oracle accounts payable
TRANSCRIPT
ORACLE ACCOUNTS PAYABLE
Release 12 Upgrade Considerations
New features in Release 12 of Oracle Payables
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
SUPPLIERS IN THE TRADING COMMUNITY ARCHITECTURE (TCA)
The Trading Community Model: Is a highly flexible architecture Allows you to model real world entities in your
trading community Allows you to accurately represent complex
relationships among entities Is the core data model for trading partners used by
Oracle E-Business Suite applications
TCA SECURITY BY FUNCTIONAL AREAS
Function Security
PayablesAttributes
PurchasingAttributes
ReceivablesAttributes
PAYMENT BANKS, BRANCHES, AND ACCOUNTS
Bank Accounts are: Centrally defined Managed and secured Include the legal ownership and operating unit
access for each bank account
SUPPLIER BANK ACCOUNTS
Enhancements to supplier bank accounts include: Removal of some processing restrictions Greater control and security The bank account is tied directly to the trading partner Notification when trying to inactivate a bank account
that is associated with unpaid invoices or pay runs that are in process
COLLABORATION WITH SUPPLIERS TO RESOLVE DISPUTES
Disputes are communicated and negotiations can be suggested to the Supplier
Suppliers are able to: Accept suggested changes Withdraw their invoice Submit a counter proposal Negotiate online via iSupplier Portal
All changes and comments are tracked in Payables
INVOICE REQUESTS
Invoice Requests are: Invoices entered by Suppliers via iSupplier Portal
where a purchase order has not been obtained Are visible in Oracle Payables Are not paid or accounted until the invoice can be
verified and approved
IMPLEMENTATION CONSIDERATIONS
End user training for new UI Update supplier information with additional information
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
DEFERRED RECOVERABILITY
Accounting process where tax recovery is reported when the invoice is paid
Accrual (and therefore the settlement and/or reporting) of recoverable taxes is delayed due to special tax rules either enforced by the Tax Authority, or allowed with the agreement of the Tax Authority
DEFERRED RECOVERABILITY FEATURES
Accurate reporting and accounting of pending recoverable tax amounts
Automatic accrual of recoverable tax amounts upon payment
DEFERRED RECOVERABILITY BENEFITS
Global Readiness Adhere to international tax laws
Streamlined Operations, Operational Excellence, and Lower Costs Automatic accrual of recoverable tax amounts obviates
need for manual transfers after payment transactions Propensity for manual error is reduced
Improved Fiscal Discipline Accounts reflect transactions that have occurred Automated accounting reduces auditing time
DEFERRED RECOVERABILITY PROCESS PART 1: SET UP AND INVOICE
Tax Engine
Tax Set Up
Process 1
E-Business Tax
Interim (deferred) Recoverable Tax
Accounts Payable Liability
X.XX X.XX
Non Recoverable Tax
X.XXExpense/Asset X.XX
Invoice details
Tax (Includes Interim Recoverable Tax Distribution Account)
Invoice Header
Invoice Lines
Invoice Distributions
Account
Subledger Accounting
Payables Invoice Entry
DEFERRED RECOVERABILITY PROCESS PART 2: SET UP AND PAYMENT
InvoicesInvoicesTax Set Up
Process 2
Payables Payment E-Business Tax
Recoverable Tax X.XX X.XX
Accounts Payable Liability X.XX
Invoice details
Recoverable Tax Distribution Accounts
Invoices
Account
Payment Invoices with Deferred Recoverability ?
Calculate Recoverable Amounts, Record Distributions
Optional Set Up
Cash Clearing
X.XX
Interim (deferred) Recoverable Tax
Subledger Accounting
SETUP TAXES WITH DEFERRED RECOVERABILITY
Level Allow Tax Recovery
Default Recovery Settlement
Tax Accounts
Regime Deferred
Tax Deferred •Tax Expense•Recoverable Tax•Interim Tax (used for Accrual Based accounting only)
Tax Status Deferred
Tax Rate Deferred
IMPLEMENTATION CONSIDERATIONS
Common Module Dependency: E-Business Tax
The e-Business Tax engine is responsible for calculating tax amounts applicable to invoices.
E-Business Tax configuration qualifies taxes with attributes to meet tax compliance requirements.
Common Module Interaction: Subledger Accounting: A general tool to configure
accounting entries and provide accounting reports.
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payable
ENHANCED ASSET TRACKING
Enhanced Asset Tracking Item Description Manufacturer Model Serial Number Warranty Number
Enhanced Mass Additions Asset Book Asset Category IPV/ERV distributions
ENHANCED ASSET TRACKING BENEFITS
Increased efficiency and reduced costs Asset information typically entered on a purchase order
can now flow seamlessly into Payables and Assets. Improved accuracy of information
The Create Mass Additions process can now be submitted to select invoice distributions by specific Asset Book.
ENHANCED ASSET TRACKING PROCESS
Enter Payables Invoice andmatch to Purchase Order orImport Purchasing matched invoice
Optionally update asset informationon invoice line or distribution, includingasset book and asset category
PAYABLES PROCESS
Submit Create Mass Additions process to transfer assets toOracle Assets
Payables retains assetinformation such as: manufacturer, serial number, asset book and category
Automated process
INVOICE LINES
Invoice Lines: Represent goods or services as lines with
distributions tied to each line Facilitates the capture and transfer of pertinent
information from Oracle Projects and Oracle Assets Enables line level approval and matching between an
invoice line and a purchase order shipment pay item
IMPLEMENTATION CONSIDERATIONS
Do the enhanced asset tracking features require re-evaluation of asset tracking policies?
