Purchasing and Payable Tell me about P2P (procure to pay) Cycle verbally as well as accounting entries?

First you enter the Requisition in PO module. Supplier sends quotation reply of requisitions or RFQ. You can approve the quotation of a supplier after to record all information received from your supplier such as terms and conditions, shipment and price breaks. hen you can !o ahead for Purchase "!reement. Purchase "!reement has t#o types$ first %lanket and &ontract Purchase "!reement. You cans use blanket purchase a!reement to communicate to those supplier that are ne!otiatin! pricin! before actually releasin! firm purchases. " blanket purchase a!reement must have detailed information besides the header level information. " blanket purchase a!reement contains lines for specific terms, quantity, promised date, need'by'date and prices. You can create a contract purchase a!reement #ith a supplier to a!ree on terms and conditions #ithout enterin! into and a!reement for specific items or services. " contract purchase a!reement can support competitive solicitation throu!h the RFQ process and then throu!h the purchase releases because a contract purchase a!reement has only header level information and no detailed information. (eader level includes terms, currency Supplier and a supplier site. You can enter Purchase Order for confirms to purchasin! services or !oods. Purchase order has four types$ Standard, Planned, %lanket and &ontract. )henever you !et !oods or service that time you enter receipts in system. here are five types of receipts$ manual receipts, e*press receipts, cascade receipts, unordered item receipts and substitute item receipts. hat time accountin! entry should be debited to Inventory Material Value and credited to Payable Clearing ccount. )henever you !et the invoice in account department, it enters in the system that time accountin! entries should be debited Payable Clearing and credited to Payable . hen you make a payment to supplier that time accountin! entries should be debited Payable liability and credited to cash clearing account . "fter reconciliations bet#een cash mana!ement and bank, accountin! should be debited to cash clearing account and credited to ban! or cash account. ccrual ccounting " Perpetual ccrual (#n $eceipt) %nter purchase order (&) )hen you enter a purchase order, accounts are created and stored #ith the purchase order distribution. he accounts #ill eventually be used as a basis for creatin! accountin! that is sent to the !eneral led!er. &reatin! a purchase order in and of itself !enerates no accountin! that is sent to the !eneral led!er. $eceive (2) )hen you accrue on receipt, processin! a receivin! transaction automatically sends a receipt accrual to the !eneral led!er. The $eceiving Inventory ccount is debited ('uantity ( purchase order line unit price) and the Inventory P ccrual account (uninvoiced receipts account) is credited the same amount) Run the +ournal ,mport process #ith a source of Purchasin! to create unposted -ournals in the !eneral led!er. *eliver and cost (+) "fter deliverin! to the final destination, the Receivin! ,nventory "ccount is cleared and the .aterial account is debited. ,f you use standard costin!, the .aterial account is debited #ith the standard cost of the item and any difference is char!ed to the Purchase Price /ariance account. Period end accrual (,) )hen items are accrued on receipt, no period'end accrual is !enerated by the Receipt "ccruals ' Period'0nd process. he receipt accrual is automatically !enerated #hen the receipt is processed. Invoice and match (-) 0nterin! an invoice and matchin! creates a debit to the Inventory P ccrual account to clear the liability for the uninvoiced receipt 1you no# have an invoice2. he credit is to the

P .iability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. ny di//erence is charged to the Invoice Price Variance account. For items #ith destination type of ,nventory, the ,nvoice Price /ariance account #ill be the ,nvoice Price /ariance account specified #hen you defined ,nventory ,nformation for your inventory or!ani3ations in the Other "ccounts tab. he "P 4iability account is cleared #hen the invoice is paid. ccounting /or Mass dditions " Periodic ccrual (Period %nd) %nter purchase order (&) )hen you enter a purchase order, accounts are created and stored #ith the purchase order distribution. he accounts #ill eventually be used as a basis for creatin! accountin! that is sent to the !eneral led!er. &reatin! a purchase order in and of itself !enerates no accountin! that is sent to the !eneral led!er. $eceive (2) For most e*penses and asset purchases 1other than inventory2, receipt accruals are !enerally processed at period end, so no accountin! is transferred to the !eneral led!er at the time the receipt is processed. Period end accrual (+) ,f no invoice is received and matched to the purchase order at period end, the Receipt "ccruals ' Period 0nd process #ill !enerate an accrual that is transferred to the 54 ,nterface. Run the +ournal ,mport process to create unposted -ournals in the !eneral led!er. $everse accrual (,) Perpetual accruals 1on receipt accruals2 are reversed #hen the invoice entered in Payables is matched to the purchase order. Periodic accruals 1period end accruals2 are reversed #hen a reversin! -ournal is created and posted in the !eneral led!er. Invoice and match (-) 0nterin! an invoice and matchin! creates a debit to the ,nventory "P "ccrual account to clear the liability for the uninvoiced receipt 1you no# have an invoice2. he credit is to the "P 4iability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. "ny difference is char!ed to the ,nvoice Price /ariance account. For items #ith destination type of 0*pense, the ,nvoice Price /ariance account #ill be the same as the char!e account. ,n the case of an asset that #ill be capitali3ed and depreciated in assets, the char!e account is an asset clearin! account associated #ith an asset cate!ory in "ssets. he "P 4iability account is cleared #hen a payment is processed. Post asset to ssets (0) he Post .ass "dditions process places the asset in service. )hen the &reate +ournal 0ntries process is run in "ssets, the char!e account 1the clearin! account on the invoice distribution2 is relieved and the cost account associated #ith the asset cate!ory is char!ed for the cost of the asset. %nter invoice (&) " standard, unmatched invoice entered into Payables #ill !enerate a credit to the "P 4iability account and a debit to the char!e account specified on the invoice distribution. For e*penses, this #ill be an income statement account6 for assets that #ill be capitali3ed in "ssets and depreciated, this account #ill be a balance sheet account 1asset clearin! account26 for inventory received, the account #ill be the ,nventory "P "ccrual account. Pl) describe the P2P process in terms Procure to Pay Process *emand he procurement process !enerates and mana!es requests for the purchase of !oods. he demand for purchase items may be a one'time event or may recur in either predictable or random time intervals.

