Oracle Payables - Step by Step Functional in 11i - PART 1

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Sunday, 14 14 February February 2010 2010 08:09 08:09 AnonAnon E-mailE-mail

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Oracle Payables - Step by Step functional in 11i - PART 1

In this article y

In this article y ou will see stou will see st ep by step by st ep usage of Oep usage of Oracle Payables. This is racle Payables. This is particularly useful in end user particularly useful in end user training in 11i

training in 11i Th

This articis artic le is le is divdivided into 4 parts, Part1, Pided into 4 parts, Part1, P art2, Part 3, Part2, Part 3, P art4art4

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5

5 Creation of Recurring InvoiceCreation of Recurring Invoice 5.1

5.2 Setup Special Calendar Setup Special Calendar 5.3

5.3 Define recurring invoice templateDefine recurring invoice template 5.4

5.4 GeneratGenerate recurre recurr ing Invoiceing Invoice 5.5

5.5 Invoice validationInvoice validation 5.5.1

5.5.1 Canceling a Prepayment invoiceCanceling a Prepayment invoice 5.5.2

5.5.2 Paying a prepaymentPaying a prepayment 5.5.3

5.5.3 Applying a Prepayment Applying a Prepayment 5.5.4

5.5.4 Un-applying a PrepaymentUn-applying a Prepayment 6

6 InvoicInvoice e ValidationValidation 6.1

6.1 IntroductionIntroduction 6.2

6.2 Online ValidationOnline Validation 6.3

6.3 SubmSubmitittiting payng pay able approvable approv al pral pr ogramogram

7 7 HoldsHolds 8

8 Payable accounting processPayable accounting process 9

9 Payment Payment 9.1

9.1 OverviewOverview 10

10 Manual Manual PayPayment ment 10.1

10.2 Pay an Invoice manuallyPay an Invoice manually 10.3

10.3 Printing a PaymentPrinting a Payment 11

11 Batch Payment Batch Payment 11.1

11.1 Batch Payment ProcessBatch Payment Process

This payment format contains one credit line and multiple credit lines. This payment format contains one credit line and multiple credit lines. 11.2

11.2 InitiatInitiating ing Payment BatchesPayment Batches 11.3

11.3 Selecting invoice / Verify Payment Register is correctSelecting invoice / Verify Payment Register is correct 11.4

11.4 Modify PaymentModify Payment 11.4.1

11.4.1 Adding an invoice to a payment batch Adding an invoice to a payment batch 11.4.2

11.4.2 Removing an Invoice from Payment BatchRemoving an Invoice from Payment Batch 11.4.3

11.4.3 Removing all Invoices for a Particular supplier site from a payment batchRemoving all Invoices for a Particular supplier site from a payment batch 11.4.4

11.4.4 Changing payment or discount amounts for a selected invoiceChanging payment or discount amounts for a selected invoice 11.5

11.5 ForFor matmatting Paymentsting Payments 11.6

11.6 Confirm PayConfirm Payment Batcment Batchh 11.7

11.7 Payment Batch setsPayment Batch sets 12

12 Stop PaymentsStop Payments 12.1

12.1 Stopping a PaymentStopping a Payment 12.2

12.2 Releasing a Stop PaymentReleasing a Stop Payment

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Oracle Pay

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SEARCH APPS2FUSION

SEARCH SEARCH

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5

5 Creation of Recurring InvoiceCreation of Recurring Invoice 5.1

5.2 Setup Special Calendar Setup Special Calendar 5.3

5.3 Define recurring invoice templateDefine recurring invoice template 5.4

5.4 GeneratGenerate recurre recurr ing Invoiceing Invoice 5.5

5.5 Invoice validationInvoice validation 5.5.1

5.5.1 Canceling a Prepayment invoiceCanceling a Prepayment invoice 5.5.2

5.5.2 Paying a prepaymentPaying a prepayment 5.5.3

5.5.3 Applying a Prepayment Applying a Prepayment 5.5.4

5.5.4 Un-applying a PrepaymentUn-applying a Prepayment 6

6 InvoicInvoice e ValidationValidation 6.1

6.1 IntroductionIntroduction 6.2

6.2 Online ValidationOnline Validation 6.3

6.3 SubmSubmitittiting payng pay able approvable approv al pral pr ogramogram

7 7 HoldsHolds 8

8 Payable accounting processPayable accounting process 9

9 Payment Payment 9.1

9.1 OverviewOverview 10

10 Manual Manual PayPayment ment 10.1

10.2 Pay an Invoice manuallyPay an Invoice manually 10.3

10.3 Printing a PaymentPrinting a Payment 11

11 Batch Payment Batch Payment 11.1

11.1 Batch Payment ProcessBatch Payment Process

This payment format contains one credit line and multiple credit lines. This payment format contains one credit line and multiple credit lines. 11.2