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
PAYMENT REQUESTS KEY CONCEPTS
Payment Request A request for payment to Oracle Payables without
requiring a supplier, purchase order or standard invoice Oracle Loans: Loan Funding Disbursement Oracle Receivables: non-credit card Customer Refund
Requests
Payee Designated party to which the payment will
be made A payee can be a supplier, borrower, or
customer
PAYMENT REQUESTS DESCRIPTION
Receivables
Loans
Payment Request
Account payables department approves request
submits
If requires approval, PayablesLaunches Workflow
Payables applies holds, if necessary Pay
No approval required
PAYMENT REQUESTS BENEFITS
Benefits for Payables managers Ensures the Integrity of Supplier Master
Do not complicate Supplier Master with non-supplier payees
Provides Payables transparency Provides visibility and control over items for payment
processingBenefits for other E-Business Suite products
Leverages the Payables product for all payment needs Leaves the required knowledge base in Payables
without complicating your business model or employee structure
Provides visibility into the current status
PAYMENT REQUESTS PROCESS
Report
Oracle Receivables
E-Business Suite Product
Receipts
On Account Credit Memos
VerifyAccountTaxApprove
Payables
Payment Request
Payment Request IDOracle Loans
Loans
Payment Request
PaymentPayment Request Status
Vision CorporationPayables
ApprovePayment Manager
Manages items to be paid
Payment Transacted to Payee
Customer Receives Payment $5000.00
ABC Company
Purchases: 3 Copy Machines
Returns 1 Copy Machine for Refund
Vision Corporation Receivables
Manages Receivables Transactions for return
Initiates Payables Request $5000.00
View Status if needed
Vision Corporation
Ship
Return
Refund
Pay
Payment Request for $350,000
Payment Request for $5000
ORACLE RECEIVABLES – REFUND EXAMPLE
Payment Manager
Visibility to all Payables’ Liabilities
Manages items to be paid
Reports to Upper Management
FUNDS DISBURSEMENT PROCESS - LOANS
IGNF FoodsRequests a Loan for 350,000 from Vision Loans
Vision Loans
Application Processing
Risk Management
Approvals
Fund
Vision Loans Payables
Payment Request
for $350,000
Loan Funded
Sends Borrower Payment
PAYMENT REQUEST – ADDITIONAL PAYABLES ACTIONS
Void
Oracle Receivables
E-Business Suite Product
Receipts
On Account Credit Memos Cancel
Payables
Payment Request Cancelled
Oracle Loans
Loans
Payment Request
PaymentPayment Voided
PAYMENT REQUESTS: SYNCHRONIZING BETWEEN PRODUCTS
Payables provides the ability for requesting E-Business Suite products to respond to actions taken on the payment request. These actions include: Canceling the payment request Voiding the payment
To ensure that the Payment Request details remain the in sync between Payables and the requesting E-Business Suite product, Payables prevents: Deletion the Payment Request Update to many fields
PAYMENT REQUESTS REPORTINGReport Name Change
Invoice Aging Report Includes Payment Requests in Aging Report
Invoice Approval Status Report
Modified to show payment requests in the approval workflow process
Invoice Audit Listing By Voucher Number
Expanded to include Payment Requests by sequential voucher number
Invoice On Hold Report Expanded to include Payment Requests on Hold
Open Items Revaluation Report
Modified to include Payment Requests in revaluating balances
Cash Requirement Report
Includes Payment Requests for forecasting cash needs
PAYMENT REQUESTS OPTIONAL SETUP
Oracle Payments Oracle PaymentsApprovals Management
Payment Method ControlsPayment Method Defaulting Rules Payment Instruction and Report FormatsPayment Attribute ValidationsPayment Process ProfilesDisbursement Options
Payables Options:Enable Invoice Approval Workflow
Approval Rules AP Invoice Approval
PAYMENT REQUESTS MISCELLANEOUS SET UP
Document Sequencing - Payment Request Category Payables and Financial Options
IMPLEMENTATION CONSIDERATIONS
Interactions with: Oracle Payables & Payments Oracle XML Publisher Oracle Approvals Management / Workflow (Optional) Oracle Loans; Oracle Receivables
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT INFORMATION
Enhanced Payment Method Controls Expanded Payment Attribute Availability and Defaulting Configurable Payment Attribute Validation Extensive Format and Reporting Capabilities
KEY CONCEPTS Document Payable: A document to be paid by the deploying company (Payer)
Payee: The person or organization that is being paid Payment Process Request: The process of requesting
the payment processing for a group of invoices Payment Instruction: Formatted payment information
that is either transmitted to a financial institution for payment or used in-house to print check documents
KEY CONCEPTS
Payment Process Profile: Usage and grouping rules, bank assignments, payment instructions and reporting, and connectivity for electronic filing
Oracle Payments: E-Business Suite module leveraged to group invoices into payments, create instructions, and print or communicate with the bank
KEY CONCEPTS Payment Method: Document payable attribute that
indicates how the payer is going to make the payment
The Payment Method, Banking Relationships, and Reporting Requirements drive Payment Method - Based Payment Processing including: Payment attribute validations executed on the invoice to
catch errors early Payment attribute validation at payment time based on
your processing choices to catch errors before they go out the door
Data rich payment instructions and reporting
EVALUATE PAYMENT CHOICES – REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS
Banking Relationships
Vision Operations
Payment Method Choices
Attributes to communicate to bank
