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Oracle General Ledger Overview Oracle Payables Overview Functional Document Oracle Fixed Assets Implementation Document R12 Cash Forecasting Reconcile Bank Statements in R12 R12 - Cash Pool In Cash Management R12 - Accounting Setup Manager in Oracle General Ledger R12 Procurement Features R12 Inventory Features R12 - Fixed Assets Presentation Oracle iProcurement in R12 R12 New Features in Oracle Payables R12 - Oracle General Ledger Features R12 Oracle Receivables Features R12 Cash Management Features R12 - Netting Functionality Step By Step Oracle Apps Functional Overview Oracle Payables - Step by Step functional in 11i PART 2 Oracle Payables - Step by Step functional in 11i - PART 3 SLA Part 11 - Steps to Customize of SLA Subledger Accounting EBiz Tax - Part 1 SLA Part 1 - Why SLA SLA Part 3 - Journal Line
In this article you will see step by step usage of Oracle Payables. This is particularly useful in end user training in 11i This article is divided into 4 parts, Part1, Part2, Part 3, Part4
Table of Contents
1 Document Control 1.1 Revision History and Approval 2 Accounts Payable 2.1 Overview 2.2 High Level Process flow diagram 3 Supplier Creation and maintenance 3.1 Creation of Supplier 3.2 Merging of supplier 4 Invoice Entry 4.1 Overview 4.2 Entering Standard Invoice 4.3 Entering PO default Invoices 4.4 Entering Debit and Credit Memo 4.4.1 Overview 4.4.2 Enter Credit Memo 4.4.3 Matching credit memo to invoice/PO 4.5 Entering prepayment invoices 4.5.1 Overview 4.5.2 Create Prepayment Invoice
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Definition SLA Part 2 Entities - Event Class - Event Types Oracle Payables - Step by Step functional in 11i - PART 4 Order to Cash - Technical Flow in R12 Steps for Closing Period in R12 Financials - Part 1 USE FIREFOX Steps for Closing Period in R12 Financials - Part 2 Global Consolidation R12 SLA Part 4 - Application Accounting Definitions SLA Part 5 - Subledger Accounting Methods SLA Part 6 - Overall SLA Diagram SLA Part 7 - Creating Journal Line Definition R12 - Create Banks and Bank Accounts in Oracle Apps R12 SLA Part 8 - Creating Application Accounting Definition - AAD SLA Part 9 - Create Subledger Accounting Method SLA Part 10 - Testing and explaination of SLA Config
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This payment format contains one credit line and multiple credit lines. 11.2 Initiating Payment Batches 11.3 Selecting invoice / Verify Payment Register is correct 11.4 Modify Payment 11.4.1 Adding an invoice to a payment batch 11.4.2 Removing an Invoice from Payment Batch 11.4.3 Removing all Invoices for a Particular supplier site from a payment batch 11.4.4 Changing payment or discount amounts for a selected invoice 11.5 Formatting Payments 11.6 Confirm Payment Batch 11.7 Payment Batch sets 12 Stop Payments 12.1 Stopping a Payment 12.2 Releasing a Stop Payment 12.3 Voiding a Payment
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1 Accounts Payable
1.1 Overview
Accounts Payable designed is designed for Supplier creation and maintenance Recording invoices from suppliers Payment to vendors Creation of banks Transfer of accounting information to GL Oracle Payables is one of the sub-ledgers of General Ledger and provides a means to gather information pertinent to the Payables and tracks the status of payments to the suppliers
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Oracle Payables - Step by Step function 1.2 High Level Process flow diagram
Purchasing Accounting of Invoices Pay invoices Reconcile Payments General Ledger Enter invoices Enter supplier
Matching
JE JE
Purchase Orders Receipts
1. Navigate to Suppliers Entry 1. To enter a new supplier provide supplier name and provide all the information under various tabs
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3. Select the Sites button. To update a site, use the PgUp / PgDn buttons to find the required site. Provide the following information against various tabs
Name of the field Content Site Name Address Site Uses Enter a Name for the site Enter the Address and other details of the site Define what this site is used for - Payment, Purchasing, Procurement Card or RFQ only. The
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1. Select the Contacts region End user Manual for Account Payable Optionally add information on site contacts as required.