11.2 InitiatInitiating ing Payment BatchesPayment Batches 11.3

11.3 Selecting invoice / Verify Payment Register is correctSelecting invoice / Verify Payment Register is correct 11.4

11.4 Modify PaymentModify Payment 11.4.1

11.4.1 Adding an invoice to a payment batch Adding an invoice to a payment batch 11.4.2

11.4.2 Removing an Invoice from Payment BatchRemoving an Invoice from Payment Batch 11.4.3

11.4.3 Removing all Invoices for a Particular supplier site from a payment batchRemoving all Invoices for a Particular supplier site from a payment batch 11.4.4

11.4.4 Changing payment or discount amounts for a selected invoiceChanging payment or discount amounts for a selected invoice 11.5

11.5 ForFor matmatting Paymentsting Payments 11.6

11.6 Confirm PayConfirm Payment Batcment Batchh 11.7

11.7 Payment Batch setsPayment Batch sets 12

12 Stop PaymentsStop Payments 12.1

12.1 Stopping a PaymentStopping a Payment 12.2

12.2 Releasing a Stop PaymentReleasing a Stop Payment

Definition

SLA Part 2 Entities - Event

Class

Class - Event T- Event Tyypespes

Oracle Pay

4

Order to Cash -

Order to Cash - TechnicalTechnical

Flow in R12

R12 Financials -

R12 Financials - Part 1 -Part 1

-USE FIREFOX

USE FIREFOX

R12 Financials -

R12 Financials - Part 2Part 2

Global Consolidation R12

SLA Part 4 - Application

Ac

Accounting counting DefinitionsDefinitions

SLA Part 5 - Subledger

Accounting Methods

SLA Part 6 - Overall SLA

Diagram

Journal Line Definition

R12 - Create Banks and

Bank Accounts in Oracle

Apps R12

Application Accounting

Definition - AAD

SLA Part 9 - Create

Subledger

Method

SLA P

SLA Part 10 - Testing aart 10 - Testing andnd

explaination of SLA Config

SEARCH APPS2FUSION

SEARCH SEARCH

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13

13 Payables Transfer to General Ledger Payables Transfer to General Ledger 14

14 Open and Close Period Open and Close Period 14.1

14.1 Period control statusPeriod control status 14.2

14.2 Open a PeriodOpen a Period 14.3

14.3 Close PeriodClose Period

End user Manual for Account Payable End user Manual for Account Payable

11 Accounts Payable

Accounts Payable

1.1 1.1 Overview

Overview

Acc

Acc ounts Payable designed is designed for ounts Payable designed is designed for

•

•Supplier creation and maintenanceSupplier creation and maintenance

•

•Recording invoices from suppliersRecording invoices from suppliers

•

•Payment to vendorsPayment to vendors

•

•Creation of banksCreation of banks

•

•Transfer of accounting information to GLTransfer of accounting information to GL

Oracle Payables is one of the sub-ledgers of General Ledger and provides a means to gather information pertinent to Oracle Payables is one of the sub-ledgers of General Ledger and provides a means to gather information pertinent to the Payables

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1.2 High Level Process flow diagram

Purchasing Accounting of Invoices Pay i nvoices Reconcile Payments General Ledger Enter invoices Enter supplie r

Matching

JE JE Purchase Orders Receipts

2 Supplier Creation and maintenance

2.1 Creation of Supplier

In a multi-org environment, the Supplier header record is shared across organizations and you should therefore take the following precautions: Always use Find first before adding a new supplier as it may have already been created by another organization.If the supplier already exists, go straight to the Sites region and set all organization-specific parameters at the Site level.

