11i Oracle Payables

Oracle Payables - Step by Step functional in 11i

Table of Contents

1 Document Control

1.1 Revision History and Approval

2 Accounts Payable

2.1 Overview

2.2 High Level Process flow diagram

3 Supplier Creation and maintenance

3.1 Creation of Supplier

3.2 Merging of supplier

4 Invoice Entry

4.1 Overview

4.2 Entering Standard Invoice

4.3 Entering PO default Invoices

4.4 Entering Debit and Credit Memo

4.4.1 Overview

4.4.2 Enter Credit Memo

4.4.3 Matching credit memo to invoice/PO

4.5 Entering prepayment invoices

4.5.1 Overview

4.5.2 Create Prepayment Invoice

5 Creation of Recurring Invoice

5.1 Overview

5.2 Setup Special Calendar

5.3 Define recurring invoice template

5.4 Generate recurring Invoice

5.5 Invoice validation

5.5.1 Canceling a Prepayment invoice

5.5.2 Paying a prepayment

5.5.3 Applying a Prepayment

5.5.4 Un-applying a Prepayment

6 Invoice Validation

6.1 Introduction

6.2 Online Validation

6.3 Submitting payable approval program

7 Holds

8 Payable accounting process

9 Payment

9.1 Overview

10 Manual Payment

10.1 Overview

10.2 Pay an Invoice manually

10.3 Printing a Payment

11 Batch Payment

11.1 Batch Payment Process

This payment format contains one credit line and multiple credit lines.

11.2 Initiating Payment Batches

11.3 Selecting invoice / Verify Payment Register is correct

11.4 Modify Payment

11.4.1 Adding an invoice to a payment batch

11.4.2 Removing an Invoice from Payment Batch

11.4.3 Removing all Invoices for a Particular supplier site from a payment batch

11.4.4 Changing payment or discount amounts for a selected invoice

11.5 Formatting Payments

11.6 Confirm Payment Batch

11.7 Payment Batch sets

12 Stop Payments

12.1 Stopping a Payment

12.2 Releasing a Stop Payment

12.3 Voiding a Payment

13 Payables Transfer to General Ledger

14 Open and Close Period

14.1 Period control status

14.2 Open a Period

14.3 Close Period

1 Accounts Payable

1.1 Overview

Accounts Payable designed is designed for

Supplier creation and maintenance

Recording invoices from suppliers

Payment to vendors

Creation of banks

Transfer of accounting information to GL

Oracle Payables is one of the sub-ledgers of General Ledger and provides a means to gather information pertinent to the Payables and tracks the status of payments to the suppliers

1.2 High Level Process flow diagram

Purchasing

Accounting of

Invoices

Pay invoices

Reconcile

Payments

General

Ledger

Enter invoices

Enter supplier

Matching

JE

JE

Purchase Orders

Receipts

2 Supplier Creation and maintenance

2.1 Creation of Supplier

In a multi-org environment, the Supplier header record is shared acrossorganizations and you should therefore take the following precautions: Always use Find first before adding a new supplier as it may have already been created by another organization.If the supplier already exists, go straight to the Sites region and set all organization-specific parameters at the Site level.

1. Navigate to Supplier’s ► Entry

2. To enter a new supplier provide supplier name and provide all the information under various tabs

3. Select the Sites button. To update a site, use the PgUp / PgDn buttons to find the required site. Provide the following information against various tabs

1. Fill in the following fields

Name of the field Content

Site Name Enter a Name for the site

Address Enter the Address and other details of the site

Site Uses Define what this site is used for - Payment, Purchasing, Procurement Card or RFQ only. The supplier must have a Pay Site to enter invoices, and a Purchasing Site to enter Pos

Region communications

If you have the site phone numbers, specify them in the appropriate fields

2. Select the Contacts region

End user Manual for Account Payable

Optionally add information on site contacts as required.

1. Select the accounting region

2. Fill in the following fields, However the values are defaulted from the

financial option


Liability Modify the entity value if necessary

Prepayment Modify the entity value if necessary

Future dated Payment

Modify the entity value if necessary

3. Select the payment region

4. Select the bank account region

Use this region to record the supplier bank accounts that your suppliers and supplier sites use

for electronic payment transactions. Information you enter in this region of the Supplier

and Supplier Sites windows will appear in the supplier assignments region of the

Bank Account window. Before filling in this region it is necessary to have created

the account in the AP Bank Account form.

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1. Select the invoice tax region

2. Select the Purchasing region

All the options are derived from the system defaults defined in the purchasing and AP setups

3. Click on save. The supplier is created

1.1 Merging of supplier

Any supplier who are duplicate or not required to be maintained or requires merging with any other supplier can be done using merge function available in Oracle. Merging suppliers is an irreversible

action. Merger once done can not be reversed.


Invoices Choose which all the invoices you want to merge

PaidUnpaidNone

Name and site Provide the name of the supplier and site requires transfer

Name and site Provide the name of the supplier and site to which the merge needs to be done

Merger Run the merge to execute the merge program

2 Invoice Entry

2.1 Overview

Every transaction that needs to be paid would be recorded as invoice. This is required even for advance payment, petty payment etc. Payable gives the option to enter invoices in single or in batches. In batches the value such as payment terms, currency, GL date can be given that will default to individual invoices to make data entry faster.

The following are various type of invoices used to record transactions

Standard. A trade invoice you receive from a supplier.

PO Default. A trade invoice you want to automatically match to a specified purchase

order and then manually match to the individual shipments on the purchase order.

Credit Memo. A negative amount invoice you receive from a supplier representing a credit for goods or services purchased.

Debit Memo. A negative amount invoice you send to notify a supplier of a credit you

recorded for goods or services purchased.

Prepayment. An advance payment you make to a supplier or employee

Expense Report. An invoice you enter to record business-related employee expenses

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1.1 Entering Standard Invoice

These invoices are entered in payables not matched against purchase orders.