2. Fill in the following fields, However the values are defaulted from the financial option Name of the field Liability Prepayment Content Modify the entity value if necessary Modify the entity value if necessary
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4. Select the bank account region Use this region to record the supplier bank accounts that your suppliers and supplier sites use for electronic payment transactions. Information you enter in this region of the Supplier and Supplier Sites windows will appear in the supplier assignments region of the Bank Account window. Before filling in this region it is necessary to have created the account in the AP Bank Account form.
Page 4 of 4
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2. Select the Purchasing region All the options are derived from the system defaults defined in the purchasing and AP setups
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2 Invoice Entry
2.1 Overview
Every transaction that needs to be paid would be recorded as invoice. This is required even for advance payment, petty payment etc. Payable gives the option to enter invoices in single or in batches. In batches the value such as payment terms, currency, GL date can be given that will default to individual invoices to make data entry faster. The following are various type of invoices used to record transactions Standard. A trade invoice you receive from a supplier. PO Default. A trade invoice you want to automatically match to a specified purchase order and then manually match to the individual shipments on the purchase order. Credit Memo. A negative amount invoice you receive from a supplier representing a credit for goods or services purchased. Debit Memo. A negative amount invoice you send to notify a supplier of a credit you recorded for goods or services purchased. Prepayment. An advance payment you make to a supplier or employee Expense Report. An invoice you enter to record business-related employee expenses Page 4 of 4 End user Manual for Account Payable
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Supplier or SupplierEnter the Supplier or Supplier Number Number Site Enter the Supplier Site to which you will send payment of the invoice. AP will print the address for this site on the payment. Enter the Invoice Date or accept the Payables default (today's date) bychoosing If you enter a date in a future period. AP will put the invoice on Future Period hold during Approval Enter the Invoice Number from the invoice your supplier sent you or accept the Payables default (today's date) by choosing [Tab]. AP will not allow you to enter duplicate invoice numbers for the same supplier. Enter the full Invoice Amount including tax Enter the Description of your invoice. This will appear on your paymentdocument and may appear in your general ledger. Enter the GL Date
Invoice Date
Invoice Number
G L Date
1. AP automatically schedules payment of the invoice using the Invoice Amount, Payment Terms, and Terms Date.
Enter or review the defaults for these fields by Clicking on Payments 4. Enter distributions manually or automatically by entering a Distribution Set, Entering Distribution Manually
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1. Enter a separate line to show freight separately 2. Attach 3. Click on (save) 1.2 Entering PO default Invoices
These are invoices matched against purchase orders raised from oracle purchasing
1. Enter the PO Default type. A form appears: enter the PO Number, then AP automatically defaults the Supplier, Supplier
Number, Site, and Currency. Page 4 of 4 End user Manual for Account Payable
1. Enter all basic invoice information (see: Entering Basic Invoices), but do not manually enter the distributions. 2. Select the appropriate withholding tax group in the tax field 3. Choose the Match button. The following window will open:
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1. The order number is already specified. Optionally change the invoice payment term.
1. For each shipment you want to match, select the shipment by clicking the Match check box and enter the invoiced quantity.
When you enter one field, Payables automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). It can be changed. If you want further details to match, you can match to purchase orderdistributions by choosing the Distribute button. For each purchase order distribution you want to match to, select the purchase order distributions and enter either the Quantity Invoiced or Match Amount.
1. Review the invoice distributions AP created by choosing the Distribution button from either the Invoices
Summary or Invoices detail window.
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Final matching a Purchase order When you are entering a purchase order matched invoice or a credit/debit memo, you can check Final Match in the Match to PO or Match to Invoice Distribution window to have AP permanently close the purchase order during invoice Approval. When you approve a final-matched invoice, Approval permanently closes the matched purchase order. You cannot reopen a permanently-closed purchase order or perform any further matching to the purchase order.
Attention: Check Final Match only if you are certain this is a final match against therelated purchase order and you want Approval to permanently close the purchase order.
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1. Click on save
Page 3 of 3
End user Manual for Account Payable 1.1.1 Matching credit memo to invoice/PO
1.1.1.1 MATCHING OPTIONS WHEN THE ORIGINAL INVOICE IS NOT PURCHASE ORDER MATCHED
In this case you can choose one of the following: Match to an invoice: Payables prorate your credit amount based on theinvoice distribution amounts of the original invoice. Payable automatically creates invoice distributions for the credit memo based on the distributions ofthe original invoice. Match to specific invoice distributions: You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automaticallycreate invoice distributions for the credit memo based on the original invoicedistribution that you select. For example, you may order three chairs for threedifferent departments and return one. You can match a credit invoice to theoriginal distribution for that department to ensure that the credit matches thecharge. Follow the steps below
1. Enter a Credit Memo type invoice. 2. Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions
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3. At the pop-up list to the right of the Match button, choose Invoice, and then choose the Match button.
