Oracle Accounts Payable

Oracle Applications 11i
Accounts Payable
A Presentation by EAS Oracle Applications

Aug 2003
Accounts Payable
Agenda
Introduction
Overview
Workflow
Payables Cycle
PO Matching
Masters
Accounting Methods &

Entries
Set-Up
Innovative Uses
Data Model
Maintenance &
Reports
Introduction
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).
Overview
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 supplierwise 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.
Workflow
Payables 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.
Integration With Other Oracle Suite
Purchasing
Payables
Projects
Assets
Cash Management
General Ledger
Payables Cycle
All payments pass through the following four-step Payables cycle:
I.
II.
III.
IV.
Enter Invoices (This process may or may not include PO matching)

Approve Invoices for payment.
Select and Pay approved invoices.
Reconcile the payments with the bank statement.
Payables Cycle (Contd)

Enter Supplier
POs
Enter Invoices
Approve Invoices
General Ledger
Pay Invoices
Reconcile Payments
Enter Invoices
Invoice is at the heart of AP processing, allowing to process all types of invoices while maintaining accuracy
and 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 which
require online validation or invoices which have to be paid immediately, are entered through this mode
Invoice 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 a
frequent 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 invoices
as a flat file.
Oracle Projects expense reports. Projectrelated expense reports entered in Oracle Projects.
EDI invoices. Electronic invoices transferred from Oracle eCommerce 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.
Enter Invoices Header
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
Click to initiate
various Invoice
Actions.
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
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.
Invoice Types
There 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.
Enter Invoices - Distribution

One can enter distributions in
One
can enter
distributions in
the
following
ways:
the following ways:
Enter manually in the
Enter manually
in the
distributions
window.
distributions window.
Use a Distribution Set.
Use a Distribution Set.
Match an invoice to a purchase

Match
invoice to a purchase
order
or an
receipt.
order or receipt.
Create through Allocation.
Create through Allocation.
Create Tax distributions through

Create Tax
Automatic
Taxdistributions
Calculation.throug
Automatic Tax Calculation.
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.
Create Freight Distributions by

Create
by
using
theFreight
Create Distributions
Freight
using the Create
Freight
Distribution
check box
in the
Distribution
check box in the
Invoices
window.
Invoices window.
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.
Click to automatically
Select/Unselect the
Distribution Lines.
Amount allocated to the

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

Allocation.
Enter Invoices - Actions

Validate: to check the matching, tax, period
Validate:
to check
theand
matching,
tax, period
status,
exchange
rate,
distribution
status,
exchange
rate,
and
distribution
information and automatically apply holds to
information
and automatically apply holds to
exception
invoices.
exception invoices.
Cancel Invoices: to cancel unpaid /
Cancel Invoices:
unpaidinvoice
/
unapproved
invoice to
or cancel
an approved
unapproved
invoice
an approved
invoice
that
does not have
anyoreffective
payments
or
that does holds.
not have
any effective
or
accounting
Invoice
amount payments
and all
accounting
holds.
Invoice
amount
and
all
scheduled payments are set to zero; all
scheduled
payments
setmatches
to zero; to
all
invoice
distributions
andare
any
invoice distributions
and any
to
purchase
order shipments
and matches
distributions
purchase
order
shipments
and
distributions
are reversed; If the invoice has WT,
are reversed;
If the invoice
hasanWT,
Payables
automatically
creates
invoice
Payables
automatically
creates
an invoice
for the tax authority supplier to offset
the
for the of
taxthe
authority
supplier
to offset the
amount
withholding
tax invoice.
amount of the withholding tax invoice.
Apply / Un apply Prepayment: the
Apply / Un apply
Prepayment:
the opens
Apply/Un-apply
Prepayments
window
Apply/Un-apply
Prepayments
window
opens
displaying all prepayments that have been
displaying
allinvoice,
prepayments
have been
applied
to the
and allthat
available
applied to the
invoice, and
available
Prepayment
distributions
thatallcan
be
Prepayment distributions that can be
applied.
applied.
Pay in Full: to Pay the Invoice in full directly
Paythis
in Full:
to Pay the Invoice in full directly
from
window.
from this window.
Create Accounting: to create and then view
Create
Accounting:
create and then view
the
accounting
Lines intoAP.
the accounting Lines in AP.
Force Approval: to Force Approval if to be
Force Approval:
to Force
Approval if to be
approved
without using
the Workflow
approved without using the Workflow
initiation.
initiation.
Initiate Approval: to initiate approval via
Initiate Approval: to initiate approval via
Workflow.
Workflow.
Release Holds: to Release a Hold giving the
Release
Holds:
Release a Hold giving the
Release
Name
andtoReason
Release Name and Reason
Print Notice: to Print an invoice notice to be
PrinttoNotice:
to Print
notice to be
given
the supplier
foran
hisinvoice
confirmation.
given to the supplier for his confirmation.
Enter 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 H
on the Invoice.
Click to Hold or modify
a Scheduled Payment.
Enter 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.
Enter Invoices Batch Mode

