payables - training manual

8/11/2019 Payables - Training Manual

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PayablesTraining Manual

3Cs Client-Centric Consulting Solutions

Author: 3cs Admin

Creation Date: April 13, 2011

Last Updated: April 13, 2011

Document Ref: CO-TRNG/USER Manual.01.000

Version: 1.0.

Approvers:

Company Name

3CS Private Limited

Client-Centric Consulting Solutions


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CO-TRNG/USER Manual.01.000 (v 1.0.)

Payables - Training Manual.doc Page 2 of 96 Print Date: 13-Apr-2011Payables

CompanyConfidential - For internal use only

Document Control

Change Record

Date Author Version Change Reference

13-04-11 Mohsin Siddiqui 1.0 Ready for final review

Reviewers

Name Position

Farhan ur Rahim 3CS Project Manager


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Distribution

CopyNo.

Name Location

1 Library Master Project Library

2 Project Manager

3

Note To Holders:

If you receive an electronic copy of this document and print it out, please write yourname on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the frontcover, for document control purposes.


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Contents

Document Control ............................................................................................. 2

Procure to Pay Overview .............................................................................................. 6

Supplier Overview ............................................................................................. 7

Invoices Overview ............................................................................................. 8

Payment Overview .......................................................................................... 10

A. Application Navigation ........................................................................................... 11

A.1. Navigation ................................................................................................ 11

A.2. Navigation Tool bar in Oracle Applications .............................................. 14

A.3. Find Window ............................................................................................ 16

A.4. List of Values (LOV) ................................................................................. 17

A.5. Tool Menu ................................................................................................ 18

C. Document Processing ............................................................................................. 19

C.1. Invoice Entry ............................................................................................ 19

C.2. Entering Line Level Descriptive Flex-Field Information .......................... 23

C.3. Invoice Matching ..................................................................................... 24

C.4. Invoice Validation .................................................................................... 27

C.5. Invoice Adjustment .................................................................................. 30

C.6. Invoice Cancel .......................................................................................... 32

C.7. Prepayment Invoice Entry ....................................................................... 35

C.8. Apply/Unapply Prepayments ................................................................... 38

C.9. Credit Memos, Debit memos Return to VENDOR (rtv) ......................... 40

C.10. Recurring Invoices ................................................................................. 43


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C.11. Entering Expense Reports ...................................................................... 48

C.12. Distribution Set ...................................................................................... 51

C.13. Payment Terms ...................................................................................... 55

D. Payment Generation .............................................................................................. 57

D.1. Payments ................................................................................................. 57

D.2. Manual ..................................................................................................... 58

D.3. Immediate Payment ................................................................................ 62

D.4. Scheduled Payments From The Invoice Workbench ............................... 67

D.5. Void Payment ........................................................................................... 70

D.6. Stop Payment .......................................................................................... 74

D.7. Refund Payment ...................................................................................... 77

D.8. Payment Manager .................................................................................... 79

E. Period End Procedure ............................................................................................. 84

E.1. Invoice and payment review .................................................................... 84

E.2. Completing AP Cycle ................................................................................ 86

E. Running Reports ..................................................................................................... 92

N. Appendix ..................................................................................................... 95

Glossary of Terms............................................................................................ 95

Open and Closed Issues for this Deliverable .................................................. 96Open Issues ........................................................................................................... 96Closed Issues ......................................................................................................... 96


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Procure to Pay Overview

Demand

The procurement process generates and manages requests for the purchase of goods. Thedemand for purchase items may be a one-time event or may recur in either predictable orrandom time intervals.

Source

The procurement sourcing process covers the business activities related to the search,qualification, and selection of suitable suppliers for requested goods and services.

Order

The procurement ordering process includes purchase order placement by the buyingorganization and purchase order execution by the supplying organization.

Receive

The receipt process acknowledges that a purchase order has been duly executed. For orders ofphysical goods, it will typically include the receipt, inspection and delivery of the goods toinventory or to another designated location. For orders of services, it will typically consist of anotification from the requester or the approving person that the service has been performed asagreed.

Invoice

The invoice process includes entering supplier and employee invoices.

Pay

The payment process consists of those activities involved in the payment for ordered goods andservices.


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Supplier Overview

You must define a supplier before performing most activities within Purchasing and Payables.

You optionally enter a recommended supplier on a requisition.

You need a supplier to issue a request for quotation.You use that same supplier when you enter a quotation.

You need supplier information for purchase orders.

You receive goods or services from suppliers.

You return goods to suppliers.

You must pay the supplier for the goods or services purchased.

Set up suppliers to record information about individuals and companies you purchase goods andservices from. You can also enter employees you reimburse for expense reports. You candesignate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites.For example, for a single supplier, you can buy from several different sites and send paymentsto several different sites. Most supplier information automatically defaults to all supplier sites tofacilitate supplier site entry. However, you can override these defaults and have uniqueinformation for each site.

Note that the basic supplier definition is now managed by Trading Community Architecture(TCA), which is the central engine for managing Trading Partner information in E-BusinessSuite. TCA provides a single common definition that can be used to identify customers,suppliers, and organizations that provide you with goods or services, and are in turn, acustomer of your own products or services. The TCA repository stores the key elements thatdefine an organization, identity, business locations, and key contacts, so that different Oracleproducts use a common trading partner definition.


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Invoices Overview

Once youve received goods or service from your supplier, youll also receive an invoice. UsingPayables you can record invoices in a number of different ways.

With Payables you can:

*Import/Enter invoices manually, either individually or in batches.

