Oracle Accounts Payable

EAS – Oracle Apps

Oracle Applications 11iOracle Applications 11i

Accounts Payable

A Presentation by EAS – Oracle Applications

Aug 2003

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Accounts PayableAccounts Payable

AgendaIntroductionOverviewWorkflowPayables CyclePO MatchingMasters

Accounting Methods & Entries

Set-UpInnovative UsesData ModelMaintenance &

Reports

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IntroductionIntroduction Last stage of the SCM where suppliers are paid for merchandise and services. To help manage the procurement cycle processing high transaction volumes and

controlling the cash flow. Better manage supplier relationships and price comparisons. Saves money by enforcing various payment policies:

Paying suppliers on time after availing the full credit period. Availing discounts. Preventing duplicate invoice. Avoiding Bank ODs.

Integrated with other modules – PO ( to pay for only what was ordered and received at the quoted price). FA ( to account for Fixed assets purchased). HR ( to ensure that employee expenses are paid efficiently). CM (to enable reconciliation of payments against a bank statement).

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OverviewOverview Moment a company agrees to purchase goods or services from a supplier, an

encumbrance is created.

On availing the goods / services, the encumbrance is converted to a liability to pay the agreed price for the goods and the liability remains on the Balance sheet until paid off.

Payables Liability is measured in various ways: On Receipt of Invoice, Invoice Date, Date when Goods are Received etc.

Payment terms would have been agreed upon at the purchase stage and quoted by the supplier when the invoice for the goods / service is sent. These terms will differ supplier-wise or by PO. The invoice due date is for operational control and has no bearing on when the eventual liability is accounted.

When the invoice becomes due, it is to be paid off. The payment can be made by check, EFT, cash etc,. Once paid, the liability is knocked off.

Payables needs to be reconciled with GL by comparing the Payable TB with the liability account line in GL. This would explain the supplier liability figures appearing on the Balance Sheet.

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WorkflowWorkflowPayables is tightly integrated with other modules of Oracle suite like Purchasing,Cash Management, Assets, Projects and GL.

POs raised in Purchasing give raise to invoices in Payables through PO matching.

Asset lines in invoices gives raise to asset addition in Assets.

Expenditures can be transferred to Projects for project accounting, tracking to billing.

Once invoices are paid off, it will be reflected as bank statement entries in Cash management which enables to handle queries from suppliers effectively.

All accounting transactions entered in Payables, are posted to GL.

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Integration With Other Oracle SuiteIntegration With Other Oracle Suite

PurchasingPurchasing

PayablesPayables

AssetsAssets

General LedgerGeneral Ledger

Cash ManagementCash ManagementProjectsProjects

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Payables CyclePayables CycleAll payments pass through the following four-step Payables cycle:

I. Enter Invoices (This process may or may not include PO matching)II. Approve Invoices for payment.III. Select and Pay approved invoices.IV. Reconcile the payments with the bank statement.

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Payables Cycle (Contd…)Payables Cycle (Contd…)

Enter InvoicesEnter InvoicesEnter SupplierEnter Supplier

General LedgerGeneral Ledger

Approve InvoicesApprove InvoicesPOsPOs

Pay InvoicesPay Invoices

Reconcile PaymentsReconcile Payments

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Enter InvoicesEnter InvoicesInvoice is at the heart of AP processing, allowing to process all types of invoices while maintaining accuracyand control on the payment.The various ways in which an invoice can be entered are:Manual:Invoice Workbench: Invoices are directly entered in the Payables system. Usually complex invoices or invoices whichrequire online validation or invoices which have to be paid immediately, are entered through this modeInvoice Gateway: Used for quick, high volume invoices that do not require extensive validation and defaults. After entry,these invoices are imported into the Payables system. Validation and defaulting occur during import.Automatic Invoice Creation: These are basically recurring invoices which are required to be generated and paid on afrequent basis.Imported Invoices:One can import invoices or invoice information to create invoices in Payables. • Oracle Internet Expenses expense reports: Expense reports your employees enter using a Web browser. • Credit Card invoices: Invoices for employee credit card expenses. The credit card company sends you these invoicesas a flat file. • Oracle Projects expense reports. Project–related expense reports entered in Oracle Projects. • EDI invoices. Electronic invoices transferred from Oracle e–Commerce Gateway. • Invoices from external systems. Invoices, such as invoices from legacy systems, loaded using SQL*Loader. • Oracle Property Manager invoices: Lease invoices transferred from Oracle Property Manager. • Oracle Assets lease payments: Lease payments transferred from Oracle Assets.

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Enter Invoices – HeaderEnter Invoices – Header

Click to initiate various Invoice Actions.

To Put on / Release a hold on the invoice. To review payments

against an invoice

Click to Match Against PO, Invoice (if Cr/Dr Memo) or Receipt

To make any adjustment to an invoice's scheduled payments if the invoice is not fully paid by adding as many new payments as required, and by altering unpaid scheduled payments. Also to defer payment by adjusting due dates on schedules or by applying holds to selected scheduled payments.

Click to get an Invoice Overview / summary

To Enter Invoice Distribution Lines

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Enter Invoices – Header (Contd…)Enter Invoices – Header (Contd…)

Select/Enter the Invoice Type, Supplier Name, Supplier Site, Invoice Date-Num-Curr-Amount

Select / Enter the GL Date, Payment Currency, Distribution Set, Header Description and Payment Method.

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Invoice TypesInvoice TypesThere are various types of invoices which are:

Standard A regular supplier invoice.

Credit Memo An invoice received from a supplier representing a credit for goods or services purchased.

Debit memo An invoice to notify a supplier of a credit recorded for goods or services purchased.

Expense Report

For recording business-related expenses for employees.

PO Default An invoice for which the matching PO no is known.

Quick Match To automatically match to a specified PO and all the shipment lines on the PO.

Mixed A standard or credit/debit memo invoice for matching a PO, another invoice or both.

Prepayment To make advance payments for expenses/capital items where the goods/services may not have been actually received.

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Enter Invoices - DistributionEnter Invoices - Distribution

Enter the Invoice Line Amount, Tax Code, GL Date, Account Details, DFF and Line Description.

To automatically create tax, freight, or miscellaneous distributions

To reverse the existing distribution and enter revised distribution.

Based on the Tax Code, AP calculates the Sales Tax / VAT / WT and increases the invoice value accordingly or decreases the Payable Value.

One can enter distributions in the following ways:

Enter manually in the distributions window.

Use a Distribution Set.

Match an invoice to a purchase order or receipt.

Create through Allocation.

Create Tax distributions through Automatic Tax Calculation.

Create Freight Distributions by using the Create Freight Distribution check box in the Invoices window.

One can enter distributions in the following ways:

Enter manually in the distributions window.

Use a Distribution Set.

Match an invoice to a purchase order or receipt.

Create through Allocation.

Create Tax distributions through Automatic Tax Calculation.

Create Freight Distributions by using the Create Freight Distribution check box in the Invoices window.

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Enter Invoices – Distribution (Contd...)Enter Invoices – Distribution (Contd...)

Select the Type: Miscellaneous, Tax or Freight; Select the Tax Code (if type=Tax) and Enter a Description for Allocation.

Select whether to Prorate based on the Distribution Lines.

Enter the Amount of Tax/ Freight/ Miscellaneous to be allocated;

Sum of the amounts you are allocating (values in the Allocated Amount fields).

Select the Distribution Lines against which the Allocation has to happen.

Amount allocated to the distribution. If Prorate is checked then leave it blank; else enter the amount to be allocated.

Click to automatically Select/Unselect the Distribution Lines.

Click to initiate the Allocation.

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Enter Invoices - ActionsEnter Invoices - ActionsValidate: to check the matching, tax, period status, exchange rate, and distribution information and automatically apply holds to exception invoices.

Cancel Invoices: to cancel unpaid / unapproved invoice or an approved invoice that does not have any effective payments or accounting holds. Invoice amount and all scheduled payments are set to zero; all invoice distributions and any matches to purchase order shipments and distributions are reversed; If the invoice has WT, Payables automatically creates an invoice for the tax authority supplier to offset the amount of the withholding tax invoice.

Apply / Un apply Prepayment: the Apply/Un-apply Prepayments window opens displaying all prepayments that have been applied to the invoice, and all available Prepayment distributions that can be applied.

Pay in Full: to Pay the Invoice in full directly from this window.

Create Accounting: to create and then view the accounting Lines in AP.

Force Approval: to Force Approval if to be approved without using the Workflow initiation.

Initiate Approval: to initiate approval via Workflow.

Release Holds: to Release a Hold giving the Release Name and Reason

Print Notice: to Print an invoice notice to be given to the supplier for his confirmation.

Validate: to check the matching, tax, period status, exchange rate, and distribution information and automatically apply holds to exception invoices.

Cancel Invoices: to cancel unpaid / unapproved invoice or an approved invoice that does not have any effective payments or accounting holds. Invoice amount and all scheduled payments are set to zero; all invoice distributions and any matches to purchase order shipments and distributions are reversed; If the invoice has WT, Payables automatically creates an invoice for the tax authority supplier to offset the amount of the withholding tax invoice.

Apply / Un apply Prepayment: the Apply/Un-apply Prepayments window opens displaying all prepayments that have been applied to the invoice, and all available Prepayment distributions that can be applied.

Pay in Full: to Pay the Invoice in full directly from this window.

Create Accounting: to create and then view the accounting Lines in AP.

Force Approval: to Force Approval if to be approved without using the Workflow initiation.

Initiate Approval: to initiate approval via Workflow.

Release Holds: to Release a Hold giving the Release Name and Reason

Print Notice: to Print an invoice notice to be given to the supplier for his confirmation.

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Enter Invoices - HoldsEnter Invoices - Holds

Enter the Hold Name and Save the Invoice to put it on Hold

Reflects the PO and Receipt Details against the Invoice; Also reflects the status of the hold/release.