Only one Invoice workbench
Only one Invoice workbench
option can be used at a time.
option can be used at a time.
Either Batch option or Invoices
Either Batch option or Invoices
Option, but not both. For this the
Option, but not both. For this the
System Profile option: AP: Use
System Profile option: AP: Use
Invoice Batch Controls must be
Invoice Batch Controls must be
set accordingly.
set accordingly.
Batches can be appended with
Batches can be appended with
additional Invoices at any time.
additional Invoices at any time.
Batches reduce the no of Invoice
Batches reduce the no of Invoice
Actions to be performed. But these
Actions to be performed. But these
can be done at the invoice level
can be done at the invoice level
also.
also.
Enter an Invoice Batch

Name, Batch Date,
Control Checks.
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.
To create and view
accounting lines for all
the invoices under this
batch.
Click to validate all the

Invoices under the
Batch.
Invoices Gateway
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.
Payables uses information

Payables
uses
information
entered
in the
Invoice
Gateway
entered
in
the
Invoice
Gateway
window to create invoices
in
window toInvoice
createheader
invoices
in
Payables.
and
Payables.
Invoice
header
and
line information is entered. This
line information
is entered.
information
is stored
in the This
information
is stored
in the
Payables
Open
Interface
tables.
Payables Open Interface tables.
Submit a customized workflow
Submit to
a customized
workflow
program
automate the
program to
processes
forautomate
managingthe
processes for managing
invoices.
invoices.
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.
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.
Click to view
rejections on
Invoice Lines.
Then submit the Payables Open

Then submit
Payables
Interface
Importthe
Program
to Open
Interface
to
validate
theImport
valuesProgram
you entered,
validate
thedefault
valuesvalues,
you entered,
provide
any
and
provide
any
defaultwith
values, and
then
create
invoices
then createand
invoices
with
distributions
scheduled
distributions
and
scheduled
payments in the regular
payments
in the regular
Payables
tables.
Payables tables.
Query the rejected invoice
Query in
thethe
rejected
records
Invoiceinvoice
Gateway
records
in
the
Gateway
window, correct Invoice
them, and
then
window,them
correct
resubmit
for them,
import.and then
resubmit them for import.
Payables creates regular
Payables
invoices
thatcreates
can beregular
viewed,
invoices
that
can be viewed,
modified, and validated
in the
modified,
and validated in the
Invoice
Workbench.
Invoice Workbench.
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,
Expense 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.
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.
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.
Enter the Functional

Currency, Ex Rate
Type, Date and Ex
Rate.
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.
Expense report
template for
entering the
expense report
Which determines
the expense report
items that can be
selected.
Recurring Invoices
One 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.
Recurring 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.
Recurring Invoices Distribution Sets

Enter a Set Name
and Description.
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

