oracle payables orientation

Oracle Payables

Orientation

Agenda

IntroductionSuppliersPayment TermsBanks and BranchesInvoicesPaymentsMatchingPerforming Invoice InquiryAccounting EntriesTransfer to General LedgerBasic Reports

Module Objectives

At the end of this orientation, you should be able to:

Explain how Oracle Payables functionality fits into the overall financial business process flow

Explain the main options available to a company on establishing a Payables system

Set up Oracle Payables Enter and Merge suppliers and enter, review, and approve

invoices Match invoices to purchase orders and pay invoices Recognise how to enter and apply prepayments Create journal entries for posting to the General Ledger.

Document Approval

SupplierManagement

Open Item Handling, Reporting and Enquiry

Payment Scheduling

RecurrentPayments

Open Period

GL Accounting

Updates& Adjustments

Process Payments

AutomaticPaymentSelection

Confirm

Generate

Modify

Preview

ClosePeriod

Reporting & Enquiries- Audit Trail- Ad hoc- Accounting

Enter Invoices

Enter Expense Reports

Enter Prepayments

Enter Credit Notes

GL DistributionCoding

PO Matching

Tax & CurrencyAccounting

Freight Costing

VarianceChecking

Releases

Holds

Assets Interface

Oracle Payables Business Flow

Checks, EFT

Oracle Payables - Integration

• Oracle Payables fully integrates witho Oracle Purchasing and other purchasing systemso Oracle General Ledger and other general ledger systemso Oracle Assets and other fixed assets systemso Oracle Projectso Oracle Human Resourceso Oracle Cash Management

Oracle Payables - Processes

Oracle Payables consists of five major processes:

Setting up SuppliersEntering and approving Invoices Paying InvoicesCreating Accounting EntriesSending transactions to General LedgerReporting

Overview of Suppliers

Oracle Payables - Suppliers

Overview of setting up Suppliers

Enter Supplier

Create PO

Enter Invoice Approve Invoice

Pay Invoice

Create Journal Entries

Reconcile Payments

Match to PO

Enter Requisition

Supplier and Supplier Sites

Supplier

Malaysia Singapore Japan

Purchasing SiteRFQ Only Site

Contacts

Purchasing SitePay Site

Pay Site

Contacts Contacts


For every supplier, you can create an unlimited number of sites with different addresses and contacts

You can designate supplier sites as one of the following types:

Pay Site Purchasing Site RFQ Site


Site Uses Pay: Supplier site to which you send payment of an invoice. You

cannot enter an invoice for a supplier site that is not defined as a pay site.

Purchasing: Supplier site from which you order goods or services. You must enter at least one purchasing site before Oracle Purchasing allows you to enter a purchase order.

RFQ Only : Enable if you do not allow entering purchase orders for a supplier site. An RFQ Only site is a site from which you receive quotations.

Identifying Duplicate Suppliers

Review supplier records periodically To prevent duplicate invoices To improve system performance To provide accurate supplier reporting

Use the Supplier Report and the Supplier Audit Report to help identify duplicate suppliers

Merging Suppliers

Run Vendor Audit Report

ABC CorpABC Corporation

Review Merge ResultsABC

Corporation

Merge Suppliers

Identify Duplicate Suppliers

Maintain Audit Trail

Payment Terms

Oracle Payables - Payments

Defining Payment Terms

Assign payment terms to an invoice to automatically create scheduled payments for the invoice with due dates and any discounts. You can set up payment terms to default from the financial

options, from supplier, supplier site levels. Assign a payment term name that helps identify a payment

term. Assign up to three discounts for each payment line.

Overview of Banks

Oracle Payables - Banks

Defining Banks

Use the banks window for defining banks and bank branches with which you do business. o Oracle Receivables and Oracle Payable share bank

information.o Bank Branches can have multiple accounts.o Each account can have its own payment documents.