1ource he procurement sourcin! process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested !oods and services. #rder he procurement orderin! process includes purchase order placement by the buyin! or!ani3ation and purchase order e*ecution by the supplyin! or!ani3ation. $eceive he receipt process ackno#led!es that a purchase order has been duly e*ecuted. For orders of physical !oods, it #ill typically include the receipt, inspection and delivery of the !oods to inventory or to another desi!nated location. For orders of services, it #ill typically consist of a notification from the requester or the approvin! person that the service has been performed as a!reed. Invoice he invoice process includes enterin! supplier and employee invoices. Pay he payment process consists of those activities involved in the payment for ordered !oods and services. *e/initions o/ Purchasing *ocument 2lan!et Purchase greement$ ,t committed amounts for specific date ran!e for service or !oods. Contract Purchase greement$ ,t committed amount for certain period of unspecified !oods. Purchase #rder types$ 1tandard3 ,t is re!ular purchases order to represents your order to the supplier. Planned$ ,t is a purchase order before you actually order the !oods and services. 2lan!et$ ,t is enterin! to a!ainst of blanket purchase a!reement. Contract$ ,t is enterin! to a!ainst of contract purchase a!reement. Types o/ receipts$ Manual$ ,t is for inputtin! data manually. %(press$ ,t is a quicker method'if you have specified PO then requires fe#er keystrokes. Cascade$ ,t is assists in the distributions of the quantity of a receipt from a sin!le supplier to multiple shipments and distributions. 4nordered$ )hen you are missin! a PO or if you7re not sure to #hich PO the receipt should be matched a!ainst, you can enter this type receipt. 1ubstitute Item$ ,f you do not have any information for the Order ,nformation alternative re!ion then you enter a receipt for substitute item. Quotation$ ,t is used for quotes from the supplier re!ardin! prices, terms and conditions of items. $56$ ,t is used for solicitin! quotes from the supplier re!ardin! prices, terms and conditions of items. Purchase $elease$ ,t is used for releases a!ainst other document types, there are t#o subtypes for this$ %lanket and Schedule. %ntering Invoices #verview You can manually enter supplier invoices in either the ,nvoice )orkbench or the Quick ,nvoices #indo#. You can match to purchase orders #hen enterin! these invoices. Invoice 7or!bench 1,nvoice %atches #indo#, ,nvoices #indo#, 8istributions #indo#, and the associated #indo#s2. 9se the ,nvoice )orkbench to enter any invoice directly into the Payables system. You use this instead of the Quick ,nvoices #indo# #hen enterin! comple* invoices or invoices that require online validation and defaultin!. "lso, use this #indo# #hen enterin! an invoice that needs immediate action, such as payment.

6uic! Invoices window 9se the Quick ,nvoices #indo# for hi!h:volume invoice entry for invoices that do not require e*tensive validation and defaults. "fter enterin! invoices in the Quick ,nvoices #indo#, import them into Payables. /alidation and defaultin! occurs durin! import. Creating Invoices utomatically $ecurring Invoices You can set up your system to automatically create periodic invoices, for e*ample, rent invoices. $T1 Invoices ,f you use Return to Supplier feature in Oracle Purchasin!, the system creates these debit memos directly in your Payables system. $etroactive Price d8ustment Invoices. ,f Oracle Purchasin! users use the Retroactive Pricin! of Purchase Orders feature, the system automatically creates "d-ustment and PO Price "d-ustment invoices. Pl) describes the setup o/ P? Setup steps unique to "P$ 4ed!er Selection, Payment erms, ,nvoices olerances, ,nvoice "pproval &odes, 8istributions Sets, 0*pense Report emplates, , Re!ions, 8efine %anks, "utomatic Payments, Special &alendars, Payable System Options, Payable Options, Financials Options, Profile Options and Open "ccountin! periods. here are many sets up that are unique to Oracle Payables7 implementation. he primary 4ed!er selection specifies the accountin! structure, the functional currency, and the accountin! calendar used by Payables. Payment terms define payment schedules and correspondin! discounts. ,nvoice tolerances definitions control the amount of variance allo#ed bet#een invoices, purchase orders, and receipts #hen matchin! is performed. /arious codes are defined in Payables. %ecause invoice approval codes are used to apply or release invoice holds, they should be descriptive and meanin!ful. .any setups facilitate and speed up data entry, and distribution sets are predefined allocation structures that can be used to populate invoices #ith preassi!ned distributions. 0*pense report templates can be defined and created #ith commonly used e*pense items to populate e*pense report lines. &ertain setups relate to ta* reportin! functionality. ,n the financial options setup, you select a 4ed!er and an inventory or!ani3ation. You also define accountin!, bud!etary control, encumbrance, payment, personnel, purchasin!, /" re!istration, and vendor options. o support payment processin!, payment format and banks must be defined, and reportin! formats can be defined to provide e*pense reports and a!in! reports that better meet the user7s business requirements. Special calendars can be created to further customi3e the recurrin! invoices, automatic #ithholdin! ta*, and key indicators reports. ,n addition, users can define descriptive fle*fields to capture additional data that #as not previously captured in Oracle Payables. Payables options control and set defaults for Payables functions. ,t should be noted that if the "utomatic Offset feature in the "ccountin! re!ion is enabled, the user cannot allo# reconciliation accountin!, enable #ithholdin! ta*, or allo# ad-ustments to paid invoices. ,n addition, the -ournal entries creation mode determines #hether audit entries #ill be created for the liability, !ain or loss, roundin!, discount taken, and cash clearin! -ournals. "s in Purchasin!, default values can be specified in these options re!ions. &ertain default values #ill default based on a hierarchy. For e*ample, the ta* name #ill default by a user'defined hierarchical order. 9ow many types o/ Invoices? here are %leven types of invoices$ Standard, 8ebit .emo, &redit .emo, 0*pense Report, PO 8efault, Prepayment 1 emporary and Permanent2, Quick'.atch, .i*ed, )ith'(oldin!, ,nterest, Retaina!e Release, ransportation ,nvoices and Three Special ype of invoices #hich !enerated automatically$ Recurrin!, R S, Retroactive Price "d-ustment. 1tandard