1. Navigate to Invoices ► Entry ► Invoices

The following window will open:

2. Fill in the following fields

Name of the Content

filed

Voucher Automatically defined by Oracle

Type Choose Standard

Supplier or Supplier Number

Enter the Supplier or Supplier Number

Site Enter the Supplier Site to which you will send payment of the invoice. AP will print the address for this site on the payment.

Invoice Date Enter the Invoice Date or accept the Payables default (today's date) bychoosing If you enter a date in a future period. AP will put the invoice on Future Period hold during Approval

Invoice Number Enter the Invoice Number from the invoice your supplier sent you or accept the Payables default (today's date) by choosing [Tab]. AP will not allow you to enter duplicate invoice numbers for the same supplier.

Invoice Amount Enter the full Invoice Amount including tax

Description Enter the Description of your invoice. This will appear on your paymentdocument and may appear in your general ledger.

G L Date Enter the GL Date

Withholding tax group

Not applicable

3. AP automatically schedules payment of the invoice using the Invoice Amount, Payment Terms,

and Terms Date. Enter or review the defaults for these fields by Clicking on Payments

4. Enter distributions manually or automatically by entering a Distribution Set,

Entering Distribution Manually

1. Create a Line

2. Fill in the following field

Name of the filed

Content

Type Choose a Distribution Type Choose Item for goods or services you ordered. Choose Miscellaneous for other expenses on an invoice that are not tax.

Amount Enter the line amount (Tax not included)

Account Enter the GL Account

Tax code Not applicable to Tooran

Track as an asset This check box will be enabled if the distribution line needs to be transferred to fixed assets

GL Date The distribution GL Date defaults from the invoice GL Date you entered. This can be overridden

3. Enter a separate line to show freight separately

4. Attach

5. Click on (save)

1.2 Entering PO default Invoices

These are invoices matched against purchase orders raised from oracle purchasing

1. Enter the PO Default type. A form appears: enter the PO Number, then AP automatically defaults

the Supplier, Supplier Number, Site, and Currency.

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1. Enter all basic invoice information (see: Entering Basic Invoices), but do not manually enter the

distributions.

2. Select the appropriate withholding tax group in the tax field

3. Choose the Match button. The following window will open:

4. The order number is already specified. Optionally change the invoice payment term.

5. For each shipment you want to match, select the shipment by clicking the Match check box and

enter the invoiced quantity. When you enter one field, Payables automatically calculates

the remaining field (Quantity Invoiced x Unit Price = Match Amount). It can be changed.

If you want further details to match, you can match to purchase

orderdistributions by choosing the Distribute button. For each purchase order distribution you want to match to, select the purchase order distributions and enter either the Quantity Invoiced or Match Amount.

6. Choose Match to save your match

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1. Review the invoice distributions AP created by choosing the Distribution button from either

the Invoices Summary or Invoices detail window.

The following window with matched distribution line(s) will open:

Final matching a Purchase order

When you are entering a purchase order matched invoice or a credit/debit memo, you can check Final Match in the Match to PO or Match to Invoice Distribution window to have AP

permanently close the purchase order during invoice Approval. When you approve a final-

matched invoice, Approval permanently closes the matched purchase order. You cannot

reopen a permanently-closed purchase order or perform any further matching to the purchase order.

Attention: Check Final Match only if you are certain this is a final match against therelated purchase order and you want Approval to permanently close the purchase order.

1.1 Entering Debit and Credit Memo

1.1.1 Overview

In oracle Credit and debit memos are used when you receive credit for items you

returned to a supplier. Credit/debit memos are netted with basic invoices at payment time.The difference between credit and debit memos is:

Credit Memo - Negative amount invoice created by a supplier and sent to youto notify you of a credit.

Debit Memo - Negative amount invoice created by you and sent to a supplierto notify the supplier of a credit you are recording.

1.1.2 Enter Credit Memo

In the Invoices Summary form enter the Credit Memo Invoice Type. Enter

anegative invoice amount and all basic invoice information as in standard Invoices.

1. Enter the distribution automatically in one of the following ways:

Manually

Or by matching to the original invoice you entered

2. Click on save

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1.1.1 Matching credit memo to invoice/PO

1.1.1.1 MATCHING OPTIONS WHEN THE ORIGINAL INVOICE IS NOT PURCHASE ORDER MATCHED

In this case you can choose one of the following:

Match to an invoice: Payables prorate your credit amount based on theinvoice distribution amounts of the original invoice. Payable automatically creates invoice distributions for the credit memo based on the distributions ofthe original invoice.

Match to specific invoice distributions: You can allocate the credit amount to specific invoice distributions of the original invoice. Payables automaticallycreate invoice distributions for the credit memo based on the original invoicedistribution that you select. For example, you may order three chairs for threedifferent departments and return one. You can match a credit invoice to theoriginal distribution for that department to ensure that the credit matches thecharge.

Follow the steps below

1. Enter a Credit Memo type invoice.

2. Enter a negative invoice amount and all basic invoice information but do not manually enter the

distributions

3. At the pop-up list to the right of the Match button, choose Invoice, and then choose the Match

button.

4. In the Find Invoices to match window, query the invoices you want to match and choose Find. If

the credit memo pertains to an invoice matched to a certain purchase order, query by purchase

order number to see all invoices matched to that purchase order. AP navigates to the Match to

Invoice window.

5. Optionally choose the Invoice Overview button to review more information about an invoice.

6. Create invoice distributions by matching to one or more invoices. If you are matching to a non-

purchase order matched (basic) invoice, select the invoice and enter a Credit Amount.

7. If you want to match in further detail, continue the match at the invoice distribution level:

Match check box of the invoice you want to match and enter the CreditAmount. Then choose the Distribute button.

8. For each invoice distribution you want to match to, select the distribution and enter a Credit

Amount.

9. Choose the Match button to create invoice distributions for the credit memo based on the matches

you made.

10. To review the new invoice distributions, choose the Distributions button from the Invoices

Summary.

1.1.1.2 MATCHING OPTIONS WHEN THE ORIGINAL INVOICE IS PURCHASE ORDER MATCHED

In this case you can choose one of the following:

Match to specific invoice distributions: You can allocate the credit amount to specific invoice distributions of the original invoice. Payables

automatically create invoice distributions for the credit memo based on the original invoice distributions that you select.