1. Navigate to Supp lier’s ► Entry

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3. Select the Sites button. To update a site, use the PgUp / PgDn buttons to find the required site. Provide the following information against various tabs

1. Fill in the following fields

Name of the field Content

Site Name Enter a Name for the site

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supplier must have a Pay Site to enter invoices, and a Purchasing Site to enter Pos Region communications If you have the site phone numbers, specify them in the appropr iate fields

1. Select the Contacts region

End user Manual for Account Payable Optionally add information on site contacts as required.

1.Select the accounting region

2. Fill in the following fields, However the values are defaulted from the financial option

Name of th e field Co nten t

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Future dated Payment Modify the entity value if necessary

3. Select the payment region

4. Select the bank account region

Use this region to record the supplier bank accounts that your suppliers and supplier sites use for electronic payment transactions. Information you enter in this region of the Supplier and Supplier Sites windows will appear in the supplier assignments region of the Bank Account window. Before filling in this region it is necessary to have created the account in the AP Bank Account form.

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End user Manual for Account Payable 1.Select the invoice tax region

2.Select the Purchasing region

All the options are derived from the system defaults defined in the purchasing and AP setups

3. Click on save. The supplier is created

1.1 Merging of supplier

Any supplier who are duplicate or not required to be maintained or requires merging with any other supplier can be done using merge function available in Oracle. Merging suppliers is an irreversible action. Merger once done can not be reversed. Name of the field Content

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Paid Unpaid None

Name and site Provide the name of the supplier and site requires transfer

Name and site Provide the name of the supplier and site to which the merge needs to be done Merger Run the merge to execute the merge program

2 Invoice Entry

2.1 Overview

Every transaction that needs to be paid would be recorded as invoice. This is required even for advance payment, petty payment etc. Payable gives the option to enter invoices in single or in batches. In batches the value such as payment terms, currency, GL date can be given that will default to individual invoices to make data entry faster.

The following are various type of invoices used to record transactions Standard. A trade invoice you receive from a supplier.

PO Default. A trade invoice you want to automatically match to a specified purchase order and then manually match to the individual shipments on the purchase order.

Credit Memo. A negative amount invoice you receive from a supplier representing a credit for goods or services purchased. Debit Memo. A negative amount invoice you send to notify a supplier of a credit you recorded for goods or services purchased.

Prepayment. An advance payment you make to a supplier or employee

Expense Report. An invoice you enter to record business-related employee expenses Page 4 of 4

End user Manual for Account Payable

1.1 Entering Standard Invoice

These invoices are entered in payables not matched against purchase orders. 1. Navigate to Invoices ► Entry ► I nvoices

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1.

Fill in the following fields

Name of the filed Content

Voucher Automatically defined by Or acle Type Choose Standard

Supplier or Supplier Number

Enter the Supplier or Supplier Number

Site Enter the Supplier Site to which you will send payment of the invoice. AP will print the address for this site on the payment.

Invoice Date Enter the Invoice Date or accept the Payables default (today's date) bychoosing If you enter a date in a future period. AP will put the invoice on Future Period hold during Approval Invoice Number Enter the Invoice Number from the invoice your supplier sent you or accept the Payables

default (today's date) by choosing [Tab]. AP will not allow you to enter duplicate invoice numbers for the same supplier.

Invoice Amount Enter the full Invoice Amount including tax

Description Enter the Description of your invoice. This will appear on your paymentdocument and may appear in your general ledger.

G L Date Enter the GL Date Withholding tax group Not applicable

1.

AP automatically schedules payment of the invoice using the Invoice Amount, Payment Terms, and Terms Date. Enter or review the defaults for these fields by Clicking on Pay ments

4. Enter distributions manually or automatically by entering a Distribution Set, Entering Distribution Manually

1.

Create a Line

2.

Fill in the following field

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Name of the filed Content

Type Choose a Distribution Type Choose Item for goods or services you ordered. Choose Miscellaneous for other expenses on an invoice that are not tax.

Amount Enter the line amount (Tax not included) Account Enter the GL Account

Tax code Not applicable to Tooran

Track as an asset This check box will be enabled if the distribution line needs to be transferred to fixed assets GL Date The distribution GL Date defaults from the invoice GL Date you entered. This can be overridden

1.

Enter a separate line to show freight separately

2.

Attach

3.

Click on (save)

1.2 Entering PO default Invoices

These are invoices matched against purchase orders raised from oracle purchasing

1.