"n invoice from a supplier representin! an amount due for !oods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Credit Memo " memo from a supplier representin! a credit amount to#ard !oods or services. *ebit Memo "n invoice you enter to record a credit for a supplier #ho does not send you a credit memo. Mi(ed "n invoice type you enter for matchin! to both purchase orders and invoices. You can enter either a positive or a ne!ative amount for a .i*ed invoice type. Prepayment " type of invoice you enter to pay an advance payment for e*penses to a supplier or employee. %(pense $eport "n invoice representin! an amount due to an employee for business'related e*penses. 7ithholding Ta( "n invoice you enter to remit ta*es #ithheld to the appropriate ta* authority. Interest ,f you allo# interest invoices, payables #ill automatically calculate interest for overdue invoices and create interest invoices for selected suppliers. 6uic!Match his invoice provides you #ith an alternative #ay to match an invoice to all PO shipments. o perform a Quick.atch, you must enter the PO number. he PO number defaults the supplier, the supplier number, the supplier site, and the currency. 6uic!Match matches an invoice to all PO shipments, #hile a P# de/ault match allo#s you to pick and choose. $etainage $elease ,nvoices created for comple* #ork and advance contract financin!. Transportation Invoices ,nvoices from frei!ht payment. Creating Invoices utomatically $ecurring Invoices You can set up your system to automatically create periodic invoices, for e*ample, rent invoices. $T1 Invoices ,f you use Return to Supplier feature in Oracle Purchasin!, the system creates these debit memos directly in your Payables system. $etroactive Price d8ustment Invoices. ,f Oracle Purchasin! users use the Retroactive Pricin! of Purchase Orders feature, the system automatically creates "d-ustment and PO Price "d-ustment invoices. Tell me about Prepayment : e(pense $eport? %(pense $eport is used for invoices that reimburse the employee7s e*penses. Prepayment used for to pay prepayment to suppliers, employees and 5overnment "uthorities. here are t#o types of prepayment$ temporary for suppliers and employees, permanent for to pay deposit #ith !overnment authorities. Temporary prepayments can be applied to invoices or e*pense reports you receive. For e*ample, you use a emporary prepayment to pay a hotel a caterin! deposit. )hen the hotel7s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay. Permanent

prepayments cannot be applied to invoices. For e*ample, you use a Permanent prepayment to pay a lease deposit for #hich you do not e*pect to be invoiced. Match pproval .evel #ptions

he match approval level defaults to purchase order shipment lines #hen the purchase order is entered. You can override the default on the purchase order shipment. ,f you find that you are frequently overridin! this value, chan!e the default at the supplier site level. ,f an item is used on the PO, the match approval level #ill default from the item and #ill override the supplier site. ,f the ,tem match approval level for the ,tem ; Receipt required, then it results in a <'#ay match. ,f the ,tem match approval level for the ,tem ; ,nspection required, then it results in a ='#ay match. )hen quantities and prices e*ceed specific tolerances you define, the Payables /alidation process #ill place a matchin! hold on the invoice. You can confi!ure matchin! holds so manual override is not possible in the ,nvoice (olds and Release >ames #indo#. 2"7ay (Invoice to Purchase #rder) ?@ Quantity billed vs. quantity ordered on shipment line ?A ,nvoice unit price vs. purchase order line unit price +"7ay (Invoice to Purchase #rder and $eceipt) ?B B')ay match criteria ">8 ?< Quantity billed vs. quantity received ?= ,tem ; Receipt Required ,"7ay (Invoice to Purchase #rder and $eceipt and Inspection) ?C <')ay match criteria ">8 ?D Quantity billed vs. quantity accepted ;ote3 Quantity accepted ; 1Quantity received ' quantity re-ected2 ?E ,tem ; ,nspection Required 9ow many scenarios o/ matching invoices in P? )hen an invoice for the PO arrives in the payables department, the supplier invoice is entered into the system and PO shipmentsFdistribution can then be matched to the supplier7s invoice. he matchin! method ensures you pay suppliers only for the items that you have a!reed to purchase and at the price stated on the purchase order #ithin the set tolerances. .atchin! invoices to purchase orders by enforce t#o'#ay, three'#ay, and four'#ay matchin!. "t the simplest levelGkno#n as t#o'#ay matchin!Gmatchin! compares invoice amount and quantity #ith the amount and quantity of the matched purchase order. he invoice can only be approved if the amount and quantity match to the purchase order #ithin a predefined tolerance. ,n addition to requirin! t#o'#ay matchin!, users can also enforce matchin! of the invoice amount and quantity to that received 1three'#ay matchin!2, and to that inspected 1four'#ay matchin!2. Quick.atch provides you #ith an alternative #ay to match an invoice to all PO shipments. o perform a Quick.atch, you must enter the PO number. he PO number defaults the supplier, the supplier number, the supplier site, and the currency. Quick.atch matches an invoice to all PO shipments, #hile a PO default match allo#s you to pick and choose. Purchase order shipment match %ased on the quantity invoiced, Payables prorates the match amount across all non'fully billed purchase order distributions associated #ith the purchase order shipments you match to. $eceipt match Reasons to use match to receipt$ ?@ .atchin! to receipts allo#s you to pay only for !oods you receive.