Match to purchase order receipts: Payables prorates, based on the

quantity billed, your credit amount across all purchase order distributions associated with the purchase order receipt to which you match the credit memo. Payables automatically create invoice distributions for the credit memo based on the purchase order distributions associated with the purchase order receipt you match to.

Follow the steps below to create a credit memo to match against PO

1. Enter a Credit Memo type invoice.

2. Enter a negative invoice amount and all basic invoice information but do not manually enter

the distributions.

3. At the pop-up list to the right of the Match button, choose Purchase Order or Receipt, and then

choose the Match button.

4. In the Find screen, enter the search criteria to find the purchase order

5. Click on the Find button:

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1. For each line you want to match to, select the line by checking the Match checkbox and enter

either a Quantity Invoiced or Match Amount. AP automatically calculates the remaining field

(Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which

defaults from the purchase order.

2. Validate the related Invoices when entering Credit Memos

Search for the credit memo

In the Invoices Summary choose the Actions button. Check Approve RelatedInvoices, and choose OK to have Payables automatically initiate Approval forany invoices

associated with a credit memo.

1.1 Entering prepayment invoices

1.1.1 Overview

A prepayment is a type of invoice you enter to pay an advance payment to a supplier or an employee. Create a prepayment in much the same way as you create a regular invoice. Review the Prepayment Status report to review unapplied payments or unpaid or partially paid invoices for suppliers/employees.

1.1.2 Create Prepayment Invoice

1. Choose the following path:

Invoices ► Entry ► Invoice Batches.

Cllick on the button Invoices

2. Select the prepayment as invoice type

3. Enter all the other field as you do for a standard invoice, expect for the following special field


Prepayment Type Select Temporary or Permanent as the Prepayment Type. Specify the Prepayment Type as Temporary if you want to apply the prepayment to an invoice or the advance to an employee expense report. You specify the Prepayment Type as permanent if you do not want to apply the prepayment to an invoice.

Settlement Date Accept the Default or change. Payables use the Settlement Date to prevent you from applying a temporary prepayment to an invoice until on or after the Settlement Date of the prepayment.

You can establish a Purchase Order association for your prepayment when you enter the prepayment. If you associate a prepayment with a purchase order, Payables allows you to apply the prepayment only to the invoices matched to the associated purchase order.

If you are using multiple currencies, you can enter a prepayment in

anycurrency you have defined. You can only apply a prepayment to an

invoice inthe same currency as the invoice.

4. Click on Distribution.

AP creates a prepayment distribution line automatically when you enter a prepayment.Oracle

Payables debits the Prepayment Accounting Flex-field from the suppliersite, but you should fill the Amount field. If you enter a tax name on a prepayment, Payables also creates a tax distribution line


1. After completing the invoice form, click on the action button to validate the prepayment.

1 Creation of Recurring Invoice

1.1 Overview

These are invoices predefined and run for recurring expenses such as Telephone expenses, Office cleaning, Electricity and water payments. Creation of recurring invoice process describes below

1.2 Setup Special Calendar

For recurring payments made of a fixed amount at regular intervals, the AP Administrator would define a Special Calendar of the type Recurring Invoice in the Special Calendar window. A full distribution set would also need to be defined for the relevant expense account in the Distribution Sets window

1. Choose the following path

Setup ► Calendar ► Special Calendar

The following screen will display


Sl Field Type Description

1 Type of Calendar Required Click on Recurring Invoice

1 Calendar Name Required Enter any logical name for the recurring calendar

2 Periods per year Required Enter the number of periods in this calendar. For e.g. to use it or payments recurring monthly, enter 12, to use it for payments recurring quarterly, enter 4.

3 Description Optional Enter any logical description for this calendar

5 Period Required Enter a period name. For example, Jan, Feb, Mar, etc., or Q1, Q2, Q3, Q4.

6 Year Required Enter in the Year field the calendar year in which a period occurs

7 Sequence Required Enter numbers in the Sequence fields to indicate the order

in which the periods occur. The sequence numbers of a period should represent the sequence of the period in a regular calendar. E.g. May - December 1995 should be sequenced 5-12, and January 1996 should be sequenced 1.

8 Start Date Required Enter the Start Date for this period

9 End Date Required Enter the End Date for this period

10 System Name Required, Defaults

The System Name will automatically default by taking the combination of Period name and the last two digits of a year.

3. Save the Recurring calendar

1.3 Define recurring invoice template


Invoice ► Entry ► Recurring Invoice

The following screen will display

2. Fill the following fields

Sl No Field Type Description

1 Supplier Name Required, LOV

Enter the Supplier name for which you want to create the recurring invoice.

2 Supplier Number Required, Defaults

The Supplier Number will default

3 Supplier Site Required, LOV Enter the Supplier Site for which you want to create the recurring invoice. (Choose the site relevant to the entity, identifiable by the prefixes)

4 Supplier Pay Group

Required, Defaults

The Pay Group will default from the supplier site setup. Accept the default.

5 Calendar Name Required, LOV Select the appropriate special calendar.

6 Periods Required Enter the number of periods for which you want to pay this vendor. You will get a message if the numbers of periods you enter are more than the periods defined for the calendar you have chosen.

7 First Required Enter the first period name for which you want to pay this vendor.

8 Next Display Only The next period name will default depending upon the first

period name entered. Once the invoices are generated, this will be updated to the next period for which the invoice should be created.

9 Remaining Display Only The remaining periods for which the invoices remain to be created will default.

10 Number Required Enter any identifiable number; this with a suffix of the period name will be assigned to the invoice created as the invoice number.

11 Description Optional Enter any logical description for this invoice

12 Currency Required, Defaults

The functional currency defaults, unless the supplier site invoice currency is different. Accept the default.

13 Liability Account Required, Defaults

This defaults from the supplier site setup. Accept default.

