11i ap functional overview

Chapter 5

Payables

2 Oracle Financials Functional Overview

Overview

Oracle Payables is a high-productivity accounting solution that provides strong financialcontrol, so you can prevent duplicate payments, pay for only the goods and services you orderand receive, and maximize supplier discounts. Oracle Payables is part of Oracle Applications,an integrated suite of business solutions designed to support continuous process improvementfor enterprises competing in time-critical markets.

Enter Supplier

Enter Requisition

Create Journal Entries

Approve Invoice

Create PO

Enter Invoice

Reconcile Payments

Pay Invoice

PurchaseOrder

Requisition

No Holds

Invoice

Match toPO

Oracle Payables

Proactive Supplier Relations

Oracle Payables helps resolve business issues quickly by providing immediate and accurateresponses to supplier inquiries. Record detailed information about your suppliers, includingtheir purchasing, payment, and invoice processing preferences.

Automated Invoice Approvals

Oracle Payables supports two-, three-, and four-way matching of purchase orders, invoices,receipts, and requestor acceptance documents. All the information you need to authorizepayments is on-line, eliminating the paper flow of purchase orders, invoices, receipts, andrequestor documents. Approve invoices on-line during invoice entry or in batch.

Oracle Payables 3

Effective Payment Controls

Oracle Payables provides the information you need to make effective payment decisions. Stay incontrol of payments to suppliers and employees, and keep your accounting records up-to-dateso you always know your cash position.

Oracle Payables handles every form of payment, including automatic checks, manual payments,wire transfers, bank drafts, and electronic funds transfers. Oracle Payables integrates withOracle Cash Management to support automatic or manual reconciliation of your payments withyour bank statements.

Cash Requirements Management

Oracle Payables saves you money by forecasting your cash requirements and preventingduplicate and unauthorized payments. Analytical reports, as well as system, supplier, invoice,and payment batch options help you determine whether to take available discounts.


Key Features

Multiple System Options

Customize to meet your needs:Accounting FlexfieldsDescriptive Flexfields

Customize your payment calendar Choose from a variety of system options,

including:Invoice batching

Discount accounting

Tax options

Apply advances

Require purchase order matching

Automatic Withholding

Sequential Numbering

Suppliers Quickly enter suppliers with AutoEntry Record multiple addresses, bank accounts and

contacts for each supplier Set up tax reporting and withholding Set limits for invoice amounts Access current balances on-line Hold payment to selected suppliers Automatically format addresses based on

suppliers country

Invoices

Use Invoice Workbench to design customviews of data for each user or workgroup

Record sales, use, and VAT with complete taxreporting

Quickly enter invoices with AutoEntry Apply prepayments to invoices and expense

reports Match credits to originating invoices Automatically generate recurring invoices Automatically check for duplicate invoices Import and validate invoices with Invoice

Import Adjust distributions as needed Cancel invoices on demand Set payment terms:

Proxima

Split

Multiple discounts

Perform on-line inquiries

Purchase Order Matching

Perform two-, three-, and four-way purchaseorder matching

Pay on receipt or advance shipment notice Use QuickMatch to automatically create

invoice accounting Automatically record price, quantity, and

exchange rate variances Set quantity and price tolerances

Percentage-based

Value-based

Expenses

Process employee expense reports on-line orover the Web

Route expense reports with Oracle Workflow Verify receipts and audit expense reports

entered in Oracle Web Employees

Payments

Use Payment Workbench to design customviews of data for each user or workgroup

Choose from a variety of payment methods,including:

Electronic payments

Checks

Wire transfersBills of ExchangeClearing payments

Create a fully EDI compliant outboundpayment data file

Choose from multiple payment formatsincluding several laser printer compatibleformats

Create separate checks for selected invoices Stop and void payments Produce single checks on-line

Payment Controls

Set payment controls by:Pay group

Payment priority

Payment method

Create partial payments

Oracle Payables 5

Place holds on payments:By vendor

By invoice

User-defined holds Reconcile payments

Automatically

Manually

Prevent check fraud with Positive Pay

Multicurrency Accounting

Enter transactions in any currency Automatically perform currency conversions Record gains and losses

Accounting Controls

Specify multiple open and future periods

Specify separate closing status Choose from several accounting methods,

including:Accrual basis

Cash basis

Combined basis

Post to general ledger anytime Define intercompany payables Perform Encumbrance accounting Set Budgetary Controls Purge invoices, purchase orders, purchase

requisitions, & suppliers from your database

Self-Service Access

Supplier inquiries on the Web Employee inquires on the Web


Suppliers

Oracle Payables provides a variety of flexible and powerful tools for efficient and easy supplierprocessing. With Oracle Payables, you record complete and accurate supplier information.

Business Needs

With Oracle Payables you can:

Enter supplier information, including payment control features and names and phonenumbers of key contacts

Use your own supplier numbering system or let Oracle Payables automatically numbersuppliers for you

Maintain supplier history, keeping a record of supplier sites and other details

Define additional accounting information to facilitate data entry

Let selected users review supplier information without being able to make updates

Review your outstanding balance with a supplier, based on a variety of invoice criteria

Control supplier payments by defining supplier holds, including a matching required optionand an invoice amount limit

Define a new supplier while entering an invoice

Control duplicate supplier entry and merge any duplicate suppliers and sites with the correctsupplier and site

Major Features

AutoEntry

Oracle Payables provides many defaults that you can set up and default to each new supplieryou enter. Oracle Payables then uses these supplier values as the default for each new suppliersite you enter. Of course, you can always choose to override these defaults. When you enter aninvoice for a supplier site, Oracle Payables uses the supplier site's default for the invoice. Youcan override the default for each invoice as well.

Unlimited Supplier Sites and Contacts

Oracle Payables lets you record an unlimited number of supplier addresses and contacts. Forexample, you can buy from and send payments to more than one location for a single supplierand you can keep supplier address and contact history to help you with research.

Validation of Tax Registration Number and Taxpayer ID

Oracle Payables provides country specific validation of supplier tax registration identificationnumbers and Taxpayer ID to protect against data entry errors.

Oracle Payables 7

Enter as many supplier sites as you require for each supplier

Supplier

Tokyo ParisSan Francisco

Purchasing SiteRFQ Only Site

Purchasing SitePay Site

Pay Site

ContactsContactsContacts

Define an unlimited number of supplier sites and contacts

Invoice Amount Limit

Define the maximum invoice amount you allow for a supplier. Oracle Payables automaticallyplaces a payment hold on invoices entered for this supplier which exceed this amount.


Payment Controls

Oracle Payables provides the power to control supplier payments. Use a Pay Group or aPayment Priority to choose a select group of suppliers for payment. Select the matchingrequired option for a supplier or supplier site to place a hold on any invoices for a supplier orsupplier site that are not matched to a purchase order. Place a hold on a supplier or supplier siteif you do not want Oracle Payables to pay any invoices for this supplier or site.

Supplier Hierarchy

Oracle Payables lets you enter the parent company of a supplier to record a relationshipbetween a parent company and its franchises or subsidiaries.

Supplier Inquiry

You can review supplier information without being able to change any data. Provide separateaccess for personnel who do not have supplier update privileges. Oracle Payables gives youmaximum control of your supplier data.

Supplier Balance On-line

View the current unpaid balance for any supplier or supplier site on-line. Oracle Payablesdisplays the total number and amount of outstanding invoices for the supplier or supplier siteyou choose. Reconcile any difference with your suppliers by reviewing the specific invoicesunderlying the balance. Oracle Payables displays the balance based on a variety of criteriaincluding approval status, invoice date range, currency, or discount taken.

Concurrent Supplier Entry

Define a new supplier while you are entering an invoice. Without interrupting invoice entry,you can enter a new supplier and return to invoice entry to complete your data input.

SupplierMerge

Oracle Payables helps prevent the entry of duplicate suppliers. However, if duplicates exist orone company merges with another, you can merge them into a single supplier or supplier site.Oracle Payables automatically updates the associated purchase orders and invoices for thesuppliers so they all refer to the correct supplier. Oracle Payables automatically generates mergereports so you can review the suppliers, sites, invoices, and purchase orders affected by themerge.

