First Cut Training

Accounts Payable Overview Training

On
Oracle Applications

Agenda
1.

Introduction
1.1 Payables Overview
1.2 Integration With Sub-Ledgers
1.3 Process Flow
1.4 Payable Cycle

2. Supplier Definition
3. Invoices
4. Payments
5. Accounting & Reporting

Payables Overview
Oracle Payables consists of four major functions:

Set Up Suppliers

....

Enter and Approve Invoices

Payment of Invoices

Accounting & Reporting

Integration With Sub-Ledgers

HR

Workflow
PA

PM

AP

FA

PO

GL
INV

Oracle EDI

Process Flow
Oracle Purchasing

Oracle Inventory

Oracle Payables

Oracle Cash
Management

Place Orders
Requisition
Receive Goods
Purchase Order

Manage the Payables Process

Raise a Receipt
Record Invoices Received
Inspection

Validate and
Approve
Invoices

Store Goods
Pay Invoices
Account & Transfer to
General Ledger
Update Account
Balances

Reconcile
Payments

Payables Cycle
Enter/Interface
invoices
or batches

Approve
Invoices

Create
Payments

Match to PO

Reconcile
Payments
Transfer to
General Ledger

Create Journal
Entries

Supplier Definition
Suppliers:
Define suppliers to record information about companies and individuals from whom
we purchase goods and services.
Define different Supplier Sites for each operational location of the supplier.
Classify Supplier based on nature of Business Transactions for various reporting
purposes.

Supplier Definition

Supplier Definition

Invoices
Invoice Workbench
Invoice Workbench is used to record invoices received from suppliers.
Enter Invoice in Batches or Individually.
Enter Invoices of Different Types as per the Business Requirement E.g Standard Invoice, Credit
Memo etc.

Invoices
Invoice Types
Standard

Invoice from vendor for good/services purchased

Credit Memo

Memo from a vendor for credit towards goods /services

Debit Memo

Memo to a vendor for debit towards goods /services

Expense Report Invoice for employee business related expenses

PO Default

Invoice you enter for matching to PO, enter PO number,

and payables automatically defaults supplier information

Prepayments

Invoice to pay an advance payment for expenses to

employees and suppliers.

Withholding Tax Invoice entered to remit taxes withheld to the appropriate

tax authority

Quick Match

Enter PO number, payables automatically defaults

supplier information and matches to each shipment on the PO

Mixed

Can enter both +ve and -ve amount to match to PO and Invoices

Invoices
Invoice Batches

Invoices
Invoice Workbench

Invoices
PO Matched with Invoice

Invoices
Invoice Enquiry

Invoices
Recurring Invoices

You can enter invoices for periodic expenses which are repetitive. This can be used
for those types of expenses for which you may not receive invoices, such as
Rent. To enter recurring invoices, first define a recurring invoice template, then
create invoices based on the template.

Invoices
Recurring Invoices

Invoices
Expense Reports
Use the Expense Reports window in Payables to enter Employee expenses such as
Reimbursements of Travel Expenses etc.,
1.Expense Reports can be submitted by your enterprise's employees using Oracle Internet
Expenses.
2.Expense Reports entered in Oracle Projects and then transferred from Projects to
Payables.

Invoices
Expense Reports

Invoices
Invoice Approval Workflow
The Invoice Approval Workflow automates your invoice approval process.
Based on rules you define, the workflow determines if an invoice needs
approval, who the approvers are, and in what order approvers should approve
payment of the invoice.

Payments
Payment Methods
There are four types of Payment methods

1.Check :
Payment in a payment batch, Quick payment, or manual payment.

2.Clearing:
Payment method you use to account for intercompany expenses when you do not actually
disburse funds through banks.

Payments
3.Electronic:
You pay electronic payments either through the eCommerce Gateway, or by delivering a
payment batch file to your bank. For both methods, Payables creates a file during payment
batch creation.

4.Wire:
A payment method where you pay invoices outside of Payables by notifying your bank that
you want to debit your account and credit your suppliers account with appropriate funds.
You provide your bank with your suppliers bank information, and your bank sends you
confirmation of your transaction. Your suppliers bank sends your supplier confirmation of
the payment.

Payments
Payment Types
There four types payment types

1.Manual:
When you create a payment outside of Payables, for example, using a typed
check or wire transfer, within Payables you can record the payment and update
the invoices that you paid. Also use this method to pay invoices with the Clearing
payment method.

2.Quick:
You can create and print a computer generated payment to pay a supplier for one
or more invoices. You can also create a check, save it, then print it later.

Payments
3.Batch/Batch Sets:
Use payment batches to create payments for multiple invoices that meet selection criteria
you specify. You can use payment batch sets and payment batch templates to predefine
payment batch criteria for payment batches you frequently process.

4.Refund:
When a supplier or employee sends you a refund for an invoice payment you have made,
you can record the refund in Payables. A refund closes out an outstanding credit balance,
so you are actually making a negative payment for a credit balance.

Payments

Accounting & Reporting

Create accounting entries by submitting Payables Accounting Process Report or create
entries from the transaction window for a specific invoice, invoice batch, payment,
or payment batch.

View Accounting Lines: View Accounting for transactions in AP

Update Accounting Entries. In this window you can update accounts on any
accounting entries that were created with invalid accounts or with errors.

View Encumbrance and Funds Available information in AP

Accounting & Reporting

View Accounting Lines

Accounting & Reporting

PAYABLES

GENERAL LEDGER
2
GL Interface

Accounting
Run: Payables
Transfer to GL
1
Run:Payables
Accounting Process

Transactions

3
Run:
Journal
Import

Journal
Entries

Accounting & Reporting

Accounting Reports
Accounts Payable Trial Balance Report
Payables Account Analysis Report
Payables Accounting Entries Report
Payables Accounting Process Report
Unaccounted Transactions Report

Key Indicators Report

Key Indicators Current Activity Report
Key Indicators StateoftheSystem Report

Payment Reports
Cash Requirement Report
Final Payment Register
Payment Register

Invoice Reports
Invoice Aging Report
Invoice Register
Prepayment Status Report