14 GL Date Optional GL Date for the liability will be assigned in any of these ways:

1) If you enter a GL Date, it will default to every invoice you create from this template and will be the date the liability will take effect in GL.2) If you leave it blank, and create the invoice in period where system period and special calendar period are the same, the beginning date of the recurring invoice's period defaults.3) If you leave it blank, and create the invoice in period where system period and special calendar period are not the same (in sense of the period in which the system date falls), the system date on which you create the invoice defaults.

Generally you will follow the second case.

15 Payment Method Required, Defaults

This defaults from the supplier site Setup. Accept default.

16 Payment Terms Required, Defaults

This defaults from the supplier site Setup. Accept default or change if required.

17 Distribution Set Required, LOV Choose a distribution set for the accounts to be debited. Only a full type distribution set is allowed for recurring invoices.

3. Click on the Amount tab

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1. Enter the following field


1 First Amount Required Enter the amount to be paid periodically.

2 Next Amount Display Only The next amount shall default from the first amount.

3 No of Recurring Invoices

Display Only The number of recurring invoices shall default from the periods entered in the main form.

4 Control Total Defaults The control total defaults at first by multiplying the first amount with the number of periods. If at any point after generating an invoice, you change the control total, the system pro-rates the differential amount across the remaining number of periods for which the invoices are yet to be created (the change is seen in the next amount field)

5 Released Total Defaults The release amount will default depending upon the

amount paid against this invoice template periodically.

6 Amounts Remaining

Defaults The Amount remaining will default depending upon the amount paid against this invoice template periodically.

1.1 Generate recurring Invoice

Vendor submits bills for the recurring expense incurred, if required. Designated authority would approve on the bill (the physical hard copy), if any, which would then be submitted to the accounts department. Against it, you would generate in Payables. If no bill has to be submitted, generate the recurring invoice at periodic intervals defined in the recurring invoice calendar, in the Recurring Invoices window.


Invoice ► Entry ► Recurring Invoice

In this screen, query, on any criterion you know, the recurring invoice template from which you want to create an invoice. Once it is found, click on the button Generate Recurring Invoices on the Recurring Invoice Template. The following form will open up:

2. Fields have the following impact in recurring invoice


1 Invoice Display Only This is the number suffixed with the special calendar period

Number name and will be the number given to the invoice.

2 GL Date Required, Defaults

This is the date on which the account debited will take effect in GL, it defaults as the first date of the special calendar period for which you are creating the recurring invoice, and you can change it if required.

3 Amount Display Only This defaults from the amount assigned to the period.

4 Exchange Rate – Type

Conditionally Required, LOV

For foreign currency invoices, choose User type

5 Rate Conditionally Required

For foreign currency invoices, enter the exchange rate.

3. After reviewing the displayed information click OK

1.2 Invoice validation

For more details please refer Prepayment

1.2.1 Canceling a Prepayment invoice

If the prepayment status is Unapproved or Unpaid, you can cancel the prepayment. If you

choose to cancel a prepayment in Unapproved or Unpaid status, the status

isupdated to Cancelled and Payables automatically reduces the prepayment amount to zero. You cannot apply a cancelled prepayment to an invoice or expense report.

1.2.2 Paying a prepayment

You must fully pay a prepayment before you can apply the prepayment to an invoice. Once the prepayment has been paid you can re-query the Invoices form to see the updatedAmount

Paid field and the updated Status field. When you pay the prepayment the status is updated to Available. The prepayment is now available to be applied to invoice(s).

1. Click on the actions button to pay the prepayment

2. Check the pay in full box

3. Click on OK

1.2.3 Applying a Prepayment


Invoices ► Entry ► Invoice Batches.

2. Click on Invoice button

As you enter an invoice for a supplier with outstanding prepayments, AP notifies you of the existence of any prepayments with the message: “Prepayments exist for thissupplier”. AP lets you know if the prepayment is available to apply for an invoice or if an advance is

available to apply to an employee expense report.

3. Apply the prepayment by entering or selecting one or more invoices that you want to apply the

prepayment to.

4. Complete the entry of the invoice to which the prepayment(s) will be applied, approve the

invoice(s) and/or select the completed approved invoice(s).

5. Click on Actions

6. Check Apply/ Unapply Prepayments.

7. Click on OK.

The Apply/ Unapply Prepayments form allows you to apply, approve, and printprepayments as well as unapply existing prepayments

On the form, check the prepayment line(s) to be applied and enter the amount you wish to apply. As you apply a prepayment, AP reduces the amount of theprepayment by the amount applied. AP creates prepayment reversal lines on the prepayment as you apply it. Once you fully apply a prepayment, its amount is $0, and its Status is Fully Applied.

1.2.4 Un-applying a Prepayment

Un-apply prepayments on the Apply/Un-apply Prepayments form by checking the checkbox next to any Existing Prepayments that you wish to UN-apply and commit the transaction.

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1 Invoice Validation

1.1 Introduction

Every invoice entered as above needs to be validated for account creation and for making payment. The validation validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exceptioninvoices

Validation is done in one of the following ways

Online by using the validation button in the Invoice action button

Batch by submitting the Payables Approval program from the Submit Requests window.

.

1.2 Online Validation

Navigate to Invoices Entry ► Invoice Batches ► Invoices

In the Invoices window, find the invoice(s) for which you want to submit Approval. To select individual invoices, hold down the Ctrl key and mouse click on each line; note that the number shown on the Actions button represents the number of lines chosen.

Click on Action button

Select approve

If you are approving a credit or debit memo, select Approve Related Invoices to submit online Approval for invoices associated with the credit or debit memo.

Choose OK

AP displays messages about the number of holds applied and released during

this cycle of Approval.

1.3 Submitting payable approval program

The validation under this method can be done for batch of invoices. You can identify all invoices that Payables has not yet reviewed with Approval by submitting the Invoice Register for Unapproved

Invoices Only. You can check the Approval status of an invoice online in theInvoices window, or

the Invoices Batches window

Navigate to Request ►other ►Run.