Oracle Payables 9

1099 Reporting (U.S. Requirement)

Oracle Payables provides the tools to meet your 1099 reporting needs. Create and update 1099supplier payment information and report your accumulated 1099 payment information to yoursuppliers, the Internal Revenue Service, and other tax authorities.

1099 Supplier Exceptions Report1099 Invoice Exceptions Report

Identify and Resolve 1099 Exceptions

Enter and Pay 1099 Invoices

Enter 1099 Details for Suppliers

Set up 1099 Reporting

Submit 1099 Reports1096 Forms1099 Forms

1099 Payments1099 Tape

Oracle Payables provides complete 1099 reporting

Business Needs


Maintain 1099 information for 1099 suppliers to comply with all Internal Revenue Servicereporting requirements

Participate in the Combined Filing Program

Automatically produce letters for suppliers who have not provided a Tax IdentificationNumber

Identify and fix 1099 supplier and invoice reporting exceptions


Major Features

1099 Suppliers

Oracle Payables enables you to comply with all Internal Revenue Service reportingrequirements for 1099 suppliers. Define a supplier as federal reportable and record its 1099type. Oracle Payables assigns the income tax type to each invoice for that supplier. Record asupplier's tax region if you participate in the Combined Filing Program. Payments to 1099suppliers are accumulated and reported by type.

Combined Filing System Option

Oracle Payables allows you to produce combined federal and state 1099 records. If you enablethe Combined Filing system option, Oracle Payables produces K records for all tax regions (orstates) participating in the Combined Filing Program that have qualifying payments. OraclePayables also produces a B record for each supplier to summarize qualifying payments made toa supplier for a particular tax region. When you submit your 1099 Tape, the Internal RevenueService (IRS) forwards these records to the appropriate tax authority for each tax region.

1099 Reporting

Oracle Payables provides you with supplier, government, and user reports, so that you cancomply with all Internal Revenue Service reporting requirements for 1099 suppliers.

Tax Information Verification

Submit a Tax Information Verification letter for your 1099 suppliers requesting that they submitany missing 1099 information and that they verify previously-submitted 1099 information thatyou have recorded in Oracle Payables.

Review and Update 1099 Supplier and Invoice Details

Oracle Payables provides several reports which can help you identify incomplete or inaccurate1099 suppliers and invoices. With Oracle Payables, quickly and easily update your 1099suppliers and invoices. Submit the Update Income Tax Details Utility to automatically updateinvoices missing an income tax type or an income tax region.

Oracle Payables 11

Audit of Suppliers and Invoices

Oracle Payables provides the tools you need to ensure maximum control over your suppliersand invoices. Use Oracle Payables auditing tools with other Oracle Payables controls tomaintain the integrity of supplier and invoice data.

Business Needs


Identify possible duplicate suppliers

Combine suppliers the way you want

Identify possible duplicate invoices and payments

Resolve duplicate invoices

Major Features

Supplier and Invoice Audit Reports

Oracle Payables provides audit reports of possible duplicate suppliers and invoices. Use thesereports to maintain the integrity of your suppliers and invoices.

Invoice Audit Listings

Oracle Payables provides complete invoice listings, sorted the way you want. Oracle Payablesmakes it easy for you to review invoices.

SupplierMerge

Use SupplierMerge to automatically transfer invoices and purchase orders from a supplier andsite to another supplier and site, or to a different site of the original supplier. Oracle Payablesprovides you with audit reports of your SupplierMerge activity.


Invoices

Oracle Payables provides the high-productivity tools you need to process invoices efficiently,and puts you in complete control of your invoice payments. With Oracle Payables, you canspend less time entering invoices and more time managing your cash position.

Business Needs


Define invoice entry defaults which simplify and speed invoice processing

Enter invoices in batches

Control payment and posting of invoices with payment terms and hold reasons you define

Automatically prorate tax, freight, and miscellaneous expenses across selected invoicedistribution lines

Create one or more invoice notes which you can send internally or to suppliers

Attach images, sound, text, and video to invoices; for example, you can scan an invoice andautomatically attach it to the related invoice

Enter foreign currency invoices

Adjust an invoice, even after payment and posting

Automatically record voucher numbers on each invoice

Apply prepayments to invoices during invoice entry

Match invoices to purchase orders

View additional purchase order information and purchase order notes while entering aninvoice

Record invoice price and exchange rate variances between an invoice and its matchedpurchase order

Match debit and credit invoices to their originating invoice

Designate an invoice as requiring its own payment document

Enter employee expense reports quickly and easily

Automatically create invoices and payments for recurring expenses

Automatically create invoices based on purchase order information and receipt transactions

Automatically create invoices based on advance shipment and billing notice information

Oracle Payables 13

Major Features

Invoice Types

Oracle Payables supports your different invoice types, including Standard, Credit Memo, DebitMemo, and Expense Report.

Enter all types of invoices using the powerful Invoice Workbench

AutoEntry

Oracle Payables allows you to define financials, system, and supplier site defaults which speedinvoice entry. With AutoEntry, you can enter just a supplier name, invoice number and amountto completely process an invoice since Oracle Payables automatically enters the remaining fieldsusing supplier site and system defaults.

Invoice Batches

Use invoice batch controls to proactively manage invoice entry. Enter invoice values at thebatch level which automatically default to all invoices in the batch. You can override thesedefaults.


Mail

File by Batch

Update Batch Control Window

Review Batch Control Reports

Enter Batch of Invoices

Complete a Batch Control Form

Group a Batch of Invoices

Use invoice batches to control invoice entry

Invoice Notes

Define standard notes to send to your suppliers to inform them of actions you take which affectinvoice payment. Use invoice notes internally as well.

Distribution Sets

Distribution Sets enable you to automatically create invoice distribution lines during invoiceentry. A Distribution Set is a set of predefined accounting distribution lines which you canoptionally assign to a supplier or supplier site.

Automatic Voucher Numbers

Oracle Payables automatically assigns a unique, sequential voucher to each invoice you enterwhen you enable the Automatic Voucher Numbers profile option. Review each voucher numberon-line or in a report.

Apply Prepayments

During invoice entry, Oracle Payables notifies you if there are outstanding prepayments for asupplier. Oracle Payables allows you to apply an approved and paid prepayment to an invoiceduring invoice entry.

Credit Matching

Easily match a credit or debit invoice to its original invoice. If you matched the original invoiceto a purchase order shipment, match the credit or debit invoice to the purchase order shipmentand Oracle Payables automatically updates the quantity invoiced and the amount on thepurchase order shipment.

Oracle Payables 15

Price Corrections

Enter price correction invoices that you receive from suppliers, and easily match them to theoriginal invoices. If you matched the original invoice to a purchase order shipment, match theprice correction to the same purchase order shipment and Oracle Payables automaticallyupdates the unit price on the purchase order shipment to reflect the price correction.

Tax Distribution Lines

Enter sales, use, and offset tax names and tax amounts for invoices. For a sales type tax name,Oracle Payables automatically creates a tax invoice distribution line, using the tax nameAccounting Flexfield that you define. Alternatively, you can prorate your tax expense acrossselected invoice distribution lines. Use offset taxes for suppliers in the European EconomicCommunity (EEC).

Prorate

Prorate tax, freight, and miscellaneous expenses across selected invoice distribution lines.

Payment on Receipt

Oracle Payables automatically creates standard invoices for payment of goods either based onreceipt transactions or advance shipping and billing notices. An invoice which Oracle Payablescreates based on a receipt transaction, uses a combination of the receipt and purchase orderinformation to create the invoice. An invoice which Oracle Payables creates based on anadvance shipping and billing notice, uses a combination of the notice and the purchase orderinformation to create the invoice. You have the option to choose to create invoices either at thetime you receive your ordered goods or when you receive an Advance Shipment and BillingNotice from your trading partner. You can define which suppliers participate in Payment onReceipt.

Invoice Approval

Oracle Payables prevents posting and payment of an invoice until you approve the invoice.Approve an invoice on-line during invoice entry or approve invoices in batch using Approval.

Approval Codes

Hold payment and posting of invoices with approval codes that Oracle Payables predefines aswell as approval codes and tolerances you define. Apply an unlimited number of holds to aninvoice to prevent payment and/or posting. Oracle Payables records your hold reasons andprovides authorized users the ability to release holds.

Pay Alone

Designate an invoice as Pay Alone to have Oracle Payables pay the invoice on its own paymentdocument rather than combining it with other due invoices for the same supplier site.