*Use Quick Invoices for rapid, high-volume entry of standard invoices and credit memos thatare not complex and do not require extensive online validation.

*Automate invoice creation for periodic invoices using the Recurring Invoice functionality.

*Use iExpenses to enter employee expense reports using a web browser.

*

Record credit card/procurement card invoices from transactions the credit card issuer sends toyou in a flat file.

*Import EDI invoices processed with the e-Commerce Gateway.

*

Import lease invoices transferred from Property Manager.

*Import XML invoices.

*

Match invoices to purchase orders or receipts.


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Invoice Types

Standard

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

Credit Memo

A memo from a supplier representing a credit amount toward goods or services.

Debit Memo

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

Mixed

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

Prepayment

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

Expense Report

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

Withholding Tax

An invoice you enter to remit taxes withheld to the appropriate tax authority.

Interest

If you allow interest invoices, payables will automatically calculate interest for overdue invoicesand create interest invoices for selected suppliers.

Retainage Release

Invoices created for complex work and advance contract financing.

Transportation Invoices

Invoices from freight payment.


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Payment Overview

Once invoices are validated, they can be paid. Payables provides the information that you needto make effective payment decisions, stay in control of payments to suppliers and employees,and keep your accounting records up-to-date so that you always know your cash position.Payables integrates with Oracle Payments, the E-Business Suite payment engine, to handleevery form of payment, including checks, manual payments, wire transfers, EDI payments, bankdrafts, and electronic funds transfers. Payables also integrates with Oracle Cash Managementto support automatic or manual reconciliation of your payments with bank statements sent bythe bank. Through Payables, you can:

* Ensure duplicate invoice payments never occur.

* Pay only invoices that are due, and automatically take the maximum discount available.

* Select invoices for payment using a wide variety of criteria.

* Record stop payments.

*

Record void payments.

* Review information on the status of every payment online.

*

Process positive pay.


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A. Application Navigation

Navigation

Following sections describe the individual detail of each activity navigation.

A.1. Navigation

Logging into Oracle Application

Open your Web Browser, and enter the Application URL

(Example: http://test-ebsapps.dil.com:8000/) when the logging screen appears enter yourvalid user and password, and then click Login button.


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Your Personal Home Page appears, showing your notifications if you have. You can see


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Your valid responsibilities and the functions attached to it

Select the Form you want to open, and then the application will open a new window, which isthe Main application Screen.


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A.2. Navigation Tool bar in Oracle Applications

The toolbar is a collection of iconic buttons, where each button performs a specific action when

you choose it. Each toolbar button replicates a commonlyused menu item. Depending on the

context of the current field or window, a toolbar button can be enabled or disabled. You can

display help for an enabled toolbar button by holding your mouse over the button.

The toolbar buttons and the actions they perform are as follows:

The New icon opens a new record in the active form.

The Find... icon displays the Find window to retrieve records.

The Show Navigator icon displays the Navigator window.

The Save icon saves any pending changes in the active form.

The Next Step icon updates the Process workflow in the Navigatorby advancing to the next step in the process.

The Print... icon prints the current screen that the cursor is in. Insome cases it may print a report associated with the current data.

The Close Form icon closes all windows of the current form.

The Cut icon cuts the current selection to the clipboard.

The Copy icon copies current selection to the clipboard.

The Paste icon pastes from the clipboard into the current field.

The Clear Record icon erases the current record from the window.

The Delete icon deletes the current record from the database.

The Edit Field... icon displays the Editor window for the currentfield.

The Zoom icon invokes customerdefined Zoom (drilldownBehavior).

The Folder Tools icon displays the folder tool palette.

The Window Helpicon displays help for the current window.


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Function Shortcut (Functions Keys)Copy Field from Above Shift

Exit Active Window

Clear Record

Clear Block Insert New Record

Delete Record +

Save Date +

Query Enter

Query Run +

Clear Form

Print Screen +

List of Values (Quick Pick) +

Next Record

Previous Record or +p

Next Field

Previous Field +Clear Field


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A.3. Find Window

Find windows are available within each of the Main Functionality. These windows let you searchfor information based on a specific set of criteria that you specify. For example, the Find Invoicewindow lets you search for Invoices using a wide range of search criteria, such as, Supplier and

Invoice type.


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A.4. List of Values (LOV)

The list of values (LOV) is a powerful, time saving feature that lets you choose valid data for afield from a predefined list. If the lamp appears when your cursor is in a field, you canchoose the List of Values icon to view a list of valid entries for that field. Simply click on thevalue you want; Oracle Payables enters the data you selected and moves the cursor to the next

field.


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A.5. Tool Menu

The pull down menu Toolscontains actions specific to each Form. For example, in the Payment

Form, the Tools pull down menu lets you perform more additional operations related to ViewAccounting & View Accounting Events.


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C. Document Processing

You usually enter supplier invoices in the invoice Workbench. You can also set up your systemto automatically create periodic invoices. You can also import invoices from payables expensereports to create invoices in Payables.

The main sub processes constituting the Document Processing processes are as follows:

3.1 Invoice entry

3.2 Invoice Validation

3.3. Invoice adjustment

3.4 Invoice cancel

3.5 Prepayment Invoices

3.6 Credit Memo

3.7 Recurring invoices

3.8 Expense Report

3.9 Distribution Set

C.1. Invoice Entry

In Oracle Payables no payment will be made without creating a liability. Invoices will be enteredinto system to record purchases, expenses and accrued liability. Oracle Payables will providevarious invoice types and invoice entry modes. Invoices can be entered individually and in thebatches to proactively manage invoice entry. Invoice entry in batches maximizes accuracy by

tracking variances between the control invoice count and its total and the actual invoice countand its total. Invoice entry screen will provide fields to record all basic invoices, taxes andfreight related information.