Choose program Payable approval and submit

2 Holds

Holds are restriction placed on invoices so that these invoices can not be accounted and prevented from payment Holds are of two types

Manual holds System holds

A) Manual Holds There are three types of holds you can use to prevent payment of an invoice. The hold can not be applied if the invoices are already selected for payment .These holds can be released manually. The following are the type of the manual holds

Invoice Hold. You can manually apply one or more Invoice Hold Names ("holds") to an invoice using the Invoice Holds window of the Invoice Workbench.

Scheduled Payment Hold. You can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench.

Supplier Hold. In the Supplier Sites window, you can enable the Hold All Payments, Hold Unvalidated Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an Invoice Amount Limit for a supplier site.

B) Manual Holds.

These holds are created by system during invoice validation when ever an exception is encountered by the system. These can be released only when the exception is corrected.You must fix the problem that caused Invoice Validation to place the hold on the invoice then resubmit Invoice Validation to release the holds. You cannot release the following holds: The examples of some of the holds are as below. Dist Variance. Invoice amount does not equal the sum of the invoice distribution amounts.

No Rate. Foreign currency invoice does not have an exchange rate assigned to it.

Can't Funds Check. Budget does not exist for the invoice accounting period, or the invoice distribution account does not equal the purchase order distribution account. This hold is used by Payables only if you use encumbrance accounting and the absolute or advisory method of budgetary control.

Final Matching. Invoice has one or more distributions final matched to a purchase order.

Can't Try PO Close. Invoice is final matched to purchase order, but Invoice Validation placed one or more holds on invoice during validation.

Dist Acct Invalid. Invoice distribution has an invalid account. An invalid account prevents you from creating accounting entries for an invoice or payment.

ERV Acct Invalid. Invoice Validation created an invalid Exchange Rate Variance account for an invoice distribution. Payables only apply this hold if you enable Automatic Offsets.

No AWT Period. Invoice Validation did not find the period in the withholding tax special calendar. Create the period in the special calendar and resubmit Invoice Validation.

3 Payable accounting process

The accounting process enables to view the new accounting entries in the payables . This can be

created in two ways

By choosing the create accounting process button in invoice and payment window

By running a program

Perform the following steps to run the program

1. Navigate to Other ► Request ► Run

2. Choose the program Payable accounting process

3. Provide the following parameters and submit


From date to date Provide the accounting event dates for which you want to transfer accounting entries These dates are not required to run the accounting process. If you do not specify dates, then the program will account for all of your unaccounted transactions.

Document class Invoices Includes the following accounting events: invoice entry invoice adjustment invoice cancellation prepayment application prepayment unapplication

Payments. Includes the following accounting events:

payment entry (future dated) payment maturity payment adjustment payment cancellation payment clearing payment unclearing

All. Create accounting entries for all eligible unaccounted invoice and payment events

Submit transfer to GL Yes No

Submit journal import Yes No

Validate accounts Yes No

Summarize report Yes No

Run accounting report Yes. No.

4 Payment

4.1 Overview

Oracle Payables - Step by Step functional in 11i PART 2

Sunday, 14 February 2010 08:33 Anonymous Contributor E-mail | Print | PDF

The following are various methods used to make payment to suppliers

Manual : check: this is the check manually written or typed. This will be used occasionally, when the check printing as above can not be done.

Quick : You can use this process to create single computer generated payments, rather than an entire payment batch, to speed up the process of generating a single payment for a vendor’s invoice

Batch : These are payment selected and checks are printed in batch for more than one supplier on the basis of prescribed criteria

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1 Manual Payment

1.1 Overview

Manual checks and prepayments check to employees and supplier basis if the payment is released immediately.



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Name of the filed

Content Comments

Type Choose Manual

Bank Account Select the Bank Account

Document Name

Select the Document Name AP will allow you to select only Computer Generated orCombined Payment Documents associated with the selected Bank Account

Document Number

Click on OK AP will reserve the document Name at this point

Payment Date Enter the payment date or type [Tab] to accept the default date of today

Payment Amount

You can either enter the amount or leave it empty so that AP will calculate it with the invoices you will choose in the next step

Supplier Name or Supplier Number

Enter the Supplier name

Supplier site Enter the Supplier site or press Tab to accept default data

3. Click on Enter / Adjust Invoice to choose the invoice to pay

The following window will open

4. Select the invoices you want to pay (Payables will only allow to select invoices which have a Check

payment type associated with them, and which have the same currency as the payment document)

5. Save your work, and return to the Payments window. Payables automatically enter the payment

amount.


1. Click on the action, the following window will open

2. Chec

k the boxes Format, Print Now and Print Remittance advice.Click OK.

2 Batch Payment



This format requires one debit line for every credit line.

Payment batches are used to generate checks for batch of invoices from many vendors. There is a series of steps to follow to print checks with a Payment Batch. Most steps are initiated from the Payment Batch Actions window. The steps are:

Initiate Payment Batch

Select Invoices/Verify Payment Register Modify Payments Format Payments Print Checks Confirm Payment Batch



Payments ► Entry ► Payment Batches, The following window will open



Batch Name Enter the Payment Batch Name. This name will appear on your reports and will help you locate the batch online. Ex: User Initial / Date – year

Payment Method Verify the Payment Date.

Pay group Optionally select Pay Group. AP will select invoices with this Pay Group.

Bank account Optionally change the Bank Account.

Payment Document Select the Payment Document.

Pay through Date Verify the Pay Through Date. AP will select invoices with a discount or due date on or before this date.

Payment Limit Optionally review or adjust the payment limits.


1. Click on Actions Button.

2. Select Invoices & Build Payment & Print Preliminary Register.

Page 7 of 7


1. Click on the button OK:

Payables will initiate three concurrent processes, Auto Select, Build Payments and Preliminary Payment Register. The Preliminary Payment Register is printed when the invoices are selected and the payments are built. It should be used to review the payments Payables will create when you format payments for the invoices in a Payment Batch. You should review the Preliminary Payment Register to see which invoices and vendors will be paid, the discounts taken, and the total amount paid to each vendor.

Payables group the invoices by vendor site and print the total for each payment for a site.

Payables prints asterisks and a non-payment reason for the invoicesselected for payment in the payment batch, but that do not meet payment requirements.

