NCOAUG 08 SIDER

8/2/2019 NCOAUG 08 SIDER

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Mystery Solved: Pay on Receipt

Melissa Sider

DARC Corporation



About You

• Current Pay on Receipt users?

• Planning to implement POR?

• Just curious about it?



Objectives

• Introduce Pay on Receipt

• Identify Set Up Requirements

• Discuss Benefits and Features



What is Pay on Receipt?

• Oracle Purchasing Function

• Integrates to Payables

•Enables Automatic Creation of Invoices

• Based on Receiving Transactions

• Use Receipt and PO Data

• Matching Rules ensure proper payment



A.K.A. Pay on Receipt

• This feature is alternately known in Oracle UserGuides as:

– Evaluated Receipt Settlement (ERS)

– Payment on Receipt (POR)

– Self-Billing Invoices (SBI)



How does it work?

• Receipt transactions trigger invoice creation

– Receipt

– Delivery

– Advance Shipment Notice

– Advance Shipment and Billing Notice



How does it work?

• Depending on your business needs, you can use Payon Receipt to automatically create invoices for:

– All your vendors; or

– Select vendors; or

– Select Purchase Orders



How does it work?

• Invoices are generated by running the Pay on ReceiptAutoInvoice and Payables Open Interface Importprocesses.

• Invoices move normally through Approval andPayment processes.

• Process Returns with automatic Debit Memos that arematched to the original Purchase Order.



How does it work?

• Invoices are consolidated at one of the followinglevels:

– Packing Slip – Triggers one invoice per packing slip

– Receipt – Triggers one invoice per receipt

– Supplier Pay Site – Triggers one invoice per supplierpay site



How Invoices are Built

• Invoice Amount = Quantity Received X PurchaseOrder Item Unit Price

• Payment Terms – Default from the Purchase Order

Payment Terms or from Supplier Site Payment Terms

• Tax – Based on the tax code in PO Shipment or theDefault Tax Hierarchy in Payables.



How Invoices are Built

The invoice number is created in the followingformat ’ERS’– <X> – <Seq#> where:

– ERS is the default prefix for Pay On Receipt invoices

or any prefix specified in the profile optionPO: ERS

Invoice Number

– X depends on the summary level:

• if summary level = Pay Site then X = Invoice Date

• if summary level = Packing Slip then X = Packing Slip Number

• if summary level = Receipt then X = Receipt Number

– Seq# is a unique system generated number.



Pay on Receipt Benefits

• Pay on Receipt offers the following benefits:

– Reduce or eliminate paperwork associated with invoicepayment processes

– Reduce the risk of manual data entry errors

– Avoid duplicate entry of invoices

– Ensure that invoices are entered into the system in a timelymanner



Setting Up Pay on Receipt

• PO: ERS Aging Period

• PO: ERS Invoice Number Prefix



The Payon Receipt

Process Supplier

$ $ $

Purchasing

ReceivingQuality AssuranceInventory

Supply BaseManager

Sets Supplier Optionsfor Pay on Receipt

Creates Purchase Orderusing POR Supplier

Ships Goods

Receives GoodsInspects Goods

Goods Deliveredto Inventory

Goods Returnedto Supplier

$

$

Accounts Payable

Invoice Created viaAutoInvoice Process

RTS

Debit Memo Created

Pay to $

Payment to Supplier



Set Up Supplier SBI



Set Up Supplier Currency



Create Purchase Orders



Run POR AutoInvoice



Using Payables Batching

• Pay on Receipt supports AP Batching

• Invoice Count and Total are automatically calculated



Handling Errors

• Two reports assist in identifying and solving errors:

– Purchasing Interface Errors Report

– Payables Open Interface Report



Tax

• Set up Supplier Site with Automatic Tax Calculationat Line or Tax level

• Tax values inherited from Tax Codes (PO Shipment)

or Default Tax Hierarchy

• Tax is calculated at Invoice Approval or manually inthe Distributions window



Different Purchasing and Pay Sites

• Set up both sites for Pay on Receipt

• Indicate Pay Site as Alternate Site in the PurchasingSite Self-Billing Region



Return to Suppliers

• Select Create Debit Memo from RTS Transactioncheckbox in the Supplier Sites window.

• Ensure the Create Debit Memo option is selected in

the Returns window.



Invoice Inquiry

• Use the ERS Invoice Number Prefix as a startingpoint for searches



Conclusion

• Easy to set up and use

• Reduces paper consumption

•Reduces manual entry of invoices

• Test completely in safe environment

• Use aliases to search for information in PO and APUser Guides



Q & A

[email protected]

NCOAUG 08 SIDER

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