1. Navigate to the Invoices form:Invoices Entry Invoices

Invoice form will be open.

2. Click on Invoices button to open the Invoice Entry form.


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3. Enter the invoice headerInformation:

4. Select the Invoice Type

5. Enter the Supplier Name

6. Tab over to Supplier number and Site fields. System will automatically populate thesefields.

7. Enter Invoice Date

8. You must enter an invoice date that is in an open or future period.

9. Enter the Invoice NumberPayables will not allow you to enter duplicate invoice numbers for the same supplier

Tab over to Invoice Currency field and click on the Invoice Amount field to enter the

10. Invoice amount.

11. Enter the full Invoice Amount freight and miscellaneous charges.


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12. Enter the distribution line details by clicking on lines region enter invoice amount.

13.

Click on Distributions button to enter charge account lines.

14. Enter distribution line15. Tab over to Num and Type fields and click on the Amount field to enter the distribution

line amount.16. Enter the Account17. GL Date fields and click on the Account field to enter the account by entering values for all

the segments:


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18. Select the Withholding Tax Group.(Optional Step)Tab over to the fields and click on the Withholding Tax Group field and select the group.

If withholding tax is not applicable on this distribution line, delete the withholding tax group.

19. Repeat these steps to enter multiple distribution lines as per requirement.

20. Press the Save Icon from the tool bar to save your work.

21. Validate Process by running the Invoice Register report:

Enter the following parameter:

Accounting Period:

Upon completion of request, the report can be viewed on the screen by clicking on

View Output.

(See Submitting Reports)


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C.2. Entering Line Level Descriptive Flex-Field Information

1. Click on the Descriptive Flex Field at the Invoice Line Level

2. Click on the Context LOV3. Select the appropriate Context value for the DFF data

4.

Click Ok5. Save your work


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C.3. Invoice Matching

Navigate to the Invoices form:

Invoices Entry Invoices

1. Select the matching options.2.

Enter Supplier Name3. Select supplier site4. Select Invoice Date5. Enter an Invoice Number6. Click Match Button


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7. Enter Purchase Order number or Receipt Number8. Click Find Button.

9. Check the Match Option10.Click Match Button


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C.4. Invoice Validation

Oracle Payables will provide invoice approval functionality to exercise manual and systemcontrol. In manual control, invoices would require approval, for generation of accountingentries into Oracle General and for eligibility of payment. Only authorized officer will have the

approval authority.In system control, online approval process validates the matching, tax and period status,exchange rate and distribution information for invoices. This function will automatically enablehold function to invoices having any errors.

Perform the following steps to drive this process:

1. Navigate to the Invoice window

Invoices Entry Invoice

2. Find the invoice for Validation and then choose Actions to navigate to the Actions window

Click on Actions Box.

Invoice Action window will open


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5. Select Validate option to validate the invoice Click on the check box next to theValidate field and click the OK Button

System will validate the invoice.


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6. Validate process by viewing the status of the invoice.

View the status of the invoice on the Invoice Entry form.

Status should be Validated.


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C.5. Invoice Adjustment

Oracle Payables allows adjustment for rectification of errors and change in invoice details,distributions and scheduled payments. This function will be available at various stages of invoicelife cycle, where permissible, without discarding accounting rules, system controls and audittrails


1. Navigate to the Invoice window:

Invoices Entry Invoice

Invoice window will be opened.

2. In the Invoices window, find the invoice(s) for which you want to make some adjustment.And then click on Distribution


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5. Choose Distributions to adjust the distribution line details Click on Distributions Button toopen the Distributions form and make the desired changes.

View the status of the invoice on the Invoice Entry form.

Status should be Needs Revalidation user has to validate it again

6. Save your work.Press the Save Icon from the toolbar.

7. Validate Process by running the Invoice Register report.Enter the following parameter:

Accounting Period:

Upon completion of request, the report can be viewed on the screen by clicking on View

Output.



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C.6. Invoice Cancel

Oracle Payables will allow canceling unpaid invoices without any effective holds. Cancellationwill not be allowed to invoices selected for payment in a payment batch and invoices carryingaccounting or payment. When an invoice is cancelled, Oracle Payables sets the invoice amount

to zero, sets all scheduled payments to zero and reverses all invoice distributions and anymatches to purchase order shipments and distributions. The reversed invoice distributions willbe transferred to Oracle General Ledger to update it. Oracle Payables also submits approval forthe invoice and if there are no accounting holds on the invoice, updates the status of the invoiceto Cancelled.


1. Navigate to the Invoice windowInvoices Entry Invoice

Invoice window will be opened.

2. Choose Invoices to open the Invoice Entry form.

. Choose Actions to navigate to the Actions window


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Select Cancel Invoices to cancel the Invoice.Click on the check box next to the Cancel Invoices and click OK

Oracle Payables will cancel the Invoice

Press Ok on decision box to cancel the selected invoice


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6. Validate process by viewing the status of the invoice.View the status of the invoice on the Invoice Entry form.

Status should be Cancelled.


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C.7. Prepayment Invoice Entry

1.Navigate to the Invoice form:Invoices Entry Invoice

Invoice form will be open.


3. Select the invoice type as Prepayment

4. Enter the Supplier Name and tab to Supplier Number field.

5. Tab to Invoice date enter the InvoiceDate.

6. Enter the InvoiceNumberor tab over to the next field to select Invoice Date as invoicenumber.

7.