Click and then Enter the Release Name. Click on Ok to Release the Hold on the Invoice.

Click to Hold or modify a Scheduled Payment.

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Enter Invoices – Schedule PaymentsEnter Invoices – Schedule Payments

Invoice amount minus the gross amounts of the remaining payments

Payables calculates the date the invoice is due based on the invoice Terms Date and invoice Payment Terms.

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Enter Invoices – Batch ModeEnter Invoices – Batch Mode

Enter an Invoice Batch Name, Batch Date, Control Checks.

Only one Invoice workbench option can be used at a time. Either Batch option or Invoices Option, but not both. For this the System Profile option: AP: Use Invoice Batch Controls must be set accordingly.

Batches can be appended with additional Invoices at any time.

Batches reduce the no of Invoice Actions to be performed. But these can be done at the invoice level also.

Only one Invoice workbench option can be used at a time. Either Batch option or Invoices Option, but not both. For this the System Profile option: AP: Use Invoice Batch Controls must be set accordingly.

Batches can be appended with additional Invoices at any time.

Batches reduce the no of Invoice Actions to be performed. But these can be done at the invoice level also.

Enter the Invoice Currency, Invoice Type, Pay Group and GL Date. (all these can be defaulted at the invoice level.)

Click to enter Invoices in the Batch.

Click to validate all the Invoices under the Batch.

To create and view accounting lines for all the invoices under this batch.

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Invoices – GatewayInvoices – GatewayPayables uses information entered in the Invoice Gateway window to create invoices in Payables. Invoice header and line information is entered. This information is stored in the Payables Open Interface tables.

Submit a customized workflow program to automate the processes for managing invoices.

Then submit the Payables Open Interface Import Program to validate the values you entered, provide any default values, and then create invoices with distributions and scheduled payments in the regular Payables tables.

Query the rejected invoice records in the Invoice Gateway window, correct them, and then resubmit them for import.

Payables creates regular invoices that can be viewed, modified, and validated in the Invoice Workbench.

Payables uses information entered in the Invoice Gateway window to create invoices in Payables. Invoice header and line information is entered. This information is stored in the Payables Open Interface tables.

Submit a customized workflow program to automate the processes for managing invoices.

Then submit the Payables Open Interface Import Program to validate the values you entered, provide any default values, and then create invoices with distributions and scheduled payments in the regular Payables tables.

Query the rejected invoice records in the Invoice Gateway window, correct them, and then resubmit them for import.

Payables creates regular invoices that can be viewed, modified, and validated in the Invoice Workbench.

Enter a unique value for the Gateway Batch. For the Source, enter Invoice Gateway, or a source defined in the AP Lookups. Find or Enter accordingly.

Enter the invoice header information. The following header fields are required: Supplier or Supplier Num, Site, Invoice Amount. The other Fields to be entered are: Invoice Date, Currency, GL date, Amount, Discount, Header Description, Pay group, Payment Method, Date Inv received, Doc Category, Terms, Pay alone, Ex Rate type , Ex Rate, Payment Date, WT group, Prepayment Details and Work flow details.

Enter at least one invoice line. The following fields are required for each invoice line: Line Type, Amount. The other fields to be entered are: GL Account, GL Date, Line Description, Checks on Asset Track-Price Correction-Include Tax etc.

Click to launch the process of creation of invoices. The Create Invoices window opens. Enter the Gateway Source, Gateway Batch Name, a Hold Name (if reqd.) , GL Date to any invoice record in the Invoice Gateway batch that does not already have a GL Date at the line or header level, to purge invoice records from the interface tables, to summarize the Audit section of the Payables Open Interface Import Report,

Click to view rejections on Invoice Lines.

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Expense ReportExpense Report Use the Expense Reports window in Payables to enter Payables expense reports for the employees and to review/modify any of the following

expense reports: expense reports entered in the Payables Expense Reports window or submitted by the enterprise's employees using Oracle Internet Expenses or entered in Oracle Projects and then transferred from Projects to Payables.

If advance has been paid to an employee use this window to apply advances to expense reports to reduce the amount to be paid. One can also apply hold to an expense report to prevent payment. This can be from any source.

Before one can pay expense reports, submit the Expense Report Import program which automatically creates invoices from the expense reports. One can then use Payables to validate, pay, and account for the invoices.

The following are the steps to be follow to manage expense reports:

1. Enter employees and their locations, expense addresses, Supervisors, and default expense accounts.

2. Enter Human Resources Financials options and Expense Report Payables options.

3. Define the employee as a supplier.

4. For expense reports entered in Payables and Oracle Internet Expenses, define expense report templates that model the

different expense report formats your employees use.

5. Enter expense reports in any of the following products: Payables, Oracle Internet Expenses and Oracle Projects.

6. In the Payables Expense Reports window optionally apply holds and/or apply advances to the expense reports.

Optionally modify or review Payables or Projects expense reports. Review, audit, and approve expense reports entered in

Oracle Internet Expenses.

7. Submit Expense Report Import to create invoices and invoice distributions for the expense reports. Review the Expense

Report Import. If there are exceptions, correct any expense reports that caused exceptions and resubmit Expense Report

Import.

8. Submit the Employee Update Program to update employee-type supplier records with up-to-date name and address

information from the employee record.

9. Pay the invoices as any other invoices are paid off.

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Expense Report (Contd…)Expense Report (Contd…)Enter the Name and No of the Employee; GL account of the Employee. Invoice Number, Currency, Date, Amount, Description, WT group and Hold if any. Lines Total is sum of all Individual line amounts & = to Invoice Amount.

Enter the Functional Currency, Ex Rate Type, Date and Ex Rate.

Apply Advances. Enable this check box to apply employee advances (prepayments) to an expense report. Payables applies the advances you specify when Expense Report Imports submitted for an expense report. Enter the Invoice number of a specific prepayment Distribution number the maximum currency amount of the prepayments GL Date. Accounting date for the application of the advance.

Expense report template for entering the expense report Which determines the expense report items that can be selected.

Name of an expense item, amount of an expense item, default GL Account displayed by AP for the expense item, Tax Code, Includes Tax, WT Group. This GL account is overrides the Employees GL on generation.

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Recurring InvoicesRecurring InvoicesOne can enter invoices for periodic expenses for which invoices may not be received, such as rent.

To enter recurring invoices, first define a recurring invoice template, then create invoices based on the

template. For creating a template a Special Recurring Calendar and a Distribution Set (of Type Full) is

required.

With a recurring invoice template, one can do the following:

Specify the intervals in which invoices based on the recurring invoice template will be created.

Create up to two special one-time invoice amounts of a non-standard amount, such as a deposit or balloon payment.

Define recurring invoices to increase or decrease by a fixed percentage from period to period.

When Payables creates recurring invoices, the invoice date is the first date of the period in which the

recurring invoice is created. The Terms Date depends on the Terms Date Basis setting at the supplier

site, but is calculated differently than for regular invoices:

If the Terms Date Basis is set to System Date, then the Terms Date is the same date that the recurring invoice was created.

If the Terms Date Basis is set to anything else, then the Terms Date is the invoice date, which is the first day of the period in which the recurring invoice is created.

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Recurring Invoices – Special CalendarRecurring Invoices – Special Calendar

Enter a Calendar Name, Description and the No of Periods per Year.

Select the Type as Recurring Invoice.

Enter a Period Name, Year, Seq (Calendar Seq), From Date & To Date. The System Name is automatically assigned (Prefix Month & Suffix YY from Year). Enter as many lines in a Year as the no of periods per year defined above.

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Recurring Invoices – Distribution SetsRecurring Invoices – Distribution SetsEnter a Set Name and Description.

Enter the Line No, Allocation in %, Check if project related and the GL account. Enter the Income Tax Type and Tax Code (if applicable) Enter the Project

Description if Project Related.

The Type is assigned on Saving. It has to be Full for Recurring Invoices, which indicates that the Distribution is fully allocated in % amounts

Use a Distribution Set to automatically enter distributions for an invoice when not matching it to a purchase order.

You can assign a default Distribution Set to a supplier site or to an invoice .

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts

Use a Distribution Set to automatically enter distributions for an invoice when not matching it to a purchase order.

You can assign a default Distribution Set to a supplier site or to an invoice .

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton Distribution Sets to create distributions with no set distribution amounts

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Recurring Invoices – CreateRecurring Invoices – CreateEnter the Supplier Details, the Pay Group and Payment Method.

Enter the Recurring Calendar, the No of Periods for which Recurring Invoices are to be generated in a year (can be <= to the Calendar period). Select the First Period for which Recurring Invoice is to be generated. The next and Remaining are automatically updated as and when Invoices are generated.

Enter the Invoice Number. The system automatically assigns the Period Name to the Number given.

Enter the Invoice Currency, GL Date, Terms, Hold Details, Pay Alone.

Enter the Header Description, Expiry Date, WT group and Whether Approval workflow required.

Select Distribution Origin as Set and the Set Name; else enter as PO and the PO number.

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Recurring Invoices – Create (Contd…)Recurring Invoices – Create (Contd…)

If total sum of the recurring invoices to be created is known, enter the Control Amount and Payables will calculate and enter the First Amount.

If the periodic recurring invoice amount is known, enter the amount of first invoice in the First Amount field. Payables will calculate and enter the Control Amount field.

If invoice amounts are to increase or decrease by a set percentage from period to period, enter the percentage in the Change field, and Payables will recalculate the Control Amount.

If a special invoice amount is to be created for recording a deposit or balloon payment, enter one or two Special Invoice Amounts and the Periods. The system will recalculate the Control Amount.

These statuses are updated as and when invoices are generated.

Enter the no of invoices to be generated.

Click to launch a program for creating Recurring Invoices.

