12i initiative_accounts payables

8/8/2019 12i Initiative_Accounts Payables

1/21

12i Initiative

- Accounts Payable


2/21

1

Summary of New Features

Legal Entity Architecture

Multi Org Access Control (MOAC)

Sub Ledger Accounting (SLA)

User Interface for Supplier Entry and Maintenance throughiSupplier Portal

Invoice Lines Model with line level approvals for InvoiceDistributions

Separate Automated Processes for Contract Financing, Retainage,and Progress Terms


3/21

2

Summary of Changed Features

Non PO Invoices Entered via iSupplier Portal

Supplier Negotiation through iSupplier Portal

Payments to Company or Individual that is not a supplier OracleE-Business Disbursement Requests

New Bank Account Model

Enhancements in Payment processes

Receivable and Payable Netting


4/21

3

A New Product Separated from Oracle Payables

Oracle Payments as a New Product


5/21

4

Legal Entity Architecture

Legal Entity architecture provides users with the ability to modelan enterprises legal organizational structure and define rules andattributes specific to legal entities. Adoption of the Legal Entityarchitecture in transactions has enabled the use of the context oflegal entities for statutory and other reporting.

This will enable the tracking of the data from the legal perspective

as Invoices and Payments indicate the operating unit and the legalentity owner of the transaction.

The legal entity can be used as selection criteria when preparingpay runs.


6/21

5

Multi Org Access Control (MOAC)

Multi-Org Access Control enables users of the applications toaccess, process, and report on data for an unlimited number ofoperating units within a single applications responsibility.

This will help companies that have implemented a Shared Servicesoperating model to efficiently process business transactions.

Data security is still maintained using security profiles that aredefined for a list of operating units and determine the data accessprivileges for a user.

In Oracle Payables Multi-Org Access Control and Preferences allowusers to enter invoices or batches of invoices for one operatingunit, and then seamlessly enter invoices for another operating unit.

Also invoices can be selected across operating units for paymentprocessing within a single pay run.

Setup is more manageable and gathering information and runningconcurrent programs are more efficient.


7/21

6

Sub Ledger Accounting (SLA)

This is a major change in Oracle Financials wherein concept of Setof Books is replaced by Ledger and Ledger Sets.

It allows to have different accounting for the same transactiondata in two different ledgers depending upon the accountingmethods (principles) defined for that ledger

The accounting entity involved can maintain multiple ledgers, eachcomplying with a different set of accounting principles i.e.accounting methods.

The data of all Sub Ledger Products such as Oracle payables willbe accounted in SLA and then will be transferred to General Ledgereither in summary or in detail.


8/21

7

User Interface for Supplier Entry and Maintenance throughiSupplier Portal

New UI for Suppliers allows to maintain more clear terms andcontrols for trading relationship with supplier.

Function Security can be used managing the attributes specific toparticular functional areas such as Oracle Payables, Purchasing andReceiving

Additional tax and legal registrations provide key information tomeet reporting and compliance needs.

Introduction of Survey Section to provide administrators withaccess to the results of questionnaires that the supplier has beenasked to complete, either during self-registration or as part ofprofile maintenance through iSupplier Portal.

Introduction of Purchasing Category assignments to designate thetype of goods and services the supplier will supply.


9/21

8

Invoice Lines Model with line level approvals for InvoiceDistributions

This is a key architectural change in Oracle payablesThis Model supports the representation of the goods or services as

well as tax, freight, and other charges as lines with distributionstied to each line.

Additional fields record attributes such as serial numbers and itemdescriptions.

This feature also offers the ability for line level approval andmatching between an invoice line and a purchase order shipmentpay item, or receipt. Furthermore, it facilitates the capture andtransfer of additional, pertinent information to and from OracleProjects and Oracle Assets.

Invoice approvals can be changed to Invoice Line level approvals.Notifications for Line level approval provide view of Invoice

including summary amounts, essential line information, approversequence, and attachments.


10/21

9

SeparateAutomated Processes for Contract Financing,Retainage, and Progress Terms

Various terms and conditions of Fixed Price Contract, such asadvance payments, progressive payments depending upon work

completed, are supported in Oracle Payables when recordinginvoices and managing payment execution during the lifetime ofthe contract

Oracle Payables ensures that the amounts initially financed asadvance are recovered by automatically applying financing to

subsequent invoices per the specific terms captured in the purchaseorder.

In such contracts some portion of the Invoices is required to beretained till the work finally gets approved. Payables, based onsetups, automatically retains the invoice amount as per thepurchase order on invoices coming in and supports the retainagerelease and payment process.

Suppliers entering a work confirmation directly in Oracle iSupplierPortal have a receipt recorded in Oracle Receiving. Pay on Receiptterms recorded on the purchase order are translated into a self-billed invoice, in Oracle Payables, to be paid.


11/21

10

Non PO Invoices Entered via iSupplier Portal

Invoices entered by Suppliers via iSupplier Portal where a purchaseorder has not been obtained are represented as Invoice Requests.Invoice Requests are visible in Oracle Payables but are not paid oraccounted until the invoice can be verified and approved.