Enter the followings:

a. Currency = Pak Rupee/Dollar/etc.b.

Amount = Total Amountc. Exchange Rate = User Specified Rate (This field is only use when we want to

enter invoice in foreign currency)

d.

Withholding Tax Group (tax group as per the case)e. Description (work to be done)


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9. Enter the invoice line & then distribution line details by clicking on Distributions button to openthe Distributions form.

Distributions form will be open.

10. Enter distribution line

11. Tab over to Num and Type fields and click on the Amount field to enter the distribution lineamount.

12. The Prepayment Account will be generated automatically by the system.

11. Tab over to GL Date fields and click on the Account field to enter the account by entering

values for all the segments:


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15. Validate Process by running the Invoice Register report:Enter the following parameter:

Accounting Period:


View Output.



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C.8. Apply/Unapply Prepayments

You can apply the available amount of Item type distributions from a Temporary typeprepayment to one or more invoices to offset the amount you pay on the invoice(s).

1.

Enter Supply Name

2. Complete the Header and lines of invoice

3.

Click on Action Button

4. Check the Apply/Unapply Prepayment option and Click OK


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5.

Select the Pre-Payments to be applied on the invoice6. Click Apply/Unapply button7. Re-query the Invoice

8.

Revalidate the invoice and save your work


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C.9. Credit Memos, Debit memos Return to VENDOR (rtv)

Oracle does not provide direct linkage between the Payables and Accounts Receivablesapplications. When a customer is owed a refund and a debit memo is created on the AccountsReceivable side there is a need to communicate that information with the Payables accountant it

is important to ensure that the transactions are done against a refund clearing account. TheCustomer-Suppliers Netting Report will assist with reconciliation.

Credit/debit memos are netted with basic invoices at payment time.Credit Memo - Negative amount invoice created by a supplier and sent to you to notify you of acredit.

Debit Memo - Negative amount invoice created by you and sent to a supplier to notify thesupplier of a credit you are recording. Usually sent with a note explaining the debit memo.

1. Navigate to the Invoice form:Invoices Entry Invoice

Invoice form will be opened.


In the Invoices window enter theCredit Memo Invoice Type. Enter a negative invoice amountand all basic invoice information

4. Enter the Supplier Site from whom the refund is received.

5. Enter the Invoice Date or accept the Payables default (today's date) by choosing [TAB].

Payables may use the invoice date you enter as the Terms Date and GL Date default for aninvoice, depending on how your Payables Options and Defaults are set up.

6. Enter the invoice negative(-) invoice amount


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7. Enter the Credit Memo Number or accept the Payables default (today's date) by choosing[TAB]. Payables will not allow you to enter duplicate invoice numbers for the same supplier.

8. Enter the Description of your invoice. This may appear in Oracle General Ledger.

9.

Enter the distribution line details by clicking on Distributions button to open the Distributionsform.

Distributions form will be opened.

10. Enter distribution line

Tab over to Num and Type fields and click on the Amount field to enter the distribution lineamount in a credit memo amount should be entering in negative.

11. Enter the Account

Tab over to Tax Code and GL Date fields and click on the Account field to enter the account byentering values for all the segments:


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12. Repeat steps to enter multiple distribution lines.


14. Validate the credit memo invoice

15. Validate Process by running the Invoice Register report:


Accounting Period:


View Output.



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C.10. Recurring Invoices

You can enter invoices for periodic expenses for which you may not receive invoices, such asrent. To enter recurring invoices, define a recurring invoice template, then create invoices basedon that template.

1. Define a template for each operating unit, supplier, and supplier pay site, asneeded.

2. Choose a calendar, then enter the total number of invoices you want to create overthe life of the template. In the first field, enter the first period for which you want tocreate an invoice.

3. In the Invoice Definition tabbed region, enter the template Number, which must be

unique for the supplier. When you create invoices based on a template, Payablescreates the invoice number for each invoice by appending the name of the recurringinvoice period to the template number.The template description defaults onto the header of the invoices created.


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4. Select the Distribution Origin you want to use. You create distributions for the recurringinvoices either by using a Distribution Set or by matching to a purchase order shipment or

pay item. This can be done by navigating to the Lines Definition tab.

5. Optionally, enter the GL Date, which will default to each invoice you create with thistemplate. Unless you will create all of your invoices while the accounting period for this GLdate is Open or Future, leave this field blank to have Payables use the beginning date of therecurring invoice's period. The GL date can be changed in the Invoice Definitions tab.


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6. In the Amounts tabbed region, enter the amount for the first invoice or enter in a Controlamount and Payables will calculate the First Amount. The Control Amount is the total amount

available for the creation of invoices (including tax).

7. If you want the invoices to increase or decrease by a set percentage from period to period,enter the percentage in the Change field. For example, if you pay rent once per month andyour rent increases 1% per month, enter 1 here.

8. If you want to create a special invoice amount to record a deposit or balloon payment, enterone or two Special Invoice Amounts and the Periods in which you want to create invoices forthem. When Payables creates the invoice for that period, the invoice amount equals thespecial amount.

9. Payables displays the Next Amount, which is the amount of the next invoice that Payables

will create from this template.

10. In the Control tabbed region, optionally enter a Hold name to prevent the creation ofinvoices using this template.

11. Enter an Expiration Date when you no longer want to use the template to create invoiceseven though there may be periods left.

12. Save your Work.


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To create recurring invoices:

1. In the Recurring Invoices window, query the recurring invoice template from which you wantto create invoices. Enter in the Number of Invoices field the number of invoices you want tocreate. Choose Create Invoices.