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PaymentPaymentOnce the invoice has been entered and approved, it must be paid in a timely manner to takeadvantage of available discounts. One can initiate payment runs on a regular basis at a defined frequency. The pay run willselect all invoices that are to paid, according to the criteria and generate the appropriatepayment documents. Either a single payment can be made for the unpaid invoices of asupplier or each of them can be paid separately.

Payment Methods: Check: A manual check, a Quick payment, or a check in a payment batch.Electronic: An electronic funds transfer file is generated and delivered to bank to create payments, or an e-Commerce Gateway payment.Wire: Used to manually record a wire transfer of funds between organizations’ bank and supplier's bank.Clearing: Used for recording invoice payments to internal suppliers within organization.

Payment Types:Manual: Used to record a payment made outside of Payables. For example, a typed check or wire

transfer.Quick: Quick payment, which is a single computer-generated check.Refund: A payment received from a supplier or employee to return funds for an invoice payment made. Refund payments pay a debit balance, and are always entered as negative amount payments.Batch: A payment created by payment batch processing.

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Payment – Manual/Quick/RefundPayment – Manual/Quick/Refund

Select the Payment Type, Bank Account, Document (name), Payment Date, Payment Amount, Payment Currency. Ex Rate Type, Ex Rate, Functional Currency & Amount, Whether Future dated payment, Maturity details, Document Num and Voucher No are assigned by the system.

Select the Payment Method and Supplier.

Status represents the following Payment Statuses: Cleared, Cleared But Unaccounted, Issued, Negotiable, Overflow, Reconciled, Set Up, Spoiled, Stop Initiated, Unconfirmed Set Up, Voided, Reconciled But Unaccounted.

Click to Enter / Adjust Invoices to be paid for the selected Supplier.

Click to perform various Payment Actions.

To see the Payment Summary

Click to view the Invoice Details.

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Payment – Manual/Quick/Refund (Contd…)Payment – Manual/Quick/Refund (Contd…)

Enter the Invoice or open the Drop Box to Select the Invoice

Select the Invoices from this drop box one by one.

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Payment – Manual/Quick/Refund (Contd…)Payment – Manual/Quick/Refund (Contd…)

Format: Enter the Format Program and Initiate Format for getting the Checks Printed in the prescribed format.

Print Now: Select to print the check.

Create Accounting: To create and view the accounting lines in AP.

Print Remittance Advise: Select the Program To print the advise for giving it to Supplier.

Reissue: To reissue a check which is not voided.

Initiate/Release Stop: to initiate Stop / Release a Stop on a check and thus holding its encashment.

Void: To Void a check. Enter the Void Date, GL Date and Select the Invoice Actions.

Format: Enter the Format Program and Initiate Format for getting the Checks Printed in the prescribed format.

Print Now: Select to print the check.



Reissue: To reissue a check which is not voided.

Initiate/Release Stop: to initiate Stop / Release a Stop on a check and thus holding its encashment.

Void: To Void a check. Enter the Void Date, GL Date and Select the Invoice Actions.

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Payment – BatchPayment – BatchEach Payment Batch run involves the following steps:Select & Build: All outstanding Invoices which fall due on before the specified “pay by” date and which meet the othercriteria like pay group, currency, payment method etc. are selected. This process selects the invoices and invoiceinstallments for payment, calculates how many documents are needed and allocates document nos to each selected invoiceModify: At any time before formatting, one can optionally prevent payment to a supplier or of a particular invoice or changethe invoice amount or add an invoice that AP did not originally select. The Standard build program is resubmitted toreallocate the document nos.Print Preliminary Register: Print this register to identify the first and last document (instrument) numbers assigned.

Format & Print: The selected invoices are formatted either as checks, in which case AP produces a print file containingremittance advise information and the formatted check information, or as an electronic payment file, in which case a data filecontaining the payment information is formatted according to a particular bank or EDI format. Checks are printed on pre-printed stationary or on blank check stock with Image printing or a bank file is transmitted to the bank over a modem link.

Confirm: This is the last step and a very important one because it generates document and invoice payment recordsupdating the payment history of invoices paid in a payment batch. A payment needs to be confirmed based on the followingstatus:Printed: The document has been properly printed/pay file generated. The invoice is marked as paid and the document status is Negotiable.Spoiled: The document has been spoiled while printing/pay file generation. The invoice remains unpaid and the document status is spoiled. Set- up: The document has been specifically identified as a non-negotiable only for aligning and test printing purposes. The Invoice remains unpaid and the document status is Set-up.Skipped: The document got skipped while printing or pay file generation. This document can be reissued for future payments.Confirmation step releases a concurrent process and records each status as mentioned above. A batch can be cancelled atany stage upto CONFIRMED. Each step launches a concurrent manager ‘Payment Process Manager’ and thecorresponding requests.Deliver: Checks are posted to the Supplier or a bank file is generated.

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Payment – Batch (Contd…)Payment – Batch (Contd…)Enter a Unique Batch Name, Payment Date, Pay Group, Bank Account, Document Name and Document Sort order. The Status reflects the latest Step performed on the Batch

Click to initiate various Payment Batch Actions

Requery Batch to Update the current Status.

To copy a Payment Batch details from one Batch to another to copy the Batch Parameters

To select/unselect the Suppliers or Invoices under a Supplier which have been selected by the Batch, after the Built Action. Save to re-build the batch.

To view the individual payments in a Batch after the Status is Confirmed.

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Payment – Batch (Contd…)Payment – Batch (Contd…)

Enter the Payment Method, Pay through date. Check (if applicable) whether it is a Future Dated Payment, to allow zero invoices and to include only Due invoices.. The Next Step reflects the next stage of the Payment Batch to be performed.

Enter the account currency, Payment Currency, Ex Rate Type, Ex Rate. The other fields are display fields which show: First & Last Document No, Batch Payment Total, No of Invoices and No of instruments.

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Select Invoices: To select all the unpaid Invoices based on the parameters defined in the Batch. Launches a concurrent program Auto Select Invoices.

Build Payments: To build all the selected invoices. Launches a concurrent program Build Payments.

Modify Payment Batch: To prevent payment to a supplier or of a particular invoice or add an invoice that AP did notoriginally select.Print Preliminary Register: to identify the first and last document numbers assigned.Format Payments: Enter the Format Program and Initiate Format for getting the Checks Printed in the prescribed format.

Print Now: Select the printer to print the check.

Confirm Payment Batch: to be confirmed based on the following status:Printed, Spoiled, Set- up, Skipped


Create Positive Pay File: to generate a pay file for transmitting to a bank (EFT)

Print Final Register: To print the final register used for records and audit purposes.


Cancel Payment Batch: to cancel an unconfirmed batch and start a fresh Batch.

Select Invoices: To select all the unpaid Invoices based on the parameters defined in the Batch. Launches a concurrent program Auto Select Invoices.

Build Payments: To build all the selected invoices. Launches a concurrent program Build Payments.

Modify Payment Batch: To prevent payment to a supplier or of a particular invoice or add an invoice that AP did notoriginally select.Print Preliminary Register: to identify the first and last document numbers assigned.Format Payments: Enter the Format Program and Initiate Format for getting the Checks Printed in the prescribed format.

Print Now: Select the printer to print the check.

Confirm Payment Batch: to be confirmed based on the following status:Printed, Spoiled, Set- up, Skipped


Create Positive Pay File: to generate a pay file for transmitting to a bank (EFT)

Print Final Register: To print the final register used for records and audit purposes.


Cancel Payment Batch: to cancel an unconfirmed batch and start a fresh Batch.

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Supplier wise Invoice wise details are shown here.

To select/unselect the Suppliers or Invoices under a Supplier which have been selected by the Batch, after the Built Action. Click on Build to rebuild the batch.

To select/unselect the Suppliers or Invoices under a Supplier which have been selected by the Batch, after the Built Action. Click on Build to rebuild the batch.

Select Yes/No to Pay or Not to Pay the Supplier itself.

If not to be paid, enter the reason.

Select Yes/No to Pay or Not to Pay an Invoice under a Supplier.

Enter an Amount if Partial Payment is to be done.

This reflects the Total Payment Amount of the Supplier

Click to view the invoice summary.

Click to Rebuild the Payment Batch.

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PO MatchingPO MatchingAP provides extensive PO matching features to ensure that only goods / services which are ordered,received and accepted are paid for. If a discrepancy appears, the invoice has to be put on hold and notpaid till the difference is clarified with the supplier.

At the time of invoice entry, one has to select whether to match to the PO shipment or specific POdistributions. Then, choose the shipment or distribution to be matched along with the quantity and price.

AP performs the following updations in the PO tables on matching: Updates Quantity_Billed and Amount_Billed in PO_Distributions. Updates Quantity_Billed in PO_Line_Locations. Creates one or more AP_Invoice_Distributions in addition to the existing distribution.

Matching can be two-, three- and four-way Matching to ensure that the payment is made for only goods /services that have been ordered, ordered and received or, ordered, received and accepted.

Purchase invoices must be matched to PO and optionally, receipts and inspections before they can beapproved for payment.

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Enter Invoices - MatchEnter Invoices - Match

Enter the relevant Parameters to find the PO/Receipts/Invoice. Check Price Correction to record a price correction without affecting the quantity.

Select the PO/Receipt/Invoice to be matched. Enter the Qty Invoiced or/and unit Price to arrive at the Match Amount. Rest all details default from the source document.

Click Match to initiate Match. The Invoice Distributions defaults the PO/Receipt/Invoice distribution lines.

To match in further detail with PO distributions: Enter a value for Quantity Invoiced, then choose the Distributions button. For each PO distribution you want to match to, select the PO distribution and enter the Quantity Invoiced.

Click to view the PO/Invoice/Receipt details.

Displays all the information on Shipment, PO and the Allocated Distribution.

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MastersMastersThere are a lot of Masters to be maintained in AP. These include the Supplier Master, Employee Master, AP AccountingCalendar Master and Tax Master.