12/21

11

Supplier Negotiation through iSupplier Portal

Information about the Invoices on Hold due to some disputes canbe communicated to supplier through iSupplier Portal

Leveraging workflow notification, disputes are communicated andnegotiations can be suggested to the Supplier. Suppliers are able toaccept the suggested changes, withdraw their invoice, or submittheir counter proposal. The negotiation continues until the issues

are finally resolved.Additionally, Suppliers are able to negotiate online via iSupplier

Portal. All changes and comments entered during the negotiationare tracked in Payables and can be viewed at any time.


13/21

12

Payments to Company or Individual that is not a supplier Oracle E-Business Disbursement Requests

New Functionality of Disbursement Requests

Disbursement Requests are requests to make a payment to acompany or individual that is not a supplier.

Oracle E-Business Suite products may submit the request asalready approved or take advantage of Oracle Payables ApprovalWorkflow.

Currently, Oracle Loans can take advantage of this feature for loandisbursements to borrowers and Oracle Receivables for customerrefunds.


14/21

13

New Bank Account Model

TheN

ew Bank Account Model provides a single access point fordefining and managing internal bank accounts for Oracle Payables,Oracle Receivables, Oracle Payroll, Oracle Cash Management, andOracle Treasury.

A single Legal Entity is granted ownership of each internal bankaccount. One or more Organizations are granted usage rights,

which provides significant benefits in key areas like reconciliationthat previously required managing multiple account records forthese types of purposes.

Bank account access for each application is explicit for internalsecurity and control purposes. Each account is associated with aBank and Bank Branch defined in Oracles common Trading

Community Architecture (TCA).Additionally, reconciliation options in Cash Management, can now

be defined at the bank account level, providing even more flexibilityand control of that process.


15/21

14

Enhancements in Payment processes

Improved Toolset for Payment ManagerA new Selected Invoices page displays summary and detail

information used to view and analyze invoices selected in a payrun.

Powerful search tools to improve online inquiry to invoices thatuser may want to review, modify, or remove.

Ability to view invoices that matched the invoice selection criteriabut could not be selected because they were not validated orapproved. This enables quick identification of invoices that needresolution so they can be included in the pay run.

Pay run invoice selection criteria and processing requirements can

be saved in a template to be reused and/or scheduled.Pay run can be included in a request set to group other programs

or reports with pay run processing.


16/21

15

Receivable and Payable Netting

This is Possible through Oracles common Trading CommunityArchitecture (TCA).

When a trading partner is both a customer and a supplier, itspossible to offset open receivables against open payables items.

Netting Agreements add trading partner terms as well asdeploying company controls. A selection program automaticallypulls information from Oracle Receivables and Oracle Payablestaking into consideration discounts, late fees, and withholding taxesprior to determining the final netting amount.

A review process and trading partner approval afford furtherverification to support the netting event.


17/21

16

Oracle Payments as a New Product

With Oracle Payments as a separate product companies will beable to efficiently centralize the payment process across multipleorganizations, currencies, and regions.

As the new central payment engine, Oracle Payments processesinvoice payments from Oracle Payables, bank account transfersfrom Oracle Cash Management, and settlements against credit

cards and bank accounts from Oracle Receivables. Oracle Paymentsprovides the infrastructure needed to connect these applicationsand others with third party payment systems and financialinstitutions.

Oracle Payments offers functionality previously released as OracleiPayment, which will be obsolete as of Release 12.0.

The approval and selection of invoices for payment remains inOracle Payables, but Oracle Payments now handles all creation andvalidation of payments, aggregation of payments into files, formatand transmission of files, and so on.


18/21

17

Oracle Payments as a New Product Cont.

Oracle Payments offers a library of payment formats that supportvarious types of payment files and messages. These formats arecreated as templates in Oracle XML Publisher, and applied to anXML data file produced by Oracle Payments.

When a format is required, and it is not provided, a similar formattemplate can be copied to use it as the basis for creating the new

format.Payment validation rules are associated with Payment Formats

which can be implemented using a flexible framework that allows auser to add new rules and the timings of the rules.

One major change is that Oracle Payments also acts as a datarepository which stores all of the partys payment information andits payment instruments (such as credit cards and bank accounts).In release 11i, this information was held separately in differentapplications such as in the Oracle Purchasing supplier and theOracle Payables bank account entities.


19/21

18

Oracle Payments as a New Product Cont.

Earlier in Oracle Payables payment batch process required thesubmission of the invoice selection process to be segregatedaccording to the way the invoices needed to be paid (printedchecks, electronic funds transfer, different formats, and so on).Now, Oracle Payments funds disbursement process allows theinvoice selection process in Oracle Payables and other products tobe neutral to the way documents will be paid.

Oracle Payments offers a new user dashboard for managing thefunds disbursement process. The dashboard allows paymentadministrators to manage every aspect of the process acrossmultiple organizations from the same place.


20/21

19

Questions

In SLA, whether its possible to have to different ledgers withdifferent Chart of Accounts under one ledger set?

Under the Invoice Line Model, how does the invoice approvalworkflow will work, if line level approval is required by two differentusers?

New Bank Account Model works under Multi Org Access Control. If

Security Profiles for Org Access are changed, will it affect theprocessing or reporting of transactions already entered with earliersecurity profiles?


21/21

20

Thanks

12i initiative_accounts payables

Documents