2. Payables opens the Create Invoices window and displays the number of invoices you elected.

3. If you want to include the invoices in an invoice batch, enter a Batch Name.


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4. Choose OK to create the invoices. The new invoices are now regular invoices and must bevalidated before you can pay them or create journal entries for them.


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C.11. Entering Expense Reports

Prerequisite:For expense reports entered in Payables, define expense report templates thatmodel the different expense report formats your employees use. Use the Expense Report

Template window to define templates based on the expense report forms that are regularly inuse. Define default values for expense items, and you can then choose those items from a list ofvalues when you enter expense reports

1. To define an expense report template Navigate to Expense Report Templates window

Setup Invoice Expense Report Templates

1. In the Expense Report Templates window, enter a Template Name and Description.2. Enter a list of expense items (for example, airfare, meals, hotel, and so on).

3. Choose a Type for each expense item.

4. For each expense item, you can set a GL Account default value. This is used to provide adefault value for the item when a user enters an expense report:

5. Save your work.


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Entering a Basic Expense Report

Navigate to Expense Reports window.

Invoices Entry Expense Reports

1. Either enter the employee name in the Employee field, or enter the employee number in theNumber field using the list of values.

2. [Tab] to the GL Account field and enter the charge account using the list of values.


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3. In the Date field, enter the period ending date for the expense report. Payable uses this dateas the GL Date for invoice distributions created from the expense report.

4. Either enters an Invoice Number, or Payables will enter the invoice date or the expensereport date as the Invoice Number.

5. Enter a Description of the expense report. This will become the invoice description, and it will

appear on reports.6. Enter the total Amount of the expense report.

7. [Tab] to the Template field and enter the expense report Template you want to use. Thetemplate determines which items you can select. The template also might provide GL accountdefault values that Payables creates invoice distributions from.

8. [Tab] to the item field and for each Item line on the expense report, select the item andenter the item amount.

9. Save your work.

Submit Expense Report Export program

Submit the Expense Report Export to create invoices and invoice distributions for the expensereports.

Navigate to Expense Reports window.

View Requests Run

1. Enter the Expense report parameter

2. Submit the Expense Report Export program to create Payables invoices from expensereports

3. Pay the invoices as you would any other invoices.


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C.12. Distribution Set

You can use a Distribution Set to automatically enter distributions for an invoice when you arenot matching it to a purchase order. For example, you can create for an advertising supplier aDistribution Set that allocates advertising expense on an invoice to four advertisingdepartments.

You can assign a default Distribution Set to a supplier site so Payables will use it for everyinvoice you enter for that supplier site. If you do not assign a default Distribution Set to asupplier site, you can always assign a Distribution Set to an invoice when you enter it.

Use Full Distribution Sets to create distributions with set percentage amounts, or use SkeletonDistribution Sets to create distributions with no set distribution amounts. For example, a FullDistribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facilityexpense account and 30% to the Administration facility expense account. A SkeletonDistribution Set for the same invoice would create one distribution for the Sales facility expenseaccount and one distribution for the Administration facility expense account, leaving theamounts zero. You could then enter amounts during invoice entry depending on variables such

as that month's headcount for each group.

If you enable and use a descriptive flexfield with your distribution set lines, the data in theflexfield will be copied to the invoice distributions created by the Distribution Set.


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1. Create a Full Distribution Set


Navigate to the Distribution Set Window :

SetupInvoiceDistribution Sets

1. In the Distribution Sets window, enter the Name and Description of the Distribution Setyou are creating.

2. Enter the Account and Description for each distribution and enter the Percentage of theinvoice amount that you want to distribute to the Account. You can enter positive andnegative percentages. Create as many distributions as you need. The sum of thedistribution percentages must equal to 100 or 0.

Save your work. Payables automatically assign type Full to your Distribution Set.


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2. Create a Skeleton Distribution Set

1. In the Distribution Sets window enter the Name and Description of the Distribution Set you arecreating.

Suggestion:If you create a skeleton Distribution Set, include skeleton in the name to remind youto enter the line amounts.

2. Enter the Account and Description for each distribution and leave the Percentage at zero.

Create as many distributions as you need.


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3. Apply Distribution Set at Invoice level

After creating distribution set apply distribution set at Invoice Level.

Now system will create distribution lines automatically


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C.13. Payment Terms

In the Payment Terms window, you define payment terms that you can assign to an invoice toautomatically create scheduled payments when you submit Payables Invoice Validation for theinvoice

Navigate to the Payment windowSetup Invoice Payment Terms

1. In the Payment Terms window, enter a unique payment term Name and a Description.2. If you enter Day of Month terms, enter a Cut-off Day.3. If you want to make this payment term invalid on and after a certain date, enter that

date in the To field of the Effective Dates region.4. Enter each payment terms line.

Enter one of the following to determine the portion of an invoice due on the scheduledpayment:

o

% Dueo Amount

In the Due tab, enter one of the following to determine the due date on the scheduledpayment line:

o Calendar

o Fixed Dateo Dayso Day of Month, and Months Ahead


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5. If you use discount terms, define payment terms lines in the First Discount , SecondDiscount, and Third Discount tabs. Define your discounts so that the first discount hasan earlier discount date than the second and so on. You can realize only one discounton a payment terms.

Enter one of the following to determine the portion of the invoice to discount on thescheduled payment:

o % Discounto Amount

In the Discount tabs, enter the discount percent.