Supplier Master:The Supplier Master is used to enter and maintain the Supplier Header and the Various Site level information. Theinformation captured in the master, defaults at the time of transaction entry, which can be overridden. The informationincludes address, bank information, payment terms etc. A site is basically an address from which the supplier conducts thebusiness. Sites could be Purchasing sites, RFQ only sites and Pay sites. Each Supplier is assigned a Vendor Number

whichis separately for Header and Site. Each Supplier is the database has an account. An account is a record of all transactionsthat affect that supplier. Supplier account balance = Invoices + Dr Memo + Cr Memo-Prepayments-Payments .This balance can be viewed in various supplier reports.

Employee Master:This is used to enter and maintain the Employee details. The information captured here defaults to the transaction but canbe overridden. Details like address, DOJ, DOB, Payroll No, GL account, etc are captured. This master is primarilymaintained from Oracle HRMS if it is being used.

Credit Card Master:

AP Accounting Calendar Master:

Tax Master:

EAS – Oracle Apps

Supplier MasterSupplier MasterEnter a Unique Suppler Name. Enter an alternate name if the Payee is different. Also enter the Taxpayer ID and Tax Regn No. Once saved, a record can’t be deleted, but can be inactivated by entering the Inactive On date. Supplier Number is generated based on the options in the setup.

Name of supplier’s parent organization if supplier is a franchise or subsidiary. The parent organization must also be defined as a supplier in the system.

The no supplier uses to identify the company or organization. This number appears on the PO.

Click to Enter the Supplier Site Information.

EAS – Oracle Apps

Supplier Master (Contd…)Supplier Master (Contd…)Enter a Supplier Type (Classification) for reports; Employee Name + No if the Supplier is an Employee;

whether this is a One Time Supplier to designate a supplier with whom repeat business is not expected;

Enter a Standard Industry Code (SIC);

The minority group if the supplier is a minority–owned business.;

also whether it is a Small Business and / or Women Owned for reporting Purposes.

Enter the Amount Limit per Invoice;

Invoice Match Option – PO or Receipts;

enforce Hold restrictions – All or Unmatched or Unvalidated;

Enter a reason for Payment Hold.

EAS – Oracle Apps

Supplier Master (Contd…)Supplier Master (Contd…)Payment Terms: Payment terms used to schedule payments for an invoice. The system uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter.

Pay Group: Used for Grouping Invoices in Payment Batches to facilitate quicker payment processing of a select category.

Payment Priority: From 1 to 99 to prioritize payment processing

Currency: The Invoice and Payment Currency. Both could be different.

Terms Date Basis: Date from which Payables calculates a scheduled payment for a supplier.•System (Date),Goods Received,Invoice (Date) &Invoice Received.

Pay Date Basis: The Pay Date Basis for a supplier determines the pay date for a supplier’s invoices.Due or Discount

Payment Method: The method used most frequently to pay this supplier’s invoices:Check,Electronic,Wire, •Clearing

Always Take Discount: to always take an available discount for a supplier, regardless of when the invoice is paid. Exclude Freight From Discount: to automatically subtract the freight amount from the invoice amount when calculating the invoice amount subject to discount.

Interest Invoices: to calculate interest for the supplier’s overdue invoices and create corresponding interest invoices when the overdue invoices are paid.

Pay Alone: to create a separate payment for each invoice.

Name of the Bank A/c and the Bank A/c No that this supplier uses.

Primary: Enable this check box to use this bank account as a default when the supplier is paid electronically.

Curr: Payables displays the currency defined for the bank account.

Effective Dates From/To. Enter dates if you want to limit the time during which a supplier site uses this bank account as the primary bank account for receiving electronic payments in the bank account currency.

EAS – Oracle Apps

Supplier Master (Contd…)Supplier Master (Contd…)Payment Method. How the electronic payment will be made.

Payment Format. Indicates type of information being transmitted with the funds if the Payment Method is ACH.

Remittance Method. Party responsible for sending the remittance advice to the payee.

Remittance Instruction. Text of specific wire or other electronic payment instructions for an intermediary or recipient financial institution (optional).

Transaction Handling. Standard EDI transaction code (ANSI ASC X12) designating the action to be taken by all parties. C Payment Accompanies Remittance Advice.D. Make Payment Only.I. Remittance Information Only.

Invoice Tax Code. Tax code or tax group that represents the tax charges generally received on invoices from a supplier.

Use Offset Taxes. to record taxes on invoices while offsetting the tax liability

Calculation Level. Select the level at which you want Payables to automatically calculate tax for this supplier or supplier site: Header, Line, Tax Code, None.

Allow Calculation Level Override. defaults to the corresponding fields in certain fields

Rounding Rule. to use to round the automatically–calculated tax amount.Up. Round up. Down. Round down. Nearest. Round to the nearest number, and if the difference between Up and Down is equal, round Up.

Distribution Amounts Include Tax. s to subtract the calculated tax from distributions when Payables automatically creates tax distributions.

EAS – Oracle Apps

Supplier Master (Contd…)Supplier Master (Contd…)

Allow Withholding Tax. Enable to allow WT for the supplier and supplier site. Withholding Tax Group. A default withholding tax group to assign to all invoices for the supplier site.

Federal. Reportable to the US IRS for 1099 reportable supplier payments.

Income Tax Type. Income tax type for a US 1099 reportable supplier.

Reporting Name. Tax reporting name for a supplier subject to US IRD income tax reporting requirements.

Reporting Site. This reporting supplier site’s address is printed on the 1099 form.

Verification Date. Date when tax verification was received from the supplier.

Name Control. The first four characters of the last name of the 1099 supplier.

Organization Type. Type of organization for this supplier. The US IRS requires this information if magnetic media is used to file 1099 tax information: Corporation, Government Agency, Individual,Partnership,Foreign Corporation,Foreign Government Agency,Foreign Individual,Foreign Partnership

EAS – Oracle Apps

Supplier Master (Contd…)Supplier Master (Contd…)Ship–To Location. Location where a supplier sends shipments for goods/services.

Bill–To Location. Location to which a supplier sends the invoice for goods or services.

Ship Via. Freight carrier used with a supplier.

FOB. Free–on–Board (FOB) code for a supplier.

Freight Terms. Freight terms are negotiated with a supplier to determine whether the co or the supplier pays for freight charges on goods you order from a supplier.

Create Debit Memo From RTS Transaction. to automatically create a Debit Memo in Payables when a Return To Supplier (RTS) is entered in Purchasing.

Purchase Order Hold. One can create a PO for the supplier, but cannot approve the same

Purchasing Hold Reason. Reason for preventing approval of PO for a supplier.

Enforce Ship–to Location. The value entered in this field determines whether the receiving location must be the same as the ship–to location: None,Reject,Warning.

Receipt Routing. Default receipt routing assigned to goods: Direct Delivery, Inspection Required, or Standard Receipt.

Match Approval Level. To perform online matching of invoices and original PO or PO receipts. 2–Way, 3–Way,4–Way.

Quantity Received Tolerance. Max acceptable over–receipt tolerance percentage.

Quantity Received Exception. How Purchasing handles receipts that exceed the Quantity Received Tolerance:None,Reject, Warning.

Days Early/Late Receipt Allowed. Max acceptable no of days early/late for receipts.

Receipt Date Exception. How Purchasing handles receipts that are earlier or later than the allowed number of days selected None, Reject, Warning.

EAS – Oracle Apps

Supplier Master - SiteSupplier Master - Site

Enter the Unique Site Name; Address details; Language spoken at the site. This value controls the language in which Payables prints certain reports.

Pay. Supplier site to which payment is sent invoice.

RFQ Only. Disallow entering PO for a supplier site. An RFQ Only site is a site from which quotations are received.

Purchasing. Supplier site from which goods or services are ordered.

Procurement Card. Supplier site that accepts the credit card brands of procurement cards.

Shipping Network Location. Physical location of the supplier site. Purchasing and WIP uses this information when it receives outside processing items.

Supplier Notification Method. Primary way to send PO to the supplier. E–mail,Printed Document,Fax.

Communication Details of the Supplier.

EAS – Oracle Apps

Supplier Master-Site (Contd…)Supplier Master-Site (Contd…)

Contact Details of the Supplier

Distribution Set. Default Distribution Set for all invoices entered for the supplier site.

Liability. The Liability Account and description for a supplier site’s invoices. The supplier default is the Financials option for the Liability Account. When you create the default Liability Account, Payables defaults this Liability Account to each supplier you enter and in the invoice which can be overridden.

Prepayment. Payables uses this as the default GL account and account description for Item lines that Payables automatically creates for prepayments. The supplier default is the Financials option for the Prepayment Account.

Future Dated Payment. The Financials option value defaults to new suppliers, and the supplier value defaults to new supplier sites which can be overridden. When Payables creates a future dated payment, it uses the future dated payment account from either the supplier site or the payment document, depending on the option selected in the Payment Accounting region of the Payables Options window.

EAS – Oracle Apps


Tax Registration Number: ex a supplier’s value–added tax (VAT) registration number.

EDI Location. for this supplier site. This field appears only at the supplier site.

EDI ID Number. This field is used only by Oracle Energy, if you have installed it, and it appears only at the supplier site.

Payment Method. How the electronic payment will be made.

Payment Format. Indicates type of information being transmitted with the funds if the Payment Method is ACH.

Remittance Method. Party responsible for sending the remittance advice to the payee.

Remittance Instruction. Text of specific wire or other electronic payment instructions for an intermediary or recipient financial institution (optional).

Transaction Handling. Standard EDI transaction code (ANSI ASC X12) designating the action to be taken by all parties.C. Payment Accompanies Remittance Advice.D. Make Payment Only.I. Remittance Information Only. U. Split Payment and Remittance. Z. Other Handling.

EAS – Oracle Apps


Pay On. Enter a value for the Pay On field only if the supplier site is a purchasing site.