EVALUATE PAYMENT CHOICES – REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS
Banking Relationships
Vision Operations
Reporting Requirements
Legal EntityOperating UnitTransaction TypeForeign or Domestic CurrencyForeign or Domestic LocationReporting Requirements
Payment Method Choices
Attributes to communicate to bank
EVALUATE PAYMENT CHOICES – REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS
Banking Relationships
Vision Operations
Reporting Requirements
Payee Relationship
Legal EntityOperating UnitTransaction TypeForeign or Domestic CurrencyForeign or Domestic LocationReporting Requirements
Payee PreferencesPayment Reconciliation to Open Debt
Payment Method Choices
Attributes to communicate to bank
EVALUATE PAYMENT CHOICES – REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS
Invoice
Payment
Banking Relationships
Vision Operations
Payment Method Policy
Payee Payment Attributes
Payment Processing Configuration
Reporting Information and Styles
Reporting Requirements
Payee Relationship
Payment Information
ENHANCED PAYMENT METHOD CONTROLS DESCRIPTION
Users can create new Payment Methods as needed A Policy can be defined for the Payment Method
usage based on: Oracle Application Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location
ENHANCED PAYMENT METHOD CONTROLS BENEFITS
Provide the ability to set up multiple Payment Methods to meet specific business requirements
Controlled availability of Payment Methods
ENHANCED PAYMENT METHOD CONTROLS PROCESS – ENTER PAYABLES DOCUMENT
• iSupplier Portal• Import
Supplier
Payables Analyst
Employee: Decentralized Invoice Entry• Payables Requests
• Quick Invoice• Invoice Workbench• Recurring Invoices
• Pay On Receipt Import• Payment Requests• Expense Reports
ENHANCED PAYMENT METHOD CONTROLS PROCESS – ENTER PAYABLES DOCUMENT
Payment Method defaults based on your configuration.
The attributes on invoices meet requirements to default the payment method via the Defaulting Rules.
The Disbursement System Options allow for the Payee’s default to override.
You can define a default payment method for the Supplier Site (for example, “Check”)
If you need to override the default, the List of Values displays the Payment Methods that meet the Usage Rules defined for the Payment Methods.
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – DEFINITION
Payment attributes are items on the document payable that play a role in: Successful payment processing of a document payable Reporting requirements Payee payment and remittance
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING DESCRIPTION
Global Descriptive Flexfields (GDFs) for payment and remittance processing are now available as fields on the invoice
Payee Payment Processing Preferences for Defaulting Bills Payable (Promissory Notes, Future Dated
Payments) defined for the Payee
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – BENEFITS
Enhance supplier/payee relationships Minimize data entry Facilitate payee’s reconciliation of payments and
open debts Satisfy reporting requirements
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – ENTER PAYABLES DOCUMENT
• iSupplier Portal• Import
Supplier
Payables Analyst
Employee: Decentralized Invoice Entry
• Payables Requests
• Quick Invoice• Invoice Workbench• Recurring Invoices
• Pay On Receipt Import• Payment Requests• Expense Reports
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - PAYMENT ATTRIBUTES DEFAULTING
For Payables users, the Invoice Workbench is accessed through the folder form technology.
The Payment Method, Remit To Bank Account Number and Name, and Remittance Messages are used to default to the Scheduled Payments.
Users can enter the Unique Remittance Identifier and Check Digit per invoice and Remittance Messages per scheduled payment.
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - UI
Quick Invoices: The Quick Invoices UI also has the same capabilities as Payment Attributes Defaulting
Payment Attributes for Recurring Invoices default under the Payment Tab. The Payment Tab values are transferred to the subsequent invoices that are created.
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION DESCRIPTION
Enhanced Invoice Entry Validation Configure validation on the Payment Method to meet
your business needs Analyze and resolve validation issues upfront at
invoice-entry timeEnhanced Payment Processing Validation
Configure validation on the Payment Format and Payment Process Profile to meet your business needs
Payment Manager can analyze and resolve validation exceptions or Automatically remove the Invoices to resolve issues while keeping payment processing streamlined
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION BENEFITS
Increased Payment Process Efficiency - On time Payments
Reduce Problem/Resolution Costs Reduce Check Stock Waste Catch Errors before send the file to the bank
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: SCHEDULED PAYMENT HOLDS
Find and resolve payment related issues upfront during Invoice entry: Payment Method Validation General Tab: Scheduled Payment Holds Scheduled Payments Tab: Hold Details
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: INVOICE ON HOLD REPORT
The Invoice on Hold report is a tool to identify and analyze all the invoice holds including scheduled payment holds.
The Invoices on Hold Report lists: Payment schedule holds for payment method validation Invoice entry status Imported invoice status
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES
During the payment process, determine what should happen if validation errors occur.
Separately, determine how you would like payment level validation issues to be handled.