Invoice Adjustments

Make adjustments to an invoice, even if you have paid or posted the invoice. If you have notpaid the invoice, you can cancel the invoice.


Expense Report Templates

Define expense report templates with selected expense items for your employee expensereports. Use to create default accounting information for expense items.

Apply Employee Advances to Expense Reports

Enter employee advances and later apply them to expense reports. Oracle Payables notifies youif there are outstanding advances for an employee when you enter an expense report. You canspecify if you want Oracle Payables to apply all outstanding advances, one specific advance, ora certain maximum amount of advances to an expense report.

Invoice Import

Import invoices from other accounting systems with Invoice Import.

Recurring Invoices

If you have regular payments, such as rent, that you make to a supplier who does not providean invoice, define a recurring invoice to automatically create invoices and payments. Ifnecessary, you can associate a purchase order with a recurring invoice.

Invoice Reporting

Review on-line all the invoice information you need to respond to supplier and internalinquiries. You can calculate a supplier's outstanding balance and review all components of aninvoice, including holds and payment information.

Oracle Payables 17

Prepayments

Oracle Payables provides the high-productivity tools you need to process prepaymentsefficiently and gives you complete control over the application of prepayments to invoices.

Enter a prepayment if a supplier requires payment before sending you an invoice. For example,a supplier may require a deposit, or an employee may request an advance. Before you send asupplier or employee a check, record that payment in Oracle Payables. When the supplier latersends you an invoice, you want to ensure that you apply the prepayment already sent so thatyou do not overpay your supplier.

Select Invoice and Apply One or MorePrepayments Against It

Select Prepayment and Apply to Oneor More Invoices

Pay Prepayment

Approve Prepayment

Enter Prepayment

Oracle Payables makes it easy to enter and apply prepayments

Business Needs


Enter prepayments and advances in any currency

Associate a prepayment with a purchase order and apply the prepayment only to invoicesmatched to the associated purchase order

Specify a date before which you cannot apply a specific prepayment or advance

Record and manage tax information for a prepayment

Designate a prepayment or advance as requiring its own payment

Review prepayments or advances for a supplier or an employee on-line


Apply or unapply a prepayment or advance to any approved invoice or expense report

Notify a supplier of the prepayments you applied to an invoice

Major Features

Multi-Currency

Enter a prepayment in any currency you choose. Oracle Payables automatically calculatesrealized gains and losses due to fluctuations in your foreign currencies.

Purchase Order Association

When you enter a prepayment, you can associate a purchase order with the prepayment. If youdo so, Oracle Payables allows you to apply the prepayment only to invoices matched to theassociated purchase order.

Tax Name and Calculation

Optionally enter sales or use tax names and tax amounts for prepayments. For a sales type tax name,Oracle Payables automatically creates a tax distribution line.

Pay Alone

Designate a prepayment as Pay Alone to have Oracle Payables pay the prepayment on its ownpayment rather than combining it with other invoices for the same supplier site.

On-line Review and Application

Review on-line all the outstanding prepayments and advances for a supplier or employee.Apply a prepayment, part of a prepayment, or multiple prepayments to an invoice or expensereport.

Oracle Payables 19

Select a prepayment and apply it to one or more invoices

Prepayment Remittance

Print a letter, addressed to a supplier, which details all the information about a prepayment thatyou applied to an invoice.


Recurring Invoices

Oracle Payables provides a variety of recurring invoice capabilities to enable you to payperiodic business expenses for which you do not receive invoices. Oracle Payables provides on-line access to your recurring invoice information, so you always know what your authorizedrecurring invoice amount is, and how much you have spent against it.

Business Needs


Make recurring invoices at intervals you specify

Define the item and tax expense distributions you want to use for each invoice you create

Define recurring invoices which increase or decrease by a fixed percentage from period toperiod

Authorize a fixed amount and enter an expiration date for a recurring invoice

Associate a purchase order with a recurring invoice

Handle special payments like a deposit or balloon payment

Generate recurring invoices in foreign currencies

Create recurring invoices in open or future accounting periods

Oracle Payables lets you define recurring invoices at intervals you specify

Oracle Payables 21

Major Features

Invoice Creation

Oracle Payables creates invoices automatically from your recurring invoice. Create invoices allat once or one at a time, even if they are in a future accounting period.

Recurring Invoice Periods

Define recurring invoice periods of any length and type you want: months, quarters, or otherperiod types.

Special Payments

Specify special payments to handle non-standard payment amounts such as deposits or balloonpayments as part of your recurring invoice. Define your recurring invoices to increase ordecrease by a fixed percentage from period to period over the duration of the recurring invoice.

Invoice Distributions

You can define a Distribution Set for Oracle Payables to use when it creates a recurring invoice.Choose an existing 100% Distribution Set or define a new Distribution Set to use with yourrecurring invoice. Instead, you may choose to associate a purchase order with your recurringinvoice.

Purchasing Integration

You can associate a purchase order with a recurring invoice. Oracle Payables uses accountinginformation from the purchase order when creating the invoice distribution lines for therecurring invoice. Instead, you may choose to associate a Distribution Set with your recurringinvoice.

Tax Name and Calculation

Optionally enter sales or use tax names and tax amounts for prepayments. For a sales type taxname, Oracle Payables automatically creates a tax distribution line.


Automatic Interest Invoices

Oracle Payables provides the features you need to automatically pay interest on overdueinvoices. You no longer have to calculate payment due dates and interest charges on past dueinvoices because Oracle Payables does it for you.

Business Needs


Calculate interest charges on overdue invoices at payment time based upon due date andpayment date

Review your interest payments on-line and report on them

Print your check and remittance advice document separately

Major Features

Automatic Interest Payments

Oracle Payables automatically calculates interest amounts on overdue invoices when you paythem.

Flexible Interest Rates

Oracle Payables calculates interest amounts based on interest rates you provide. OraclePayables lets you define interest rates and effective date ranges so you can automatically payinterest on overdue invoices.

Reports and Inquiries

Use inquiries in Oracle Payables to review how much interest you paid to a supplier. Query allinvoices or just interest invoices for a supplier. Review all interest invoices you paid with aparticular check. Oracle Payables also provides you with listings of how much interest you paidon an invoice and the associated interest rate.

Oracle Payables 23

Taxes

Oracle Payables provides the functions you need to easily record, review, and report on thetaxes you pay to your suppliers.

Business Needs


Define the tax names and rates you use in your organization

Record tax charges on invoices to distinguish between the tax portion of your invoices andthe portion representing the goods and services you purchased

Automatically create invoice distributions for tax charges

Prorate your tax charges across one or all invoice distribution lines

Enter multiple taxes for an invoice

Distinguish between sales tax and use tax charges

Automatically calculate a tax amount for a tax name you enter on an invoice

Verify that the tax amount for an invoice is correct according to the tax rates you define andwithin the tolerances you define

Use offsetting taxes to record zero-rate taxes on which you need to report

Automatically withhold taxes for your supplier invoices and employee expense reports

Major Features

User-Defined Tax Names

Define as many tax names or tax authorities as you require. For each tax name you define, youenter a tax type, tax rate, and default tax expense account number.

Invoice Distribution Line Types

Oracle Payables provides four types of invoice distribution lines: Item, Tax, Freight, andMiscellaneous. All item, freight, and miscellaneous distribution lines can be taxable.

Automatic Tax Distribution Lines

When you enter a default tax name for an invoice and the tax name has a sales or user-definedtax type, Oracle Payables automatically creates a tax distribution line to record the tax charge.


Invoice Tax Reporting

Oracle Payables provides standard reports for reporting on your invoice taxes. These reportsinclude a tax audit trail report, a use tax liability report, the Intra-EU VAT Audit Trail Report,and a listing of your defined tax names.

VAT Taxes

You can define an unlimited number of VAT (Value Added Tax) taxes. You define VAT taxes inthe same method as any other sales tax. You can assign a VAT tax as a supplier site default. Youcan easily enter invoices with VAT taxes and Oracle Payables provides complete VATreporting.