Receipt. to use the Pay on Receipt Auto Invoice Program to automatically create invoices based on receipts entered for this supplier site.

Blank. If you do not want to use the Pay on Receipt Auto Invoice Program, leave this field blank.

Alternate Pay Site. Pay site to be used as the supplier site when the system creates invoices from this supplier site’s receipts.

Invoice Summary Level. Enter the level at which one wants to consolidate invoices for this supplier site when the Pay on Receipt Auto Invoice Program is submitted :

Pay Site,Packing Slip, Receipt.

EAS – Oracle Apps

Supplier MergeSupplier Merge

Select whether to Merge All Invoices or Unpaid Invoices or None.

Select whether to merge the POs as well.

Enter the supplier name and site from which to merge information.

Enter the supplier name and site to which to merge information.

If the source supplier has multiple sites, then enter a row for each supplier and site combination.

If supplier sites for the same supplier are merged, then enter the same supplier for both the From and To Supplier Names.

If one wants the merge to automatically create an existing site belonging to the old supplier for the new supplier, along with merging information in that site, select Copy Site. But one will not be able to enter a site in the To Supplier Site field.

The Supplier Merge Program is a utility which can be used to maintain the supplier records. One can merge duplicate suppliers into a single, consolidated supplier or merge transactions within the same supplier from one supplier site to a different supplier

Site or merge all transactions for a supplier into a new supplier, or merge unpaid invoices. When one chooses to merge all invoices, payments are merged as well. Payables makes inactive any supplier

sites and / or the Supplier depending on the options selected.

The Supplier Merge Program is a utility which can be used to maintain the supplier records. One can merge duplicate suppliers into a single, consolidated supplier or merge transactions within the same supplier from one supplier site to a different supplier

Site or merge all transactions for a supplier into a new supplier, or merge unpaid invoices. When one chooses to merge all invoices, payments are merged as well. Payables makes inactive any supplier

sites and / or the Supplier depending on the options selected.

Click to Launch the Merge Program. Review the Supplier Merge Report after the request completes.

EAS – Oracle Apps

Credit CardsCredit Cards

Maximum Amount Per Transaction. to override the card holder's authorized amount per transaction

Maximum Amount Per Period. to override the card holder's authorized credit limit per billing period,

Physical Card Issued. Check this option if a physical card has been issued to the employee.

Paper Statement Wanted. Check this option if the card holder wants to receive a paper statement from the card issuer.

Enter the Credit Card Program, The Card Profile, The Card Holders Name as it appears on the Credit Card, The Credit Card No, Employee Name, Card Expiration Date, Department / Enterprise Name as appearing on the card and Other Personal Details.

Enter the Supplier details (Merchant Establishments) with which this card scheme is tied up.

EAS – Oracle Apps

Procurement CardsProcurement Cards

To review and update credit card transaction distributions.

During Payables Open Interface Import, Payables converts transaction distributions into invoices with distributions. One can also use this window to split a transaction distribution into multiple distributions which can then be processed separately. The total amount of the transaction distributions must equal the transaction amount.

To review and update credit card transaction distributions.

During Payables Open Interface Import, Payables converts transaction distributions into invoices with distributions. One can also use this window to split a transaction distribution into multiple distributions which can then be processed separately. The total amount of the transaction distributions must equal the transaction amount.

Enter the Card Number of the credit card that incurred the transaction., Transaction Date, Transaction Reference Number, Currency, Amount, Card Program, Transaction Card Code, Employee Name, Merchant Name.

Click to enter the distributions.

EAS – Oracle Apps

Procurement Cards - DistributionProcurement Cards - Distribution

Status. Current status of the transaction.

Approved. All approvals are complete and the transaction is ready for import.

Disputed. A card holder or manager assigns this status to a distribution to indicate that there is a dispute over the transaction.

Hold. A card holder assigns this status to a distribution to indicate that there is a problem with the transaction.

Personal. A card holder uses this status to indicate that a transaction was personal.

Rejected. Workflow assigns this status to a transaction if the manager denies approval for the transaction.

Validated. The Procurement Card Transaction Validation Report assigns this status to a transaction if it was successfully validated.

Verified. Either in the Credit Card Transaction Verification page or by using workflow, the card holder has verified the transaction.

Amount. Amount of the transaction distribution.

Account. Account to which the transaction distribution will be charged.

Description. Description of the transaction distribution (invoice distribution description).

EAS – Oracle Apps

Accounting MethodsAccounting MethodsWhile setting up AP, a primary and an optional secondary accounting method is required.

The accounting method determines the number and nature of the journal entries Payables creates when the

transactions are transferred to GL.

There are three accounting methods which are as under:

Cash:

When an item is purchased, the expense or the increase in asset value of an FA item, is recognized when

the item has been paid for. Only payments are posted to GL and not the liability. The payment distributions

typically debit the expense or asset a/c and credit the cash/bank/cash clearing a/c.

Accrual:

When an item is purchased, the expense or the increase in asset value of an FA item, is recognized when

the invoice is received from the Supplier. At that point a liability is recorded to pay the invoice. Both invoice

and payments are posted to GL The invoice distributions typically debit the expense or asset a/c and credit a

liability a/c.

Combined:

One can maintain one set of books for cash accounting and another for accrual accounting. The primary and

secondary set of books are to be determined. Invoice distributions are entered in the accrual set of books

and the payment distributions are recorded in both cash and in the accrual set of books.

EAS – Oracle Apps

Accounting EntriesAccounting EntriesAccounting entries are based on accounting events. The various accounting events are:

Invoice entry, issuing payments, adjusting invoices, creating expense reports and processing prepayments.

Invoices: An invoice increases the supplier’s account balance by the invoice amount. The expense (or

asset) and tax accounts are to be entered in the invoice distribution lines. The nature of the accounting

transactions for an invoice depends on whether liability has been posted for goods received and whether

Oracle Purchasing is used to initiate the invoice.

Prepayments: Prepayment is payment before the receipt of invoice from a supplier. A prepayment could be

sent with PO as deposit for goods / services. On applying a prepayment to an invoice, the amount due on

the invoice is reduced.

Cr. and Dr. Memos: A memo increases the supplier balance by the memo amount. Both Cr. And Dr. memo

reduce the amount that is owed to a Supplier. They are used to record a credit against an invoice for

goods/services purchased. They are netted off against the original invoice at payment time, resulting in a

payment being issued for the reduced amount.

Cr. Memo: Negative amount invoice created by a supplier and sent to the company to notify a credit

Dr. Memo: Negative amount invoice created by the company and sent to the supplier to notify the supplier

of a credit the company is recording.

Payments: A payment decreases the Supplier’s a/c balance by the payment amount. Payments do not give

raise to tax postings.

EAS – Oracle Apps

Accounting Entries (Contd…)Accounting Entries (Contd…)

Accounting Event Account Head Debit Credit

Entering Invoices Expense / Asset A/c 100$

Tax A/c (say 10%) 10$

Supplier Liability A/c 90$

Making Payments Supplier Liability A/c 90$

Cash/Bank/Cash Clearing A/c 90$

Cr. Or Dr. Memos Supplier Liability A/c 50$

Expense / Asset A/c 45$

Tax A/c (say 10%) 5$

EAS – Oracle Apps

Accounting Entries (Contd…)Accounting Entries (Contd…)

GL Transfer:

A program has to be run from AP for transferring the accounting entries of all transactions in a batch mode

to the interface table that is ready to be imported to the GL as a journal. These journals are identified

based on the Batch name, journal name and sources. One can choose to transfer invoice, payment or

both. AP also creates distributions for discounts taken and foreign currency ex gain/loss incurred between

invoice and payment time.

Accounting Event Account Head Debit Credit

Entering Prepayments

Advance A/c 100$

Tax A/c (say 10%) 10$


Adjusting Prepayments

Expense / Asset A/c 200$

Advance A/c 100$

Tax A/c (say 10%) 10$


EAS – Oracle Apps

AP Set-UpAP Set-UpSteps in AP Setup:

Invoice:

In Invoice set up, Invoice payment terms, distribution sets, tolerance limits, Hold & Release names and

Expense report templates are defined.

Payment:

In Payment set up, the payment program, payment format, bank setup, interest rates and bank charges are

defined.

Calendar:

This is used for opening/closing AP Accounting periods.

Tax:

Here, Tax codes, regions, reporting entities, Withholding certificates and groups, Recovery rules etc are

defined.

Options:

All the Financial (accounting rules) and Payables options are defined.

Lookups:

There are lot of values used in various AP forms. These are called lookup values and defined here.

Credit Card:

Define the credit card program here.

Procurement Cards:

The credit card profile, GL account sets and Code sets are defined here.

EAS – Oracle Apps

Invoice Setup: Payment TermsInvoice Setup: Payment Terms

Enter a Unique Name and Description, a cut-off day if Day of Month terms are used, a unique value in the Rank field if Automatic Interest is enabled.

Define payment terms to assign to an invoice to automatically create scheduled payments while submitting Payables Invoice Validation for the invoice. One can create multiple scheduled payment lines and multiple levels of discounts. Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line also defines the due or discount amount on a scheduled payment. One has to specify payment amounts either by percentages or by fixed amounts.

Define payment terms to assign to an invoice to automatically create scheduled payments while submitting Payables Invoice Validation for the invoice. One can create multiple scheduled payment lines and multiple levels of discounts. Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line also defines the due or discount amount on a scheduled payment. One has to specify payment amounts either by percentages or by fixed amounts.

Enter each payment terms line.

Enter one of the following to determine the portion of an invoice due on the scheduled payment: % Due or Amount

Enter one of the following to determine the due date on the scheduled payment line: Calendar, Fixed Date, Days, Day of Month, and Months Ahead

If discount terms are being used, define payment terms lines in the First, Second, and Third Discount tabbed regions. Define the discounts so that the first discount has an earlier discount date than the second and so on.