Use a Distribution
automatically
enter Set to
automatically
distributions for enter
an invoice
distributions
for an itinvoice
when
not matching
to a
when not
matching it to a
purchase
order.
purchase order.
You can assign a default
You can assign
Distribution
Set toaadefault
supplier
Distribution
Set to .a supplier
site
or to an invoice
site or to an invoice .
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.
Use Full Distribution Sets to

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

Enter 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 Header

Description, Expiry
Date, WT group and
Whether Approval
workflow required.
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.
Select Distribution
Origin as Set and the
Set Name; else enter
as PO and the PO
number.
Recurring Invoices Create (Contd)
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 total sum of the recurring invoices to be

created is known, enter the Control Amount
and Payables will calculate and enter the First
Amount.
These statuses are

updated as and when
invoices are generated.
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.
Enter the no
of invoices to
be generated.
Click to launch a
program for creating
Recurring Invoices.
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.
Payment
Once the invoice has been entered and approved, it must be paid in a timely manner to take
advantage of available discounts.
One can initiate payment runs on a regular basis at a defined frequency. The pay run will
select all invoices that are to paid, according to the criteria and generate the appropriate
payment documents. Either a single payment can be made for the unpaid invoices of a
supplier 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.
Payment 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 perform various

Payment Actions.
To see the Payment
Summary
Click to view the Invoice

Details.
Click to Enter / Adjust Invoices

to be paid for the selected
Supplier.
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.
Payment Manual/Quick/Refund (Contd)
Format: Enter the Format

Format:and
Enter
the Format
Program
Initiate
Format
andChecks
Initiate Format
forProgram
getting the
for getting
Checks
Printed
in thethe
prescribed
Printed in the prescribed
format.
format.
Print Now: Select to print the
Print Now: Select to print the
check.
check.
Create Accounting: To
Create
Accounting:
create
and
view the To
create andlines
viewinthe
accounting
AP.
accounting lines in AP.
Print Remittance Advise:
Print the
Remittance
Advise:
Select
Program To
print
Select
the
Program
the advise for giving itTo
to print
the advise for giving it to
Supplier.
Supplier.
Reissue: To reissue a check
Reissue:
reissue a check
which
is notTo
voided.
which is not voided.
Initiate/Release Stop: to
Initiate/Release
Stop:
to
initiate
Stop / Release
a Stop
Stop
/ Release
a Stop
oninitiate
a check
and
thus holding
a check and thus holding
itson
encashment.
its encashment.
Void: To Void a check. Enter
Void:
VoidGL
a check.
Enter
the
VoidTo
Date,
Date and
the Void
GLActions.
Date and
Select
the Date,
Invoice
Select the Invoice Actions.
Payment Batch
Each 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 other
criteria like pay group, currency, payment method etc. are selected. This process selects the invoices and invoice
installments for payment, calculates how many documents are needed and allocates document nos to each selected invoice
Modify: At any time before formatting, one can optionally prevent payment to a supplier or of a particular invoice or change
the invoice amount or add an invoice that AP did not originally select. The Standard build program is resubmitted to
reallocate 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 containing
remittance advise information and the formatted check information, or as an electronic payment file, in which case a data file
containing the payment information is formatted according to a particular bank or EDI format. Checks are printed on preprinted 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 records
updating the payment history of invoices paid in a payment batch. A payment needs to be confirmed based on the following
status:
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 at
any stage upto CONFIRMED. Each step launches a concurrent manager Payment Process Manager and the
corresponding requests.
Deliver: Checks are posted to the Supplier or a bank file is generated.
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
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.
Requery Batch to Update

the current Status.
To copy a Payment Batch
details from one Batch to
another to copy the Batch
Parameters
To view the individual payments in a

Batch after the Status is Confirmed.
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.

