice / Payments Oracle Payables Track Progress Control .

ORACLE E-BUSINESS TAX SETUP: TAX CONFIGURATION Prepayment Application Tax Handling y Prepayment Application Tax Treatment: Select Recalculate or Prorate option for the Applied Amount Handling field .

BUSINESS FLOW: PAYABLES DISTINCTION Procurement Process Payables Process Request for Service Author Contract Advance Payment Source Track Progress ERS Process Payment .

CONTRACT DELIVERY INVOICING Procurement Process Payables Process Supplier ‡ iSupplier Portal ‡ Import Request for Service Author Advance Contract Payment Payables Analyst ‡ Quick Invoice ‡ Invoice Workbench Pay on receipt import Source TrackProcess Payment Progress ERS Employee: Decentralized Invoice Entry ‡ Payables Requests .

INVOICE WORKBENCH: CONTRACT DELIVERY INVOICES .

ORACLE PAYABLES: ENSURE BILLING COMPLIANCE y Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Real-time update of the purchase order y Ensuring billing compliance when comparing billed verses planned Holds resolution process to manage issues when they does not Verifying invoices fall within your tolerance policies .

y Fixed Price Services: Lump Sum Pay Items = Amount Based Tolerance Checking y Fixed Price Services: Rate Based Pay Items = Quantity Based Tolerance Checking y .ORACLE PAYABLES: TOLERANCES AND HOLDS Services Tolerance Template Payables uses the combination of PO Line Type and Pay Item Line Type to determine which tolerance template to use.

ORACLE PAYABLES: TOLERANCES AND HOLDS Milestone Pay Items have Zero Tolerance Quantity Based ² Quantity must be a whole quantity ² Price and Amount exact y Amount Based ² Amount must be exact y .

y You can: y Enable Hold Notification per Hold Set Notify and Reminder Days Add instructions to appear on the workflow notification y Includes two options: Release the hold Acknowledge the issue .ORACLE PAYABLES: HOLDS NOTIFICATION OPTIONS Holds Resolution Workflow This feature enables you to release any hold that can be manually released.

adherence to budgetary controls. financial. and compliance performance Real-time update of the purchase order. accounting and tax reporting provide transparency . history.ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS y Strengthening financial discipline and corporate governance while reducing compliance costs by: Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within your tolerance policies Providing workflow approval processing. and controls y Improved Transparency into your business.

ORACLE PROCUREMENT TO PAYABLES: SETUP OVERVIEW System Administrator Set key profile options Purchasing Payables Approvals Management Approval Rules E-Business Tax Tax Configuration Financial Options Document Style Change Order Tolerances Payables Options Invoice Tolerance Templates Supplier Attributes .

ORACLE PROCUREMENT SETUP y Profile Option: POR: Amount Based Services Line Type = Fixed Price Services Responsibility: Purchasing Navigation: Setup:Purchasing > Document Styles The Purchase Order Document style defines the basic document rules of the Complex Work Purchase Order y You can setup specific document styles for the purchase of goods and have a separate document style for the purchase of services y .

PAYABLES SETUP: FINANCIAL OPTIONS y Setting up Retainage Account for the Operating Unit. y . Responsibility: Payables Navigation: Setup:Options > Financial Options You can define one retainage account for the Operating Unit y The retainage distribution account on the invoice is used in the seeded accounting setup in Subledger Accounting.

Invoice. however you may want to evaluate the Approval. and Account tab options y Use the Payables Options window to enable Payables Invoice Approval y .PAYABLES SETUP ² PAYABLES OPTIONS y Payables Option settings Responsibility: Payables Navigation: Setup:Options > Payables Options Payables Option settings are not specific to this feature.

PAYABLES SETUP: INVOICE TOLERANCES Global Tolerance Policies Set up y New ´Serviceµ type provides central control over tolerance policies for both Goods and Services y You can define both percentage²based and amount² based tolerances y You can define many tolerance templates for goods or services and then assign the most appropriate templates to the supplier sites y .

SHARED SETUP: SUPPLIER TERMS & CONTROLS Supplier Terms & Control Set Up Tax Details: Tax registrations and options y Receiving: Match Approval Level y Purchasing: Self Billing Settings y Invoice Management: Match Option. Retainage Rate y .

ORACLE APPROVALS MANAGEMENT SETUP APPROVAL RULES Approval Processing Setup Oracle Approvals Management is a common module that allows you to configure rules which determine approvers for business transactions or activities y New Transaction Types in Release 12: y Work Confirmation transaction type Payables Holds Resolution transaction type Payables Invoice Approval transaction type .

ORACLE EBUSINESS TAX SETUP: TAX CONFIGURATION y Standard Invoices: Tax on Progress To-Date (Net of retainage) Tax on Final Delivery y Prepayments Tax on Advance (Yes or No) Tax on Progress Treated as Financing (Yes or No) Prepayment Application Tax Treatment y y Retainage Release: Tax on retained amounts ready to be released First Party and Third Party Tax Profiles and Registrations .