Enter one of the following to determine the due date on the scheduled payment line:

o Due Days

o Day of Month, and Months Ahead


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D. Payment Generation

Once invoices are validated, they can be paid. Payables provides the information that you needto make effective payment decisions, stay in control of payments to suppliers and employees,and keep your accounting records up-to-date so that you always know your cash position.

Payables integrates with Oracle Payments, the E-Business Suite payment engine, to handleevery form of payment, including checks, manual payments, wire transfers, EDI payments, bankdrafts, and electronic funds transfers. Payables also integrates with Oracle Cash Managementto support automatic or manual reconciliation of your payments with bank statements sent bythe bank. Through Payables, you can:

*

Ensure duplicate invoice payments never occur.

* Pay only invoices that are due, and automatically take the maximum discount available.

*

Select invoices for payment using a wide variety of criteria.

* Record stop payments.

* Record void payments.

*

Review information on the status of every payment online.

* Process positive pay.

D.1. Payments

The main sub processes constituting the Payment Generation process are as follows:

D.1 Manual/Quick Payment

D.2 Void/Stop Payment

D.3 Scheduled Payment

D.4 Immediate Payment

D.5 Payment Refund


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D.2. Manual

Oracle Payables provides various methods to record payments. It also facilitates the paymentsmade outside the system by using manual payment feature. Outside payments are recorded inthe system but cheques are not generated through system. Outside payments includeshandwritten cheques, typed cheques or wire transfers. Quick payment is used to create and

print computer generated cheques to pay suppliers for one or more than one invoice. Refundpayment is another payment type, which is used to make a negative payment for a creditbalance. Refund transactions will appear in the supplier transaction history and will be reflectedin the supplier balance.


1. Navigate to the Payment windowPaymentsEntry Payment

Payment window will open

2. Select the Type

3. Select the Bank Account you use for the payment.

4. Select the payment Document NameOptionally change the payment Document Number, which defaults to the next availablenumber.

5. Enter the Payment date.The Date must be in an open or future period.


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6. Enter Supplier information: Enter the Supplier NameTab over the Payment Amount,

Currency and other fields and click on the Supplier Name field and select the supplier.

7. Enter the Supplier number and Supplier Site.Tab over the Supplier Number and Supplier Site fields.

System will automatically populate the Supplier number and Supplier site fields.

8. Choose Enter/Adjust Invoices to select approved invoices.System will open the Select Invoices window


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9. Select the invoice you want to pay through this document Click on the Invoice Number fieldand select the invoice.

10. Save your work.

Press the Save Icon from the tool bar after saving invoice system invoice status should be

paid.


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11. Validate Process by running the Payment Register report.Enter the following parameter:

From Date:

To Date :


Output.



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D.3. Immediate Payment

In immediate payment method, selecting the invoices in the invoice window and using pay infull option in the invoice action window will initiate payment of one or more invoices. Inimmediate payment method both manual and quick payment options will be available. When

this method will be used, Oracle Payables will automatically enter most of the paymentinformation and there will be no need to select supplier and invoice, which is to be done whenpayment is created in the payment workbench.


1. Navigate to the Invoice windowInvoices Enter Invoices

Invoice window will be open.

2. Choose Invoices to open the Invoice Entry form.

4. In the Invoices window, find the invoice(s) which is to be paid.Navigate to the Find Invoices window

View Find

Enter the Supplier Name and Invoice Number and click on find.


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5. Choose Actions to navigate to the Actions windowClick on Actions Button.

Invoice Action window will be open


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6. Select Pay in Full option to open the Payment workbenchClick on the check box next to the Pay in Full field and click OK

Payment workbench will be open


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7. Enter the payment detail: Select the Payment Type.

8. Select the Bank Account you use for the payment.

9. Select the payment Document NameOptionally change the payment Document Number, which defaults to the next available

number.

10. Enter the Payment date.The Date must be in an open or future period.

11. Save your work.

Press the Save Icon from the tool bar invoice status should be Paid.


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12. Validate Process by running the Payment Register report.

From Date:


To Date:


Output.



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D.4. Scheduled Payments From The Invoice Workbench

You can make any adjustments you need to an invoice's scheduled payments if the invoice is

not fully paid. You can add as many new payments as you want, and you can alter unpaid

scheduled payments. You can defer payment by adjusting due dates on schedules or by

applying holds to selected scheduled payments.

1. Navigate to the Invoice Workbench:

Invoice EntryInvoice

2. Scheduled Payments from the Invoice Workbench:Enter Standard Invoice & Validate it.To pay a portion of an invoice, select the invoice from the invoice window.


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Select the Bank,Select Payment Method as CheckSelect Cheque,Enter Date,

System will populate the Split Scheduled amount in the payment window.Save the work scheduled amount automatically paid.


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D.5. Void Payment

If after processing payment, for any reason, management decides not to handover the paymentdocument, Oracle Payables in such situations provides the flexibility to stop payment andrecords the stop payment status. Later on in accordance with management decision, systemeither will void the payment to reverse the accounting and payment records or will release the

stop payment.

When payment will be void, Oracle Payables will automatically reverse the accounting andpayment records so the Oracle General Ledger will have the correct information. The status ofpaid invoices will be reset to unpaid.

VOID PAYMENT


1. Navigate to the Payment windowPayments Entry Payments

Payment window will be open

2. Find the Payment, which is to be voided.Click on main menu: View Find

Enter the selection criteria and click on find.


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3. Choose Action to open the Payment Action window


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4.Void the Payment.Click on the check box next to the field Void. Enter the GL Date and select Invoice Action and

click on OK Check box.