Enter one of the following to determine the portion of the invoice to discount on the scheduled payment: % Discount Or Amount

Enter one of the following to determine the due date on the scheduled payment line: Due Days, Day of Month, and Months Ahead

EAS – Oracle Apps

Invoice Setup: TolerancesInvoice Setup: Tolerances

Setup % tolerance limits for Quantity Ordered, Quantity Received, Price, and Tax. Also set up Amount based tolerance limits for Ex Rate, Shipment and Total Amount

EAS – Oracle Apps

Invoice Setup: TolerancesInvoice Setup: TolerancesEnter an Invoice Hold/Release Name and Description. Select the type as whether it is for Hold or Release. Check for allowing Accounting and Enabling Allow Manual Release.

EAS – Oracle Apps

Invoice Setup: Exp Report TemplateInvoice Setup: Exp Report Template

Enter a Template name and Description. Check whether to enable for payment thru internet.

Enter an Expense Item Name (Airfare, Car rental etc,) the Item Type (Freight, Misc, Tax or Item), Card Expense Type (Air, Car etc); check whether to include Tax and enter the Tax Code.

Enter the GL Account for each Exp item and the Project Expenditure Type (if applicable) for reporting purposes.

If Internet Expenses has been installed, use the Internet Expenses Attributes region to define additional attributes for expense types

Prompt. a name other than the expense item name to appear in Internet Expenses

Viewable From All Templates. expense item to appear as an expense type on every Internet Expenses enabled template.

Require Receipt Above. to submit receipts for this expense type,

Calculate Amount. to display a Calculate Amount button with any Descriptive Flexfield segments that are displayed for this expense type.

Justification Required. Enter Yes for this field if you want to require employees who select this expense type to enter a value in the Justification field.

EAS – Oracle Apps

Payment Setup: Programs and FormatsPayment Setup: Programs and Formats

Enter the Program Name, Program Type (Build or Format Payments or Remittance Advice) and the (Sys admin) Registered Name

Enter a Unique Payment Format Name, Payment Method, Check whether to allow Zero Payments only, Group payments by due date.

Either enable the format for multiple currency payments, or select a single currency.

Select where the remittance advise should appear: Before Check, After Check or None if advise is to be printed separately. Enter the maximum no of invoices to appear on an advise.

Choose a Build Payments Program. & a Format Payments Program.

Also if Remittance is to be printed separately, then enter the Separate Remittance Program.

EAS – Oracle Apps

Payment Setup: Interest & Bank ChargesPayment Setup: Interest & Bank ChargesEnter the Interest Rates and The Effective dates of the same. These rates are used to calculate and pay interest on overdue invoices.

One can define charges:

from a single bank to a single bank

from a single bank to all banks (i.e., to all banks including the transferring bank)

from a single bank to all other banks (i.e., to all banks except the transferring bank)

from all banks to a single bank

from all banks to all banks

When one specifies a single bank, one had the choice of selecting a particular branch of that bank or all branches.

Use the Bank Charges window to specify charges associated with transferring money between banks. If you use Payables you specify charges between your remittance banks and your suppliers' banks.

Use the Bank Charges window to specify charges associated with transferring money between banks. If you use Payables you specify charges between your remittance banks and your suppliers' banks.

EAS – Oracle Apps

AP Accounting Periods & Aging PeriodsAP Accounting Periods & Aging PeriodsThis calendar defaults from the GL calendar associated with the Set of books. One would have to open and close a period as a maintenance process. A period cannot be closed without all transactions being accounted and transferred to GL. One can force close by using sweep which transfers the unaccounted ones to the following month.

The aging period is used for Invoice Aging Report.

Enter a Name and Description.

Enter each aging period:

Enter the range of days for the period.

Enter the First and Second lines of the Column Heading as required on the report.

Enter the column order. The period with Column Order 1 will be the first column on the report, and so on.

EAS – Oracle Apps

AP Setup: Financials OptionsAP Setup: Financials OptionsFuture Periods. AP displays the no of future periods used in the set of books and limits the no of future periods one can maintain in the Control Payables Periods window. One can enter invoices in future periods, but cannot validate or account them.

GL Accounts Liability. AP assigns this account as the default Liability A/c for all new suppliers which can be overridden.

Prepayment. The Prepayment account for supplier site's invoices.

Future Dated Payment. If future dated payments is used, then enter a value for Future Dated Payment account. This value defaults to all new suppliers and new bank accounts.

Discount Taken. If to distribute discounts to the system Discount Taken Account is chosen, AP uses this account to record the discounts taken on payments.

PO Rate Variance Gain/Loss. AP uses these accounts to record the exchange rate variance gains/losses for the inventory items.

Expenses Clearing. required when e Company Pay payment option of Oracle Internet Expenses is used.

Miscellaneous. Used only when importing invoices submitted via Oracle Internet Supplier Portal for all Miscellaneous charges on invoices the suppliers enter in Internet Supplier Portal.

To control supplier entry and purchase order matching.

RFQ Only Site. One cannot create PO in Purchasing for RFQ only supplier site.

Hold Unmatched Invoices. AP applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to either a purchase order or receipt.

Invoice Match Option. To indicate how to match most invoices. PO or Receipts.

Supplier Number Entry. One can enter supplier numbers manually or let AP automatically generate sequential supplier numbers.

Supplier Number Type. Type of supplier number you want Payables to use for supplier number entry. Alphanumeric or Numeric.

Next Automatic Number. If the Automatic Supplier Number Entry method is selected, enter the starting value the system should use for generating unique sequential supplier numbers.

Use the Financials Options to define the options and defaults to be used for Oracle Financial Application. These values are shared by AP, Oracle Purchasing, and FA.

Use the Financials Options to define the options and defaults to be used for Oracle Financial Application. These values are shared by AP, Oracle Purchasing, and FA.

EAS – Oracle Apps

AP Setup: Financials Options (Contd…)AP Setup: Financials Options (Contd…)These values are used as default values (except Receipt Acceptance days) for the Payment region of the Suppliers window which can be overridden

Payment Terms. To automatically calculate due dates, discount dates, and discount amounts for each invoice.

Payment Method. The invoice payment method used most frequently.

Receipt Acceptance Days. If interest invoices for late payment are used, enter the no of days in receipt acceptance period.

Always Take Discount. to always take an available discount for a supplier, regardless of when the invoice is paid.

Pay Alone. To create a separate payment for each invoice else the invoice will be paid with other invoices for the same supplier site on a single payment.

To be used as default values (except Inventory Org) for the Purchasing region of the Suppliers window.

Ship-To /Bill-To Location. The name of the ship-to/bill-to location for the system default value.

Inventory Organization. To choose an inventory organization if Purchasing is used and to associate each of Purchasing operating units with one inventory item master organization.

Ship Via. Freight carrier used with suppliers. This value is the value in the Description field of the Freight Carriers window in Purchasing.

FOB. FOB terms

Freight Terms. The freight terms for a supplier identify whether the co or the supplier pay for freight charges on goods received.

EAS – Oracle Apps

AP Setup: Financials Options (Contd…)AP Setup: Financials Options (Contd…)To enable encumbrance accounting and to specify the default encumbrance types Payables assigns to invoices, and Purchasing assigns to requisitions and purchase orders.

Purchasing creates encumbrances when one reserves funds for a requisition or PO based on the accrual method selected. AP creates encumbrances when there is a variance between a matched invoice and the PO to which it is matched, and when the invoice encumbrance type is different from the Purchasing encumbrance type.

Use Requisition Encumbrance. to encumber funds for requisitions Purchasing creates journal entries and transfers them to GL to encumber funds for purchase requisitions.

Encumbrance Type. To identify the requisition encumbrance journal entries.

Reserve at Completion. Indicate whether requisition preparers have the option to reserve funds.

Use PO Encumbrance. To encumber funds for PO, PO and receipt matched invoices, and basic invoices (not matched).

PO Encumbrance Type. To identify the PO encumbrance journal entries.

Invoice Encumbrance Type. To identify invoice encumbrance journal entries.

Rounding Rule. to use to round the tax amount when it calculates tax in Payables and Purchasing. Up, Down or Nearest.

Precision. To indicate to which decimal place one wants to round automatically-calculated tax amounts in Payables and Purchasing.

Min Accountable Unit. Indicate the smallest monetary unit to which one wants to round the tax amount..

Default Tax Code. Tax code default value for the Invoice Tax Code option in the Suppliers window.

Member State. The location of the company or organization to determine if the company or organization is located in a member state of the European Union (EU).

VAT Registration Number. The Value-Added Tax (VAT) registration number of the organization.

Enable Recoverable Tax. To flag tax type distributions as recoverable for reporting purposes or To split taxes into separate recoverable and nonrecoverable lines or To automatically calculate tax and prorate it back to the GL account of the taxable distribution.

Default Recovery Rate. To specify a rate that will default to tax recovery rules and tax codes defined; then enter the rate.

EAS – Oracle Apps

AP Setup: Financials Options (Contd…)AP Setup: Financials Options (Contd…)

To enter the options and defaults for entering employee information .

Business Group. Enter the name of the business group to be associated with Purchasing to determine which employees can use Purchasing.

Expense Reimbursement Address. Select the default address to be used on payments for employee expense reports: Home or Office.

Use Approval Hierarchies. to use positions and position hierarchies to determine approval paths for documents within Purchasing.

Employee Numbering Method. Employee no can be entered manually or automatically: Automatic, Manual or Use National Identifier Number.

EAS – Oracle Apps

AP Setup: Payables OptionsAP Setup: Payables Options

To set control options and defaults used throughout Payables that will simplify supplier entry, invoice entry, and automatic payment processing

To set control options and defaults used throughout Payables that will simplify supplier entry, invoice entry, and automatic payment processing

To control accounting information for AP.