Defining Banks:Payment Documents

Define Payment documents for each internal bank account

Payment documents have payment formats associated with them which specify a payment method of Check Electronic Wire Clearing

Overview of Invoices

Oracle Payables - Invoices

Entering Invoices: Overview

Enter Invoice

Approve Invoice

Pay Invoice

Match to PO

File Invoice Post Invoice

View Invoice

Receive Invoices

Entering Batches: Overview

Batch Invoices Enter a Batch of Invoices

File by Batch

Receive Invoices in the Mail

Prepare a Batch Control Form

Review Batch Control Reports

Update the Batch Control Form

Invoice Workbench

Single Payments

Folder

InvoiceOvervie

w

ManageInvoices Folder

FindInvoice

s

Scheduled

Payments

Distributions

Folder

PO Match

InvoiceMatch

InvoiceHolds

Actions

ApplyPrepaym

ents

Invoice Workbench

Use the Invoice Workbench to: Enter, view and adjust invoices, credit/debit memos and

prepayments Enter, view and adjust invoice batches View supplier balances Approve invoices Cancel invoices Apply prepayments Make a payment on an invoice Review payments made against invoices

Entering Batches: Review

Submit the Batch Control Reports to review processing accuracy and productivity.

Review the number of batches entered by an employee and any variance between batch actual totals and control totals.

Oracle Payables Invoice Types

An invoice you enter to record a credit for a supplier who does not send you a credit memo.

Debit Memo

An invoice you enter for matching to a purchase order. You enter a PO number, and Oracle Payables automatically provides supplier information and matches to each shipment on the purchase order.

Quick Match

A type of invoice you enter to pay an advance payment for expenses to a supplier or employee.

Prepayment

An invoice you enter for matching to both purchase orders and invoices. You can enter either a positive or a negative amount for a Mixed invoice.

Mixed

An invoice you enter for matching to a purchase order. You enter a PO number, and Oracle Payables automatically provides supplier information and matches to each shipment on the purchase order.

PO Default

An invoice representing an amount due to an employee for business–related expenses

Expense Reports

A memo from a supplier representing a credit amount toward goods or services for which you have already been invoiced.

Credit Memo

An invoice from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a PO or not matched.

Standard

DescriptionType

Scheduled Payments

Invoice Distributions

DETAIL

Supplier Information

Default Information

BASIC

Invoice Information

INVOICE

Entering Invoice Information

Invoice Distribution Types

Records the amount a supplier charges for goods or services purchased.

Records the sales or other tax amount due on goods or services purchased.

Type

Records the amount a supplier charges for shipping and handling.

Records the amount for miscellaneous expenses on an invoice.

Item

Description

Tax

Freight

Miscellaneous

Withholding Records the amount of taxes withheld from an invoice.

Recurring Invoices

You can enter invoices for periodic business expenses for which you may not receive invoices (such as rent)

To enter recurring invoices: Define a special calendar Define a recurring invoice template Create invoices based on the template

Recurring Invoices

With a recurring invoice template, you can Specify the intervals for which invoices 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.

Overview of Payments


Oracle Payables–Payment Features

Oracle Payables provides a variety of features for fast , controlled payment processing. With Oracle Payables you can:

• Use Different Payment Methods to Process Payments.• Ensure that duplicate Invoice payments never occur• Pay invoices that are due and automatically take discounts• Automatically create groups of payments for invoices that

meet the criteria you select.

Oracle Payables–Payment Features

• Use Custom Payment formats

• Choose from different payment method options, including checks, electronic data interchange (EDI), electronic funds transfer (EFT) and wire.

• Record Stop Payments

• Void Payments

• Review Payment status and payment information.

Payment Workbench

PaymentOverview

Single PaymentFolder

Enter InvoicePayments

Payment BatchFolderPayment

Batch Actions

ModifyPayment Batch

ConfirmPayment Batch

Payment Workbench

Use the Payment Workbench to: Enter, view and adjust Manual and Quick payments Initiate and monitor payment batches Copy payment batches Stop, void and reissue payments Review invoices paid by payments

Two folders: Work with single payments (Quick and Manual payments) in the

Payments Summary Work with payment batches in the Payment Batches Summary

Oracle Payables–Payment Methods

A fund transfer initiated by contacting your bank and requesting a wire payment to a supplier’s bank.

