PeopleSoft Accounts Payable

PeopleSoft Accounts Payable module is one of the critical modules in the 'Procure to Pay' business process commonly
known AP or Payables. In accounting terms, accounts payable means the amount that we are liable to pay to the
vendors/suppliers (9.2v). Accounts Payable module used to records invoices information called voucher sent by
suppliers. In AP module we tracks Invoice information and payments information of eligible vendor invoices at the
appropriate time (i.e. responsible for tracking and managing vendor invoices and payments). So, supplier payment
processing is one of the most important aspects of AP module.

• Key Concepts:
 Accounts Payable process flow diagram
 Voucher entry (Manual voucher entry and voucher creation through automated interface)
 Voucher Approval
 Matching
 Posting vouchers
 Voucher maintenance (such as deleting, closing, and un-posting vouchers)
 Processing payments (Pay Cycle / Express Payments / Manual Payments)
 Withholding
• Business Process Flow:
 • Voucher Entry: Manual Voucher Entry
 Regular vouchers: These are the most widely used standard vouchers.
 Adjustment vouchers: These are used to make debit or credit adjustments to an existing voucher.
 Journal vouchers: These vouchers are used to modify accounting entries of an already posted voucher.
 Prepaid vouchers: If we have made any advance payments to a vendor, these vouchers are used to record the
same.
 Register vouchers: In certain situations (such as VAT applicable purchases), we may need to create and post
vouchers without knowing the accounting details. Register vouchers are used to record such transactions against
suspense (temporary) accounts. Once the ChartField details are known, register vouchers are unposted and correct
details are recorded.
 Reversal vouchers: These are used to reverse accounting entries of an already posted voucher.
 Single payment vouchers: These vouchers are used to make a one-time payment to a vendor, without defining that
vendor in the system.
 Template vouchers: In order to reduce data entry efforts, we can create templates to be used for entering regular
vouchers.
 Third party vouchers: These are used to record non-merchandise costs such as shipping, insurance , and so on.
• Voucher Entry: Through Batch Process (AP_VCHRBLD)

 AP vouchers can be created from various sources (Quick Invoice, Summary Invoice , non-PeopleSoft systems as well
as other PeopleSoft modules (such as Order Management, Purchasing). Such type of data initially updates the
Staging Tables.
 Voucher Build Process (AP_VCHRBLD) verifies the Staged data and updates the AP Primary Tables.
• Voucher Approval:
Voucher Approval: Vouchers are need to be approved after they are entered in the PeopleSoft System depending
upon business process
• Matching Process (AP_MATCH):
Voucher matching is an important business process (AP_MATCH) control for organizations to ensure that they pay
only for those goods and services that they ordered and actually received. PeopleSoft offers four types of matching

 Two-way matching
 Three-way matching
 Four-way matching
 Receipt only matching
Note: By overriding the match exceptions there is only one option by using Match workbench page.

• Run Voucher Posting Process (AP_PSTVCHR):

Voucher posting process is used to create accounting entries for vouchers called accrual accounting entries. Once
voucher is posted, the system typically creates an accounting entry based on Accounting entry template as follows:
 Expense account is debited
 Accounts Payable (Liability account) is credited
• Voucher Approval:
Voucher Approval: Vouchers are need to be approved after they are entered in the PeopleSoft System.

• Matching Process (AP_MATCH):

Voucher matching is an important business process (AP_MATCH) control for organizations to ensure that they pay
only for those goods and services that they ordered and actually received. PeopleSoft offers four types of matching

 Two-way matching
 Three-way matching
 Four-way matching
 Receipt only matching
Note: By overriding the match exceptions there is only one option by using Match workbench page.

• Run Voucher Posting Process (AP_PSTVCHR):

Voucher posting process is used to create accounting entries for vouchers called accrual accounting entries. Once
voucher is posted, the system typically creates an accounting entry based on Accounting entry template as follows:

 Expense account is debited

 Accounts Payable (Liability account) is credited
• Voucher maintenance :
In many situations based on regular business process, where voucher processing flow needs to be stopped. It can
be due to incorrect data entry, disputes with vendors, and so on. PeopleSoft AP module offers three different
actions for maintaining vouchers:
 Deleting
 Closing
 Un-Posting
• Payment Processing:

PeopleSoft offers Payment types and wide range of payment methods that can be used to create payments such as

Payment Types Payment Methods

 Pay Cycle  Electronic Funds Transfer (EFT)
 Express Payment  ACH (Automated Clearing House)
 Manual Payment  System Check, Wire Transfer, Drafts
 Giro, Giro-EFT and Letter of Credit
 continued...

• Pay Cycle Process: is used to select the eligible vouchers and create payments for them. It is a group of multiple
steps, each responsible for a specific task.

 Specifying payment selection criteria

 Running pay cycle using pay cycle manager
 Payment selection (where eligible vouchers are selected based on selection criteria)
 Payment creation (where actual payment records are created in the system)
 Printing checks (using pre-printed or blank check stock) / Creating a positive payment file (to be sent to the bank as
a confirmation for printed checks), and so on.
• Express Payment: is used to quick payment for specific voucher by using Express Payment link in voucher
information page.
• Manual Payment: is used to record the manual payment (worksheet ID) and apply the voucher for that supplier
against the payments.
• Payment Posting (AP_PSTPYMNT):

Payment posting process is used to create accounting entries for vouchers called payment accounting entries. Once
Payment posting process done, the system typically creates an accounting entry as follows:

 Cash distribution (Expense Account) account is credited

 Accounts Payable (Liability account) is debited

• Withholding (1099):

Withholding processing enables an organization based on withholding setup to automatically deduct the applicable tax
amount for vendor vouchers. We can address the withholding requirements of various countries in PeopleSoft
Payables module. The basic withholding process flow is

 Withholding setups
 Entering withholding vouchers
 Calculation of withholding amounts
 Paying withholding vouchers
 Posting withholding transactions (AP_WTHD)
 Performing withholding adjustments
 Generating withholding reports
 PeopleSoft Accounts Payable
• List of tables in AP:

Accounts Payable Tables

Primary Tables Staging Table QV Tables Pay Cycle Table

VOUCHER VCHR_HDR_STG VCHR_HDR_QV PS_PYCYCL

VOUCHER_LINE VCHR_LINE_STG VCHR_LINE_QV PS_PYCYCL_SOURCE

DISTRIB_LINE VCHR_DIST_STG VCHR_DIST_QV PS_PYCYCL_STAT

VCHR_ACCTG_LINE VCHR_PYMNT_STG PS_PYCYCL_BU

PYMNT_VCHR_XREF VCHR_MSCH_STG PS_PYCYCL_MTHD

VENDOR VCHR_BANK_STG PS_PYCYCL_BNK

VENDOR_LOC VCHR_IBANK_STG

VCHR_VNDR_STG etc…
Thank You