?A "ny e*chan!e rate variance that results from matchin! is likely to be smaller because the time bet#een the receipt and invoice #ill probably be less than the time bet#een the purchase order and invoice. ?B .atchin! an invoice for frei!ht or miscellaneous char!es to a material receipt is required for accurate costin! data if you use periodic costin!. >ote that you can also only pay for #hat you receive by usin! .atch to PO and lettin! the invoice !o on hold if the receipt is not in. Purchase order distribution match ,f you are billed for only a portion of a shipment, you may #ant to match at the distribution level to ensure you char!e the correct account. ,f you choose not to match to the distributions, Payables prorates the match amount across the available distributions for that shipment. Price correction You may #ant to record a price correction for a purchase order shipment if you receive an invoice from the supplier that is an ad-ustment to the unit price of an invoice you previously matched to that purchase order shipment. Price corrections ad-ust the unit price #ithout ad-ustin! the quantity billed on the purchase order. Reasons to use price correction$ ?< You use a price correction #hen a supplier sends an invoice for a chan!e in unit price for an invoice you have already matched to a purchase order. ,f you simply enter an invoice for a unit price increase or a creditFdebit memo for a unit price decrease #ithout usin! price correction, invoice price variances #ill not be accurate. ?= You can enter and match an invoice to record a price increase, or you can enter and match a credit memo or debit memo to record a price decrease. ?C 9se a price correction to ad-ust the invoiced unit price of previously matched purchase order shipments, distributions, or receipts #ithout ad-ustin! the quantity billed. >ote$ Price corrections are very different from overridin! the unit price #hen matchin! an invoice to a purchase order. )hen you are enterin! an invoice and matchin! to a purchase order, you can override the unit price that defaults from the purchase order so it is the same as the unit price on your invoice. You use price corrections only after the initial match. Matching to *istributions /or ssets he char!e account on the purchase order for an item that #ill be capitali3ed and depreciated is a balance sheet account and #ill be a clearin! account associated #ith an asset cate!ory 1like &O.P9 0R'P&2 in "ssets. "fter matchin!, the asset clearin! account #ill be on the distribution for the invoice. )hen the asset is prepared and posted to "ssets, the clearin! account is cleared and the asset cost account associated #ith the asset cate!ory is char!ed for the cost of the asset. Payables #ill transfer the asset clearin! account to the !eneral led!er and "ssets #ill transfer the clearin! account clearin! entry and the asset cost entry. Matching to *istributions /or %(penses he char!e account on the purchase order for an item that #ill be e*pensed 1for e*ample, office supplies2 is an income statement account. "fter matchin!, the e*pense account is transferred to the invoice distribution if you are accruin! at period end. )hen accountin! is transferred to the !eneral led!er, the amount char!ed to the e*pense account can be reported on the income statement. Matching to *istributions /or Inventory he char!e account on the purchase order for an item that #ill be capitali3ed as inventory is a balance sheet account and #ill be a material clearin! account associated #ith an inventory or!ani3ation in ,nventory. "fter matchin!, the ,nventory "P "ccrual "ccount #ill be on the distribution for the invoice. )hen the receipt is processed the "P "ccrual "ccount 1uninvoiced receipts account2 is credited. )hen bookin! the invoice and matchin!, the receipt is no# invoiced and the balance in the "P "ccrual "ccount must be cleared. "t receipt, Purchasin! #ill

transfer the accrual to the "P "ccrual "ccount 1a credit2 and after matchin!, Payables #ill transfer the clearin! entry to the "P "ccrual "ccount as part of the ransfer +ournals to 54 process. Multiple #rgani<ation ccess Control

Oracle Payables levera!es Oracle "pplicationsH .ultiple Or!ani3ation "ccess &ontrol feature. .ultiple Or!ani3ation "ccess &ontrol 1.O"&2 lets you define multiple or!ani3ations and the relationships amon! them in a sin!le installation of Oracle "pplications. hese or!ani3ations can be led!ers, business !roups, le!al entities, operatin! units, or inventory or!ani3ations. Implement Multiple #rgani<ation ccess Control ?@ ,f you implement .O"&, you can enter invoices for multiple operatin! units #ithout s#itchin! responsibilities. o enter an invoice for an operatin! unit, enter a value in the Operatin! 9nit field of the ,nvoices #indo# 1part of the ,nvoice )orkbench2. 0ach invoice must be for a sin!le O9, but you can enter multiple invoices for different O9s, #ithout chan!in! responsibilities. ?A Pay invoices for multiple operatin! units in a sin!le pay run. 1et 4p Multiple #rgani<ation ccess Control o set up .O"&, define the follo#in! profile options$ ?B M# 1ecurity Pro/ile) his option controls the list of operatin! units that a responsibility or user can access. So you #ould assi!n the Security Profile that you -ust created to this profile option. ,f you set the this option at the responsibility level, then all users usin! that responsibility #ill have access to only the operatin! units available in the security profile. ,f you set this option at the user level, then the user #ill have access to only those operatin! units, irrespective of the applications responsibility that they lo! into. ?< M#3 *e/ault #perating 4nit) his option allo#s you to specify a default operatin! unit that #ill be the default #hen you open different subled!er applications 1Payables, Receivables, and so on2 pa!es. %ecause users can access multiple operatin! units, you may #ant to set up a default one instead of forcin! users to constantly have to choose one. )ith 9ser Preferences, you can also specify a default operatin! unit at the user level. his profile option is optional. ?= M#3 #perating 4nit) his option provides back#ards compatibility and supports products that do not use .O"&. ,f you specify a security profile for the .O$ Security Profile, then those products that use .O"& #ill i!nore this option. ;ew Payment Terminology in $&2 Iey concepts that are ne# to Payables in RAB include the follo#in!$ *ocument Payable) " document to be paid by the deployin! company 1Payer2 and it may represent, for e*ample, a Payables invoice or scheduled payment. Pay $un:Payment Process $e'uest) " pay run is a broad term, #hich describes the process by #hich a !roup of invoices is selected and processed for payment. ,t is rou!hly equivalent to the Release AAi concept of a payment batch. he term Pay Run is often used interchan!eably #ith the term Payment Process Request. " payment process request is technically a request created by a source product for Oracle Payments payment services. he payment process request, #hich ori!inates in the source product durin! the invoice selection process, contains one or more documents payable to be paid. 8urin! the payment process, the documents payable in the payment process request are built into payments. Payee) he person or or!ani3ation that is bein! paid, for e*ample, the supplier, employee, or customer to #hom the payment is made. Payment Instruction) " payment instruction is a collection of payments, alon! #ith a!!re!ate payment information, that is formatted. 8ependin! on the setup, a payment instruction may be converted into a file to be printed onto checks or into a payment file that is transmitted to a payment system for further processin! and disbursement.