Payables does not create payments for a vendor site's invoices if the total of the selected invoice(s) exceeds the maximum payment amount or is less than the minimum payment amount that you specified for the payment batch, or the total payment amount for a vendor site is less than or equals zero.

2. Check the Preliminary Payment Register to ensure that all the invoices needing payment are

included on the register. You should also check to ensure that no payments will be generated for

invoices that should not be paid.

3. After the concurrent request are finished you need to requery the Payment Batch form, when the

Status field changes to Built and the Payments button becomes active you may proceed to the next

step.

4. To requery the form you may use one of the following methods:

Select Tools, Refresh Status.

Click on the button ‘Refresh’ (available on the latest Oracle versions).

1.1 Modify Payment

Then after reviewing the Preliminary Register you can modify the Payment Batch by:

Changing the payment amount of an invoice

Preventing payment to a supplier

Preventing payment of a particular invoice

Adding an invoice that Payables did not select.

In order to modify a Payment Batch the status must be built. (i.e. The Payment Batch must be initiated but cannot have formatted payments)


Payments ► Entry ► Payment Batches

2. Choose View, Find (or F11)

3. Select the appropriate Payment Batch.

4. Click on Payments Button.

You can navigate between the various suppliers selected to be paid, by clicking the PgUp/Pg Dn keys while the cursor is in the Supplier field.


Clear the form and then enter the Supplier name and Site.

Select Yes for Pay supplier.

AP displays the approved invoices for the supplier site.

Select Yes for Pay invoice for each invoice you want to add to the payment batch.


Query the Supplier name and Site.

AP displays the invoices for the supplier site which were selected for thepayment batch.

Select No for Pay invoice to remove it from the Payment Batch.



Select a Non-Payment Reason for your records (Optional). Select No for Pay supplier.



AP displays the invoice(s) for the supplier site, which were selected for the batch.

Alter the payment or discount amounts for the invoice.

1. Click on Build Button to save your work.

AP will initiate the Build Payments concurrent process. Once the Build Payments process is complete you should review your changes by printing a new Preliminary Payment Register

To print the Preliminary Payment register:


Payments ► Entry ► Payments.

2. Choose View, Find.


4. Click on the button Actions

5. Deselect Format Payments checkmark.

6. Select Print Preliminary Payment Register.

7. Click on the button OK


Once the Preliminary Payment Register has been verified the payments can be formatted for printing.





4. Click on the button Actions.

5. Select Format Payments & Print Now.

6. Click on the Button OK

7. Select View, requests, Find.

8. Select The Format Payments Request.

.


After the Formatting and Printing are finished you need to requery the Payment Batch form, when the Status field changes to Formatted you may proceed to the next step. Now you need to confirm whether all the checks were printed correctly, or is there any skipped or spoiled stock paper:


2. Confirm Payment Batch.

3. Click on the button OK.

In the Confirm Payment Batch window enter the range of Checks:

Printed

Skipped (Not applicable as Honeywell uses bespoke)

Spoiled (Not applicable as Honeywell uses bespoke)

4. Click on Confirm.

AP initiates two concurrent processes, Confirm Payment Batch and Final Payment Register. Now your Payment Batch process is completed


There is a new R11i functionality that allows the user to initiate more than one payment batches with a single payment batch submission. You set up a payment batch set which groups several payment batches together so you can simultaneously submit the selection, build, or format process for each payment batch in the set. This streamlines the process of submitting multiple payment batches for your bank accounts. This feature also supports the multi currency payment needs. NOTE: For each payment batch set, define a separate payment document in thePayment Documents window. Each payment batch in the set must use a unique payment document.

2 Stop Payments


Choose the following path:

Payments ► Entry ► Payments

Select from the menu bar:

View ► Find,


Enter search Criteria

Page 8 of 8


Click on save


Select the stop payment for stop payment

To select multiple records, hold down the Ctrl key and click on each desired record.

To select a range of records, click on the first record of the desired range then hold the Shift key down and click on the last record of the desired range with your mouse to highlight the selected range.

To select all records, select Edit from the bar menu and choose Select All.

To deselect all records, choose Edit from the bar menu and choose Deselect

Click on Action button The following window will open

Check Initiate stop to stop payment Payables will record and display the date and time of the Initiate Stop action.Payables will then ask you if are sure that you want to stop payment on the number of requests you have submitted. Click on OK

The Status field for this payment in the Payments form will change to: Stop Initiated. After stopping a payment you can either release the stop or void it.



Payments ►Entry ► Payments. 2. Select from the menu bar

View ► Find, The following window will open

3. Enter search criteria

4. Click on Find


Page 3 of 3


1. Select the payment for stop release

2. Click on Action

3. In the Payment Actions window check the Release Stop checkbox. AP displays and records the

date and time of the release stop activity. AP will ask you to confirm the release stop request for the

number of requests that you have submitted.

4. Click on OK

Note: There is a Stop Payments Report available to review all stopped payments.


This can be done either for a Negotiable or a Stopped payment.



2. From the Menu bar, choose the following path:

View ► Find,

3. Enter the search criteria.

4. Click on Find.


5. Select the payments

6. Click on Actions


7. In the Payment action window check the void check box. Payable allows you to update the

following fields

Name of the

fieldContent

Void date The date on which you want Payables to record the void transaction

G L date The transaction date you want the general ledger to record when posting the void payment entries

Invoice Action The action you want AP to take on the invoices paid by that void payment. You can choose to place the invoices on hold, cancel the invoices, or do nothing with the invoices.

AP ask you to confirm the cancellation

8. Click on to continue

You can not reverse the void on a void payment. Remember to have the payment you want to void in your possession or have proof that it has been destroyed before you record it as void. There is a Void Payments Register available to review voided payments.


This program is run to transfers all accounting entries from payable to GL. This data is then posted to General ledger

Navigate to Other ► Request ► Run

Choose the program Payable Transfer to General ledger

Provide the following parameters and submit


Set of Books Name The set of books for which you want to transfer accounting information

Transfer Reporting Book(s)

Enter the reporting set of books to which it is also needed to be reported

Batch name Name used to identify the batch in your general ledger. Journal Import creates a journal entry batch for each set of books and accounting period.