There are three options available in Invoice Action:

None: Change the status of the related invoices to unpaid

Hold: Apply a hold to the related invoices

Cancel: cancel all related invoices and reset their amounts to zero


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5. Save your work.Press the Save Icon from the toolbar.

The status of the payment will change from Negotiable to Voided

6. Validate Process by running the Payment Register report.Enter the following parameter:

From Date:

To Date :

Include Zero Amount Payment : Yes

Date: Payment Date


Output.



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D.6. Stop Payment


1. Navigate to the Payment Workbench formPayments Entry Payments

2. Find the Payment, which is to be stopped.Click on main menu: View Find

Enter the selection criteria and click on find.


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3. Choose Action to open the Payment Action window

4. Stop the paymentClick on the check box next to the Initiate Stop and click OKNote window will appear. Click OK to continue with stop payment

5. Save your work.Press the Save Icon from the tool bar.

The status of the payment will change from Negotiable to Stop Initiated


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6. For release payment again choose Action Button to open the Payment Action window andcheck mark on Release Stop .

7. Save your work.

Press the Save Icon from the tool bar.

The status of the payment will change from Stop Initiated to Negotiable.

8. Validate Process by running the Stop Payments Report.Bank Branch:Upon completion of request, the report can be viewed on the screen by clicking on View

Output.



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7. Save the work system will make refund.


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D.8. Payment Manager

Oracle Payables provides a Payments Dashboard page on the Home tab that your PaymentManagers can use to monitor all current pay run processing.

Creating Payment Process Request Templates

Oracle Payables uses templates created in the Templates tab of the Payments Managerto simplify pay run processing. A payment process request template predefines invoice

selection criteria, payment attributes, processing instructions, and specifies howvalidation failures should be handled

Specifying Template Header InformationThe first step in creating a payment process request template is to specify templateheader information. The information in a header uniquely defines the template, therebymaking it easy for you to query.

Payment Selection CriteriaYou can specify invoice payment selection criteria in the Scheduled Payment SelectionCriteria subtab. Selection criteria determine which invoices will be selected for payment

in the payment process request.


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1.

Enter supplier type2. Payee (supplier)3. Payment method4. Select values for Pay Group , Legal Entity , Payment Currency and Operating Unit.5. Click Apply

Specifying Payment AttributesPayment attributes can be specified in the Payment Attributes subtab.

1.

Enter Disbursment Bank Account2.

Attach a Payment Profile3. Enter Payment Exchange Rate type4. Attach a payment document5. Click Apply


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Automating the Payment Process Request ProcessThe pay run processing instructions can be specified in the Process Automation subtab.This region specifies whether the pay run process will pause for review or be fullyautomated.

1.

Maximize CreditsIf this check box is selected in the Process Automation subtab, then during invoiceselection, if there is any credit for a payee after interest and payment withholdingcalculations, the system groups all scheduled payments for the payee site togetherto be paid on one payment, based on grouping rules.

.2.

Stop Process for Review after Scheduled Payment SelectionIf this check box is selected in the Process Automation subtab, the pay run pauses

after invoices have been selected and the status of the payment process requestupdates to Invoices Pending Review.

3. Calculate Payment Withholding and Interest during Scheduled PaymentSelectionIf this check box is selected in the Process Automation subtab, the followingcalculations occur: For each scheduled payment subject to interest, the system calculates the interest due. For those invoices subject to withholding, the system calculates withholding tax for invoices that belong to an operating unit where tax is withheld at paymenttime.

4.

Stop Process for Review after Creation of Proposed PaymentsIf this check box is selected in the Process Automation subtab, the Build Paymentsprogram runs to group the invoices into payments and the pay run pauses afterpayments have been built.

.5. Create Payment Instructions Option

You can choose whether to have payment instructions created immediately after thepay run reaches a status of Completed or schedule the Create Payment InstructionsProgram to run periodically at a specified time.


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Specifying Validation Failure CriteriaValidation failure criteria can be specified in the Validation Failure Results subtab. Inthis subtab, you specify the processing instructions for handling failures during validations.

Initiating Payment Process RequestsA payment process request, created in the Payment Process Requests tab of thePayments Manager, specifies the template to use, selects invoices for a pay run, andgroups the invoices into payments based on setup rules. The payment process requestalso includes optional payment instructions and a list of selected invoices and theiramounts.

Creating Single PaymentsThe figure below shows the six subtabs of the Payment Process Requests tab that arevisible when you create a single payment request.

You can initiate a single payment process request as follows:


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1. In the Templates tab, Payment Process Request Templates page, query theappropriate template in the Search region and click the Submit Single Request icon.

2. In the Payment Process Requests tab, Payment Process Requests page, click theSubmit Single Request button.

When a pay run uses a template, which is selected in the Use Temple field of thePayment Process Requests tab, most of the attributes are defaulted from the templateonto the payment process request, thus reducing data entry.

Scheduling Payment Process RequestsTo schedule payment process requests, perform the following steps:

1. Navigate to the Payment Process Requests tab in the Payments Manager.

2.

Click the Schedule Repeating Request button in the Payment Process Requestspage. The Schedule Request: Name page appears, which is the first page of aseven-node train for scheduling payment process requests.

3.

In the Template Name field of the Schedule Request: Parameters page, select apayment process request template from the list of values for invoice selection.

4. Navigate through the remaining nodes and click Submit. Your payment processrequest is scheduled to run as you specified.


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E. Period End Procedure

Completion of Oracle Payables cycle, by reviewing of the results and resolving postingexceptions by submitting different reports.

