Oracle Applications

CRP 1
CRP2 for Accounts
For Payable
Accounts Payable

BMI Transformation Project Satyam 1

 Agenda
• Introduction
• Oracle Overview
• Integration
• General Set Ups
• Financial & Payable Options
• Supplier Creation
• Invoices
Standard Invoice
PO / Receipt Matched Invoices
• Debit / Credit Memo
• Prepayment
• Recurring Invoices
• Employee Expense Reports
• Define Banks
• Payments & Payment batch schedule
• Payable Transfer to GL
• Reports
• Custom Components

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 Integration
PO FA

AP

GL
INV

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 General Setups

• Payment Terms: Assign Payment Terms to an invoice to

automatically create scheduled payments for the invoice with due
dates
• Distribution Sets: Distribution sets are useful to automatically enter
distributions for an invoice when you are not matching it to a
purchase order/ receipt.
• Pay group: Pay groups are used to further segregate suppliers for
reporting purposes. These are useful to group payments when
payments are made in batches.
• Invoice Tolerance: Use the Invoice Tolerances Template window to
define the matching tolerances you want to allow for variances
between invoice, purchase order, and receipt information.
• Bank Master Creation: Creation of Internal and Supplier Banks

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 Supplier Definition

•Suppliers:
– Define suppliers to record information about companies and
individuals from whom we purchase goods or services
– Suppliers are shared across operating units. Supplier Sites are
not shared across operating units.

Payment site : Vendor Site where invoices can be entered

Purchasing: Vendor Sites where Purchase Orders can be raised.
RFQ Only: Vendor Site that can be used only for sending RFQ.
Purchase Orders cannot be raised on these sites.

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 Invoice - Sources

– Individual Invoices from Invoice Workbench

– Invoice Batches
– Recurring Invoices
– Import Invoices using Open Interface Tables

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 Invoice Types

Standard : Invoice from vendor for good/services purchased

Credit Memo: Memo from a vendor for credit towards goods /service
(Negative)
Debit Memo : Memo to a vendor for debit towards goods /services
(Negative)
Expense Report : Invoice for employee business related expenses
Prepayments : Invoice to pay an advance payment for expenses
. to employees and suppliers

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 Invoice - Accounting

• Payables Accounting Process.

• Online Accounting
– Select the invoice.
– Click the Actions button.
– Select the Create Accounting check box, and click OK.

• Invoices must be validated before the accounting entries can be

generated.

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 Overview of Recurring Invoices

You can create recurring invoices for periodic business

expenses for which you may not receive invoices (for
example, monthly rent or lease payments).

To enter recurring invoices, perform the following steps:

1. Define periods in the Special Calendar window
2. Define a recurring invoice template
3. Create invoices based on the template

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 Entering an Expense Report

• Define Employee as a supplier

• Employees can enter their own expense reports in

– Oracle Payables

• The accounts payable department enters expense reports

in the Expense Reports window in Payables.

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 Petty Cash Expenses Invoice

1. Create a Petty Cashier as Supplier.

2. Make one Prepayment Invoice to Particular Supplier
3. Raise a Standard Invoice for bills submitted by Petty
Cashier (Supplier) and Validate the Invoice.
4. Apply Prepayment with Standard Invoice at the end of
day.

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 Defining Banks

Banks
• Define Multiple Banks and Bank Accounts to Disburse/Receive
Payment.
• Enable Multi-Currency flag, if required.
• Assign appropriate Payment Documents
• Specify Underlying GL Accounts

(N) Setup—>Payment—>Banks

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 Payment Documents
Defining Payment
• You must create at least one payment document before you can use

Documents for Bank

a bank account to create invoice payments.

Accounts
(N) Setup—>Payment—>Banks (B) Bank Accounts (B) Payment
Documents

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 Payment Features
Enter supplier Enter invoice Approve invoice

Pay invoice

A/P

100,000
60,000
10,000
30,000

Transfer information Create accounting

to general ledger entries

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 Payments – Payment Methods

• Check
– Payment in a payment batch, Quick payment, or manual
payment.
• Clearing
– Payment method you use to account for inter-company
expenses when you do not actually disburse funds through
banks.
• Electronic
– Electronic payments either through the e–Commerce Gateway,
or by delivering a payment batch file to your bank.
• Wire
– Payment method where you pay invoices outside of Payables by
notifying your bank that you want to debit your account and
credit your supplier’s account with appropriate funds.

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 Pament setups

• Payment Formats:
• Payment Process Profile : Creation by specifying
invoice selection criteria.
• Payment Template:
• Payment Process Request: which selects the
documents payable based on selection criteria and
groups the documents payable according to the
document attributes and payment process profile options

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 Payments – Payment Types

• Manual:
– Payment made outside of Payables, for example, using a typed check or wire
transfer, within Payables you can record the payment and update the invoices that
you paid.
• Quick:
– Create and print a computer generated payment to pay a supplier for one or more
invoices.
• Batch/Batch Sets:
– Use payment batches to create payments for multiple invoices that meet selection
criteria you specify. You can use payment batch sets and payment batch templates
to predefine payment batch criteria for payment batches you frequently process.
• Refund:
– When a supplier or employee sends you a refund for an invoice payment you have
made, you can record the refund in Payables. A refund closes out an outstanding
credit balance, so you are actually making a negative payment for a credit balance .

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 Transfer to General Ledger

• Payables Accounting Process creates accounting entries

in Payables.
• Payables Transfer to GL puts all the entries from Oracle
Payables to GL Interface tables.

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 Flow of DefaultValues

Financials Options Payables Options

Supplier

Supplier site

Invoice

Invoice distribution

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 Reports

• Supplier Paid Invoice History

• Supplier Payment History
• Suppliers Report
• Invoice Aging Report
• Invoice Audit by Voucher Number
• Prepayments Status Report
• Payment Audit by Voucher Number Report
• Stopped Payments Report
• Void Payment Register
• Open Account Balances Listing(Trial Balance)
• Payables Account Analysis Report

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 Reports

• Posted Invoice Register

• Posted Payment Register
• Supplier Open Balance Letter
• Vendor Audit Report
• Key Indicator Current Activity Report
• Mass Addition Create Report
• Expense Report Export Report
• Payables Accounting Process Report
• Payables transfer to GL Report

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 Period end Closing process

• Make sure the period should be closed in Purchasing

• Run Invoice validation Report
• Run Unaccounted Transaction Report(If required)
• Run Create Accounting Program
• Run Unaccounted Transaction Report
• Run Transfer to GL program
• Run Payable Exception Report
• Run Mass Addition Creation Program
• Finally period will close in AP module

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 Form Personalization & Custom components

Form Personalization
• Invoice level description field is Mandatory
• User Level fields restrictions
• Employee advance details notification to the Payable Manager
• Petty cash :Notification for replenishment of petty cash based on specified
limits

Reports
• Supplier Outstanding Report as on date
• BMI Print remittance report

BMI Transformation Project

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