The Payment Template User Interface is used when scheduling Payment Process Requests and can be used when submitting an “on demand” pay run allowing you to override the template value when you submit.
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES
The Payables Payment Manager Home Page displays Payment Process Requests that Require Actions, including validation errors
The Pending Actions area displays payment process requests with validation errors
Based on the Payment Process Request Status, you are directed to the correct UI to manage the action by clicking on the Start Action icon
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES
Use the Payables Payment Process Requests Tab to display rejected or manually removed scheduled payments (invoices.) In addition, you can: View the last 10 Payment Process Requests, which
are automatically displayed Show Request Details to see payment instruction
details Search/ See Current Status Navigate directly to the Action Page if
Required Cancel Requests
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING - BENEFITS
Reduce Reaction Time to Changing Banking Relationships - Flexible, Adaptable Payment Instruction Formats
Facilitate Payee’s reconciliation of payments and open debts
Satisfy Reporting Requirements
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING
Access the following setup pages from the Payment Administrator page: XML Publisher Format Templates Formats Payment Process Profiles
XML PublisherTemplates
Formats
Payment Process Profiles
PAYMENT INSTRUCTION FORMATS AND REPORTING XML PUBLISHER TEMPLATES
The Payment Instruction Register Template includes the Unique Remittance Identifier
To create a different report layout or include different data elements, create your new version and register it via this XML Publisher page
XML PublisherTemplates
Formats
Payment Process Profiles
PAYMENT INSTRUCTION FORMATS & REPORTING XML PUBLISHER TEMPLATES
XML PublisherTemplates
Formats
Payment Process Profiles
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING
The Formats page ties the XML Publisher Template to the Payment Disbursement Remittance Formats and Reports.
There are many types of formats available: Payment Instructions Payment Instruction Accompanying Letter Positive Pay File Regulatory Reporting Payment Instruction Register Separate Remittance Advice, which can
later be assigned to the Payment ProcessProfile
XML PublisherTemplates
Formats
Payment Process Profiles
FORMATS & REPORTING PAYMENT PROCESS
Specify Usage Rules: Payment Methods ties the Payment Method to Payment Process Profiles
The Payment Process Profile is where you tie in your list of Payment Methods that can use this profile.
XML PublisherTemplates
Formats
Payment Process Profiles
FORMATS AND REPORTING PAYMENT PROCESS
Specify Payment Creation Grouping Rules on the Payment Creation tab
Optionally Group by Document Payment Attributes The payment attributes on your invoices can be
used as grouping rules when “building or assembling” each payment This may be required to meet your bank’s
format needs or for your reports
XML PublisherTemplates
Formats
Payment Process Profiles
FORMATS & REPORTING PAYMENT PROCESS
Use the Payment Process Profiles screen to specify Payment Instruction Grouping Rules, including by Payment Attributes such as: Payment Reason Bills Payable Payment Methods
XML PublisherTemplates
Formats
Payment Process Profiles
FORMATS AND REPORTING PAYMENT PROCESS
The Payment Instruction Format is assigned on the Payment Instruction Format tab
You can assign: The Payment Instruction Accompanying Letter format
XML PublisherTemplates
Formats
Payment Process Profiles
FORMATS & REPORTING PAYMENT PROCESS
Use the Reporting Tab to assign the formats for the: Payment Instruction Register Positive Pay File Separate Remittance Advice
XML PublisherTemplates
Formats
Payment Process Profiles
SETUP PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT
Configurable Payment Attribute Validation View available validations Payment methods Payment process format Payment process profile
Expanded Payment Method Instruction formats and reporting Controls Defaulting
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP
View Validations Payment Method Payment Instruction Format Payment Process Profile
Payment Method
Payment InstructionFormat
SETUP
Payment Process Profile
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP CONSIDERATION
When determining how to configure Payment Attribute Validation, consider the Three Models: One Method, One Payment Process Profile (one
Payment Instruction Format – one set of reports) One Method, Many Payment Process Profiles (each
with one Payment Instruction Format – one set of reports)
Many Methods, One Payment Process Profile (one Payment Instruction Format – one set of reports)
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATIONSETUP: VIEW AVAILABLE VALIDATIONS
Validations can be assigned to Payment Methods and Payment Instruction Formats.
Validation Points indicate when the validation can occur and controls the list of values on Payment Methods and Formats.
Validation Points are: Document Payment Payment Instruction
Payment Process Profile
Payment Method
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATIONSETUP – PAYMENT METHODS
Direct Deposit Payment Method In the validations area, assign pre-
defined validations or configure your own.
When configuring your own validations, choose a Field Name from the list of values.