Enter the PO Default type. A form appears: enter the PO Number, then AP automatically defaults the Supplier, Supplier Number, Site, and Currency.

Page 4 of 4

1.

Enter all basic invoice information (see: Entering Basic Invoices), but do not manually enter the distributions.

2.

Select the appropriate withholding tax group in the tax field

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1.

The order number is already specified. Optionally change the invoice payment term.

1.

For each shipment you want to match, select the shipment by clicking the Match check box and enter the invoiced quantity. When you enter one field, Payables automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). It can be changed.

If you want further details to match, you can match to purchase orderdistributions by choosing the Distribute button. For each purchase order distribution you want to match to, select the purchase order distributions and enter either the Quantity Invoiced or Match Amount.

1.

Choose Match to save your match

Page 3 of 3

1.

Review the invoice distributions AP created by choosing the Distribution button from either the Invoices Summary or Invoices detail window.

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The following window with matched distribution line(s) will open:

Final matching a Purchase order

When you are entering a purchase order matched invoice or a credit/debit memo, you can check Final Match in the Match to PO or Match to Invoice Distribution window to have AP permanently close the purchase order during invoice Approval. When you approve a final-matched invoice, Approval permanently closes the matched purchase order. You cannot reopen a permanently-closed purchase order or perform any further matching to the purchase order.

Attention: Check Final Match only if you are certain this is a final match against therelated purchase order and you want Approval to permanently close the purchase order.

1.1 Entering Debit and Credit Memo

1.1.1 Overview

In oracle Credit and debit memos are used when you receive credit for items you returned to a supplier. Credit/debit memos are netted with basic invoices at payment time.The difference between credit and debit memos is:

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you are recording. 1.1.2 Enter Credit Memo

In the Invoices Summary form enter the Credit Memo Invoice Type. Enter anegative invoice amount and all basic invoice information as in standard Invoices.

1.

Enter the distribution automatically in one of the following ways:

•Manually

•Or by matching to the original invoice you entered

1.

Click on save

Page 3 of 3

End user Manual for Account Payable 1.1.1 Matching credit memo to invoice/PO

1.1.1.1 MATCHING OPTIONS WHEN THE ORIGINAL INVOICE IS NOT PURCHASE ORDER MATCHED

In this case you can choose one of the following:

• Match to an invoice: Payables prorate your credit amount based on theinvoice distribution

amounts of the original invoice. Payable automatically creates invoice distributions for the credit memo based on the distributions ofthe original invoice.

•Match to specific inv oice distributions: You can allocate the credit amount to specific invoice distributions

of the original invoice. Payables automaticallycreate invoice distributions for the credit memo based on the original invoicedistribution that you select. For example, you may order three chairs for threedifferent departments and return one. You can match a credit invoice to theoriginal distribution for that department to ensure that the credit matches thecharge.

Follow the steps below

1.

Enter a Credit Memo type invoice.

2.

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3.

At the pop-up list to the right of the Match button, choose Invoice, and then choose the Match button.

1.

In the Find Invoices to match window, query the invoices you want to match and choose Find. If the credit memo pertains to an invoice matched to a certain purchase order, query by purchase order number to see all invoices matched to that purchase order. AP navigates to the Match to Invoice window.

2.

Optionally choose the Invoice Overview button to review more information about an invoice.

3.

Create invoice distributions by matching to one or more invoices. If you are matching to a non-purchase order matched (basic) invoice, select the invoice and enter a Credit Amount.

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Distribute bu tton.

1.

For each invoice distribution you want to match to, select the distribution and enter a Credit Amount.

2.

Choose the Match button to create invoice distributions for the credit memo based on the matches you made.

3.

To review the new invoice distributions, choose the Distributions button from the Invoices Summary.

1.1.1.2 MATCHING OPTIONS WHEN T HE ORIGINAL INVOICE IS PURCHASE ORDER MATCHED

In this case you can choose one of the following:

• Match to specific invoice distributions: You can allocate the credit amount to specific

invoice distributions of the original invoice. Payables automatically create invoice distributions for the credit memo based on the original invoice distributions that you select.

• Match to purchase order receipts : Payables prorates, based on the quantity billed, your

credit amount across all purchase order distributions associated with the purchase order receipt to which you match the credit memo. Payables automatically create invoice distributions for the credit memo based on the purchase order distributions associated with the purchase order receipt you match to.

