Oracle Payables

Suppliers Banks Payments Manager AP/AR netting

Suppliers:

11i:

Suppliers are defined in AP Supplier contacts are replicated for each site.

Tables:

po_vendors.

PO_vendor_sites_all

PO_vendor_contacts

R12:

Supplier becomes TCA party Supplier Site as TCA party site Contacts are defined for each supplier address.

Advantage:

A single change to an address can be instantly seen by all OUs Eliminates duplicate supplier data.

Tables:

AP_Suppliers

AP_supplier_sites

AP_Supplier_Contacts

Creating a supplier:

(N): Payables Responsibility->Suppliers->Entry

Organization name: Enter unique Supplier name

Enter Alias name, Tax registration number optionally and click on apply

Above Supplier number is generated automatically. It is based on the supplier number setup in payables options.

Registry id is the party number for this supplier in HZ_parties.

Optionally you can select the hold options

1. Purchase order hold

All new orders: creates hold on the purchase orders created for this supplier.

2. Hold from payment

All invoices: Does not allow making payment to all the invoices for this supplier.

Unmatched Invoices : Stops payment for all the unmatched(not matched to PO or receipt) invoices for this supplier

Unvalidated Invoices: Stops payment for all the unvalidated invoices for this supplier.

Further to create address: Go to address tab and click on create

Enter mandatory fields like Address, country, city

Address name will be the site name

Address purpose:

Purchasing: Address used for creating purchase orders. Payables : Address used for billing or creating payments RFQ only: Address used for creating RFQ’s.

Update to all new sites created for this address: whenever there is an update of address it affects at all sites with this address.

Select the check box to assign operating unit for the site and click on apply.

Go to tab contact directory and click on create to create contact information

Enter the contact information like first name, last name, phone number, email and click on apply.

Business classification tab allows us to assign each supplier to the classification that apply to their business. ( Eg: small business, women owned etc.)

Banking Details tab allows to create or assign bank to the supplier that are used to make payment to supplier.

Go to Banking Details tab and click on create to create bank account

Check the radio button Existing Bank if bank is already created

Select create new bank to create a new bank

Enter the details of bank, Bank Branch and Bank account and click on apply.

Go to accounting Tab to enter the Liability, Prepayment, bills payable and distribution set account.

Liability, prepayment and bills payable accounts are defaulted from the financials options. But can be overridden at supplier, site level and invoice level.

Liability Account: This account is the item distribution account for standard invoice for the supplier.

Prepayment Account: Payables uses the supplier site's prepayment account as the default GL account for all prepayment Item distributions, unless the Build Prepayment Accounts When Matching Payables option is enabled.

Bills payables: This account is used for the future dated payments.

Distribution set: Default Distribution Set for all invoices entered for the supplier site. Define additional Distribution Sets for the list of values in the Distribution Set window.

Note: If you use the Multiple Organization Support feature, you can enter a value for these fields only at the supplier site level.

Liability Tab:

Prepayment Tab:

Bills Payable tab:

Distribution set tab:

Purchasing Tab allows to enter the purchasing defaults to the supplier.

Ship To Location: Location to which a supplier sends the invoice for goods or services.

Bill To Location: Location to which supplier sends shipments for goods and services.

Ship Via: Frieght carrier you use with the supplier.

Note: All these are defaulted from financials options at supplier level and at site level these are defaulted from supplier level.

Self-Billing Tab:

Allows us to use self-billing features to create invoices on behalf of the suppliers.

Pay On : You can enter a value for the Pay on field only if the supplier site is a purchasing site.

Receipt and Use Use Receipt: Pay on Receipt Auto Invoice Program is used to automatically create invoices

based on receipts you enter for this supplier site. Blank: Pay on Receipt Auto Invoice Program Is not used to create invoice

Alternate Pay Site: Pay site to be used as the supplier site when the system creates self-billing invoices for this supplier.

If the supplier site is already a pay site then optionally you can enter any other pay site for payment of invoices created by self-billing.

If the supplier site is not a pay site then it is mandatory to give value to this field.

Invoice Summary Level :

Specifies the level at which the invoices needs to be consolidate for this supplier site when creating invoices through self-billing features(Pay on Receipt Auto Invoice Program).

Pay Site: Create one invoice for this supplier pay site for transactions that have the same date.

Packing Slip: Create one invoice per packing slip for this supplier pay site for transactions that have the same date.

Receipt: Create one invoice per receipt for this supplier pay site.

Create Debit Memo From RTS Transaction: Enable this option if you want the system to automatically create a debit memo in Payables when you enter a Return to Supplier (RTS) in Purchasing.

Gapless Invoice Numbering: If you enable Gapless Invoice Numbering, then you must also enter a Selling Company Identifier.

Selling Company Identifier: This is the identifier for the supplier site. You can enter the same value for all of a suppliers sites, but you cannot enter the same value for sites under different suppliers. The value you enter in this field is used to construct the invoice number for all self-billing invoices.

Frieght Tab:

FOB: Free-on-Board (FOB) code for a supplier.

Freight Terms: You negotiate freight terms with a supplier to determine whether you or the supplier pays for freight charges on goods you order from a supplier.