Based on the field name, assign a validation name. For example, you can specify that the
Payee’s bank account is required and can be only integers and that a Payment Reason is required. Payment Process
Profile
Payment Method
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS FORMAT
Payment Instruction Formats: Pre-defined Validations for your use User-defined Validations provide flexibility Optionally Use User-defined Validations to
Supplement Pre-defined Validations
Payment Process Profile
Payment Method
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS PROFILE
Payment Process Profiles include: The type of processing (electronic or in-house printing) Use controls based on a list of payment methods, bank
accounts, first party legal entities, and currencies Payment instruction and reporting formats Payment system configuration Payment creation rules
Payment Process Profile
Payment Method
Payment Format
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING SETUP
Use “Out of the Box” Payment Instruction Formats and Reports or Configure XML Templates
Assign to your Payment Process Profiles
XML Publisher Templates
Payment Formats
Payment Process Profiles
SETUP
ENHANCED PAYMENT METHOD CONTROLS SETUP
Define Payment Methods Define Payment Method Defaulting
Rules Specify Payment Method defaulting
mechanism Assign Payment Methods to the
Payee
Payee Payment Method Assignment
SETUP
Payment MethodDefaulting Rules
Payment Methods
Disbursement System Options
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - SETUP
Define Delivery Channels, Payment Reasons, and Bank Instruction Codes
Define Payee Payment Attributes
Tailor Invoice Entry UI with Oracle Folder Forms
Delivery Channels, Payment Reasons, Bank Instruction Codes
Payee Payment Attributes
SETUP
Folders
IMPLEMENTATION CONSIDERATIONS
Oracle Payables & Payments XML Publisher
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
SELF ASSESSED TAX DESCRIPTION
Self assessed taxes are taxes which need to be reported but are not a liability to the supplier
The purchaser is responsible for calculating and remitting the tax
SELF ASSESSED TAX FEATURES
Predefined or manual determination of Self Assessed Tax
Determine recoverable & non-recoverable portions of self assessed tax amounts
Reporting and accounting for Self Assessed Tax amounts
Reporting and accounting for Self Assessed Tax Liabilities
SELF ASSESSED TAX BENEFITS
Improved Fiscal Discipline Maintain an audit trail for the tax amounts and the
invoices they tie to More granular and accurate accounting
Improved Operational Excellence Reduced propensity for human error
SELF ASSESSED TAX PREDETERMINED PROCESS
Payables Invoice E-Business Tax
Invoice Header
Tax Engine
Configuration
Invoice Lines
Non Recoverable tax
Recoverable Tax
X.XX
Self Assessed Liabilities
X.XX X.XX
Tax SummaryTax (Self Assessed)
Invoice details
Stored Accounting Information
Subledger Accounting
SELF ASSESSED TAX PROCESS – 1. PREDETERMINED
Set up Invoice Tax calculation Accounting Reporting
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX: PREDETERMINED PROCESS – INVOICE ENTRY
Use the Payables’ Invoice Workbench to enter invoice header and lines information
Many tax drivers default onto the transaction, however, Payables users can also update or enter these values
The lines region displays some of the new columns added to help derive tax, including: Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX
To view the calculated tax, click the “Calculate Tax” button on the Lines tab
The E-Business Tax Service engine calculates tax based on it’s configuration, including determining if the tax should be selfassessed
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX EXAMPLE
Report
Set up
Invoice
Calculate tax
Account
Vision InvoiceInvoice Amount = $1000Self Assessed Tax Amount = $50
Suppliers InvoiceSubtotal = $1000Tax = $0Total = $1000
SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX
On the Lines tab, you can click the Tax Details button to view tax details such as: Tax Regime Code Tax Jurisdiction Tax Status Rate Name Rate Tax Amount Whether the tax is self assessed
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX PROCESS – ACCOUNT
After validating and accounting the invoice, view the accounting by choosing Reports – View Accounting from the menu bar
Personalize the View to meet your needs Leverage Subledger Accounting to tailor
journal & journal line descriptions and account derivation rules
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX PROCESS – ACCOUNT
You can customize what is displayed on the Subledger Journal Entry Lines page
You can also configure Subledger Accounting for account derivation and journal & journal line descriptions
Self assessed rows are not shown in the Invoice Workbench Distributions Window because they are not represented on the supplier’s invoice
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX SETUP – REPORTING CHOICES
Subledger Accounting: Provides reports for your accounting activity Reports use XML Publisher, giving you the
flexibility to configure the layout and report type at any time
Reports include: Account Analysis Report Open Account Balance Listing report
Gives you flexibility to configure: XML Publisher Report Layout XML Publisher Report Type
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX SETUP – REPORTING CHOICES
To create a definition for the Open Account Balance Listing report , navigate to the Setup – Subledger Accounting – Open Accounting Balances Listing Definitions You can optionally create a definition for
yourself assessed tax liability account You have the flexibility to configure Open
Account Balances Listing: Report Definition
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX PROCESS – REPORT
Account Analysis Report
Open Account Balance Listing Report
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX MANUAL DETERMINATION PROCESS
Payables Invoice E-Business Tax
Invoice Header
Tax Engine
Configuration
Invoice Lines
Non Recoverable tax
Recoverable Tax
X.XX
Self Assessed Liabilities
X.XX X.XX
Tax Summary
Invoice details
Stored Accounting Information
Tax (Self Assessed)
Tax (Payable to Supplier)
Subledger Accounting
SELF ASSESSED TAX PROCESS – 2. MANUAL DETERMINATION
Set Up Invoice Tax Calculation Manual Tax Update Accounting and Accrual Reporting
Report
Set up
Invoice
Calculate tax
Account
Manual Update
SELF ASSESSED TAX: MANUAL DETERMINATION SET UP - E-BUSINESS TAX CONTROLS