1. In the Find Invoices to match window, query the invoices you want to match and choose Find. If the credit memo pertains
to an invoice matched to a certain purchase order, query by purchase order number to see all invoices matched to that purchase order. AP navigates to the Match to Invoice window.
2. Optionally choose the Invoice Overview button to review more information about an invoice. 3. Create invoice distributions by matching to one or more invoices. If you are matching to a non-purchase order matched
(basic) invoice, select the invoice and enter a Credit Amount.
1. If you want to match in further detail, continue the match at the invoice distribution level:
Match check box of the invoice you want to match and enter the CreditAmount. Then choose the
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1. For each invoice distribution you want to match to, select the distribution and enter a Credit Amount. 2. Choose the Match button to create invoice distributions for the credit memo based on the matches you made. 3. To review the new invoice distributions, choose the Distributions button from the Invoices Summary.
1.1.1.2 MATCHING OPTIONS WHEN THE ORIGINAL INVOICE IS PURCHASE ORDER MATCHED
In this case you can choose one of the following: Match to specific invoice distributions: You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automatically create invoice distributions for the credit memo based on the original invoice distributions that you select. Match to purchase order receipts: Payables prorates, based on the quantity billed, your credit amount across all purchase order distributions associated with the purchase order receipt to which you match the credit memo. Payables automatically create invoice distributions for the credit memo based on the purchase order distributions associated with the purchase order receipt you match to. Follow the steps below to create a credit memo to match against PO
1. Enter a Credit Memo type invoice. 1. Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions. 1. At the pop-up list to the right of the Match button, choose Purchase Order or Receipt, and then choose the Match
button.
1. In the Find screen, enter the search criteria to find the purchase order 1. Click on the Find button:
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1. For each line you want to match to, select the line by checking the Match checkbox and enter either a Quantity Invoiced or
Match Amount. AP automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which defaults from the purchase order.
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2. Select the prepayment as invoice type 3. Enter all the other field as you do for a standard invoice, expect for the following special field
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Content Select Temporary or Permanent as the Prepayment Type. Specify the Prepayment Type as Temporary if you want to apply the prepayment to an invoice or the advance to an employee expense report. You specify the Prepayment Type as permanent if you do not want to apply the prepayment to an invoice. Accept the Default or change. Payables use the Settlement Date to prevent you from applying a temporary prepayment to an invoice until on or after the Settlement Date of the prepayment.
Settlement Date
You can establish a Purchase Order association for your prepayment when you enter the prepayment. If you associate a prepayment with a purchase order, Payables allows you to apply the prepayment only to the invoices matched to the associated purchase order. If you are using multiple currencies, you can enter a prepayment in anycurrency you have defined. You can only apply a prepayment to an invoice inthe same currency as the invoice.
1. Click on Distribution.
AP creates a prepayment distribution line automatically when you enter a prepayment.Oracle Payables debits the Prepayment Accounting Flex-field from the suppliersite, but you should fill the Amount field. If you enter a tax name on a prepayment, Payables also creates a tax distribution line End user Manual for Account Payable
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1. After completing the invoice form, click on the action button to validate the prepayment.
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3 5
Description Period
Optional Required
6 7
Year Sequence
Required Required
8 9 10
1. Save the Recurring calendar 1.3 Define recurring invoice template 1. Choose the following path:
Invoice Entry Recurring Invoice The following screen will display
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Sl No 1
2 3
4 5 6
Supplier Pay Group Required, Defaults Calendar Name Periods Required, LOV Required
7 8
First Next
Remaining
Display Only
10
Number
Required
11 12
Description Currency
13 14
17
Distribution Set
Required, LOV
3. Click on the Amount tab Page 6 of 6 End user Manual for Account Payable
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1. Enter the following field Sl No 1 2 3 Field First Amount Next Amount No of Invoices Control Total Type Required Display Only Description Enter the amount to be paid periodically. The next amount shall default from the first amount. The number of recurring invoices shall default from the periods entered in the main form. The control total defaults at first by multiplying the first amount with the number of periods. If at any point after generating an invoice, you change the control total, the system pro-rates the differential amount across the remaining number of periods for which the invoices are yet to be created (the change is seen in the next amount field) The release amount will default depending upon the amount paid against this invoice template periodically. The Amount remaining will default depending upon the amount paid against this invoice template periodically.