Follow the steps below to create a credit memo to matc h against PO

1.

Enter a Credit Memo type invoice.

1.

Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions.

1.

At the pop-up list to the right of the Match button, choose Purchase Order or Receipt, and then choose the Match button.

1.

In the Find screen, enter the search criteria to find the purchase order

1.

Click on the Find button:

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Page 5 of 5

1.

For each line you want to match to, select the line by checking the Match checkbox and enter either a Quantity Invoiced or Match Amount. AP automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which defaults from the purchase order.

1.

Validate the related Invoices when entering Cred it Memos Search for the credit memo

In the Invoices Summary choose the Actions button. Check Approve RelatedInvoices, and choose OK to have Payables automatically initiate Approval for any invoices ass ociated with a credit memo.

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1.1 Entering prepayment invoices

1.1.1 Overview

A prepayment is a type of invoice you enter to pay an advance payment to a supplier or an employee. Create a prepayment in much the same way as you create a regular invoice. Review the Prepayment Status report to review unapplied payments or unpaid or partially paid invoices for suppliers/employees.

1.1.2 Create Prepayment Invoice

1.

Choose the following path:

Invoices ► Entry ► In voice Batches. Cllick on the button Invoices

2. Select the prepayment as invoice type

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Prepayment Type Select Temporary or Permanent as the Prepayment Type. Specify the Prepayment Type as Temporary if you want to apply the prepayment to an invoice or the advance to an employee expense report. You specify the Prepayment Type as permanent if you do not want to apply the prepayment to an invoice.

Settlement Date Accept the Default or change. Payables use the Settlement Date to prevent you from applying a temporary prepayment to an invoice until on or after the Settlement Date of the prepayment.

You can establish a Purchase Order association for your prepayment when you enter the prepayment. If you associate a prepayment with a purchase order, Payables allows you to apply the prepayment only to the invoices matched to the associated purchase order.

If you are using multiple currencies, you can enter a prepayment in anycurrency you have defined. You can only apply a prepayment to an invoice inthe same currency as the invoice.

1.

Click on Distribution.

AP creates a prepayment distribution line automatically when you enter a prepayment. Oracle Payables debits the Prepayment Acc ounting Flex-field from the suppliersite, but you should fill the Amount field. If you enter a tax name on a prepayment, Payables also creates a tax distribution line

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1.

After completing the invoice form, click on the action button to validate the prepayment.

1 Creation of Recurring Invoice

1.1 Overview

These are invoices predefined and run for recurring expenses such as Telephone expenses, Office cleaning, Electricity and water payments. Creation of recurring invoice process describes below

1.2 Setup Special Calendar

For recurring payments made of a fixed amount at regular intervals, the AP Administrator would define a Special Calendar of the type Recurr ing Invoice in the Special Calendar window. A full distribution set would also need to be defined for the relevant expense account in the Distribution Sets window

1.

Choose the following path

Setup ► Calendar ► Special Calendar The following screen will display

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1.

Fill in the following field

Sl Field Type Description

1 Type of Calendar Required Click on Recurring Invoice

1 Calendar N ame Requir ed Enter any logical name for the r ecur ring calendar

2 Periods per year Required Enter the number of periods in this calendar. For e.g. to use it or payments recurring monthly, enter 12, to use it for payments recurring quarterly, enter 4.

3 Description Optional Enter any logical description for this calendar

5 Period Required Enter a period name. For example, Jan, Feb, Mar, etc., or Q1, Q2, Q3, Q4.

6 Year Required Enter in the Year field the calendar year in which a period occurs 7 Sequence Requir ed Enter number s in the Sequence fields to indicate the or der in which the

periods occur. The sequence numbers of a period should represent the sequence of the period in a r egular calendar. E.g. May - December 1995 should be sequenced 5-12, and January 1996 should be sequenced 1. 8 Start Date Required Enter the Start Date for this period

9 End Date Required Enter the End Date for this period 10 System Name Required,

Defaults

The System Name will automatically default by taking the combination of Period name and the last two digits of a year.

1.

Save the Recurring calendar

1.3 Define recurring invoice template

1.