You can set Configuration Owner Tax Options Tax Managers determine if they would like to allow tax
to be updated or not. The “Allow Override for Calculated Tax Lines” can be set for the configuration owner and application event class or on a particular Tax
Other Controls and Defaults you set include: Allow Override and Entry of Inclusive Tax
Lines Allow Entry of Manual Tax Lines Allow Mass Creation of Jurisdictions
Report
Set up
Invoice
Calculate tax
Account
Manual Update
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – INVOICE ENTRY
Use the Payables’ Invoice Workbench to enter invoice header and lines information
Many tax drivers default onto the transaction, however, Payables users can also update or enter these values
The lines region displays some of the new columns added to help derive tax, including: Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification
Report
Set up
Invoice
Calculate tax
Account
Manual Update
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX
To view the calculated tax immediately, click the “Calculate Tax” button on the Lines tab
The E-Business Tax Service engine calculates tax based on it’s configuration
Report
Set up
Invoice
Calculate tax
Account
Manual Update
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX EXAMPLE
Report
Set up
Invoice
Calculate tax
Account
Manual Update
Invoice HeaderInvoice Amount = $1000Tax Amount = $50
Suppliers Invoice
(Line 1) Item Type= $1000
(Line 2) Tax Type = $50
Total Gross = $1050
Total Net = $1050Tax = $0Total = $1000
Supplier’s Tax initially calculated for $50. Invoice lines do not total the Invoice header amount
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX EXAMPLE
Report
Set up
Invoice
Calculate tax
Account
Manual Update
Invoice HeaderInvoice Amount = $1000Self Assessed Tax Amount = $50
Suppliers Invoice
(Line 1) Item Type= $1000
Total Gross = $1000
Total Net = $1000
SETUP SELF ASESSED TAX
First party tax Supplier party tax
SELF ASSESSED TAX: PREDETERMINED SET UP FIRST PARTY, PARTY TAX PROFILE
You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels: Registration, Regime Registration, Regime, Tax Registration, Regime, Tax, Tax Jurisdiction
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX: PREDETERMINED SET UP – FIRST PARTY, PARTY TAX PROFILE
Enable Self Assessment on the Party Tax Profiles tab By checking the Set for Self Assessment/Reverse
Charge option at a particular level, E-Business Tax returns applicable taxes for supplier invoices that fall within the level For example, if you enable this option at the
Registration – Regime level, all invoices to be taxed within that regime will be considered Self Assessed tax
Report
Set up
Invoice
Calculate tax
Account
SELF ASSESSED TAX: PREDETERMINED SET UP – SUPPLIER PARTY TAX PROFILE
You can also set up a particular supplier’s Party Tax Profile by doing either of the following: Use the Tax Managers responsibility to query a Third
Party Navigate to the Tax Details page from the
Supplier (Entry) pages from the Payables Responsibility
Report
Set up
Invoice
Calculate tax
Account
IMPLEMENTATION CONSIDERATIONS
Common Module Dependency:E-Business Tax
The e Business Tax engine is responsible for calculating tax amounts applicable to invoices
Also assists in automatically identifying taxes as self assessed and allows setting options for manual determination
Common Module Interaction: Subledger Accounting
Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS
An integrated solution to automate acquisition of complex services from Source through Payment.
Complex Service Contracts are characterized by: High dollar value projects Long lead time delivery schedules Progress payments based on work completion Advances and progress based financing options Retainage options
Commodities / Industries of Interest Professional Services Engineering and Construction Aerospace and Defense
ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS
Strengthened financial discipline and corporate governance Ensuring billing compliance with the terms
negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within tolerance policies Providing workflow approval processing, history, and
controls Improved visibility into business, financial,
and compliance performance Real-time update of the purchase order,
adherence to budgetary controls, accounting and tax reporting provide transparency
COMPLEX CONTRACT TERMS KEY CONCEPTS
Progress Payment Schedule Represents a schedule of services and work with
associated payments Progress Payments
Payments for progress made on a Progress Payment Schedule
Pay Item Refers to a specific work/service component of the
Progress Payment Schedule, and its associated payment amount
COMPLEX CONTRACT TERMS KEY CONCEPTS
Progress Payment Rate Used on Cost Reimbursement Contract. Represents the
rate at which costs incurred by the Contractor are reimbursed
Contract Financing Typically used in Public Sector Contracts. Contract
financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met, financing is given to aid in the completion of subsequent work
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source
Requests for Services can originate from multiple sources:– Facilities Manager– Project Manager– Field Engineer– Architect
Requests for Services can originate from multiple sources:– Facilities Manager– Project Manager– Field Engineer– Architect
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source
Invite Suppliers to Sourcing EventNegotiate with Suppliers on:– Complex Payment Terms– Progress Payment Schedule– Clauses & Deliverables
Invite Suppliers to Sourcing EventNegotiate with Suppliers on:– Complex Payment Terms– Progress Payment Schedule– Clauses & Deliverables
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source
– Award Contract to best Supplier– Supplier and Contracting Officer sign off on Contract
– Award Contract to best Supplier– Supplier and Contracting Officer sign off on Contract
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source
– Supplier requests the advance if provided for on the contract– The advance amount is paid to the supplier
– Supplier requests the advance if provided for on the contract– The advance amount is paid to the supplier
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source
– Contractor reports progress– Progress is certified by Facilities Manager, and/or Project Manager
– Contractor reports progress– Progress is certified by Facilities Manager, and/or Project Manager
ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Advance Payment