Tax TypeTax NameTax Rate

Review VAT ChargesTax Declaration ReportIntra EC VAT Audit Trail

Enter VAT Charges for Invoices

Define EEC Suppliers and AssignTax Name to Supplier Site

Define Tax Names

Oracle Payables makes it easy for you to define and record taxes

Gross Method Taxation

When you enable the Automatic Tax Calculation system option and you enter a tax name forthe invoice that has a sales or user-defined tax type, you can manually enter the tax amount oryou can have Oracle Payables automatically calculate the tax amount.

Tax Exceptions

Oracle Payables automatic invoice approval (Approval) automatically performs tax variancechecking and places tax exception holds on any invoice with a tax amount that does not matchthe calculated invoice tax amount(s) as determined by the tax rates you define for the tax names

Oracle Payables 25

on your invoice. You can define percentage and amount tolerances to determine the amount oftax variance you allow on your invoices.

Expense Report Tax Items

You can easily record tax charges on your employee expense reports.

Automatic Tax Withholding

You can automatically withhold taxes for your supplier invoices and employee expense reports.You have flexibility in defining your withholding tax rate structures using effective date andtaxable amount ranges, and single invoice limits or period limits. Using withholding taxgroups, you can withhold multiple taxes for an invoice or expense report.

Tax Inclusive or Exclusive Item Amounts

You can specify whether supplier invoice items or employee expense report items include tax intheir pricing. Oracle Payables performs the appropriate tax calculations, based on the item.

Flexible Tax Rounding

You can control how Oracle Payables rounds tax calculations to meet varying countryrequirements. Choose the rounding rule Up, Down or Nearest as a system default andoptionally change this default at the supplier or supplier site.


Fixed Assets Integration

Mass Additions lets you add assets and cost adjustments to assets directly into Oracle Assetsfrom invoices in your Oracle Payables system. The Mass Additions Create process sends validinvoice distribution lines from Oracle Payables to an interface table in Oracle Assets. Aftersending the invoice lines, you can review them and determine whether to create assets from anyof the lines in Oracle Assets.

Business Needs

With Oracle Payables and Oracle Assets you can:

Add items from Oracle Payables directly into Oracle Assets

Minimize data entry

Manipulate invoice lines before they become assets in Oracle Assets

Transfer discount taken information on asset purchases

Oracle Payables 27

Purchasing Integration

Oracle Payables fully integrates with Oracle Purchasing and other purchasing systems. Thisallows you to access your purchasing information on-line and automatically match invoices topurchase orders using two-, three-, or four-way matching.

Business Needs


Share supplier information with your purchasing department, so that you do not have toenter the same data twice

Require matching for selected suppliers to ensure their invoices are matched to purchaseorders

Match invoices to purchase orders and automatically hold those invoices that exceed yourmatching tolerance, whether you use Oracle Purchasing or another purchasing system

Define amount-based and percentage-based matching tolerances

Record a price, quantity, or exchange rate variance between an invoice and its matchedpurchase order

Match an invoice at the purchase order shipment line level or the distribution line level

Review purchase order details and purchase order notes when matching an invoice

Assign a match as final and have Oracle Payables permanently close the matched purchaseorder

Associate a purchase order with a recurring invoice

Major Features

Matching to Purchase Orders

Oracle Payables allows you to match the invoices you enter to the purchase orders (and relatedreceipts) in your purchasing system. Oracle Payables supports the level of matching (2-way, 3-way, and 4-way) that your organization requires for matching invoices to purchase orders andreceipts.


Match an invoice to one or more purchase orders

4-Way Match

To Inspection

To ReceivingSupplier

Purchase Order

2 Bikes@ $150.00 ea.Receipt Required

Inspection Required

InvoiceBikes

Quantity 2Price $150.00

AcceptedBikes

Quantity 2

ReceivingBikes

Quantity 2

Purchase OrderBikes

Quantity 2Price $150.00

Receipt

QuantityAccepted

Invoice

Use 2, 3, or 4-way matching for optimal control over your purchases

Oracle Payables 29

Approval

An Oracle Payables process you initiate to automatically perform two-, three-, and four-waymatching for unapproved invoices. Approval places an invoice on matching hold when thepurchase order and invoice information do not match within the tolerances you define.

Manual Matching Hold Release

You can manually release an invoice that has a matching hold to pay the invoice.


Invoice Approval

Oracle Payables provides a wide variety of powerful, easy-to-use features to approve invoices.Oracle Payables is fully integrated with Oracle General Ledger, Oracle Purchasing and OracleAlert to provide a complete solution for your invoice approval needs.

Business Needs


Create your own approval cycle based on your organization's invoice approval process

Approve invoices in batch, on-line, or both

Prevent payment and posting of invoices that do not meet your invoice approval criteria

Access invoice hold and release information on-line

Notify accounts payable supervisors and purchasing agents automatically when an invoicefails approval for a specific reason

Selectively approve invoices for posting and payment after reviewing the original reasons forfailing approval

Report on approved invoices, invoices on hold, and invoices released from hold

Major Features

Approval

Approval validates your invoice information and places holds on invoices that do not meetapproval criteria. For example, Approval automatically places a hold on an invoice when asupplier overcharges you or bills you for items you have not received, ordered or accepted.Approval also validates invoices for tax, currency, accounting, matching, and other invoiceexceptions.

Approval in Batch and On-line

Submit Approval on-line for an invoice during invoice entry or approve invoices in batch. Whenyou approve an invoice on-line, you can immediately review any invoice holds Approvalcreates due to matching exceptions, incomplete information, or data entry errors.

Daily Approval Resubmission

Oracle Payables helps you automate your approval cycle through automatic Approvalresubmission. You can enter invoice selection criteria for Approval, then specify the time youwant to automatically initiate Approval each day.

Oracle Payables 31

Invoice Holds

Oracle Payables lets you define your own holds, based on your invoice approval needs. You candefine your holds to only prevent payment of an invoice or you can prevent both payment andposting of an invoice. You can apply an unlimited number of invoice holds to an invoice duringinvoice entry. Oracle Payables records your hold reasons and allows authorized users tomanually release invoice holds from invoices.

Supplier Controls

Define a supplier or supplier site control that causes Oracle Payables to place a hold on allinvoices you enter for the supplier site from the time you enable the control. Define an invoiceamount limit for a supplier site so that Oracle Payables places a hold on invoices for thesupplier site that exceed the amount you specify.

Exception Reporting

Oracle Alert provides an integrated system of alerts, messages, and message distributions tofocus attention on time-sensitive or critical information and streamline the approval process.Exception reporting in Oracle Alert is accomplished using either electronic mail or paperreports.

Invoice Adjustments

Authorized users can always correct an invoice, even if the invoice is approved, paid or posted.Approval also creates the necessary adjusting journal entries to keep your accounting recordsaccurate and complete.


QuickRelease

Oracle Payables lets you manually remove all holds that you place on an invoice and most holdsthat Approval places on an invoice. For those holds that you cannot manually release, you mustcorrect the invoice and resubmit Approval to remove the hold(s).

Easily release one or more holds from selected invoices

Invoice Inquiry

Oracle Payables provides on-line access to all the invoice information you need. Reviewsupplier balance and invoice detail information, including hold, distribution, payment, andcurrency information.

Oracle Payables 33

Invoice Import

Oracle Payables integrates with Oracle Projects and other accounting systems by allowing youto import expense reports and invoices so that you can pay them using Oracle Payables. UseInvoice Import to create invoices from expense reports you enter in Oracle Payables, OracleProjects or Oracle Web Employees.

Business Needs


Import and pay invoices from other accounting systems

Create invoices in Oracle Payables to pay expense reports you entered in Oracle Payables,Oracle Projects or Oracle Web Employees

Report on the invoices created as well as any exceptions for the imported expense reports andinvoices

Major Features

Invoice Import

An Oracle Payables process you initiate to automatically create invoices from expense reports orinvoices from other accounting systems. Invoice Import verifies all your expense report andinvoice information to ensure it creates valid, fully-distributed invoices, ready for approval andpayment. If the expense report or invoice information fails validation, Invoice Import does notcreate an invoice from the information and reports the exception so that you can easily fix theproblem.

Integration with Oracle Projects and Oracle Web Employees

Oracle Payables fully integrates with Oracle Projects and Oracle Web Employees so that you caneasily create and pay invoices for expense reports entered in these applications.