Choose the following path:

Invoice ► Entry ► Recurring In voice The following screen will display

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Sl No Field Type Description

1 Supplier Name Required, LOV Enter the Supplier name for which you want to create the recurring invoice.

2 Supplier Number Required, Defaults The Supplier Number will default

3 Supplier Site Required, LOV Enter the Supplier Site for which you want to create the recurring invoice. (Choose the site relevant to the entity, identifiable by the prefixes)

4 Supplier Pay Group Required, Defaults The Pay Group will default from the supplier site setup. Accept the default. 5 Calendar N ame Requir ed, LOV Select the appr opr iate special calendar .

6 Periods Required Enter the number of periods for which you want to pay this vendor. You will get a message if the numbers of periods you enter are more than the periods defined for the calendar you have chosen.

7 First Required Enter the first period name for which you want to pay this vendor.

8 Next Display Only The next period name will default depending upon the first period name entered. Once the invoices are generated, this will be updated to the next period for which the invoice should be created.

9 Remaining Display Only The r emaining per iods for which the inv oices remain to be cr eated will default.

10 Number Requir ed Enter any identifiable number ; this with a suffix of the per iod name will be assigned to the invoice created as the invoice number.

11 Description Optional Enter any logical description for this invoice

12 Currency Required, Defaults The functional currency defaults, unless the supplier site invoice currency is different. Accept the default.

13 Liability Account Required, Defaults This defaults from the supplier site setup. Accept default. 14 GL Date Optional GL Date for the liability will be assigned in any of these ways:

1)If you enter a GL Date, it will default to every invoice you create from this template and will be the date the liability will take effect in GL. 2) If you leave it blank, and create the invoice in period where system period and special calendar period are the same, the beginning date of the recurring invoice's period defaults. 3)If you leave it blank, and create the invoice in period where system period and special calendar period are not the same (in sense of the period in which the sy stem date falls), the system date on which you create the invoice defaults.

Generally you will follow the second case.

15 Payment Method Required, Defaults This defaults from the supplier site Setup. Accept default.

16 Payment Terms Required, Defaults This defaults from the supplier site Setup. Accept default or change if required.

17 Distribution Set Required, LOV Choose a distribution set for the accounts to be debited. Only a full type distribution set is allowed for recurring invoices.

3. Click on the Amount tab

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1. Enter the following field

1 First Amount Required Enter the amount to be paid periodically.

2 Next Amount Display Only The next amount shall default from the first amount. 3 No of Recurring

Invoices

Display Only The number of recurring invoices shall default from the periods entered in the main form.

4 Control Total Defaults The control total defaults at first by multiplying the first amount with the number of periods. If at any point after generating an invoice, you change the control total, the system pro-rates the differential amount across the remaining number of periods for which the invoices are yet to be created (the change is seen in the next amount field)

5 Released Total Defaults The release amount will default depending upon the amount paid against this invoice template per iodically.

6 Amounts Remaining Defaults The Amount remaining will default depending upon the amount paid against this invoice template periodically.

1.1 Generate recurring Invoice

Vendor submits bills for the recurring expense incurred, if required. Designated authority would approve on the bill (the physical hard copy), if any, which would then be submitted to the accounts department. Against it, you would generate in Payables. If no bill has to be submitted, generate the recurring invoice at periodic intervals defined in the recurring invoice calendar, in the Recurring Invoices window.

1. Choose the following path:

Invoice ► Entry ► Recurring I nvoice

In this screen, query, on any criterion you know, the recurring invoice template from which you want to create an invoice. Once it is found, click on the button Generate Recurring Invoices on the Recurring Invoice Template. The following form will open up:

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1.

Fields have the following impact in recurring invoice

1 Invoice Number Display Only This is the number suffixed with the special calendar period name and will be the number given to the invoice.

2 GL Date Required, Defaults

This is the date on which the account debited will take effect in GL, it defaults as the first date of the special calendar period for which you are creating the recurring invoice, and you can change it if required.

3 Amount Display Only T his defaults from the amount assigned to the per iod. 4 Exchange Rate –

Type

Conditionally Required, LOV

For foreign currency invoices, choose User type

5 Rate Conditionally Required

For foreign currency invoices, enter the exchange rate.

