Invoice Type Matched To Amounts

Standard Supplier Postive (+)

Mixed Invoice Buyer

Credit Memo Supplier Negative (-)

Debit Memo Negative (-)

Prepayment Buyer Invoice Matched Negative (-)

Buyer Invoice Matched

Buyer PO Matched Postive (+)

To Invoice Postive (+)

Issued / Created By

PO Matched / Not Matched

PO MatchedInvoice Matched

Postive (+) Negative (-)

PO MatchedInvoice Matched

BuyerSupplier

POInvoice

Expense Reports

Postive (+) Negative (-)

Retainage Release

Witholding Tax (WHT)

Automatic / Manual

Buyer

Quick Invoice Buyer

PO Price Adjustment Invoice

PO MatchedInvoice Matched

Postive (+) Negative (-)

Description

Standard Invoice are invoices 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. Standard invoices must be positive amounts.

Mixed Invoices are invoices or credit/debit memos for which you can perform both positive and negative matching to purchase orders and to other invoices.

Credit Memos are memos from a supplier representing a credit amount toward goods or services.

Debit Memos are invoices you enter to record a credit for a supplier who does not send you a credit memo.

A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee. You can enter two types of prepayments: Temporary and Permanent.

Temporary prepayments can be applied to invoices or expense reports you receive.

Permanent prepayments cannot be applied to invoices.

Expense Reports are invoices representing an amount due to an employee for business-related expenses.

Retainage release is the act of releasing, or paying, that portion of a payment that was withheld until a substantial portion or all of the service procurement work is completed. The amounts retained during the life of the contract must be released and paid to the supplier or sub-contractor once all or a substantial portion of the work is completed.

Similar to Automatic VAT processing, Oracle provides the feature for automatic WHT processing. To perform automatic withholding, assign a WHT group (not WHT) to an invoice or invoice lines. WHT group defaults from supplier site. If required, the user can override the default and select a different WHT group.

PO Price Adjustment Invoices are used for recording the difference in price between the original invoice and the new purchase order price.

Used for quick, high-volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import

Scenario

When Buyer needs to pay to supplier for the Goods / Services which is procured form the supplier.

Due to manual entry of Standard invoice sometimes there might be manual typo error in amount. To have Invoice adjustments Mixed Invoices are created.

For example, you can enter an invoice for -$100 with Invoice Type Mixed. You can match to an invoice for $-200, and match to a purchase order for $100.

For instance, assume that SellerCorp had issued a sales invoice for $800 for 100 units of product that it shipped to BuyerCo at a price of $8 each. BuyerCo informs SellerCorp that one of the units is defective and SellerCorp issues a credit memo for $8. The credit memo will cause the following in SellerCorp’s accounting records: 1) a debit of $8 to Sales Returns and Allowances, and 2) a credit of $8 to Accounts Receivable. In other words, the credit memo reduced SellerCorp’s net sales and its accounts receivable. When BuyerCo records the credit memo, the following will occur in its accounting records: 1) a debit of $8 to Accounts Payable, and 2) a credit of $8 to Purchases Returns and Allowances (or Inventory).

A vendor may issue a debit memo to a customer if he undercharged the customer. Further, if the customer received defective goods, he may return the damaged merchandise to the vendor along with a debit memo.

Temporary prepayments:For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel's invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.

Permanent prepayments:For example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.

If you have paid advances to an employee you can use this window to apply advances to expense reports to reduce the amount you pay. You can also apply a hold to an expense report to prevent payment. You can apply advances and holds to expense reports that are from any source.Note* Mainly used when you are using Oracle Projects, OTL, iExpense Modules.

With Oracle's Complex Work feature, contract administrator can negotiate retainage terms with the contractor and capture these as part of the contract. These terms include Retainage Rate and Maximum Retainage Amount.

A large Television broadcasting and production company had the following concern. They take the services of large number of TV artists who are employed for a very short period of time. While making a payment to them the company has to deduct taxes and pay them.

For example, If a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order, PO Price Adjustment Invoices can be used to adjust the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed.

Payables uses information you enter in the Quick Invoices window to create invoices in Payables. You enter invoice header and line information in this window. This information is stored in the Payables Open Interface tables. Because the system performs limited validation and defaulting of invoice values while you are entering invoices, you can enter invoices more quickly in the Quick Invoices window than you can in the Invoice Workbench (the Invoice Workbench is the Invoices window and its associated windows).