Payment Process Pro/ile) " payment process profile is a payment attribute assi!ned to documents payable, #hich specifies handlin! of the documents payable, payments, and payment instructions. Payment process profiles includin! specifications for payment instruction formattin! and transmission. Payment process profiles contain the follo#in! information$ ?@ payment instruction formattin! information ?A transmission information ?B payment !roupin! ?< payment limits ?= payment sortin! details Payment Process $e'uest Template) " blueprint that simplifies and e*pedites pay runs by preselectin! pertinent payment data, such as !eneral header information, payment selection criteria, payment attributes, processin! instructions, and ho# validation failures are handled. Payment 5ormat) " set of rules that determine ho# a payment instruction or settlement batch is converted into a payment file, readable by a payment system. Payment formats are re!istered and maintained in Oracle J.4 Publisher. Payment Method) " payment attribute on a document payable. he payment method indicates the medium by #hich the deployin! company 1first party payer2 makes a payment to a supplier 1third party payee2. 0*amples of payment methods are checks printed in'house by the payer, checks outsourced to the bank for printin!, and #ires. #pen Inter/aces 9se the follo#in! open interfaces to import data into Payables from other applications or third' party solutions$ ?@ Payables Open ,nterface ?A Payables 0*pense Report Open ,nterface ?B Payables P&ard Open ,nterface ?< Payables &redit &ard Open ,nterface ?= Payables .atchin! Open ,nterface ?C Payables Supplier Open ,nterface =0 Payables Invoice #pen Inter/ace 9se the Payables ,nvoice Open ,nterface to load invoices from a variety of sources includin! invoices !enerated from the Pay on Receipt "utoinvoice process, 08, invoices !enerated by the e'&ommerce 5ate#ay, invoices from credit card and procurement card transactions and invoices from e*ternal systems. You can load standard invoices as #ell as credit memos usin! the Payables ,nvoice Open ,nterface. Once invoices are loaded, use the Payables Open ,nterface ,mport process to validate them and load them into Payables. Payables %(pense $eport #pen Inter/ace "ccounts Payable teams can key paper invoices usin! the e*pense reports form or employees can submit their o#n e*pense reports usin! i0*penses. Run the Payables ,nvoice ,mport process to validate e*pense report data and create e*pense reports in Payables. Payables PCard #pen Inter/ace You can streamline your procure'to'pay process by implementin! a procurement card pro!ram. 0mployees purchase items directly from suppliers usin! a credit card and then the credit card issuer sends transaction files directly to your company. You can import credit card transaction files from your card issuer directly into Payables helpin! you reduce transaction costs and eliminate lo# dollar value invoices. Payables Credit Card #pen Inter/ace 9se SQ4?4oader scripts to load credit card transactions for corporate credit 1travel2 cards into the open interface if you are usin! a credit card pro!ram. &orporate credit 1travel2 cards are

similar to procurement cards but are !enerally used for travel e*penses. "fter transactions are validated, you include them in e*pense reports you enter throu!h the Self Service )eb "pplications. he follo#in! predefined SQ4?4oader control files come delivered #ith Oracle "pplications$ ?@ "merican 0*press ?A 8iner7s &lub ?B 50 &apital .aster&ard ?< 9S %ank /isa =, ?C You he You =0 Payables Matching #pen Inter/ace 9se SQ4?4oader to load the required information into the purchasin! interface tables. #ill need to create a SQ4?4oader control file to format the information you #ant to load. file you #rite #ill vary !reatly dependin! on the nature and format of the flat file you use. match invoices to purchase order shipments durin! invoice entry. Payables 1upplier #pen Inter/ace

?E 9se the Payables Supplier Open ,nterface to load supplier data from e*ternal systems. You can load suppliers, supplier sites, and supplier contacts usin! the Payables Supplier Open ,nterfaces. Once supplier data is loaded, use the Payables Supplier Open ,nterface ,mport process to validate them and load them into Payables. 1upplier " ccounting 9se the Supplier $ "ccountin! pa!e to define the default accountin! information for your suppliers and supplier sites. .iability he 4iability "ccount and description for a supplier site7s invoices. ,f you use the .ultiple Or!ani3ation Support feature, you can enter a value in this field only at the supplier site level. Prepayment he supplier default for this field is the Financials option for the Prepayment account. ,f you use the .ultiple Or!ani3ation Support feature, you can enter a value in this field only at the supplier site level. 2ills Payable ,f you use bills payable 1future dated payments2, enter the account you #ant to use. he Financials option value defaults to ne# suppliers, and the supplier value defaults to ne# supplier sites. You can override these defaults. )hen Payables creates a future dated payment, it uses the future dated payment account from either the supplier site or the payment document, dependin! on #hich option you select in the Payment "ccountin! re!ion of the Payables Options #indo#. ,f you relieve liability for future dated payments #hen the payment is issued, then use an asset account. ,f you relieve liability at clearin! time, then use a liability account. ,f you use the .ultiple Or!ani3ation Support feature, you can enter a value in this field only at the supplier site level. *istribution 1et he default 8istribution Set for all invoices entered for the supplier site. 8istribution Sets are used to e*pedite entry of distribution lines on invoices. ?@ Full distribution sets #ill automatically create distribution lines #ith both account numbers and currency amounts. ?A Skeleton distribution sets #ill automatically create distribution lines #ith only account numbers and you must provide the currency amounts. 8efine additional 8istribution Sets for the list of values in the 8istribution Set #indo#. ,f you use the .ultiple Or!ani3ation Support feature, you can enter a value in this field only at the supplier site level.