Invoice Import Reporting

Oracle Payables automatically produces the Invoice Import Report and the Invoice ImportExceptions Report when you submit Invoice Import. Use these reports to review the invoicesthat Invoice Import successfully created from your expense report and invoice information andto identify the expense reports and invoices that Invoice Import was unable to import.


Payments

Oracle Payables provides a variety of features for fast, controlled payment processing.

Business Needs


Disburse funds using multiple payment methods, including computer-generated checks,electronic payments, recorded checks, and wire transfers

Ensure that duplicate invoice payments never occur

Pay only those invoices which are due and automatically take the maximum discountavailable

Select invoices using a wide variety of criteria and create payments automatically

Ensure that you always take the better of the invoice payment terms or the purchase orderpayment terms when you match an invoice to a purchase order

Modify the payment amount or discount taken on a particular invoice before creating thepayment

Create payment documents in any format you want

Reduce expenses by distributing payment discounts you take to the proper accounts

Pay an invoice on its own separate payment document

If your printer jams, restart your check printing where the printer left off

Print a check on-line

Laser print checks on blank check stock

Automatically create standard invoices for payment of goods either based on receipttransactions or advance shipping and billing notices

Record a stop payment

Void a payment and cancel or hold all invoices on the void payment

Review on-line information regarding the result and status of every payment

Reconcile your bank account with Oracle Payables' payment history

Automatically clear your payments made with future dated payment documents

Oracle Payables 35

Major Features

Payment Methods

Oracle Payables allows multiple methods of payment, including computer-generated checksand electronic payments, future dated payment documents, and recorded payments.

For more information on electronic payments, please see the Electronic Payments section withinthis document.

Approval

Oracle Payables prevents payment or posting of an invoice until you submit it for approval. IfApproval places a hold on an invoice, you cannot pay the invoice until you release the hold.Decide how you want to perform invoice approval, either on-line, in batch or both, to matchyour approval process with your company policy and your computing resources.

Multi-Currency

Enter and pay an invoice in any currency you want. Oracle Payables automatically tracks anyrealized foreign exchange gains or losses on your payments.

Payment Batch

Oracle Payables produces payments for invoices you select and records the results so that youhave accurate and timely payment information. Initiate a payment batch to create checks orelectronic funds transfer files.

Oracle Payables produces your payments in several steps to give you optimal control overautomatic payments. You first select the invoices for your payment batch. You have the optionto modify the selected invoices so you can delete, add, or change the payment amount ofinvoices selected for payment. You then format the payments for these selected invoices. If thepayment batch is for checks, you then print the checks. The last step is to confirm your printedpayment documents against your payment records.

Alternatively, you can combine invoice selection and payment formatting into a single step ifyou do not intend to modify any of the invoices selected for payment.


Invoice

Select Invoices

Confirm Payment Batch

Create Payments(Checks or EFTs)

Format Payments

Modify Invoice Selection(Optional)

Initiate PaymentBatch

Oracle Payables provides optimal control over your automatic payments

Invoice Selection for Payment

Automatically pay invoices using rules you establish for pay-through-date, Pay Group,payment priority, payment amount limits and several other criteria.

Select invoices for payment based on criteria you specify

Pay Alone

Oracle Payables provides the ability to control payments to suppliers that require separatepayment for an invoice. Optionally designate an invoice as a Pay Alone invoice when you enterthe invoice. When you pay a Pay Alone invoice, Oracle Payables ensures that the invoicepayment is separate from any other invoice payments for the supplier site.

Quick Payment

Use a Quick Payment to create an individual check on demand. Select the invoices you want topay and Oracle Payables prints your check.

Oracle Payables 37

Payment Schedule Recalculation

Ensure that you always take the better of invoice terms or purchase order terms when youmatch an invoice to a purchase order. Oracle Payables automatically recalculates your paymentschedule to reflect the best terms.

Automatic Discount Proration

Oracle Payables lets you decide how you want to distribute any discounts you take. Credit apayment discount to a single Discount Taken Accounting Flexfield or prorate your discountamount across your invoice distribution lines.

Payment Document Creation

You have several options for ordering payment documents. Choose supplier name, suppliernumber or postal code to order your payments the way you want. Oracle Payables allows youany number of setup checks for aligning your printer, and automatically records them as non-negotiable setup checks.

Check Print Restart

Easily restart your payment batch if your printer malfunctions. Simply identify the spoiledchecks and Oracle Payables does the rest.

Partial Payments

You have complete control over the amount you pay and take as discount for invoices on anypayment. Partial payments automatically reduce the balance due, and Oracle Payablesschedules the remainder for future payment.

Payment Hold

In addition to holds that Oracle Payables automatically places during Approval, define yourown invoice holds to prevent payment.

Payment Document Control

Oracle Payables helps you manage multiple payment documents. Decide the type of paymentfor which you want to use a payment document. Oracle Payables displays the next availabledocument number when you format payments, and warns you before you run out of paymentdocuments.

Payment on Receipt

Oracle Payables automatically creates standard invoices for payment of goods either based onreceipt transactions or advance shipping and billing notices. You have the option to choose tocreate invoices either at the time you receive your ordered goods or when you receive anAdvance Shipment and Billing Notice from your trading partner. You can define whichsuppliers participate in Payment on Receipt.


Stop Payment

Record a stop payment on any payment, then void the payment or release the stop payment.Oracle Payables keeps your stop payment status up-to-date. Oracle Payables also provides areport that you can use to review all current stop payments.

Void Payment

Oracle Payables automatically reverses the payment and accounting records after verifying thatthe payment has not already cleared the bank. You can then repay the invoice on a newpayment, place a hold on the invoice, or cancel the invoice.

Positive Pay

Work with your bank to prevent check fraud by using Positive Pay. When you create apayment batch or individual payment in Oracle Payables, you can create a list of checks issuedto suppliers and employees called a Positive Pay file. Use a third party product of your choiceto format and electronically transmit this file to your bank. As checks clear your bank, the bankidentifies exceptions which you can choose to process or exclude from payment.

Payment Reconciliation

Automatically reconcile your bank account with Oracle Payables payment history using OracleCash Management. Load a bank reconciliation file from a tape or diskette and Oracle CashManagement records a cleared date and cleared amount on each payment that matches thebank information. Oracle Cash Management automatically prints a reconciliation report,highlighting exceptions.

For more information about Oracle Cash Management, please refer to the Bank StatementReconciliation with Oracle Cash Management section within this document.

Laser Printed Payment Documents

Oracle Payables allows you to laser print checks on blank check stock. With this feature, youcan incorporate scanned signatures, MICR encoding, variable fonts, and custom objects intoyour checks.

Automatic Clearing of Future Dated Payments

Oracle Payables automatically clears your payments made with future dated paymentdocuments based on their maturity date and the number of clearing days you specify for thepayment document.

Oracle Payables 39

Electronic Payments

You can pay your suppliers electronically by using either the Oracle EDI Gateway or bydelivering to your bank an electronic funds transfer output file. Oracle Payables fully integrateswith Oracle EDI Gateway to produce electronic payments and remittance advice informationfor suppliers of your choice.

Business Needs


Create Electronic payments quickly and accurately whether you are using Oracle EDIGateway or Oracle Payables standard electronic funds transfer process

Transfer payment data through Oracle EDI Gateway to the EDI translator of your choice tocreate an ASC X.12 820, EDIFACT equivalent or other outbound payment data file

Use any of the standardized electronic funds transfer payment formats that Oracle Payablesprovides to create electronic payments, or create your own custom payment format

Keep a complete audit trail of Electronic payments you make

Major Features

Automatic Payment

Oracle Payables creates electronic payments automatically when you initiate a payment batchusing an electronic payment document. Oracle Payables automatically creates electronicpayments for all approved invoices with the Electronic Payment Method that are available forpayment on or before the pay-through date you specify when you initiate a payment batch.

EDI Payments

Oracle Payables fully integrates with Oracle EDI Gateway to produce electronic payments andremittance advice information for suppliers of your choice. Oracle EDI Gateway extractspayment information from Oracle Payables to be processed by the EDI translator of your choiceto create an ASC X.12 820, EDIFACT equivalent or other outbound payment data file.

Custom Payment Formats

Create your own electronic payment programs and formats to generate electronic funds transferfiles that meet the specific format needs of your bank. Customize the electronic paymentprograms Oracle Payables provides, or create your own.