Assign a Tax Rate for when the condition is True . Create a Tax Rule for All Transactions 3. P2P Contract Financing 4. Pick your Tax Regime & Tax 2.PREPAYMENTS: TAX CONFIGURATION EXAMPLE 1. Add a Line Class condition: P2P Advance.

IMPLEMENTATION CONSIDERATIONS Required y Payables y Purchasing y Services Procurement y Supporting Modules: Workflow and Approvals Management Optional Products y Oracle Sourcing y Oracle Procurement Contracts y Oracle iSupplier Portal y Oracle iProcurement y Oracle Projects .

AGENDA y y y y y y y y Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables .

Enhanced Multi-Org Reporting Run several Payables reports at ledger or ledger set level .MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION y y y y y Multi-Org Access Control (MOAC) enables cross organizational processing and reporting on Operating Units in subledgers. A security profile determines a user·s set of accessible Operating Units. you can select invoices across operating units for payment processing within a single pay run. For example.

Open Account Balance Listing Run Concurrent Programs. such as Validation and Invoice Import Close Periods .MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION MOAC allows users of a single responsibility to perform task in multiple operating units without having to switch responsibilities. y Possible tasks include: y Invoice Processing Payment Processing Run Reports. such as Posted Invoice and Payment Registers.

y Reduce Costs y Improve Timeliness and Accuracy of Information .MULTI-ORG ACCESS CONTROL IN PAYABLES BENEFITS y Increase Efficiency Shared Service Center employees can be more efficient because they can process transactions for multiple Operating Units. Reporting costs are reduced since users can submit standard reports for multiple OUs as well as submit certain reports that gather data from multiple OUs. MOAC adds to the timeliness and accuracy of information by providing a consolidated view of data across Operating Units. eliminating the need for manual aggregation.

MULTI-ORG ACCESS CONTROL PROCESS PAYABLES PROCESS Open Payables setup form or Payables transaction form Application checks access privilege Enter data for operating unit and proceed to next task Submit Concurrent Program Or Standard Report Automated process .

from which the system will default the OU y The application automatically provides the operating unit of new (uncommitted) invoices during entry. INVOICE ENTRY There is now an OU field on the Invoice Workbench y Select an Operating Unit. or enter another field. y . such as PO or Supplier Site.MULTI-ORG ACCESS CONTROL PROCESS.

. the list of OUs you can specify is determined by your security profile.MULTI-ORG ACCESS CONTROL PROCESS. y As in the invoice workbench. y You also have the ability to specify a list of OUs. PAYMENT TEMPLATES There is a new Payment Process Request Template y Use to submit a ´Payment Batchµ y Select invoices for payment regardless of their OU by selecting the All option in the Operating Units region.

with Multi-Org Access Control you can close periods for all Operating Units in a given Ledger. as determined by your security profile. y Each Payables accounting calendar is associated with one ledger and its accounting calendar. y . defined in GL. y You can now access the Control Payables Periods window for all ledgers that correspond to the operating units that you have access to. CONTROLLING PAYABLES PERIODS On the Control Payables Periods form.MULTI-ORG ACCESS CONTROL PROCESS.

if you leave the OU parameter null. y . defined in Oracle HRMS. as determined by you MultiOrg Security Profile. SUBMITTING CONCURRENT REQUEST There is a new OU parameter that you will when you submit a concurrent request in R12 y When submitting the Invoice Validation routine. y Oracle Payables will process data for your set of accessible Operating Units. the routine will process data for multiple operating units in a single run.MULTI-ORG ACCESS CONTROL PROCESS.

MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING STANDARD REPORT
Submit the Payables Posted Invoice Register or Payables Posted Payments Register for a Ledger or Ledger Set. y Oracle Payables includes data for all Operating Units that you have access to, as determined by your Multi-Org Security Profile, belonging to that Ledger/Ledger Set. y All other Payables Standard Reports now have an OU parameter that is mandatory and will set the context for that run of the report.
y

MULTI-ORG ACCESS CONTROL PROCESS, OPEN ACCOUNT BALANCES LISTING REPORT
Trial Balance is known as the Open Account Balances Listing report y It runs based on the Open Account Balances Listing Definition that you define y You can define the Listing Definition at a Ledger or Ledger Set level
y

MULTI-ORG ACCESS CONTROL SETUP
GENERAL MOAC SETUP
Define security profile & assign operating units

Run Security List Maintenance Assign security profile to responsibility or user

Automated process

Withholding y Tax Codes and Details y .MULTI-ORG ACCESS CONTROL PAYABLES SETUP Use the Payables Options form to set up: Payables Options y Financials Options y Supplier Sites y Payment Details Invoice Management Accounting Options Etc.

IMPLEMENTATION CONSIDERATIONS Integration with Procurement products may require setup and use. .

SUMMARY In this topic. y . you should have learned how to: Describe and use the new features in Release 12 of Oracle Payables. y Set up the new features in Release 12 of Oracle Payables.

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