RecurringDisplay Only
Defaults
Released Total
Defaults
Amounts Remaining
Defaults
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GL Date
Required, Defaults
3 4
Amount
Display Only
Exchange Rate Conditionally For foreign currency invoices, choose User type Type Required, LOV Rate Conditionally Required For foreign currency invoices, enter the exchange rate.
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1. Apply the prepayment by entering or selecting one or more invoices that you want to apply the prepayment to. 2. Complete the entry of the invoice to which the prepayment(s) will be applied, approve the invoice(s) and/or select the
completed approved invoice(s).
3. Click on Actions
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On the form, check the prepayment line(s) to be applied and enter the amount you wish to apply. As you apply a prepayment, AP reduces the amount of theprepayment by the amount applied. AP creates prepayment reversal lines on the prepayment as you apply it. Once you fully apply a prepayment, its amount is $0, and its Status is Fully Applied. 1.2.4 Un-applying a Prepayment Un-apply prepayments on the Apply/Un-apply Prepayments form by checking the checkbox next to any Existing Prepayments that you wish to UN-apply and commit the transaction. Page 6 of 6 End user Manual for Account Payable
1 Invoice Validation
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1.1 Introduction
Every invoice entered as above needs to be validated for account creation and for making payment. The validation validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exceptioninvoices Validation is done in one of the following ways Online by using the validation button in the Invoice action button Batch by submitting the Payables Approval program from the Submit Requests window. .
Click on Action button Select approve If you are approving a credit or debit memo, select Approve Related Invoices to submit online Approval for invoices associated with the credit or debit memo. Choose OK
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AP displays messages about the number of holds applied and released during this cycle of Approval.
2 Holds
Holds are restriction placed on invoices so that these invoices can not be accounted and prevented from payment Holds are of two types Manual holds System holds A) Manual Holds There are three types of holds you can use to prevent payment of an invoice. The hold can not be applied if the invoices are already selected for payment .These holds can be released manually. The following are the type of the manual holds Invoice Hold. You can manually apply one or more Invoice Hold Names ("holds") to an invoice using the Invoice Holds window of the Invoice Workbench. Scheduled Payment Hold. You can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench. Supplier Hold. In the Supplier Sites window, you can enable the Hold All Payments, Hold Unvalidated Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an Invoice Amount Limit for a supplier site. B) Manual Holds. These holds are created by system during invoice validation when ever an exception is encountered by the system. These can be released only when the exception is corrected.You must fix the problem that caused Invoice Validation to place the hold on the invoice then resubmit Invoice Validation to release the holds. You cannot release the following holds: The examples of some of the holds are as below.
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1. Navigate to Other Request Run 2. Choose the program Payable accounting process 3. Provide the following parameters and submit
Name of the field From date to date Content Provide the accounting event dates for which you want to transfer accounting entries These dates are not required to run the accounting process. If you do not specify dates, then the program will account for all of your unaccounted transactions. Invoices Includes the following accounting events: invoice entry invoice adjustment invoice cancellation prepayment application prepayment unapplication Payments. Includes the following accounting events: payment entry (future dated) payment maturity payment adjustment payment cancellation payment clearing payment unclearing All. Create accounting entries for all eligible unaccounted invoice and payment events Yes No Yes No Yes No
Document class
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4 Payment
4.1 Overview
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AR step by step
w ritten by Amy , March 01, 2010
Hi: I found this while I was shuffing for some thing like this in AR. It looks great! I hope I can learn AP from you and don't have to go to another website. Do you have "Oracle Receivalbes - Step by Step functional in 11i" and Oracle GL" - Step by Step functional in 11i"? If you don't can you provide those for us? Great Job!!!
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hii
w ritten by pushpal , August 21, 2010
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A Big Thank YOu to both Anil and Renu for their great effort!!! No word is big enough to convey the good work that you guys are doing. A small request, if possible can you also share the content in PDF format for I am not able to view the images from my computer because of security issues.. This will be of huge help if you can oblidge!!! Thanks once again!
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