Invoice 7or!bench he ,nvoice )orkbench is a !roup of #indo#s that you can use to enter comple* invoices or invoices that require online validation and defaultin!. "lso, use the ,nvoice )orkbench #hen enterin! an invoice that needs immediate action, such as payment. he primary #indo# in the ,nvoice )orkbench is the ,nvoices #indo#. divided into the follo#in! re!ions$ ?D ,nvoice (eader ?E 5eneral ?K 4ines ?L (olds ?A@ ?AA ?AB /ie# Payments Scheduled Payments /ie# Prepayment "pplications he ,nvoices #indo# is

hese re!ions are described in detail in this presentation. From the ,nvoices #indo# you can also access the other invoice'related features and #indo#s that comprise the ,nvoice )orkbench$ ?A< ctions) Opens the ,nvoice "ctions #indo# for a selected invoice1s2 #hich you can use to perform actions such as validatin!, approvin!, cancellin!, or printin!. ?A= Calculate Ta() "utomatically !enerates the ta* lines for the invoice based on the 0'%usiness a* setup. ?AC Ta( *etails) Opens the on the invoice. a* 4ines Summary #indo#, #hich displays the ta* lines

?AD Corrections) Opens the &orrections #indo#, #hich allo#s you to enter a price, quantity, or amount correction. ?AE 6uic! Match) "utomatically matches the selected invoice to open, unbilled purchase order lines for the specified supplier. ?AK Match) "llo#s you to start one of the follo#in! matches, based on the invoice you select. Select the invoice you #ant to match to from the poplist, then choose the .atch button. ,f you enter a positive amount invoice, then Payables defaults either Purchase Order or Receipt, based on the ,nvoice .atch option of the supplier site.

=2>

Purchase #rder) .atch a selected invoice to a purchase order. $eceipt) .atch a selected invoice to a purchase order receipt. Credit Memo) .atch a selected creditFdebit memo to an invoice.

?AL ll *istributions) Opens the 8istributions #indo# to vie# all distributions for a selected invoice. *istribution 1ets ?BA You can assi!n a default 8istribution Set to a supplier site so Payables #ill use it for every invoice you enter for that supplier site. ,f you do not assi!n a default 8istribution Set to a supplier site, you can al#ays assi!n a 8istribution Set to an invoice #hen you enter it. ?BB For e*ample, you can create a 8istribution Set for an advertisin! supplier that allocates advertisin! e*pense on an invoice to four advertisin! departments. =2+ 5ull *istribution 1ets ?B= 9se Full 8istribution Sets to create distributions #ith set percenta!e amounts, or use Skeleton 8istribution Sets to create distributions #ith no set distribution amounts. For e*ample, a Full 8istribution Set for a rent invoice assi!ns E@M of the invoice amount to the Sales facility e*pense account and <@M to the "dministration facility e*pense account. =2- 1!eleton *istribution 1ets

?BD " Skeleton 8istribution Set for the same invoice #ould create one distribution for the Sales facility e*pense account and one distribution for the "dministration facility e*pense account, leavin! the amounts 3ero. You could then enter amounts durin! invoice entry dependin! on variables such as that month7s headcount for each !roup. ?BE ,f you enable and use a descriptive fle*field #ith your distribution set lines, the data in the fle*field #ill be copied to the invoice distributions created by the 8istribution Set. =2? Importing Invoices with *istribution 1ets ?BL ,f you are importin! invoices, enter a 8istribution Set before you import the invoice record. ?<@ You can provide account information from only one of the follo#in! sources or the invoice #ill be re-ected durin! import$ 8istribution Set, purchase order, "ccount field, allocation of a non:,tem type line, or Pro-ects information. ,mport #ill re-ect the invoice record if you use a Skeleton 8istribution Set and use the "llocate feature for the same line. =+& Invoice *istribution Types =+2 Type ?<< Select a distribution ype. 0ach invoice distribution #ill have one and only one distribution type. ,f you are usin! periodic costin! and need to include the cost of frei!ht and miscellaneous char!es #ith a receipt, you must use the "llocation #indo# to allocate those distributions to a distribution line created by the matchin! process. ?<= ,n addition to the ,tem, Frei!ht, .iscellaneous, and can also have the follo#in! distribution types. =+- 7ithholding ?<D Records the amount of ta*es #ithheld from an invoice. =+@ Prepayment ?<K Records the amount of a prepayment applied to an invoice. =+A ?=@ mount he amount of the distribution. a* types, described previously, you

d8ustment and P# Price P# Price

d8ustment Invoices

he t#o types of ad-ustment invoices are$ d8ustment Invoice his invoice is for the difference in price bet#een the ori!inal invoice and the ne# purchase order price. PO price ad-ustment invoices can be matched to both purchase orders and invoices. d8ustment Invoice his invoice effectively reverses any outstandin! re!ular Payables price corrections and PO Price "d-ustment invoices. his is so the PO Price "d-ustment document can be for only the price difference bet#een the ori!inal invoice and the ne# PO price. hese ad-ustment invoices can be positive, ne!ative, or 3ero amount. )hen the ori!inal invoice and its related ad-ustment documents are paid, the net effect is as if the ori!inal invoice had al#ays had the ne# price. he supplier is paid the appropriate amount, and the accountin! is ad-usted accordin!ly. You cannot manually enter these types of invoices, nor can you ad-ust or cancel them. You can vie#, report on, validate, account for, and pay them. Invoice Import #racle Internet %(penses e(pense reports 0*pense reports your employees enter usin! a )eb bro#ser. Payables e(pense reports