The main sub processes constituting the Period End Procedure process are as follows:

E.1 Invoice and payment review

E.2 Completing AP cycle

E.1. Invoice and payment review

After completing the invoices and payments entries in Oracle Payables the information will bereviewed before transferring the data to Oracle General Ledger, to update GL. To prepare thepayables information for transferring into Oracle General Ledger, all invoices and payments willbe reviewed and errors will be rectified if any error is found. This review and rectificationprocess will release all holds placed on invoices. Invoices and payments must be free from anyerror or hold, before submitting the program to transfer accounting entries into the OracleGeneral Ledger, otherwise system will be unable to transfer this information from OraclePayables to Oracle General Ledger


1. Run reports to review the Suppliers, invoices and PaymentsRun Invoice Register Report:


Accounting Period:


2. Review the report to verify the invoices.Upon completion of request, the report can be viewed on the screen by clicking on View

Output.

3. Submit second request.Run the report Payment Register Report.


From Date :

To Date :


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4. Review the report to verify the payments.Upon completion of request, the report can be viewed on the screen by clicking on View

Output.

5. Submit third request.Run the report Invoice on Hold Report.


From Entered Date :

To Entered Date :

6. Review the report to verify the invoices, which are on hold.


Output.


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E.2. Completing AP Cycle

Oracle Payables will prevent from closing an accounting period until all transactions with anaccounting date in that period will be posted. This posting will be initiated within OraclePayables by submitting the payables transfer to general ledger program. Payables transfer to

General Ledger program will transfers invoice and payment accounting distributions and auditinformation selected to the Oracle General Ledger Interface (GL_INTERFACE) table.

If there is an un-posted invoices or payments that needs to be move forward into the nextaccounting period, un-posted invoices sweep program will be submitted to move them forward.

PERIOD END PROCESS


1. Run Invoice Hold Report to review detailed information about invoices on hold.(See Submitting Reports)Upon completion of request, the report can be viewed on the screen by clicking on View

Output.

If any hold exists then write down the Batch name, Supplier Name and Invoice number.

2. Navigate to the Invoice windowInvoices Entry Invoice

Invoices window will be open.


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3. In the Invoices window, find the invoice that is on hold.Click on main menu: View Find. Enter the Supplier Name and Invoice Number and click on

Find.

(Optional Step)

Fix the error and release the hold. (Optional Step)

If hold is manually releasable then click on Hold box to open the Invoice Hold window and then clickon the Release Name field and select Approved from the list of values.

If hold is not manually releasable then fix the problem and approve the invoice

Payables apply some holds that you cannot manually release. You must fix the problem that causedApproval to place the hold on the invoice then resubmit Approval to release the holds.


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6. Run Create Accounting to create accounting entriesEnter the following parameters

Select your ledger:

Select Process Category: (Optional)

End Date:

Mode :

Report :

Transfer to General Ledger :

Post in General Ledger:

General Ledger Batch Name: (Optional)

(See Submitting Reports)System will submit two reports one by one. Upon completion of each request, the report can

be viewed on the screen by clicking on View Output.


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8. Navigate to Control Payables Periods windowAccounting Control Payables Periods

Control Payables Periods window will open

9. Close the Period

Find the period and then click on the Period Status field and select Closed from the list of valuesand click the save icon.

If the period has unaccounted transactions in it then you cannot close the period. If systemcloses the period then process ends here but if system does not close the period then do thefollowing steps.


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11. Run the program

Click on the sweep box and in sweep period window select the period in Sweep to Period to whichyou want to transfer the transactions.

Payables will submit a concurrent request to run the Unaccounted Transactions Sweep Program

Write down your concurrent request id.

To review the unaccounted transactions before transferring to the next period, press the Reviewbutton.

12. Review Status of Unaccounted Transactions Sweep ProgramClick on main menu: View Request and click on Find

Ensure that phase is completed and status is normal. Click on Refresh Data Button or press Alt R.

Upon completion of request, the report can be viewed on the screen by clicking on View Output

13. Navigate to Control Payables Periods windowAccounting Control Payables Periods

Control Payables Periods window will be open


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14. Close the PeriodFind the period and then click on the Period Status field and select Closed from the list of value.

15. Save your work.Press the Save Icon from the tool bar.


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E. Running Reports

Payable provides reports, programs, listings that you can use to review information about yoursupplier, invoices, payments and taxes. These reports can also be used to analyze productivityand resolve exceptions.


1. Run reports to review the Suppliers, invoices and Payments. Select the report PayablesAccount Analysis Report.(See Submitting Reports)

Enter the following parameters:

From Date

To Date

From Account

To Account

2. Review and analyze accounting entries in Payables.Upon completion of request, the report can be viewed on the screen by clicking on View

Output.

3. Submit second request.Run the report Accounts Payable Trial Balance Report.

Enter the following parameters:

As of Date :

4. Review the report to verify that total accounts payable liabilities in payables equal those in the

General Ledger.Upon completion of request, the report can be viewed on the screen by clicking on View

Output.


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1. Navigate to the Submit Request window.

View Request

2.

Select the Single Request option and click the Ok button.


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3. Click the Submit button in the Transaction Reports window.

4. Validate by viewing the status of the request.

(Menu)ViewRequests

Make sure that the Phase and Status fields values are Completed and Normal respectively.

If the Phase field is showing the value as Pending then click the Refresh Data button repetitively till the it changes to Completed.


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N. Appendix

Glossary of Terms

Req Requisition

HOA Head of Accounts

HOD Head of Department


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Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date ImpactDate

Closed Issues

ID Issue Resolution Responsibility Target Date ImpactDate

payables - training manual

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