TrackProgress
ProcessPayment
Author Contract
Source– Contractor submits Invoice for Progress Payments and Contract Financing– Retainage is applied– Financing is recouped– Payment is released
– Contractor submits Invoice for Progress Payments and Contract Financing– Retainage is applied– Financing is recouped– Payment is released
INTEGRATED PRODUCTS: HIGH LEVEL BUSINESS FLOW
Negotiate
TrackProgress
Invoice /Payments
Budget /Deliverables
Request for Services
RetainageRelease
CostCollection
OracleProjects
Procurement for Complex Services
Control
Advanced Procurement
Oracle Payables
ORACLE E-BUSINESS TAX SETUP: TAX CONFIGURATION
Prepayment Application Tax Handling Prepayment Application Tax Treatment: Select
Recalculate or Prorate option for the Applied Amount Handling field
BUSINESS FLOW: PAYABLES DISTINCTION
Request for Service
TrackProgress ERS
Author Contract
Source
Procurement Process
Advance Payment
ProcessPayment
Payables Process
CONTRACT DELIVERY INVOICING
Request for Service
TrackProgress ERS
Author Contract
Source
Procurement Process
Advance Payment
ProcessPayment
Payables Process
• iSupplier Portal• Import
Supplier
Payables Analyst
Employee: Decentralized Invoice Entry
• Payables Requests
• Quick Invoice• Invoice Workbench
Pay on receipt import
INVOICE WORKBENCH: CONTRACT DELIVERY INVOICES
ORACLE PAYABLES: ENSURE BILLING COMPLIANCE
Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Real-time update of the purchase order
Ensuring billing compliance when comparing billed verses planned Holds resolution process to manage issues when they does
not Verifying invoices fall within your tolerance policies
ORACLE PAYABLES: TOLERANCES AND HOLDS
Services Tolerance Template Payables uses the combination of PO Line Type and
Pay Item Line Type to determine which tolerance template to use.
Fixed Price Services: Lump Sum Pay Items = Amount Based Tolerance Checking
Fixed Price Services: Rate Based Pay Items = Quantity Based Tolerance Checking
ORACLE PAYABLES: TOLERANCES AND HOLDS
Milestone Pay Items have Zero Tolerance Quantity Based – Quantity must be a whole quantity
– Price and Amount exact Amount Based – Amount must be exact
ORACLE PAYABLES: HOLDS NOTIFICATION OPTIONS
Holds Resolution Workflow This feature enables you to release any hold that
can be manually released. You can:
Enable Hold Notification per Hold Set Notify and Reminder Days Add instructions to appear on the workflow notification
Includes two options: Release the hold Acknowledge the issue
ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS
Strengthening financial discipline and corporate governance while reducing compliance costs by: Ensuring billing compliance with the terms
negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within your tolerance policies Providing workflow approval processing, history, and
controls Improved Transparency into your business,
financial, and compliance performance Real-time update of the purchase order,
adherence to budgetary controls, accounting and tax reporting provide transparency
ORACLE PROCUREMENT TO PAYABLES: SETUP OVERVIEW
Approval Rules
Tax Configuration
Set key profile options
Supplier Attributes
Document Style
Payables Options
Invoice Tolerance Templates
Change Order Tolerances
Financial Options
E-Business TaxApprovalsManagement
PayablesSystemAdministrator
Purchasing
ORACLE PROCUREMENT SETUP
Profile Option: POR: Amount Based Services Line Type = Fixed Price Services Responsibility: Purchasing Navigation: Setup:Purchasing > Document Styles
The Purchase Order Document style defines the basic document rules of the Complex Work Purchase Order
You can setup specific document styles for the purchase of goods and have a separate document style for the purchase of services
PAYABLES SETUP: FINANCIAL OPTIONS
Setting up Retainage Account for the Operating Unit. Responsibility: Payables Navigation: Setup:Options > Financial Options
You can define one retainage account for the Operating Unit
The retainage distribution account on the invoice is used in the seeded accounting setup in Subledger Accounting.
PAYABLES SETUP – PAYABLES OPTIONS
Payables Option settings Responsibility: Payables Navigation: Setup:Options > Payables Options
Payables Option settings are not specific to this feature, however you may want to evaluate the Approval, Invoice, and Account tab options
Use the Payables Options window to enable Payables Invoice Approval
PAYABLES SETUP: INVOICE TOLERANCES
Global Tolerance Policies Set up New “Service” type provides central control over
tolerance policies for both Goods and Services You can define both percentage–based and amount–
based tolerances You can define many tolerance templates for goods
or services and then assign the most appropriate templates to the supplier sites
SHARED SETUP: SUPPLIER TERMS & CONTROLS
Supplier Terms & Control Set Up Tax Details: Tax registrations and options Receiving: Match Approval Level Purchasing: Self Billing Settings Invoice Management: Match Option, Retainage Rate
ORACLE APPROVALS MANAGEMENT SETUPAPPROVAL RULES
Approval Processing Setup Oracle Approvals Management is a common module
that allows you to configure rules which determine approvers for business transactions or activities
New Transaction Types in Release 12: Work Confirmation transaction type Payables Holds Resolution transaction type Payables Invoice Approval transaction type
ORACLE EBUSINESS TAX SETUP: TAX CONFIGURATION
Standard Invoices: Tax on Progress To-Date (Net of retainage) Tax on Final Delivery
Prepayments Tax on Advance (Yes or No) Tax on Progress Treated as Financing (Yes or No) Prepayment Application Tax Treatment
Retainage Release: Tax on retained amounts ready to be released
First Party and Third Party Tax Profiles and Registrations
PREPAYMENTS: TAX CONFIGURATION EXAMPLE
1.Pick your Tax Regime & Tax2.Create a Tax Rule for All Transactions3.Add a Line Class condition: P2P Advance; P2P
Contract Financing4.Assign a Tax Rate for when the condition is True
IMPLEMENTATION CONSIDERATIONS
Required Payables Purchasing Services Procurement Supporting Modules:
Workflow and Approvals Management
Optional Products Oracle Sourcing Oracle Procurement
Contracts Oracle iSupplier Portal Oracle iProcurement Oracle Projects
AGENDA
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment
Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION
Multi-Org Access Control (MOAC) enables cross organizational processing and reporting on Operating Units in subledgers.