0*pense reports entered in the Payables 0*pense reports #indo# by the Payables department. Credit Card invoices ,nvoices for employee credit card e*penses. as a flat file. %*I Invoices 0lectronic invoices transferred from Oracle e:&ommerce 5ate#ay. BM. Invoices 0lectronic invoices transferred from the Oracle J.4 5ate#ay. See$ J.4 ,nvoices, Oracle Payables Implementation Guide. Invoices /rom e(ternal systems ,nvoices, such as invoices from le!acy systems, loaded usin! SQ4?4oader. #racle Property Manager invoices 4ease invoices transferred from Oracle Property .ana!er. #racle ssets lease payments 4ease payments transferred from Oracle "ssets. Invoice 7or!bench he ,nvoice )orkbench is a !roup of #indo#s that you can use to enter comple* invoices or invoices that require online validation and defaultin!. "lso, use the ,nvoice )orkbench #hen enterin! an invoice that needs immediate action, such as payment. he primary #indo# in the ,nvoice )orkbench is the ,nvoices #indo#. divided into the follo#in! re!ions$ ?@ ,nvoice (eader ?A 5eneral ?B 4ines ?< (olds ?= /ie# Payments ?C Scheduled Payments ?D /ie# Prepayment "pplications hese re!ions are described in detail in this presentation. From the ,nvoices #indo# you can also access the other invoice'related features and #indo#s that comprise the ,nvoice )orkbench$ ?E ctions) Opens the ,nvoice "ctions #indo# for a selected invoice1s2 #hich you can use to perform actions such as validatin!, approvin!, cancellin!, or printin!. he ,nvoices #indo# is he credit card company sends you these invoices

?K Calculate Ta() "utomatically !enerates the ta* lines for the invoice based on the 0' %usiness a* setup. ?L Ta( *etails) Opens the invoice. a* 4ines Summary #indo#, #hich displays the ta* lines on the

?A@ Corrections) Opens the &orrections #indo#, #hich allo#s you to enter a price, quantity, or amount correction. ?AA 6uic! Match) "utomatically matches the selected invoice to open, unbilled purchase order lines for the specified supplier. ?AB Match) "llo#s you to start one of the follo#in! matches, based on the invoice you select. Select the invoice you #ant to match to from the poplist, then choose the .atch button. ,f you enter a positive amount invoice, then Payables defaults either Purchase Order or Receipt, based on the ,nvoice .atch option of the supplier site.

Purchase #rder) .atch a selected invoice to a purchase order. $eceipt) .atch a selected invoice to a purchase order receipt.

Match

Credit Memo) .atch a selected creditFdebit memo to an invoice.

?A< ll *istributions) Opens the 8istributions #indo# to vie# all distributions for a selected invoice. pproval .evel #ptions he match approval level defaults to purchase order shipment lines #hen the purchase order is entered. You can override the default on the purchase order shipment. ,f you find that you are frequently overridin! this value, chan!e the default at the supplier site level. ,f an item is used on the PO, the match approval level #ill default from the item and #ill override the supplier site. ,f the ,tem match approval level for the ,tem ; Receipt required, then it results in a <'#ay match. ,f the ,tem match approval level for the ,tem ; ,nspection required, then it results in a ='#ay match. )hen quantities and prices e*ceed specific tolerances you define, the Payables /alidation process #ill place a matchin! hold on the invoice. You can confi!ure matchin! holds so manual override is not possible in the ,nvoice (olds and Release >ames #indo#. 2"7ay (Invoice to Purchase #rder) ?@ Quantity billed vs. quantity ordered on shipment line ?A ,nvoice unit price vs. purchase order line unit price +"7ay (Invoice to Purchase #rder and $eceipt) ?B B')ay match criteria ">8 ?< Quantity billed vs. quantity received ?= ,tem ; Receipt Required ,"7ay (Invoice to Purchase #rder and $eceipt and Inspection) ?C <')ay match criteria ">8 ?D Quantity billed vs. quantity accepted ;ote3 Quantity accepted ; 1Quantity received ' quantity re-ected2 ?E ,tem ; ,nspection Required =? Tell me about 6uic! Invoices

?L You use the Quick ,nvoices #indo# for your everyday entry of invoice records. You use this #indo# for rapid, hi!h:volume entry of Standard and &redit .emo invoices that are not comple* and do not require e*tensive online validation or defaultin! of values durin! entry. You can use this #indo# for purchase order matchin! and for applyin! prepayments to the invoice you are enterin!. ?A@ he information entered in the Quick ,nvoices #indo# is stored in the Payables Open ,nterface tables. %ecause the system performs limited validation and defaultin! of invoice values #hile you are enterin! invoices, you can enter invoices more quickly in the Quick ,nvoices #indo# than you can in the ,nvoice )orkbench. ?AA You can use the Quick ,nvoices #indo# if you #ant to use the Open ,nterface )orkflo#. You can customi3e the Open ,nterface )orkflo# to process your invoice records before you import them. For e*ample, you can perform custom validation of cost center information before you submit import. ?AB ;ote3 Speed up invoice record entry by customi3in! Quick ,nvoices folders. You can resi3e, rename, move, and hide fields to meet your needs. =&+ 6uic! Invoice Process ?A= )hen you enter invoice records in the Quick ,nvoices #indo#, you can submit a customi3ed #orkflo# pro!ram to automate your processes for mana!in! invoices. For e*ample, you can customi3e the #orkflo# pro!ram to validate the cost center on all invoices before you import them.