Select Invoices: To select all the unpaid
Select based
Invoices:
To select
all thedefined
unpaid in
Invoices
on the
parameters
Invoices
based
on
the
parameters
defined in
the Batch. Launches a concurrent program
the Select
Batch. Invoices.
Launches a concurrent program
Auto
Auto Select Invoices.
Build Payments: To build all the selected
Build Payments:
build all the
selected
invoices.
Launches To
a concurrent
program
invoices.
Launches a concurrent program
Build
Payments.
Build Payments.
Modify Payment Batch: To prevent
Modify to
Payment
Batch:
prevent
payment
a supplier
or of To
a particular
payment
to aan
supplier
of aAP
particular
invoice
or add
invoiceorthat
did not
invoice or add an invoice that AP did not
originally select.
originally select.
Print Preliminary Register: to identify the
Print
Register:
to identify
the
first
andPreliminary
last document
numbers
assigned.
first and last document numbers assigned.
Format Payments: Enter the Format
Formatand
Payments:
Enter the
Program
Initiate Format
for Format
getting the
Program
and Initiate
Format for format.
getting the
Checks
Printed
in the prescribed
Checks Printed in the prescribed format.
Print Now: Select the printer to print the
Print Now: Select the printer to print the
check.
check.
Confirm Payment Batch: to be confirmed
Confirm
Payment
Batch:
to be confirmed
based
on the
following
status:
based on the following status:
Printed, Spoiled, Set- up, Skipped
Printed, Spoiled, Set- up, Skipped
Create Accounting: To create and view the
Create Accounting:
accounting
lines in AP. To create and view the
accounting lines in AP.
Create Positive Pay File: to generate a pay
Create
Positive Pay
generate a pay
file
for transmitting
to a File:
bankto
(EFT)
file for transmitting to a bank (EFT)
Print Final Register: To print the final
Print Final
print
the final
register
used Register:
for recordsToand
audit
register used for records and audit
purposes.
purposes.
Print Remittance Advise: Select the
Print Remittance
Select
theit to
Program
To print theAdvise:
advise for
giving
Program To print the advise for giving it to
Supplier.
Supplier.
Cancel Payment Batch: to cancel an
Cancel Payment
Batch:
an
unconfirmed
batch and
starttoacancel
fresh Batch.
unconfirmed batch and start a fresh Batch.

Supplier wise Invoice
wise details are shown
here.

Built Action. Click on Build to rebuild
Built Action. Click on Build to rebuild
the batch.
the batch.
If not to be paid, enter

the reason.
This reflects the Total

Payment Amount of
the Supplier
Select Yes/No to Pay or

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

Not to Pay an Invoice
under a Supplier.
Enter an Amount if
Partial Payment is to be
done.
Click to view the

invoice summary.
Click to Rebuild the

Payment Batch.
PO Matching
AP 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 not
paid 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 PO
distributions. 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 be
approved for payment.
Enter 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.
Displays all the

information on
Shipment, PO and the
Allocated Distribution.
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.
Masters
There are a lot of Masters to be maintained in AP. These include the Supplier Master, Employee Master, AP Accounting
Calendar Master and Tax Master.
Supplier Master:
The Supplier Master is used to enter and maintain the Supplier Header and the Various Site level information. The
information captured in the master, defaults at the time of transaction entry, which can be overridden. The information
includes address, bank information, payment terms etc. A site is basically an address from which the supplier conducts the
business. Sites could be Purchasing sites, RFQ only sites and Pay sites. Each Supplier is assigned a Vendor Number
which
is separately for Header and Site. Each Supplier is the database has an account. An account is a record of all transactions
that 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 can
be overridden. Details like address, DOJ, DOB, Payroll No, GL account, etc are captured. This master is primarily
maintained from Oracle HRMS if it is being used.
Credit Card Master:
AP Accounting Calendar Master:
Tax Master:
Supplier Master
Enter 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 cant be deleted, but can be inactivated by entering
the Inactive On date. Supplier Number is generated based on the
options in the setup.
The no supplier uses to

identify the company or
organization. This number
appears on the PO.
Name of suppliers parent

organization if supplier is a
franchise or subsidiary. The parent
organization must also be defined
as a supplier in the system.
Click to Enter the

Supplier Site
Information.
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 minorityowned 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.