From date to date Provide the accounting event dates for which you want to transfer accounting entries

Journal Category Provide the category source Purchase Invoices Payments. Reconciled Payments.. All: all journal categories. I


Transfer to GL Interface

Select the level of detail in which you want to create journal entries In Detail. Do not summarize the entries. Transfer one accounting entry for each accounting entry. Summarize by Accounting Date. Summarize the accounting lines by account and date. Summarize by Accounting Period. Summarize the accounting lines by account and accounting period

Submit Journal Import Yes. Submit Journal Import, which will automatically create journal entry batches, headers, and lines from the accounting entries in the GL interface.. No. Submit Journal Import later, through in General Ledger.



Status Control

Future Payables allow invoice entry and accounting in a Future period. Payables do not allow payment entry or payment voiding in a Future period.

Open You can record transactions and account for them in an Open period.

Closed Payables do not allow transaction processing in a Closed period. You can reopen a Closed period if the corresponding general ledger and purchasing periods are also Open. You cannot close a period in which any of the following conditions exist

Outstanding payment batches.

Future dated payments for which the Maturity Date is within the period but that still have a status of Issued.

Unaccounted transactions.

Accounted transactions that have not been transferred to general ledger

Permanently Closed Payables do not allow transaction processing in a Permanently Closed period. You cannot reopen a Permanently Closed period.

3.2 Open a Period

1. Navigate to Accounting ►Control Payables period

2. Click on the period status and select open period

3.3 Close Period

1. Navigate to Accounting ►Control Payable period


Oracle Payables - Step by Step functional in 11i - PART 3


4 Manual Payment

4.1 Overview

Manual checks and prepayments check to employees and supplier basis if the payment is released immediately.



Payments ► Entry ► PaymentsPage 8 of 8





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Name of the filed

Content Comments

Type Choose Manual

Bank Account Select the Bank Account

Document Name

Select the Document Name AP will allow you to select only Computer Generated orCombined Payment Documents associated with the selected Bank Account

Document Number

Click on OK AP will reserve the document Name at this point

Payment Date Enter the payment date or type [Tab] to accept the default date of today

Payment Amount

You can either enter the amount or leave it empty so that AP will calculate it with the invoices you will choose in the next step

Supplier Name or Supplier Number

Enter the Supplier name

Supplier site Enter the Supplier site or press Tab to accept default data

2. Click on Enter / Adjust Invoice to choose the invoice to pay


Page 3 of 3


1. Select the invoices you want to pay (Payables will only allow to select invoices which have a Check

payment type associated with them, and which have the same currency as the payment document)

2. Save your work, and return to the Payments window. Payables automatically enter the payment

amount.


1. Click on the action, the following window will open

2. Chec

k the boxes Format, Print Now and Print Remittance advice.Click OK.

2 Batch Payment



This format requires one debit line for every credit line.

Payment batches are used to generate checks for batch of invoices from many vendors. There is a series of steps to follow to print checks with a Payment Batch. Most steps are initiated from the Payment Batch Actions window. The steps are:

Initiate Payment Batch Select Invoices/Verify Payment Register Modify Payments Format Payments Print Checks Confirm Payment Batch



Payments ► Entry ► Payment Batches, The following window will open



Batch Name Enter the Payment Batch Name. This name will appear on your reports and will help you locate the batch online. Ex: User Initial / Date – year

Payment Method Verify the Payment Date.

Pay group Optionally select Pay Group. AP will select invoices with this Pay Group.

Bank account Optionally change the Bank Account.

Payment Document Select the Payment Document.

Pay through Date Verify the Pay Through Date. AP will select invoices with a discount or due date on or before this date.

Payment Limit Optionally review or adjust the payment limits.


1. Click on Actions Button.

2. Select Invoices & Build Payment & Print Preliminary Register.

3. Click on the button OK:

Payables will initiate three concurrent processes, Auto Select, Build Payments and Preliminary Payment Register.

Page 4 of 4


The Preliminary Payment Register is printed when the invoices are selected and the payments are built. It should be used to review the payments Payables will create when you format payments for the invoices in a Payment Batch.

You should review the Preliminary Payment Register to see which invoices and vendors will be paid, the discounts taken, and the total amount paid to each vendor.

Payables group the invoices by vendor site and print the total for each payment for a site.

Payables prints asterisks and a non-payment reason for the invoicesselected for payment in the payment batch, but that do not meet payment requirements.

Payables does not create payments for a vendor site's invoices if the total of the selected invoice(s) exceeds the maximum payment amount or is less than the minimum payment amount that you specified for the payment batch, or the total payment amount for a vendor site is less than or equals zero.

2. Check the Preliminary Payment Register to ensure that all the invoices needing payment are

included on the register. You should also check to ensure that no payments will be generated for

invoices that should not be paid.

3. After the concurrent request are finished you need to requery the Payment Batch form, when the

Status field changes to Built and the Payments button becomes active you may proceed to the next

step.

4. To requery the form you may use one of the following methods:

Select Tools, Refresh Status.

Click on the button ‘Refresh’ (available on the latest Oracle versions).

1.1 Modify Payment

Then after reviewing the Preliminary Register you can modify the Payment Batch by:

Changing the payment amount of an invoice

Preventing payment to a supplier

Preventing payment of a particular invoice

Adding an invoice that Payables did not select.

In order to modify a Payment Batch the status must be built. (i.e. The Payment Batch must be initiated but cannot have formatted payments)



2. Choose View, Find (or F11)


4. Click on Payments Button.

You can navigate between the various suppliers selected to be paid, by clicking the PgUp/Pg Dn keys while the cursor is in the Supplier field.


Clear the form and then enter the Supplier name and Site.

Select Yes for Pay supplier.

AP displays the approved invoices for the supplier site.

Select Yes for Pay invoice for each invoice you want to add to the payment batch.