Country of Origin: Country in which a product was manufactured. This value defaults to purchase orders and releases.

Receiving Tab:

Enforce Ship-to Location:

None: The receiving location may differ from the ship-to location.

Reject: Receiving for a purchase order cannot be done if the receiving location is other than ship to location

Warning: Displays warning message when trying to receive goods in a location other than ship to location.

Receipt Routing:

Direct Delivery : Goods are directly delivered to destination

Inspection Required: Goods are received at receiving location, inspected and then delivered to destination.

Standard Receipt: Goods are received at receiving location and then delivered to destination.

Match Approval Level:

Below are the different ways an invoice can be matched with PO or a receipt.Based on Match invoice validation performs below checks.

2-Way : o Quantity billed <= Quantity ordered o Invoice price <= Purchase order price

3-Way:o Quantity billed <= Quantity ordered o Invoice price <= Purchase order price o Quantity billed <= Quantity received

4-Way :o Quantity billed <= Quantity orderedo Invoice price <= Purchase order price o Quantity billed <= Quantity received o Quantity billed <= Quantity accepted

Quantity Received Tolerance:

Maximum percentage of receipt tolerance allowed.

Quantity Received Exception:How Purchasing handles receipts that exceed the Quantity Received Tolerance:

None: Receipts may exceed the selected tolerance.

Reject: Purchasing does not permit receipts in excess of the selected tolerance.

Warning: Purchasing displays a warning message but permits receipts in excess of the selected tolerance.

Days Early/Late Receipt Allowed: Maximum acceptable number of days early/late for receipts.

Allow Substitute Receipts: Receivers can receive substitute items in place of ordered items. You must have previously defined acceptable substitute items for the ordered item in the Purchasing Item Relationships window.

Allow Unordered Receipts: Receivers can receive unordered items

Receipt Date Exception: How Purchasing handles receipts that are earlier or later than the allowed number of days

None: Allows receiving. Reject: Does not allow receiving to be done. Warning: Purchasing displays a warning message but permits receipts.

Invoice Managemnet Tab:

Invoice Currency: The default currency used by the purchasing documents and payables transactions for this supplier.

Invoice Amount Limit:Specify the maximum amount for which an invoice can be created for this supplier. If invoice amount exceeds this limit invoice validation program applies a hold.

Invoice Match Option:

Purchase Order: match invoice with PO Receipt : match invoice with PO receipt

Defaulting Hierarchy: Payables System Setup -> Supplier -> Supplier Site -> Purchase Order Shipment.

Invoice payment Terms:

Payment Currency: By default invoice currency will be payment currency. It specifies the default currency in which invoices are paid for this supplier.

Payment Priority: A number, between 1 (high) and 99 (low), which represents the priority of payment.

Terms:Payment terms used to schedule payments for an invoice. The system uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice you enter.

Terms Date Basis: Date from which Payables calculates a scheduled payment for a supplier.

System: When you enter invoices, Payables defaults the system date as the terms date.

Goods Received: While entering invoices, we get prompt asking for goods received date which will be taken as terms date.

Invoice: When you enter invoices, Payables defaults the invoice date as the terms date.

Invoice Received: When you enter invoices, Payables prompts you to enter the date you received an invoice as the terms date.

Pay Date Basis:The Pay Date Basis for a supplier determines the pay date for a supplier's invoices.

Due Discount

Pay Group: Pay Group assigned to a supplier. Suppliers are grouped in to a pay group based on the payment terms.Default hierarchy: payables options-> supplier-> supplier site.

Always Take Discount. Discount will be given to supplier, regardless of when the invoice is paid.

Exclude Freight From Discount: When calculating the discount for supplier freight is excluded from the invoice amount and discount is calculated.

Create Interest Invoices:

Payables calculates interest for the supplier's overdue invoices and creates corresponding interest invoices when you pay the overdue invoices. Payables calculates interest only for invoices that are overdue 365 days or less.

Invoice Tolerances. The default invoice tolerance template used for all invoices entered for the supplier site. Define additional invoice tolerance templates for the list of values in the Invoice Tolerances window.

Payment Hold Reason: The reason you are applying an invoice hold to an invoice.

Banks:

The Bank account model in R12 provides a single access point for defining and managing internal bank accounts for oracle payables, oracle receivables, oracle payroll, oracle cash management, and oracle treasury.

A single legal entity is granted ownership of each internal bank account.one or more organizations are granted usage rights.

(N): Payables Responsibility->Setup->payment->Bank and bank branches

To create a bank Go to Bank tab and click on create

Enter the bank information like bank name, number etc. and click on save and next.Note: Bank name, Country and Bank Number combined should be unique.

Click on create to create bank address.

Enter the bank address and click on apply.Click on Bank branches tab and then on create to create a bank branch.

Enter the Country of Bank branch and the bank name for which the branch is being created and click continue.

Enter the Branch information and click on save and next

Enter the branch address and click on apply.

Click on save and next to enter the contact details

Click on create contact to enter the contact details

After entering the contact details .click on apply. We have successfully created bank now.

Creating new bank account:(N) : payables responsibility-> setup->payments->Bank accounts

Click on create to create new bank account

Provide Bank and Branch information to which account needs to be created and click continue.