Audit Trail

As with checks or wire transfers, Oracle Payables maintains a complete audit trail of all EFTpayments. The audit trail includes when you make a payment, the supplier and invoices it pays,what discounts you took, any realized gains or losses, and other payment information.

Separate Remittance Advice

Print your payment remittance information separately from electronic funds transfer payments.You can define your own remittance advice formats or use a standard format that OraclePayables provides.

Oracle Payables 41

Future Dated Payments

You can optionally pay your suppliers with the Future Dated payment method, sometimesreferred to as the Bills of Exchange payment method. Use the Future Dated payment method tocontrol the timing of your payments and therefore maximize your cash flow.

Enter Invoice

Send to Supplier

Bank Distributes Funds on Future Date

Supplier Submits to Bank

Send Manual Future DatedPayment back to Supplier

Enter Invoice

Create Future Dated Payment

Manual FutureDated Payment

Request

Approve Request andEnter Manual Future

Dated Payment

Create future dated payments, also known as Bills of Exchange

Business Needs


Create a payment batch, Quick payment, or manual payment with the future dated paymentmethod

Automatically create two sets of accounting entries for future dated payments, the first whenyou create a payment, and the second after you record that the bank has cleared the payment

Major Features

Future Dated Payment Method

A payment method which indicates your agreement with a supplier to transfer funds from yourbank account to the supplier's bank account on a specific future date. The agreement calls forpayment of one or more invoices on the future date.


Bank Statement Reconciliation with Oracle CashManagement

Oracle Cash Management is a high-powered, flexible, financial management solution for globalenterprises. Oracle Cash Management gives you the ability to efficiently reconcile bankstatements, create necessary miscellaneous and accounting entries, and effectively manage yourcash flow. With Oracle Cash Management you can reconcile your bank statements manually orautomatically. The system will automatically verify accuracy, handle exceptions and generateall necessary accounting entries and reports. Oracle Cash Management is integrated withOracle Receivables, Oracle Payables and Oracle General Ledger, and also provides an openinterface for external systems.

Business Needs

With Oracle Cash Management you can:

Automatically or manually import your bank statement

View all transactions, journal entries and batches available for reconciliation

Manually create a payment or receipt for any bank statement line

Create miscellaneous transactions, such as bank charges, automatically or manually

Reconcile foreign currency invoices and account for corresponding exchange loss or gain

Use a cash clearing account for timely recognition of cash

Reconcile bank statement lines to journal entries, payments, receipts and batches

Create all necessary accounting entries

View and print your bank statements and all reconciliation reports

Major Features

Automatic Reconciliation

With Automatic Reconciliation, bank statement details are automatically matched andreconciled with appropriate accounting transactions. You can control the reconciliation processby specifying acceptable tolerance levels for reconciliation, methods to handle foreign exchangefluctuations, bank charge handling, and appropriate GL accounts for accounting entries. OracleCash Management. generates all necessary accounting entries during automatic reconciliation.

Manual Reconciliation

With Oracle Cash Management, you can manually reconcile your bank statements. Thismethod allows you to match each statement line against the appropriate batch, journal entry, ortransaction to ensure accuracy. Any adjustments needed to account for differences between thesum of the transaction and the statement line amount can be generated using Oracle Cash

Oracle Payables 43

Management. For example, you can use Oracle Cash Management to handle any bank chargesor NSF transactions. You can also use manual reconciliation to reconcile any bank statementdetails which could not be reconciled automatically.

Search For Available Transactions

When using manual reconciliation, you reconcile each statement line with available receipts,payments, miscellaneous transactions, batches, journal entries, or external sources. Oracle CashManagement helps you quickly find and review any of these transactions that meet the criteriayou specify, with the find available window.

Cash Management Tools

With Oracle Cash Managements manual clearing functionality, you have the flexibility torecognize cash prior to receiving your bank statement to know your cash position at any timeduring your accounting cycle.

Oracle Cash Managements reconciliation open interface allows you to easily reconcilepayments and receipts from external systems.

Full reporting and inquiry capabilities of Oracle Cash Management allow you to review andanalyze your companys bank statements, cash position, and transactions available forreconciliation.

For more information, see the Oracle Cash Management Functional Overview.


High Productivity

Oracle Payables offers many features which help you to process invoices and paymentsefficiently to obtain higher productivity.

Business Needs


Enter data with a few keystrokes

Use defaults that you control and enter a supplier or invoice, or create payments withminimal data entry

Enter invoices in batches for control and efficiency

Attach notes, images or other objects to invoices on-line so you do not need to rely on theoriginal paper invoice to research invoice history

Measure productivity

Create complex invoice distributions automatically as you enter invoices

Approve invoices for payment and posting automatically

Automatically select invoices for payment and create payment documents in one step

Create and print a check on-line

Major Features

List of Values

Enter the first several letters of a value for a field such as supplier name, terms, or PayGroup.Oracle Payables fills in the rest of the field for you or displays the field choices in a List ofValues pop-up window.

AutoEntry

Whether entering invoices, processing automatic payments, or defining suppliers, OraclePayables fills in most fields for you with the values from defaults you specified. For example, byspecifying defaults for suppliers and invoices, you can enter as little as supplier name, invoiceamount, and invoice number to create an invoice.

Batch Controls

You can use batch controls to increase productivity. Specify the batch size and the control total.Oracle Payables keeps track of the total count and amount, and warns you of imbalances whenyou exit. Batch Control reports help you analyze productivity and resolve batch imbalancesquickly.

Oracle Payables 45

Attachments

Link non-structured data such as images, word processing documents, spreadsheets, or videoto your invoices.

Key Indicators

Key Indicators tell you how many invoices you enter and how accurately you enter them.

Distribution Sets

Using Distribution Sets, you can create invoice distribution lines automatically as you enterinvoices. Define invoice distribution lines in a Distribution Set and assign the Distribution Set toone or more suppliers or supplier sites. Oracle Payables automatically creates invoicedistribution lines from the Distribution Set.

Matching Distributions

You can create invoice distribution lines automatically from purchase order distribution lineswhen you match an invoice to one or more purchase order lines. Oracle Payables requires nofurther data entry.

Approval

Oracle Payables increases your productivity by identifying matching errors for you withoutslowing up invoice entry. Approval automatically holds invoices for payment when theinvoices do not match purchase order and receipt information within tolerances you specify.Approval automatically releases invoices for payment when you correct the errors or adjust thetolerance.

Payment Batch Initiation

When you initiate a payment batch, you need only enter your payment batch name to selectinvoices for payment. The payment initiation uses defaults for other payment batch criteria. Youcan even select invoices and create payments in one step.

Cash Management

Reconcile your bank account with Oracle Payables payment history using Oracle CashManagement. Load a bank reconciliation file from a tape or diskette and automatically verifythat your bank information is complete and accurate, and update Oracle Payables paymenthistory.

Complete Descriptions

Enter as long a description as you need, up to 240 characters, so you have room for all yourcomments. Save time by never needing to refer to a paper invoice or a hand-written note.


Oracle Alert

Oracle Alert provides automated exception reporting fully integrated with Oracle Payables,Oracle Purchasing, and Oracle Office. You can increase the effectiveness of your receipt,matching, and payment processes using the powerful message capabilities of Oracle Alert.Oracle Alert automatically notifies you of important and unusual matching events as soon asthey occur, reduces your paper flow, increases the quality of your information, and improvesyour productivity.

Business Needs

With Oracle Payables and Oracle Alert you can:

Set goals for your payables managers and employees and measure their performance againstthese goals

Automatically remind employees of incomplete or upcoming payables tasks

Respond immediately to messages with electronic mail

Receive messages through both electronic mail and printer facilities

Customize Alert, messages, and reports quickly and easily without support from dataprocessing professionals

Major Features

Immediate Alerts

Oracle Alert immediately notifies you of events as they occur with event-triggered messages.Modify Oracles pre-coded conditions or create your own, and send messages when eventsoccur to as many individuals in your organization as you want. For example, Oracle Alert canimmediately send a message to a purchasing agent if an item is rejected after receipt from thesupplier. With that information your purchasing agent can contact your supplier to preparereplacement items while the item is being returned.

Periodic Alerts

Oracle Alert periodically notifies you of key information and events on a schedule you choose.Modify Oracles pre-coded conditions or create your own, and send messages for them to asmany individuals in your organization as you want. For example, Oracle Alert can help youmanage your invoices on receipt hold by sending daily or weekly reminders to the purchasingagents or requestors to verify receipt.