AP displays the invoices for the supplier site which were selected for thepayment batch.

Select No for Pay invoice to remove it from the Payment Batch.



Select a Non-Payment Reason for your records (Optional). Select No for Pay supplier.



AP displays the invoice(s) for the supplier site, which were selected for the batch.

Alter the payment or discount amounts for the invoice.

Oracle Payables - Step by Step functional in 11i - PART 4


1. Click on Build Button to save your work.

AP will initiate the Build Payments concurrent process. Once the Build Payments process is complete you should review your changes by printing a new Preliminary Payment Register

To print the Preliminary Payment register:





4. Click on the button Actions

5. Deselect Format Payments checkmark.

6. Select Print Preliminary Payment Register.

7. Click on the button OK



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Once the Preliminary Payment Register has been verified the payments can be formatted for printing.






5. Select Format Payments & Print Now.

6. Click on the Button OK

7. Select View, requests, Find.

8. Select The Format Payments Request.

.


After the Formatting and Printing are finished you need to requery the Payment Batch form, when the Status field changes to Formatted you may proceed to the next step. Now you need to confirm whether all the checks were printed correctly, or is there any skipped or spoiled stock paper:


2. Confirm Payment Batch.

3. Click on the button OK.

In the Confirm Payment Batch window enter the range of Checks:

Printed

Skipped (Not applicable as Honeywell uses bespoke)

Spoiled (Not applicable as Honeywell uses bespoke)

4. Click on Confirm.

AP initiates two concurrent processes, Confirm Payment Batch and Final Payment Register. Now your Payment Batch process is completed


There is a new R11i functionality that allows the user to initiate more than one payment batches with a single payment batch submission. You set up a payment batch set which groups several payment batches together so you can simultaneously submit the selection, build, or format process for each payment batch in the set. This streamlines the process of submitting multiple payment batches for your bank accounts. This feature also supports the multi currency payment needs. NOTE: For each payment batch set, define a separate payment document in thePayment Documents window. Each payment batch in the set must use a unique payment document.

2 Stop Payments


Choose the following path:

Payments ► Entry ► Payments

Select from the menu bar:

View ► Find,


Enter search Criteria

Page 8 of 8


Click on save


Select the stop payment for stop payment

To select multiple records, hold down the Ctrl key and click on each desired record.

To select a range of records, click on the first record of the desired range then hold the Shift key down and click on the last record of the desired range with your mouse to highlight the selected range.

To select all records, select Edit from the bar menu and choose Select All.

To deselect all records, choose Edit from the bar menu and choose Deselect

Click on Action button The following window will open

Check Initiate stop to stop payment Payables will record and display the date and time of the Initiate Stop action.Payables will then ask you if are sure that you want to stop payment on the number of requests you have submitted. Click on OK

The Status field for this payment in the Payments form will change to: Stop Initiated. After stopping a payment you can either release the stop or void it.



Payments ►Entry ► Payments. 2. Select from the menu bar

View ► Find, The following window will open

3. Enter search criteria

4. Click on Find


5. Select the payment for stop release

6. Click on Action

7. In the Payment Actions window check the Release Stop checkbox. AP displays and records the

date and time of the release stop activity. AP will ask you to confirm the release stop request for the

number of requests that you have submitted.

8. Click on OK

Note: There is a Stop Payments Report available to review all stopped payments.


This can be done either for a Negotiable or a Stopped payment.



2. From the Menu bar, choose the following path:

View ► Find,

3. Enter the search criteria.

4. Click on Find.


5. Select the payments

6. Click on Actions


7. In the Payment action window check the void check box. Payable allows you to update the

following fields

Name of the

fieldContent

Void date The date on which you want Payables to record the void transaction

G L date The transaction date you want the general ledger to record when posting the void payment entries

Invoice Action The action you want AP to take on the invoices paid by that void payment. You can choose to place the invoices on hold, cancel the invoices, or do nothing with the invoices.

AP ask you to confirm the cancellation

8. Click on to continue

You can not reverse the void on a void payment. Remember to have the payment you want to void in your possession or have proof that it has been destroyed before you record it as void. There is a Void Payments Register available to review voided payments.


This program is run to transfers all accounting entries from payable to GL. This data is then posted to General ledger

Navigate to Other ► Request ► Run

Choose the program Payable Transfer to General ledger

Provide the following parameters and submit


Set of Books Name The set of books for which you want to transfer accounting information

Transfer Reporting Book(s)

Enter the reporting set of books to which it is also needed to be reported

Batch name Name used to identify the batch in your general ledger. Journal Import creates a journal entry batch for each set of books and accounting period.

From date to date Provide the accounting event dates for which you want to transfer accounting entries

Journal Category Provide the category source Purchase Invoices Payments. Reconciled Payments.. All: all journal categories. I


Transfer to GL Interface

Select the level of detail in which you want to create journal entries In Detail. Do not summarize the entries. Transfer one accounting entry for each accounting entry. Summarize by Accounting Date. Summarize the accounting lines by account and date. Summarize by Accounting Period. Summarize the accounting lines by account and accounting period

Submit Journal Import Yes. Submit Journal Import, which will automatically create journal entry batches, headers, and lines from the accounting entries in the GL interface.. No. Submit Journal Import later, through in General Ledger.



Status Control

Future Payables allow invoice entry and accounting in a Future period. Payables do not allow payment entry or payment voiding in a Future period.

Open You can record transactions and account for them in an Open period.

Closed Payables do not allow transaction processing in a Closed period. You can reopen a Closed period if the corresponding general ledger and purchasing periods are also Open. You cannot close a period in which any of the following conditions exist

Outstanding payment batches.

Future dated payments for which the Maturity Date is within the period but that still have a status of Issued.

Unaccounted transactions.

Accounted transactions that have not been transferred to general ledger

Permanently Closed Payables do not allow transaction processing in a Permanently Closed period. You cannot reopen a Permanently Closed period.

3.2 Open a Period

1. Navigate to Accounting ►Control Payables period


Page 9 of 9


1.1 Close Period

1. Navigate to Accounting ►Control Payable period


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