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 suppliers invoices.Due or Discount
Payment Method: The method used most frequently to pay
this suppliers 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.
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.
Interest Invoices: to calculate interest for the suppliers

overdue invoices and create corresponding interest invoices
when the overdue invoices are paid.
Pay Alone: to create a separate payment for each invoice.

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 automaticallycalculated 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.

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 sites
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

ShipTo Location. Location where a
supplier sends shipments for
goods/services.
BillTo Location. Location to which
a supplier sends the invoice for goods
or services.
Ship Via. Freight carrier used with a
supplier.
FOB. FreeonBoard (FOB) code for
a supplier.
Enforce Shipto Location. The

value entered in this field
determines whether the receiving
location must be the same as the
shipto location:
None,Reject,Warning.
Receipt Routing. Default receipt
routing assigned to goods: Direct
Delivery, Inspection Required, or
Standard Receipt.
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.
Match Approval Level. To

perform online matching of
invoices and original PO or PO
receipts. 2Way, 3Way,4
Way.
Create Debit Memo From RTS

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

Max acceptable overreceipt
tolerance percentage.
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.
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.
Supplier 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.
Shipping Network Location.

Physical location of the supplier
site. Purchasing and WIP uses
this information when it receives
outside processing items.
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.
Supplier Notification Method.

Primary way to send PO to the
supplier. Email,Printed
Document,Fax.
Communication Details
of the Supplier.
Supplier Master-Site (Contd)

Distribution Set. Default Distribution Set for
all invoices entered for the supplier site.
Contact Details of the

Supplier
Liability. The Liability Account and

description for a supplier sites 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.

Tax Registration
Number: ex a suppliers
valueadded 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.

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 sites
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.
Supplier 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.
Click to Launch the Merge Program.

Review the Supplier Merge Report after the
request completes.
The Supplier Merge

The Supplier Merge
Program is a utility which
Program is a utility which
can be used to maintain
can be used to maintain
the supplier records. One
the supplier records. One
can merge duplicate
can merge duplicate
suppliers into a single,
suppliers into a single,
consolidated supplier or
consolidated supplier or
merge transactions within
merge transactions within
the same supplier from
the same supplier from
one supplier site to a
one supplier site to a
different supplier
different supplier
Site or merge all
Site or merge all
transactions for a supplier
transactions for a supplier
into a new supplier, or
into a new supplier, or
merge unpaid invoices.
merge unpaid invoices.
When one chooses to
When one chooses to
merge all invoices,
merge all invoices,
payments are merged as
payments are merged as
well. Payables makes
well. Payables makes
inactive any supplier
inactive any supplier
sites and / or the Supplier
sites and / or the Supplier
depending on the options
depending on the options
selected.
selected.
Credit Cards
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.
Maximum Amount Per

Transaction. to override the card
holder's authorized amount per
transaction
Enter the Supplier details

(Merchant Establishments)
with which this card scheme
is tied up.
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.
Procurement Cards
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.
To review and update credit card

To review distributions.
and update credit card
transaction
transaction distributions.
During Payables Open Interface
DuringPayables
Payablesconverts
Open Interface
Import,
Import, Payables
converts
transaction
distributions
into
transaction
invoices
with distributions
distributions.into
One
invoices
with
distributions.
One a
can
also use
this
window to split
can also use
this window
transaction
distribution
into to split a
transaction
distribution
intocan
multiple
distributions
which
multiple
distributions
which can
then
be processed
separately.
The
then
be processed
separately. The
total
amount
of the transaction
total amount
of the
transaction
distributions
must
equal
the
distributions
must equal the
transaction
amount.
transaction amount.
Click to enter the

distributions.
Procurement 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).
Accounting Methods
While 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.
Accounting Entries
Accounting 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 suppliers 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 Suppliers a/c balance by the payment amount. Payments do not give
raise to tax postings.
Accounting Entries (Contd)