Customizable Messages and Distribution Lists

Oracle Alert can send different messages to different people for the same alert condition.Customize messages to reflect specific responsibilities. For example, if a supplier delivery isoverdue, Oracle Alert can request the purchasing agent to expedite the order, and can informthe requestor of the delay.

Oracle Payables 47

Summary Reports

Oracle Alert lets you use summary reports to receive a single list of exceptions matching analert, as opposed to receiving many individual mail messages.

Performance Goals

Use Oracle Alert to monitor performance against accounts payable performance goals.

Escalated Messages

Oracle Alert lets you send escalated messages to remind recipients of uncorrected conditions.For example, increase the severity of an expediting reminder message to a payables agent untilreceipt of payment is recorded in Oracle Payables.

Duplicate Message Suppression

If you do not want Oracle Alert to send repeated or escalated messages, choose to suppressduplicate messages. Then, if Oracle Alert detects an uncorrected condition, it will not sendanother message.

Electronic Mail Interface

Oracle Alert is completely integrated with Oracle Office and, through Oracle Office gateways,with most other electronic mail systems. Use your mail system to further communicate withyour organization following a business agent message.

Printing Capability

Oracle Alert lets you print messages for those who do not use electronic mail. Everyone canreceive Alert information quickly and directly.

Completely Customizable System

With Oracle Alert, you can always modify messages, business agent conditions and distributionlists to meet your unique or changing needs.


Multi-currency

Oracle Payables provides powerful and easy-to-use multiple currency features to help youmanage your international transactions and operations. With Oracle Payables, meet theincreasing demands of international business without the complexity you often associate withmulti-currency accounting.

Business Needs


Define multiple currencies to meet your invoice, payment, and reporting needs

Enter and maintain daily exchange rates on-line for foreign currency conversion

Enter and pay foreign currency invoices

Calculate unrealized gains and losses at period-end or after a severe currency movement

Calculate realized gains or losses after payment of a foreign currency invoice

Match a foreign currency invoice to a purchase order

Report on accounts payable activity by currency using standard reports

Major Features

Multiple Currency Definitions

You can define multiple currencies for financial reporting.

User-Maintained Exchange Rate Types

Oracle Payables predefines the following exchange rate types: Corporate, Spot, and User. Youcan define any additional exchange rate types you require. You specify an exchange rate typewhen you enter a foreign currency invoice. Oracle Payables uses the daily exchange rate thatyou define for the exchange rate type to convert the amount of your invoice to your functionalcurrency.

User-Maintained Daily Exchange Rates

You can maintain any type of daily exchange rate you require, including spot rates. With OraclePayables, you maintain daily exchange rates for foreign currency conversion. And, OraclePayables automatically performs conversion using the daily exchange rates you specify.

Oracle Payables 49

General Ledger Integration

Oracle Payables fully integrates with Oracle General Ledger and other general ledger systemsso you can easily update your general ledger with accounts payable activity. Oracle Payableslets you validate your expense, liability, cash, and other accounts against your chart of accounts,resulting in fewer data entry errors.

You can use standard Oracle Payables reports to reconcile your posted invoices and paymentsto your Accounts Payable Trial Balance. You can use your Accounts Payable Trial Balance toreconcile to the accounts payable liability in your general ledger system.

Open AccountsPayable Period

Submit Posted Invoices,Posted Payments andTrial Balance Reports

Close AccountsPayable Period

Create Journal Entries

Submit PostingHolds Report and

Resolve Posting Holds

Submit ExpenseDetail Report

Enter Invoicesand Paymentsfor the Period

Oracle Payables fully integrates with Oracle General Ledger and other general ledger systems

Business Needs


Define your set of books and create journal entries for that set of books

Open and close your accounts payable period independently of your general ledger

Validate your accounts payable accounts directly against your general ledger chart ofaccounts

Record statistical quantity information for invoice distribution line items which you cantransfer to your general ledger


Transfer journal entry records of payment and invoice activity to your general ledger

Maintain detail or summary invoice and payment audit information in your general ledger

Create journal entries using the accrual, cash, or combined basis of accounting

Create journal entries for multi-currency invoices and payments

Automatically balance your intercompany journal entries to keep each company in properbalance

Reconcile your invoice and payment activity to your Accounts Payable Trial Balance and toyour general ledger system

Major Features

Flexible Accounting Structure

Define your accounting structure according to the way you do business. Oracle Payablesprovides you with pop-up windows that make entering accounting information quick and easy.

Full Integration

Oracle Payables fully integrates with your general ledger system. If you have Oracle GeneralLedger, everything is ready for you to access your accounting data. If you are using your owngeneral ledger system, a few simple steps allow you to fully integrate with Oracle Payables.

Multiple Sets of Books

Your set of books defines the account structure, accounting calendar, and functional currencythat your organization uses to record transactions in Oracle Payables.

Multiple Accounting Methods

When you install Oracle Payables, choose whether you wish to record journal entries and reporton an accrual basis, cash basis, or combined basis of accounting.

Intercompany Accounting

When you post Oracle Payables journal entries, Oracle General Ledger automatically createsintercompany journal entries to balance your accounts.

Audit Information

Optionally choose to maintain detailed audit information for the invoice and paymentinformation you transfer to your general ledger.

Oracle Payables 51

Invoice Distribution Statistics

If you use Oracle General Ledger, define the units of measure you use to record statistics oninvoice distribution lines. In Oracle General Ledger, you can define a different unit of measurefor each account. Oracle Payables then lets you enter a statistical quantity for each invoicedistribution line that has an account defined with a unit of measure.

Posting Reports

Oracle Payables provides several standard reports that you can use to review your unpostedand posted invoice and payment information. Submit a report to review invoices that OraclePayables does not allow you to post because they have posting holds or have not beenapproved. Submit reports that let you review all your posted invoices and payments, as well asthe trial balance for your unpaid, posted accounts payable liabilities.

Accounting Period Statuses

Open and close accounting periods in Oracle Payables independently of your general ledger.The period statuses available in Oracle Payables are Never Opened, Future, Open, Closed, andPermanently Closed. Oracle Payables allows invoice entry, payment entry, and paymentvoiding in an open accounting period. You can enter invoices in a Future accounting period butyou cannot pay or post any invoices in a Future period until you open the period.

Never Open

Open

Closed

Permanantly Closed(Optional)

Future (Optional)

Oracle Payables lets you control the status of your accounting periods


Combined Basis Accounting

In addition to the accrual basis and cash basis accounting methods, Oracle Payables alsosupports a combination of both methods called Combined Basis Accounting. With CombinedBasis Accounting, Oracle Payables creates journal entries for both sets of books simultaneously.

Business Needs


Define two sets of books, for cash and accrual accounting methods

Use one set of books to manage your business and use the other set of books for reportingpurposes

Choose your accounting method each time you transfer accounting entries from OraclePayables to your general ledger

Major Features

Multiple Accounting Methods

Choose primary and secondary accounting methods for creating accounting entries in OraclePayables. For each accounting method, cash or accrual, choose a set of books. Each time youtransfer accounting entries from Oracle Payables to your general ledger, you choose to transferactivity for your primary, secondary, or both sets of books. Oracle Payables creates accountingentries for both sets of books so that you can report under each accounting method.

Journal Entry Audit Options

Within each set of books you can choose to maintain various levels of audit detail for yourinvoice and payment transactions. You can override these defaults each time you initiate thePayables Transfer to General Ledger program. Payables automatically maintains auditinformation for all expense and cash transactions, however you can optionally choose to storefull or partial audit information on your liability distributions and audit information for yourdiscount, gain/loss and cash clearing distributions.

Create Summary or Detail Journal Entries

If you use Oracle General Ledger, you can choose to create either summary or detail journalentries based on the invoice and payment transactions you transfer from Oracle Payables. Youcan create summarized journal entries even if you want to maintain detailed audit informationfor drilldown purposes.

Oracle Payables 53

Automatic Offsets

Oracle Financials provides a number of flexible accounting capabilities to control your expenses.With Oracle Financials you can support a complete set of accounts for each balancing segment.Oracle Financials also lets you record balance sheet effects across multiple balancing segments.