Type DescriptionInvoice Hold

Scheduled Payment Hold

Supplier Hold

Syst

em H

olds

Hold Name DescriptionCan't Funds Check Invoice project, task, award (PTA) does not equal the purchase order PTAAmountInvalid PO Invoice matched to an unapproved or invalid purchase orderSupplier Hold Future Invoices" has been designated in the supplier site window for this supplier.Matched Required Invoice not matched to purchase order.Max Quantity Ordered Quantity billed exceeds the total quantity ordered + tolerance amount.Max Quantity ReceivedPO Not Approved Matched purchase order not approved.Price Invoice unit price exceeds the total purchase order unit price X (1 + % tolerance).Quantity Ordered Quantity billed exceeds the total quantity ordered X (1 + % tolerance).Distribution Variance

Invo

ice

Hol

ds

Hold Name Hold Reason

Amount Invoice amount is more than the invoice amount limit you specify for a supplier site

Invalid PO

Natural Account Tax

Pay When Paid Subcontractor cannot be paid until the customer pays. PO Deliverable PO deliverables are not submitted by the subcontractor. Supplier

Payment Holds(Manual)

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

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.

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

Invoice amount exceeds invoice amount limit specified for a supplier site record for the supplier.

Quantity billed exceeds the total quantity received + tolerance amount (only applicable if three way match is required).

Invoice amount does not equal sum of invoice distribution amounts. Manual hold not allowed. Must adjust invoice distributions or invoice amount and resubmit approval.

You apply this hold when a supplier does not provide a valid purchase order number for matching

You assigned a tax code to an expense or asset account in the Tax Options window, and you enabled the Enforce Tax From Account Payables option. The tax code on the invoice does not match the tax code assigned to the account.

You enabled the Hold Unvalidated Invoices option for a supplier site in the Suppliers Sites window

Invo

ice

Hol

dsWithholding Tax Payables cannot perform automatic withholding of tax

Custom Holds

Below API's can be used to put invoice on hold.

Insert Hold ap_holds_pkg.insert_single_holdRelease Hold ap_holds_pkg.release_single_hold

How to Define Custom Holds?Payables Manager --> Set up --> Hold and Release

Hold RestrictionsPAYMENT BATCH SELECTED INVOICES: You cannot apply holds to an invoice you have selected for payment in a payment batch.

Description

Description Manual Release Allowed?Invoice project, task, award (PTA) does not equal the purchase order PTA Not Allowed

AllowedInvoice matched to an unapproved or invalid purchase order AllowedHold Future Invoices" has been designated in the supplier site window for this supplier. AllowedInvoice not matched to purchase order. AllowedQuantity billed exceeds the total quantity ordered + tolerance amount. Allowed

AllowedMatched purchase order not approved. AllowedInvoice unit price exceeds the total purchase order unit price X (1 + % tolerance). AllowedQuantity billed exceeds the total quantity ordered X (1 + % tolerance). Allowed

Allowed

Hold Reason Hold Placement

Invoice amount is more than the invoice amount limit you specify for a supplier site Invoice Validation Yes

Manual No

Invoice Validation No

Subcontractor cannot be paid until the customer pays. Invoice Validation YesPO deliverables are not submitted by the subcontractor. Invoice Validation Yes

Invoice Validation Yes

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

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.

In the Supplier Sites window, you can enable the Hold All Payments, Hold Future Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an Invoice Amount

Invoice amount exceeds invoice amount limit specified for a supplier site record for the

Quantity billed exceeds the total quantity received + tolerance amount (only applicable if

Invoice amount does not equal sum of invoice distribution amounts. Manual hold not allowed. Must adjust invoice distributions or invoice amount and resubmit approval.

Accounting Allowed

You apply this hold when a supplier does not provide a valid purchase order number for

You assigned a tax code to an expense or asset account in the Tax Options window, and you enabled the Enforce Tax From Account Payables option. The tax code on the invoice does not match the tax code assigned to the account.

You enabled the Hold Unvalidated Invoices option for a supplier site in the Suppliers Sites

Payables cannot perform automatic withholding of tax Invoice Validation No

: You cannot apply holds to an invoice you have selected for payment in a payment batch.

Hold Removal

Yes

Yes

Yes

Yes Release in the Invoice Holds tabYes Release in the Invoice Holds tabYes

Manual Release Allowed

Adjust invoice amount and resubmit Invoice ValidationChange Invoice Amount Limit option for supplier site and resubmit Invoice ValidationManually release in the Invoice Holds tab

Manually release in the Invoice Holds tab. (Note: you can submit the Invalid PO Supplier Notice to request a valid PO from the supplier).

Change the tax code on the invoice to match the tax code assigned to the account.Disable the Enforce Tax From Account Payables option In the Tax Options window in General Ledger, change the tax code association, or manually release the hold in the Invoice Holds tab.

Manually release in the Invoice Holds tab(To prevent future Supplier holds, disable the Hold Unvalidated Invoices supplier site option)

No Correct error that caused automatic withholding of tax to fail. For example, you may need to set up a period in the withholding tax special calendar.