Accounting Event
Account Head
Entering Invoices
Expense / Asset A/c
Making Payments
Debit
100$
Tax A/c (say 10%)
10$
Supplier Liability A/c
90$
90$
Cash/Bank/Cash Clearing A/c
Cr. Or Dr. Memos
Credit
90$
50$
Expense / Asset A/c
45$
Tax A/c (say 10%)
5$
Accounting Entries (Contd)

Accounting Event
Account Head
Entering
Prepayments
Advance A/c
Adjusting
Prepayments
Debit
Credit
100$
Tax A/c (say 10%)
10$
90$
Expense / Asset A/c
200$
Advance A/c
100$
Tax A/c (say 10%)
10$
90$
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.
AP Set-Up
Steps 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.
Invoice 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.
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
Define payment terms to

Definetopayment
terms
assign
an invoice
to to
assign
to
an
invoice
to
automatically create scheduled
automatically
scheduled
payments
whilecreate
submitting
payments
while
submitting
Payables Invoice Validation for
Payables
Validation
the
invoice. Invoice
One can
create for
the invoice.
One can
create
multiple
scheduled
payment
multiple
scheduled
payment
lines and multiple levels of
lines and Payment
multiple levels
discounts.
terms of
discounts.
Payment
terms
have
one or more
payment
havelines,
one or
more
terms
each
of payment
which
terms lines,
each of which
creates
one scheduled
creates
one
payment. Eachscheduled
payment terms
payment.
Eachthe
payment
line
also defines
due orterms
line alsoamount
defineson
the
discount
a due or
discount amount
onOne
a has
scheduled
payment.
payment.
One has
toscheduled
specify payment
amounts
to
specify
payment
amounts
either by percentages or by
either
by percentages or by
fixed
amounts.
fixed amounts.
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
Invoice 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
Invoice Setup: Tolerances

Enter 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.
Invoice 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.
Payment 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.
Payment Setup: Interest & Bank Charges

Enter 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

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

This 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.
AP Setup: Financials Options

Future 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.
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.
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.
Use the Financials Options

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

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.
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.
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.
Min Accountable Unit. Indicate the smallest

monetary unit to which one wants to round the tax
amount..
Use PO Encumbrance. To encumber funds for PO, PO and

receipt matched invoices, and basic invoices (not matched).
Default Tax Code. Tax code default value for the

Invoice Tax Code option in the Suppliers window.
PO Encumbrance Type. To identify the PO encumbrance

journal entries.
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).
Invoice Encumbrance Type. To identify invoice

encumbrance journal entries.
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.
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.
AP Setup: Payables Options

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.
To set control options and

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

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.

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.
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.
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.
Prepayment Payment Terms. Payment terms to use for all prepayments/..
Confirm Date as Invoice Number. To accept the

invoice date as the default for invoice number during
invoice entry.
Prepayment Settlement Days. No of days to add to the system date to calculate a default
settlement date for a prepayment.
Allow Online Validation. To allow users to select

Invoice Validation from the Invoice Actions
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.
Allow Document Category Override. To allow users

to override the default Document Category assigned to
an invoice by Payables.
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.
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.
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.
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.
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

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.

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.
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.
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
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.
AP 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
AP Setup: Procurement Card Code Sets

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.
To define sets of credit card

To define
setsbe
of used
credittocard
codes
that can
codes
that
can
be
used to
create default accounting
create default
accounting
distributions
for transactions
distributions
for transactions
that
are imported
from credit
thatissuer.
are imported
from
credit
card
The card
issuer
card
issuer.
The
cardtoissuer
maintains card codes
maintains
card codes
to
identify
suppliers
and supplier
identify
suppliers
and supplier
types
for the
transactions
that
types
for the transactions
the
employees
incur when that
the employees
incurcard.
when
using
a procurement
using
procurement
card.
One
cana assign
a default
One
can
assign
a
default
account to a card code so that
account
to a card for
code
so that
when
a transaction
that
when
a transaction
thatcan
card
code
is imported,forone
card code
is imported,
one can
create
a default
accounting
create a default
distribution
for theaccounting
transaction
distribution
thecode
transaction
based
on the for
card
for the
based on the card code for the
transaction.
transaction.
AP Setup: Procurement Card Profiles