For example, you can select invoices across operating units for payment processing within a single pay run.
A security profile determines a user’s set of accessible Operating Units.
Enhanced Multi-Org Reporting Run several Payables reports at
ledger or ledger set level
MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION
MOAC allows users of a single responsibility to perform task in multiple operating units without having to switch responsibilities.
Possible tasks include: Invoice Processing Payment Processing Run Reports, such as Posted Invoice and Payment
Registers, Open Account Balance Listing Run Concurrent Programs, such as Validation and Invoice
Import Close Periods
MULTI-ORG ACCESS CONTROL IN PAYABLES BENEFITS
Increase Efficiency Shared Service Center employees can be more
efficient because they can process transactions for multiple Operating Units.
Reduce Costs Reporting costs are reduced since users can submit
standard reports for multiple OUs as well as submit certain reports that gather data from multiple OUs.
Improve Timeliness and Accuracy of Information MOAC adds to the timeliness and accuracy of
information by providing a consolidated view of data across Operating Units, eliminating the need for manual aggregation.
MULTI-ORG ACCESS CONTROL PROCESS
OpenPayables setup formorPayables transaction form
Enter data foroperating unit and proceed to next task
PAYABLES PROCESS
Submit Concurrent Program OrStandard Report
Applicationchecksaccess privilege
Automated process
MULTI-ORG ACCESS CONTROL PROCESS, INVOICE ENTRY
There is now an OU field on the Invoice Workbench Select an Operating Unit, or enter another field,
such as PO or Supplier Site, from which the system will default the OU
The application automatically provides the operating unit of new (uncommitted) invoices during entry.
MULTI-ORG ACCESS CONTROL PROCESS, PAYMENT TEMPLATES
There is a new Payment Process Request Template Use to submit a “Payment Batch” Select invoices for payment regardless of their OU by
selecting the All option in the Operating Units region. You also have the ability to specify a list of OUs.
As in the invoice workbench, the list of OUs you can specify is determined by your security profile.
MULTI-ORG ACCESS CONTROL PROCESS, CONTROLLING PAYABLES PERIODS
On the Control Payables Periods form, with Multi-Org Access Control you can close periods for all Operating Units in a given Ledger.
Each Payables accounting calendar is associated with one ledger and its accounting calendar, defined in GL.
You can now access the Control Payables Periods window for all ledgers that correspond to the operating units that you have access to, as determined by your security profile.
MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING CONCURRENT REQUEST
There is a new OU parameter that you will when you submit a concurrent request in R12
When submitting the Invoice Validation routine, if you leave the OU parameter null, the routine will process data for multiple operating units in a single run.
Oracle Payables will process data for your set of accessible Operating Units, as determined by you Multi-Org Security Profile, defined in Oracle HRMS.
MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING STANDARD REPORT
Submit the Payables Posted Invoice Register or Payables Posted Payments Register for a Ledger or Ledger Set.
Oracle Payables includes data for all Operating Units that you have access to, as determined by your Multi-Org Security Profile, belonging to that Ledger/Ledger Set.
All other Payables Standard Reports now have an OU parameter that is mandatory and will set the context for that run of the report.
MULTI-ORG ACCESS CONTROL PROCESS, OPEN ACCOUNT BALANCES LISTING REPORT
Trial Balance is known as the Open Account Balances Listing report
It runs based on the Open Account Balances Listing Definition that you define
You can define the Listing Definition at a Ledger or Ledger Set level
MULTI-ORG ACCESS CONTROL SETUP
Define security profile &assign operating units
Run Security List Maintenance
Assign security profile to responsibility or user
GENERAL MOAC SETUP
Automated process
MULTI-ORG ACCESS CONTROL PAYABLES SETUP
Use the Payables Options form to set up: Payables Options Financials Options Supplier Sites
Payment Details Invoice Management Accounting Options Etc.
Withholding Tax Codes and Details
IMPLEMENTATION CONSIDERATIONS
Integration with Procurement products may require setup and use.
SUMMARY
In this topic, you should have learned how to: Describe and use the new features in Release 12 of
Oracle Payables. Set up the new features in Release 12 of Oracle
Payables.