Accounting Methods. To create accounting entries for transactions in accordance with cash basis, accrual basis, or both (combined basis) accounting methods. Primary Accounting Method. for primary set of books; Secondary Accounting Method. to use combined basis accounting, choose Accrual or Cash for secondary set of books else choose none.

Set of Books (Primary/Secondary) - Assign accordingly

Automatic Offset Method. Enable Automatic Offsets by selecting Balancing or Account as Offset Method if AP is to automatically create balancing accounting entries for invoice and payment transactions. None. Do not use Automatic Offsets. Balancing. Payables uses the supplier site's default liability account and overwrites the balancing segment with the balancing segment from the expense distribution GL Account.

Account. When creating the offsetting liability account, Payables uses the expense GL Account from the invoice distribution and overwrites the account segment with the default liability account from the supplier site.

To set defaults for submission of the Payables Transfer to GL Process.

Transfer to GL Interface. Select the level at which one wants to summarize accounting entries while submitting the Payables Transfer to General Ledger program. In Detail, Summarize by Accounting Date, or Summarize by Accounting Period.

Submit Journal Import. To submit journal import while submitting the Payables Transfer to General Ledger program.

Allow Override At Program Submission. To allow users to change the defaults set in this region while submitting the Payables Transfer to General Ledger program.

EAS – Oracle Apps

AP Setup: Payables Options (Contd…)AP Setup: Payables Options (Contd…)Account For Payment: Choose when to create payment accounting entries. When Payment is Issued or When Payment Clears or Both (Cash clearing a/c is used as the routing a/c)

Account For Gain/Loss: Select the time at which currency gains or losses for foreign currency payments are to be recorded.

When Payment is Issued. Record currency gains and losses between invoice time and payment issue. When Payment Clears. Record currency gains and losses between payment time and payment clearing time 1.Cash Basis: Records gains and losses between payment issue and payment clearing. 2.Accrual Basis: Record gains and losses between invoice time and payment clearing. Both. 1. Cash Basis: Record currency gains and losses between payment time and payment clearing time. 2. Accrual Basis: Record currency gains and losses between invoice time and payment issue time.

Calculate Gain/Loss. Select the transaction level at which one wants to calculate foreign currency gains and losses: For Each Invoice or For Total Payment.

Use Future Dated Payment Account. To control which a/c AP will use to create accounting entries for future dated payments. From Payment Document or From Supplier Site

Use Multiple Currencies. To enter and pay invoices in a currency different from functional currency.

Require Exchange Rate Entry. To require entry of an exchange rate whenever an invoice or a payment in a currency other than functional currency or an associated fixed rate currency is entered.

Calculate User Exchange Rate. To calculate and enter effective invoice exchange rates for those invoices where one already knows the functional currency amounts of the foreign currency invoices.

Exchange Rate Type. To use as the default exchange rate type while entering invoices or creating payments.

Realized Gain/Loss. AP uses these accounts as the default realized gain and loss accounts for payments from each of your bank accounts.

Rounding. Payables uses this account for currency rounding

EAS – Oracle Apps

AP Setup: Payables Options (Contd…)AP Setup: Payables Options (Contd…)To enter defaults for the Suppliers, Supplier Site, and invoice which can be overridden

Pay Group. The Pay Group to be assigned to any new suppliers

Invoice Currency. Default currency for each new supplier entered.

Enter the Terms Date Basis and the Pay Date Basis.

Bank Charge Bearer. Indicate whether the company or supplier will pay for any bank charges associated with payments to suppliers. Internal, Supplier/Negotiated or Supplier/Standard.

Combined Filing Program. Enable this option if 1099 Combined Filing Program reporting is used.

Use Pay Site Tax Region. To use a 1099 supplier's tax region as the default tax region.

Income Tax Region. Enter the tax region to use as the default for the invoice distributions of 1099 suppliers.

Allow Final Matching. To allow final matching of PO matched invoices.

Allow Distribution Level Matching. To allow matching to PO distributions.

Allow Matching Account Override. To allow override of the account for an invoice distribution created from matching to a purchase order.

Transfer PO Descriptive Flexfield Information. To automatically transfer the descriptive flexfield information from the PO distribution to the invoice distribution while matching to a PO.

EAS – Oracle Apps

AP Setup: Payables Options (Contd…)AP Setup: Payables Options (Contd…)

Use Invoice Approval Workflow. To use the Invoice Approval Workflow feature to automate invoice approval process.

Allow Force Approval. To allow AP processors to override the workflow and manually approve invoices by using the Force Approval option

Require Validation Before Approval. Invoice Approval Workflow does not select any invoice for processing unless the invoice status is Validated..

Allow Adjustments to Paid Invoices. Enable this option if you want to allow users to update the distributions of a paid invoice.

Recalculate Scheduled Payment. Payables calculates scheduled payments using a start date and payment terms. Payables automatically recalculates scheduled payments of invoices during Invoice Validation, unless one has manually updated any of the scheduled payments or used the Split Schedule functionality.

Automatically Create Freight Distribution. AP checks the Create Freight Distribution check box in the Invoices window and automatically creates a single freight distribution using the Freight Amount and Freight Account you enter for an invoice. Freight Account. AP uses this account as the default freight account for an invoice.

Confirm Date as Invoice Number. To accept the invoice date as the default for invoice number during invoice entry.

Allow Online Validation. To allow users to select Invoice Validation from the Invoice Actions

Allow Document Category Override. To allow users to override the default Document Category assigned to an invoice by Payables.

GL Date Basis. The date to use as the default accounting date for invoices during invoice entry:. Invoice Date, System Date, Goods Received/Invoice Date, Goods Received/System Date.

Prepayment Payment Terms. Payment terms to use for all prepayments/..

Prepayment Settlement Days. No of days to add to the system date to calculate a default settlement date for a prepayment.

Build Prepayment Accounts When Matching. When one matches a prepayment to a PO or receipt, AP builds the account on each prepayment Item distribution using: the natural (charge) account or all other account segments from the corresponding PO or receipt distribution.

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To enable Automatic Interest Calculation and then enter defaults. Allow Interest Invoices. To calculate interest for overdue invoices and create interest invoices for selected suppliers. Prorate Across Overdue Invoice. AP prorates the interest amount across the item distributions on the overdue invoice and then builds the account for each interest invoice distribution. Expense Account. If the Prorate Across Overdue Invoice option is disabled then when Payables creates an interest invoice it creates a single distribution with this account. Liability Account. Enter a liability account which AP uses as the liability account when it creates accounting entries for interest invoices. Minimum Interest Amount. Enter a value in this field that represents the minimum interest amount Payables will pay.

Default Template. The default expense report template that AP Expense Reports window uses.

Enter the Payment Terms, Pay Group and Payment Priority to be assigned to any suppliers that are created from employees during Expense Report Import.

Apply Advances. To apply advances to employee expense reports if the employee has any outstanding, available advances.

Automatically Create Employee as Supplier. While importing Payables expense reports, AP automatically creates a supplier for any expense report where an employee does not already exist as a supplier.

Hold Unmatched Expense Reports. Payables requires that each invoice is matched for the supplier site to either a PO or receipt.

EAS – Oracle Apps


Bank Account. The internal bank account you use to disburse funds.

Payment Batch Limit. The default maximum outlay amount AP will pay for each payment batch (only a warning message).

EFT User Number. The number which identifies the company as a user of EFT services to the bank or clearing organization.

Additional Pay Through Days. No of days between regular payment batches to determine the default Pay Through Date when a payment batch is initiated.

Allow Document Category Override. To allow users to override the default document category assigned to a payment document by Payables.

Exclude Tax From Discount Calculation. When one enters an invoice, and uses Header level tax calculation, AP subtracts the tax amount from the invoice amount when it enters the invoice amount applicable to discount in the Invoices window.

Discount Method. The method to use for distributing the discounts to be taken when making payments: Prorate Expense, Prorate Tax or System Account.

Allow Print. To create Quick payments.

Allow Pre-Date. To create payments with a payment date before the system date for any payment except a manual payment.

Allow Void and Reissue. To reissue a Quick payment. When you reissue a check, Payables voids the old check and creates a replacement check.

Allow Address Change. To allow users to address a payment to an address other than the invoice's supplier site's address.

Allow Remit-to Account Override. To allow users to change the default primary supplier site bank account during Quick payment and payment batch creation.

Use Bank Charges. To use the Bank charge feature. Enter a value for the Bank Charge bearer field in the Supplier region of the Payables Options window and AP will enter System Account as the value for the discount distribution method field in the Payment region of the Payables Options window

EAS – Oracle Apps

AP Setup: Payables Options (Contd…)AP Setup: Payables Options (Contd…)Require Tax Entry at Header. AP requires you to enter a Tax Code and Tax Amount in the Invoices window when you enter an invoice. If Automatic Tax Calculation is enabled at the Header level, AP automatically calculates a Tax Amount.

Use Automatic Tax Calculation. To automatically calculate and enter tax on invoices.

Calculation Level. Select the level at which AP should automatically calculate sales tax. Header, Tax Code or Line.

Allow Calculation Level Override. To allow users to adjust the default value of the Calculation Level option for new and existing suppliers.

Distribution Amounts Include Tax. To use Automatic Tax Calculation at the Line level or Tax Code level, and to enable the Distribution Amounts Includes Tax check box for all new suppliers you enter.

Allow Override. To override the Distribution Amounts Include Tax check box default value for all suppliers.

Use Withholding Tax. To enable Automatic Withholding Tax.

Allow Manual Withholding. To allow manual creation and adjustments of Withholding Tax type distributions for invoices.

Tax Group. The name of the withholding tax group to be used as the default withholding tax group for the new suppliers.

Apply Withholding Tax. Select the time at which AP should apply withholding taxes to supplier's invoices: Never, At Invoice Validation Time, At Payment Time.

Withholding Amount Basis: Include Discount Amount or Include Tax Amount.