Business Needs


Specify system options and defaults which reflect your business practices; for example, youcan specify that you want to automatically create balancing entries (both liability and cashaccounts)

Create multiple liability accounts automatically for an invoice. For example, you can enter aninvoice and distribute it to Balancing Segment A, Balancing Segment B, and BalancingSegment C. You can automatically record liability entries for Balancing Segment A, BalancingSegment B, and Balancing Segment C

Create multiple accounts payable liability accounts and selectively assign them as supplierdefaults

Specify a bank account as a pooled account or as a non-pooled account

Create multiple cash entries automatically when paying an invoice from a pooled bankaccount

Create all necessary balancing entries when you use a non-pooled account to pay an invoice

Prorate discounts across invoice distributions, or use one discount taken account

Major Features

System Options and Defaults

Oracle Financials gives you multiple system options and defaults which increase your controland make data entry easier. For example, your cash and liability accounts all default from yoursystem defaults, so you do not have to enter them every time you create a supplier or enter aninvoice. Of course, you can always override a default.

System options, such as whether to create balancing entries automatically, give you theaccounting controls you need. Oracle Financials provide the flexibility for the way yourcompany does business.


Multiple Liability Accounts

Oracle Payables gives you the flexibility to record multiple liability accounts for your invoices.If you specify Automatic Offsets as a system option, Oracle Payables automatically allocatesyour liability amounts across multiple balancing segments, according to your invoicedistributions. If you do not specify Automatic Offsets as a system option, Oracle Payablescredits your liability to one account.

Multiple Discount Accounts

Choose how Oracle Payables distributes the discounts you take when making payments.Prorate any discounts across your invoice distribution lines or credit all discounts to oneDiscount Taken account.

Intercompany Balancing Entries

Oracle General Ledger enables you to create intercompany balancing entries quickly and easily.You can create balancing entries manually, or let Oracle General Ledger create them for youautomatically when you post a payment transaction which does not balance by balancingsegment.

Multiple Cash Accounts

When you define a bank account, specify whether you centrally pool cash or not. Use a pooledaccount to pay invoices for multiple balancing segments. Use a non-pooled bank account to paya single balancing segment's invoices.

Multiple Receipt Accrual Accounts

Oracle Purchasing makes it easy for you to record accruals for your unbilled receipts.Automatically accrue receipts as often as you need. Accrue receipts to the next period, or acurrent period. Set up Oracle Purchasing to automatically accrue receipts to the correctbalancing segment when you run your receipt accrual process.

Posting Options

Oracle General Ledger gives you the option of ensuring that your entries balance by balancingsegment. Oracle General Ledger automatically creates intercompany entries for your journalentries that are not balanced by balancing segment.

Oracle Payables 55

Intercompany Accounting

Manage your accounts payable information within any company structure you define. Maintainmultiple companies and create expense distributions and payments on behalf of anycombination of those companies.

Business Needs


Create accounting entries for invoice and payment transactions that reflect activity acrossmultiple companies, including having one company pay for the expenses of another company

Perform intercompany accounting to automatically balance your intercompany transactions

Major Features

Multiple Sets of Books

Oracle Payables allows you to define different sets of books for companies with differentcurrencies, accounting calendars, and chart of account structures. Use one set of books for eachinstallation of Oracle Payables, or use the Oracle Applications Multiple Organization Supportfeature to use multiple sets of books within one Payables installation.

With the Multiple Organization Support feature, you can assign a unique set of books (with itsunique calendar, chart of accounts, and functional currency) to each organization you define.When you assign responsibilities using function security you can limit a user to oneorganization's set of books. With the Multiple Organization Support feature you can segregatetransactions by operating unit but you can still choose to share certain information, such assupplier information, between organizations so the information needs to be entered only once.

Multiple Companies

Within each set of books, set up as many companies as you need. Add new companieswhenever you want, without any complicated restructuring.

Intercompany Journal Entries

Oracle Payables is completely integrated with Oracle General Ledger. When you transferjournal entries for invoices and payments, Oracle General Ledger automatically createsintercompany journal entries to balance your accounts. Specify the intercompany balancingaccount you want to use for each company. Define additional intercompany accounts for OracleGeneral Ledger to use for balancing different types of journal entries.


Budgetary Control

Oracle Financials provide a variety of powerful, flexible, easy-to-use budgetary controlcapabilities to control your expenses and prevent you from spending beyond your budgets.Oracle Payables, Oracle General Ledger, Oracle Purchasing and Oracle Inventory are fullyintegrated to give you a complete solution to your budgetary control needs.

Business Needs

With Oracle Financials you can:

Ensure that your actual and planned expenditures do not exceed your available funds

Check funds on-line for all transactions which affect available funds, at any level of atransaction

Update your funds available balances immediately when you reserve funds for a requisition,purchase order, invoice, or journal entry

Choose the degree of budgetary control you want over your expenditures

Choose the degree of budgetary control you want by type of document

Check funds and reserve funds at multiple levels within your organization

Control your expenses based on the period you want

Control your expenditures regardless of your accounting method or currency

Specify the budget you want to use for budgetary control

Choose the detail accounts for which you want to enforce budgetary control

Perform budgetary control by journal entry source, category, and responsibility; for example,you may want to perform budgetary control on Payroll journal entries, but not Accrual-typejournal entries

Specify tolerances for budgetary control; for example, you may want to allow transactions forwhich there are insufficient funds available if the transactions exceed available funds by $1000or less

Override transactions selectively for which there are insufficient funds available

Reserve funds for your journal entries

Import journal entries from other non-Oracle applications and check funds for these importedjournal entries

Reserve funds for invoices by approving them on-line or in batch

Liquidate excess encumbrances easily

Record cancellations of encumbrances differently from reversals

Oracle Payables 57

Major Features

Many government, educational, and not-for-profit agencies use budgetary control, as well asmany corporations. Each of these organizations may use different terminology for budgetarycontrol.

We use the term requisition encumbrance to refer to the journal entry Oracle Financials createswhen you reserve funds for a requisition. We use the term purchase order encumbrance to referto the journal entry Oracle Financials creates when you approve a purchase order. You maydefine an unlimited number of encumbrance types in Oracle General Ledger, so you can callthese journal entries commitment and obligation, pre-commitment and commitment, or pre-lienand lien.

On-line Funds Checking

You can check funds on-line independently of reserving funds for your transaction. OracleFinancials notifies you on-line whether you have enough funds available for a transaction. Youcan check funds at any level of a journal entry, requisition, purchase order, or invoice.

Immediate Update of Funds Available

Oracle Financials automatically updates your funds available balances when you successfullyreserve funds for a transaction. Your funds available balances are always up-to-date.

Absolute or Advisory Budgetary Control

With Oracle Financials, you decide whether to allow transactions which exceed your availablefunds. If you use absolute budgetary control, Oracle Financials does not allow you to reservefunds for a transaction unless you have funds available. If you use advisory budgetary control,Oracle Financials provides you with on-line notification that you do not have available funds,but reserves funds for your transaction anyway.

Multiple Levels of Funds Checking and Funds Reservation

You can define unlimited funds checking levels for budgetary control. You may choose to haveOracle Financials check your funds at the detail level of an Accounting Flexfield or at asummary level of a group of Accounting Flexfields. You can also decide to check funds at both asummary and detail level.

Multiple Interval Types

Specify the interval for which you want Oracle Financials to exercise budgetary control. Choosewhether your boundaries are hard (you do not have access to available funds over theboundary) or soft (you automatically have access to funds available past period boundaries).

Multi-Currency Encumbrances

Oracle Financials perform funds checking based on the functional currency equivalents of yourmulti-currency purchase order distributions or invoice distributions. And, Oracle Financialsautomatically create encumbrances in your functional currency.


Funds Reservation Options

Oracle Financials provide the flexibility you need to control your expenses the way you want.You can define budgetary control options by journal entry source, category, and responsibility.You can define the range or ranges of accounts for which you want to perform budgetarycontrol.

Tolerances

For each journal entry source and category for which you perform budgetary control, specify atolerance amount and a tolerance percent. The tolerance percent is the percent by which you canexceed your budget per transaction that fails budgetary control. The tolerance amount is theamount per transaction in functional currency by which you can exceed your budget.

Funds Check Override

For each journal entry s