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.
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.
To define profiles for the various types and levels of

To defineallowed
profilesfor
forcredit
the various
types and
of
spending
card holders.
Onelevels
assigns
creditcard
cardthat
holders.
Onetoassigns
a spending
credit cardallowed
profile for
to each
is assign
a
a credit
card
profile
card that
is assign
to a
card
holder.
The
levelto
of each
employee
verification
and
card holder.
The level
of employee
verification
and
manager
approval
required
for employee
credit cards
approval
required for
employee Additionally,
credit cards
tomanager
which a profile
is assigned
is specified.
to which
a profile
is assigned
specified.
Additionally,
one
can define
the GL
accountsisthat
are displayed
one a
can
define
theuses
GL accounts
thatWeb
are displayed
when
card
holder
Self-Service
when a cardtoholder
Self-Service
Web
Applications
updateuses
the status
or GL account
of a
Applications to update the status or GL account of a
transaction.
transaction.
AP Data Model
Oracle 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.
How AP Tables Are Affected?

AP_BATCHES
AP_CHECKS
AP_INVOICES
AP_INVOICES_
DISTRIBUTIONS
AP_PAYMENT_
SCHEDULES
Invoice Group
AP_INVOICE_PAYMENTS
Payment Group
Innovative Uses
Web-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 suppliers expense of generating invoices and the buyers 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 employees liability to pay the card issuer
Maintenance and Reports

Maintenance:
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,
Q&A

Oracle Accounts Payable

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Oracle Accounts Payable

Uploaded by

Copyright:

Available Formats

Oracle Applications 11i

A Presentation by EAS Oracle Applications

Accounting Methods &

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

Integration With Other Oracle Suite

Enter Invoices (This process may or may not include PO matching)

Payables Cycle (Contd)

Enter Invoices Header

To make any adjustment to an invoice's scheduled

Enter Invoices Header (Contd)

Select/Enter the Invoice Type, Supplier Name,

Select / Enter the GL Date, Payment Currency,

A regular supplier invoice.

An invoice received from a supplier representing a credit for goods or services

An invoice to notify a supplier of a credit recorded for goods or services

For recording business-related expenses for employees.

An invoice for which the matching PO no is known.

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

To make advance payments for expenses/capital items where the goods/services

Enter Invoices - Distribution

Match an invoice to a purchase

Create Tax distributions through

Enter the Invoice Line Amount, Tax Code, GL Date,

To automatically create tax,

To reverse the existing

Based on the Tax Code, AP

Create Freight Distributions by

Enter Invoices Distribution (Contd...)

Select whether to Prorate

Select the Distribution Lines against

Amount allocated to the

Click to initiate the

Enter Invoices - Actions

Enter Invoices - Holds

Enter the Hold Name and Save the

Reflects the PO and

Click and then Enter the Release

Enter Invoices Schedule Payments

Payables calculates the date

Enter Invoices Batch Mode

Enter an Invoice Batch

Enter the Invoice

Click to validate all the

Payables uses information

Enter at least one invoice line. The following

Enter a unique value for the Gateway

Then submit the Payables Open

Click to launch the process of creation of invoices. The Create

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

Expense Report (Contd)

Apply Advances. Enable

Enter the Functional

Name of an expense item, amount of an

Create up to two special one-time invoice amounts of a non-standard amount, such as a

Recurring Invoices Special Calendar

Select the Type as

Enter a Period Name, Year, Seq (Calendar Seq), From

Recurring Invoices Distribution Sets

Use a Distribution Set to

Enter the Line No, Allocation in %,

Enter the Project

Use Full Distribution Sets to

Recurring Invoices Create

Enter the Header