Create Withholding Invoice. Select the time at which AP should automatically create withholding tax invoices to remit withheld taxes to tax authorities: Never, At Invoice Validation Time or At Payment Time.

EAS – Oracle Apps

AP Setup: Payables Options (Contd…)AP Setup: Payables Options (Contd…)Relieve Future Dated Payment Liability. This option controls whether the AP Trial Balance report includes as liabilities invoices that one has paid with future dated payments.

When Payment is Issued. The AP Trial Balance report will not include as liabilities any invoices paid with future dated payments.

When Payment Matures. The AP Trial Balance report will include as liabilities all invoices paid with future dated payments, and they will remain on the report until payment maturity.

When Payment Clears. The AP Trial Balance report will include as liabilities all invoices paid with future dated payments, and they will remain on the report until payment reconciliation.

Report Sorting: Sort by Alternate Fields. You can enter alternate names for suppliers, supplier sites, and bank accounts and thus sort reports by alternate name

To set a hierarchy for AP to use when it provides default values for Tax Code fields.

Enforce Tax From Account. To enforce the relationship between the tax code and the expense or asset account for distributions. Enforce Tax from Purchase Order. To verify that the Tax Code value assigned to an invoice matches the Tax Code value on the PO document to which one matched.

Tax Code Defaults.

PO for Matched Invoices. If the PO is taxable, AP defaults the Tax Code value from the PO shipment.

Supplier Site / Supplier. Invoice Tax Code value entered in the Invoice Tax region of the Supplier Sites / Supplier.

Account. Tax Code value assigned to the expense or asset account in the Tax Options in GL.

Financials Options. Value entered for Tax Code in the Financials Options.

Invoice Header. Value entered for Tax Code in Invoices.

Template. Template used to create an invoice or invoice distributions.

EAS – Oracle Apps

AP Setup: Credit Card Program & Procurement Card GL A/c SetsAP Setup: Credit Card Program & Procurement Card GL A/c Sets

Enter a GL Account Set Name and Description. Select the GL accounts to form part of the set In the Description field, enter the account name that credit card holders will see when they use Self-Service Web Applications to change the account for a transaction, for example, Office Supplies.

.

Enter the Credit Card Program Name and Description, Card Brands (Amex etc), Card Type (Procurement or Travel), Card Issuer Name and Site, a Card Code Set that includes card codes the card issuer uses to record restrictions on cards, Employee Name of the Administrator for the program, Currency in which the card issuer invoice is created, Exposure Limit, Exception Clearing Account to which AP will charge exceptions if the Procurement Card Transaction Validation Report tries to create a transaction distribution for an invalid GL account

Do not Pay If Status Is. If the Credit Card Invoice Interface Summary is to exclude any transaction accounting distributions with the following statuses, check each check box status you want to exclude from invoice creation. Unverified, Unapproved, Account Exception, Personal, Disputed, Hold

EAS – Oracle Apps

AP Setup: Procurement Card Code SetsAP Setup: Procurement Card Code Sets

To define sets of credit card codes that can be used to create default accounting distributions for transactions that are imported from credit card issuer. The card issuer maintains card codes to identify suppliers and supplier types for the transactions that the employees incur when using a procurement card. One can assign a default account to a card code so that when a transaction for that card code is imported, one can create a default accounting distribution for the transaction based on the card code for the transaction.

To define sets of credit card codes that can be used to create default accounting distributions for transactions that are imported from credit card issuer. The card issuer maintains card codes to identify suppliers and supplier types for the transactions that the employees incur when using a procurement card. One can assign a default account to a card code so that when a transaction for that card code is imported, one can create a default accounting distribution for the transaction based on the card code for the transaction.

Enter a Card Code Set Name and Description.

Blocking Group. Enable this if the card code value is a blocking group value.

Value. Card code value defined and used by credit card issuer to identify suppliers and groups of suppliers.

Description. Card code description.

Account. If one wants to associate an account with a card code, enter the account here.

EAS – Oracle Apps

AP Setup: Procurement Card ProfilesAP Setup: Procurement Card Profiles

To define profiles for the various types and levels of spending allowed for credit card holders. One assigns a credit card profile to each card that is assign to a card holder. The level of employee verification and manager approval required for employee credit cards to which a profile is assigned is specified. Additionally, one can define the GL accounts that are displayed when a card holder uses Self-Service Web Applications to update the status or GL account of a transaction.

To define profiles for the various types and levels of spending allowed for credit card holders. One assigns a credit card profile to each card that is assign to a card holder. The level of employee verification and manager approval required for employee credit cards to which a profile is assigned is specified. Additionally, one can define the GL accounts that are displayed when a card holder uses Self-Service Web Applications to update the status or GL account of a transaction.

Enter a credit card Profile Name and Description, Card Program Name, Program Currency and Administrator. Enter the Acct Set Name (GL account set to be assigned to the credit card profile)

Default Acct Template. To default account segments to the transactions imported for this card program

Exception Clearing Account.

Allow Status "Personal". To allow employees to change the status of their transactions to "Personal" during verification.

Allow Direct Account Entry. To allow Self-Service Web Applications users to enter account no directly in the Account field during transaction verification.

Build Acct From Code. To use the account associated with the card code to overlay the account values from the default employee expense GL account and the profile Default Account Template.

Manager Notifications. To select the level of Manager notification or approval that the Workflow should enforce for transactions to which this profile has been assigned.: No Notifications, Notifications Only, Approval Required.

Employee Notifications. To select the level of card holder notification or verification that the Workflow should enforce for transactions to which this profile has been assigned: No Notifications, Notifications Only, Verification Required.

EAS – Oracle Apps

AP Data ModelAP Data ModelOracle Payables maintains data in a large number of tables which can be either reference or transaction

data. Transaction data refers to invoices, Cr. / Dr. memos, adjustments, payments etc., which go on to

make the supplier a/c. Reference data refers to supplier info, look up codes and static info.

The Transaction tables falls into two groups: Invoice Group, which stores all the data entered through the Invoice

Workbench and Payment Group, which corresponds to payments raised either through the Payment workbench or by an

automatic payment run. The table details are as under:

Table Name Remarks

AP_BATCHES Each Invoice is part of an Invoice Batch and the BATCH_ID is stored in AP_INVOICES.

AP_INVOICES Stores Invoice header information having one row per each transaction type and carries the VENDOR_ID and invoice AMOUNT.

AP_INVOICE_DISTRIBUTIONS It carries the invoice line comprising distribution amount, CCID, tax lines etc.

AP_PAYMENT_SCHEDULES Holds one row per invoice and in case of installments holds one row per installment having a due date and an amount.

AP_CHECKS It holds payment documents per each row; stores the supplier info who received the payment like VENDOR_ID, VENDOR_NAME etc and the info of the bank account used to make the payment like BANK_ACCOUNT_ID, AMOUNT AND CHECK_DATE.

AP_INVOICE_PAYMENTS Holds a permanent record of all payment documents issued to pay invoices and invoice installments.

EAS – Oracle Apps

How AP Tables Are Affected?

AP_BATCHES

AP_INVOICES

AP_INVOICES_DISTRIBUTIONS

AP_PAYMENT_SCHEDULES

AP_CHECKS

AP_INVOICE_PAYMENTS

Invoice Group Payment Group

EAS – Oracle Apps

Innovative UsesInnovative UsesWeb-Enabled Commerce: This is a self-service application which allows users access to data directly using a Web browser with appropriate

security clearance. Employees can enter their own expense reports. Mobile employees can use the Expense spreadsheet to track expenses offline in disconnected mode, then upload

their expense records into the Self-Service Expenses application to submit for approval. Then Oracle Workflow routes the report for approval and automatically enforces company policies and business rules. AP then processes the expense report and issues a payment to the employee.

Electronic Data Interchange (EDI): EDI is a process for using electronic messaging to communicate with trading partners. Oracle EDI Gateway is used to

send various paper documents to the trading partners. This Gateway extracts data from apps and delivers it in a common format to an EDI translator. The translator then converts the common format to the standard formats. The data can be sent via modem links across phone lines or across the net or a floppy.

Evaluated Receipt Settlement (ERS): Instead paper invoice being sent to the AP dept. for payment, an ERS enables a user to automatically create

standard, unapproved invoices for payment. The invoices are based on the receipt transactions process through Purchasing.

The invoice may be triggered by an Advance Shipment Notice from the Supplier or a third-party receiving process. Invoices are created using a combination of receipt and PO info.

ERS reduces supplier’s expense of generating invoices and the buyer’s expense on matching invoice to receipts and processing payments.

Procurement Card Integration: Companies issue corporate card to their employees for simplifying admin of employee expenses. With procurement card integration the transaction detail from the statement filed provided by the card issuer can be

imported. Employees are automatically notified of the transactions appearing on their card. Then using the Oracle Self-Service Expenses they can verify these transactions, override default transaction

accounting and generate invoices automatically representing the employee’s liability to pay the card issuer

EAS – Oracle Apps

Maintenance and ReportsMaintenance and ReportsMaintenance:

AP Control Payables Periods - open / close.

Supplier, Employee, Bank and Tax Masters.

Transfer to GL and reconciling AP Control accounts with GL.

Reports:

Invoice Register, Unaccounted Invoices, Creditors Ledger, Supplier Paid History, Withholding Tax

Reports, AP Trial Balance, Bank Account Listing, Employee Listing, Employee Update Program, Expense

Report Import, Final Payment Register, Invoice Aging Report, Invoice Approval Status, Invoice History

Report, Audit Reports, Invoice Validation, Invoice on Hold Report, Accounting Reports, Open Interface

Reports, Transfer to GL Report, Posted Reports, Supplier Reports,

EAS – Oracle Apps

Q & A

Oracle Accounts Payable

Documents

payables liability

invoice date

supplier liability figures

types of invoices

receipt of invoice

po matchingapprove invoices

approved invoices

duplicate invoice