Wire

An electronic funds transfer to a supplier’s bank.Electronic

A record of payment for invoices transferred from another company without clearing a payment document

Clearing

A printed paper remittance document that is sent to a supplier

Check

DefinitionPayment Method

Using the Workbench Model

Invoice Batches

Invoice (Workbench)

Invoice Overview

Payment Batches

Payment(Workbench)

Payment Overview

Payment

Invoices

PaymentWorkbench

InvoiceWorkbench

Stop and Void Payments:Overview

Stop Payment in Payment SummaryActions Window

Is PaymentDocument inPossession?

Is PaymentDocument Recorded?

No

No Void UnusedDocuments inBanks Window

Yes

Void Payments inPayments SummaryActions Window

Yes

Prepayments

Oracle Payables

Overview of Prepayments

A prepayment is a type of invoice you enter to make anadvance payment to a supplier or an employee.

For example, you need to pay a deposit on a lease, or pay anemployee an advance for travel expenses.

You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.

Prepayments - TypesOracle Payables provides for two types of prepayments.

Temporary Prepayment and Permanent Prepayment. Temporary prepayments can be applied to invoices or expense

reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.

Permanent prepayments cannot be applied to invoices. For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced. In the Invoice Workbench you can enter and apply prepayments.

Process Prepayments: Overview

Enter PrepaymentStatus = Unapproved

Approve PrepaymentStatus = Unpaid

Pay PrepaymentStatus = Available

Select Invoice and Apply One or More Prepayments

Select Prepayment and Apply to One or More

Invoices

Invoice Matching

Oracle Payables

Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices.You can also match a single invoice to multiple purchase order shipments, or match multiple invoices to a single purchase order shipment.

Matching Invoices to PO

Invoices Matching

Oracle Payables provides for: 2 Way Matching ( Invoice Qty Received Qty)

3 Way Matching (Invoice Qty Received Qty Ordered Quantity) 4 Way Matching (Invoice Qty Received Qty Ordered Quantity Inspected Qty)

Invoice Inquiry

Oracle Payables

Batch Invoices Enter Invoice

Approve Invoice

Pay Invoice

Receive Invoices in the Mail

Match to PO

File Invoice Post Invoice

View Invoice

Invoice Inquiry

Invoice Inquiry

You can find invoices to respond to supplier inquiries including questions about invoice payment status, invoice payment date, reasons an invoice has not been paid, and total balance due for a supplier or supplier site.You can also find invoices to make adjustments to them or to perform actions on them such as approval or cancellation.

Account Payables Transfer to General Ledger

Oracle Payables

Transfer to General Ledger

• Transfer accounting details to General Ledger.

• Submit the Payables transfer to General Ledger Program to transfer accounting entries from Payables

to General Ledger Interface.

Oracle PayablesOracle General Ledger Interface

A.P Close Cycle: Overview

Review and Resolve AP Issues

Transfer to OracleGeneral Ledger

Move Unresolved Issues to the Next Period

Close the Period in AP

Reconcile AP Activity for the Period

Post Journal Entries to GL

Review Transfer Results, and Resolve Posting Issues

Account Payables Basic Reports

Oracle Payables

Accounting & Reconciliation Reports

• Payables provides the following Accounting and Reconciliation Reportso Accounts Payable Trial Balance Reporto Payables Account Analysis Reportso Payables Accounting Entries Reporto Payables Accounting Process Reporto Posted Invoice Registero Posted Payment Registero Unaccounted Transactions Report

Purge Records: Overview

Abort Purge

Back Up and Archive the Database

Submit Purge Review Purge Candidates Listings

Confirm PurgeReview Purge Results

Recreate Tables and Indexes

Thank You