3. After reviewing the displayed information click OK

1.2 Invoice validation

For more details please refer Prepayment 1.2.1 Canceling a Prepayment invoice

If the prepayment status is Unapproved or Unpaid, you can cancel the prepayment. If you choose to cancel a prepayment in Unapproved or Unpaid status, the status isupdated to Cancelled and Payables automatically reduces the prepayment amount to zero. You cannot apply a cancelled prepayment to an invoice or expense repor t.

1.2.2 Paying a prepayment

You must fully pay a prepayment before you can apply the prepayment to an invoice. Once the prepayment has been paid you can re-query the Invoices form to see the updatedAmount Paid field and the updated Status field. When you pay the prepayment the status is updated to Available. The prepayment is now available to be applied to invoice(s).

1.

Click on the actions button to pay the prepayment 2. Check the pay in full box

3. Click on OK

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1. Choose the following path

Invoices ► Entry ► In voice Batches. 2.Click on Invoice button

As you enter an invoice for a supplier with outstanding prepayments, AP notifies you of the existence of any prepayments with the message: “Prepayments exist for thissupplier”. AP lets you know if the prepayment is available to apply for an invoice or if an advance is available to apply to an employee expense report.

1.

Apply the prepayment by entering or selecting one or more invoices that you want to apply the prepayment to.

2.

Complete the entry of the invoice to which the prepayment(s) will be applied, approve the invoice(s) and/or select the completed approved invoice(s).

3.

Click on Actions

1.

Check Apply/ Unapply Prepayments.

2.

Click on OK.

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The Apply/Unapply Prepayments form allows you to apply, approve, and printprepayments as well as unapply existing prepayments

On the form, check the prepayment line(s) to be applied and enter the amount you wish to apply. As you apply a prepayment, AP reduces the amount of theprepayment by the amount applied. AP creates prepayment rever sal lines on the prepayment as you apply it. Once you fully apply a prepayment, its amount is $0, and its Status is Fully Applied.

1.2.4 Un-applying a Prepayment

Un-apply prepayments on the Apply/Un-apply Prepayments form by checking the checkbox next to any Existing Prepayments that you wish to UN-apply and commit the transaction.

Page 6 of 6

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1.1 Introduction

Every invoice entered as above needs to be validated for account creation and for making payment. The validation validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exceptioninvoices

Validation is done in one of the following ways

•Online by using the validation button in the Inv oice action button

•Batch by submitting the Payables Approval program from the Submit Requests window.

.

1.2 Online Validation

•Navigate to Invoices Entry ► Invoice Batches ► In voices

In the Invoices window, find the invoice(s) for which you want to submit Approval. To select individual invoices, hold down the Ctrl key and mouse click on each line; note that the number shown on the Actions button represents the number of lines chosen.

•Click on Action button

•Select approve

If you are approving a credit or debit memo, select Approve Related Invoices to submit online Approval for invoices associated with the credit or debit memo.

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AP displays messages about the number of holds applied and released during this cycle of Approval.

1.3 Submitting payable approval program

The validation under this method can be done for batch of invoices. You can identify all invoices that Payables has not yet reviewed with Approval by submitting the Invoice Register for Unapproved Invoices Only. You can check the Approval status of an invoice online in the Invoices window, or the Invoices Batches window

Navigate to Request ►other ►Run. Choose program Payable approval and submit

2 Holds

Holds are restriction placed on invoices so that these invoices can not be accounted and prevented from payment Holds are of two types

•Manual holds •System holds

A) Manual Holds There are three types of holds you can use to prevent payment of an invoice. The hold can not be applied if the invoices are already selected for payment .These holds can be released manually. The following are the type of the manual holds

Invoice Hold. You can manually apply one or more Invoice Hold Names ("holds") to an invoice using the Invoice Holds window of the Invoice Workbench.

Scheduled Payment Hold. You can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench.

Supplier Hold. In the Supplier Sites window, you can enable the Hold All Payments, Hold Unvalidated Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an Invoice Amount Limit for a supplier site. B) Manual Holds.

These holds are created by system during invoice validation when ever an exception is encountered by the system. These can be released only when the exception is corrected.You must fix the problem that caused Invoice Validation to place the hold on the invoice then resubmit Invoice Validation to release the holds. You cannot release the following holds: The examples of some of the holds are as below.

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Dist Variance. Invoice amount does not equal the sum of the invoice d istribution amounts. No Rate. Foreign curr ency invoice does not have an ex change rate assigned to it.

Can't Funds Check. Budget does not exist for the invoice accounting period, or the invoice distribution account does not equal the purchase order distribution account. This hold is used by Payables only if you use encumbrance accounting and the absolute or advisory method of budgetary control.

•Final Matching. Invoice has one or more distributions final matched to a purchase order.

•Can't Try PO Close. Invoice is final matched to purchase order, but Invoice Validation placed one or more holds on

invoice during validation.

• Dist Acct Invalid. Invoice distribution has an invalid account. An invalid account prevents you from creating

accounting entries for an invoice or payment.

•ERV Acct Invalid. Invoice Validation created an invalid Exchange Rate Variance account for an invoice distribution.

Payables only apply this hold if you enable Automatic Offsets.

• No AWT Period. Invoice Validation did not find the period in the withholding tax special calendar. Create the

period in the special calendar and resubmit Invoice Validation.

3 Payable accounting process

The accounting process enables to view the new accounting entries in the payables . This c an be created in two ways

•By choosing the create accounting process button in invoice and payment window

•By running a program

Perform the following steps to run the program

1.

Navigate to Other ► Request ► Run

2.

Choose the program Payable accounting process

3.

Provide the following parameters and submit

From date to date Provide the accounting event dates for which you want to transfer accounting entries These dates are not required to run the accounting process. If you do not specify dates, then the program will account for all of your unaccounted transactions.

Document class Invoices Includes the following accounting events:

•invoice entry •invoice adjustment •invoice cancellation •prepayment application •prepayment unapplication

Payments. Includes the following accounting ev ents:

•payment entry

•(future dated) payment maturity •payment adjustment

•payment cancellation •payment clearing •payment unclearing

All. Create accounting entries for all eligible unaccounted invoice and payment events Submit transfer to GL •Yes

•No

Submit journal import •Yes •No

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Summarize report •Yes •No

Run accounting repor t •Yes. •No.

4 Payment

4.1 Overview

Comments (3)

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Set as favorite Bookmark Email This Hits: 9100 report abuse vote down vote up AR step by step

w ritten by Amy , March 01, 2010

Hi:

I found this while I was shuffing for som e thing like this in AR. It looks great! I hope I can learn AP from you and don't have to go to a nother websi te. Do you have "Oracle Receivalbes - Step b y Step functional in 11i" and Oracle GL" - Step by Step functional in 11i"? If you don't can you provide those for us?

Great Job!!! Votes: +0 report abuse vote down vote up hii

w ritten by pushpal , August 21, 2010

thanks for the article...

Votes: +0

report abuse vote down

vote up A Big Thank YOu !!!

w ritten by Somenaath , September 15, 2010

A Big Thank YOu to both Anil and R enu for their great effort!!! No word is big enoug h to convey the good w ork that you guys are doing.

A small reques t, if possibl e can you also sh are the content in PDF format for I am not able to view the images from m y computer because of security issues .. This wi ll be of huge help if you can oblidge!!! Thanks once again!

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Oracle Payables - Step by Step Functional in 11i - PART 1

Oracle Payables - Step by Step functional in 11i - PART 1

Oracle Payables - Step by Step functional in 11i - PART 1

Table of Contents

Table of Contents

RELATED ITEMS

RELATED ITEMS

APPS TO FUSION

APPS TO FUSION

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11 Accounts Payable

Accounts Payable

1.1

1.1 Overview

Overview

1.2

High Level Process flow diagram

Matching

2 Supplier Creation and maintenance

2.1 Creation of Supplier

1.1 Merging of supplier

2 Invoice Entry

2.1

Overview

1.1 Entering Standard Invoice

1.

1.

1.

2.

1.

2.

3.

1.2

Entering PO default Invoices

1.

1.

2.

1.

1.

1.

1.

1.1

Entering Debit and Credit Memo

1.

1.

1.

2.

3.

1.

2.

3.

1.

2.

3.

1.

1.

1.

1.

1.

1.

1.

1.1 Entering prepayment invoices

1.

1.

1.

1 Creation of Recurring Invoice

1.1 Overview

1.2 Setup Special Calendar

1.

1.

1.

1.3

Define recurring invoice template

1.

1.1 Generate recurring Invoice

1.

1.2