?AC he invoice records you enter in the Quick ,nvoices #indo# are stored in interface tables$ "PN,>/O,&0SN,> 0RF"&0 and "PN,>/O,&0N4,>0SN,> 0RF"&0. ?AD hese tables store invoice header and line information. ?AE ,mport invoice records by usin! the &reate ,nvoices #indo#, or by submittin! the Payables Open ,nterface ,mport Pro!ram from the Submit Request #indo#. ?AK Payables validates the invoice records durin! import and creates invoices #ith distributions and scheduled payments. ?AL "fter import, Payables provides a report that lists invoice records that #ere successfully imported and any that could not be imported because they had invalid or missin! information. You can query the re-ected invoice records in the Quick ,nvoices #indo#, correct them, and then resubmit them for import. ?B@ )hen you import invoice records successfully, Payables creates re!ular invoices that you can vie#, modify, and validate in the ,nvoice )orkbench. ?BA "fter you successfully create invoices based on data in the invoice records, you can pur!e the invoice records from the Open ,nterface tables. =22 6uic! Invoice 2atches ?B< You can use the Quick ,nvoices %atch name to query the !roup of invoice records in the Quick ,nvoices #indo#, and to identify a !roup of invoice records that you #ant to import to!ether. ?B= >ote that if you use invoice batch control and you #ant to maintain the !roupin! of invoices after import, then #hen you submit import for the Quick ,nvoices batch, you can assi!n an ,nvoice %atch name to the !roup of invoices that Payables creates. ?BC You can then use the ,nvoice %atch name to query the same !roup of invoices in the ,nvoice )orkbench. %ntering $ecurring Invoices $ecurring Invoice Template )ith a recurrin! invoice template, you can do the follo#in!$ ?@ Specify the intervals in #hich invoices based on the recurrin! invoice template #ill be created. ?A &reate up to t#o special one:time invoice amounts of a non:standard amount, such as a deposit or balloon payment. ?B 8efine recurrin! invoices to increase or decrease by a fi*ed percenta!e from period to period. )hen Payables creates recurrin! invoices, the invoice date is the first date of the period in #hich the recurrin! invoice is created. he erms 8ate depends on the erms 8ate %asis settin! at the supplier site, but is calculated differently than for re!ular invoices$ ?< ,f the erms 8ate %asis is set to System 8ate, then the erms 8ate is the same date that the recurrin! invoice #as created. ?= ,f the erms 8ate %asis is set to anythin! else, then the erms 8ate is the invoice date, #hich is the first day of the period in #hich the recurrin! invoice is created. 1pecial Calendar You use the Special &alendar #indo# to define periods that Payables uses for automatic #ithholdin! ta*, recurrin! invoices, payment terms, and for the Iey ,ndicators Report. For e*ample, if you monitor staff productivity #eekly, use this #indo# to define #eekly periods for the Iey ,ndicators calendar type. he Report Run display:only check bo* indicates that a Iey ,ndicators Report has been run for this period. he check bo* is not applicable to Payment erms, )ithholdin! a*, or Recurrin! ,nvoices calendar types.

;ote3 he periods you define in the Special &alendar #indo# are completely separate from the periods you define in the "ccountin! &alendar #indo# for your "P "ccountin! Periods. 9ow many .evels o/ Invoice Validation 1ystem level validation .anually submit the Payables ,nvoice /alidation process or schedule it to run periodically from the Submit Request #indo#. Submit the Payables ,nvoice /alidation process ri!ht before you process payments to update the status on all invoices. Payables #ill use the Option parameter to select unvalidated invoices for validation. 0nter "ll to ensure you release any e*istin! holds on invoices as #ell as place ne# holds. Other#ise, ,nvoice /alidation revie#s only those invoice distributions that #ere not already revie#ed by ,nvoice /alidation. Optionally, enter other criteria to submit ,nvoice /alidation for specific !roups of invoices. 2atch level validation Submit ,nvoice /alidation for one or more invoice batches from the ,nvoice %atches #indo#. %atch level validation is only allo#ed if the "llo# online validation Payables option is enabled also. Invoice level (online) validation ,f the Payables option to allo# online validation is enabled, you can submit online validation for one or more individual invoices #hen an invoice must be validated and paid immediately. You can also validate related invoices for credit and debit memos by choosin! /alidate Related ,nvoices in the "ctions #indo# after you enter a credit or debit memo. ,nvoice level 1online2 validation is only allo#ed if the "llo# online validation Payables option is enabled also. Validation and pproval he order of the ,nvoice /alidation process and ,nvoice "pproval )orkflo# Pro!ram is based on the "pproval Processin! Sequence Payables option. For e*ample, you mi!ht #ant to validate before you approve to create ta* lines and distributions for your invoices.

pproval You mi!ht #ant to enable the Require /alidation %efore "pproval Payables option if your approvers need to revie# ta* details before they approve an invoice. ,nvoice Selection &riteria "n invoice must meet all of the follo#in! criteria to be processed$ A. ,f the Require /alidation %efore "pproval Payables option is enabled, or if the invoice #as submitted by a Supplier usin! iSupplier Portal, then the invoice must be validated. B. he "pproval field value in the ,nvoices #indo# must be$

<.

Required, if you submit the #orkflo# pro!ram from the Submit Requests #indo# "nythin! e*cept ,nitiated or .anually "pproved, if you submit the #orkflo# pro!ram from the ,nvoice "ctions #indo#

he invoice amount must equal the distribution total.

pproving Invoices at the .ine .evel 4ine'level approval is the approval of one specific line or set of lines #ithin an invoice, rather than approvin! the entire document. "pprovers have access to the >otification 8etail and ,nteractive 4ine 8etails pa!es to revie# the invoice details. he pa!es display only the appropriate level of information for the approver to vie#. hat is, approvers vie# only the information that they can approve or re-ect. Furthermore, no additional lo!in or privile!es are

required for the approver to approve. he self'service lo!in that an approver uses to vie# the notifications is sufficient to revie# the invoice information. he system does not initiate document level approval until all lines have been approved. ,f an approver re-ects one line, the remainin! line level approvals continue to !o throu!h approval. his allo#s the continuation of the line level approval process #hile the re-ected line is bein! resolved. (o#ever, the system does not continue to document level approvals unless all lines are approved. Tell me about Invoice pproval 7or!/low

he #orkflo# then sequentially asks each approver in the approval list to approve invoices online. For e*ample, you can define a rule so invoices over OA@@,@@@ require &FO approval and then &0O approval. ,f you use ,nvoice "pproval )orkflo#, then every invoice that requires approval must be approved before you can pay it. Payables indicates that an invoice requires approval by settin! the value in the "pproval status field in the ,nvoices #indo# to Required. )hen you use this feature, all invoices require approval, #ith the follo#in! e*ceptions. Payables sets the "pproval status of the follo#in! invoices to >ot Required$ ?@ e*pense reports imported throu!h the 0*pense Report 0*port pro!ram 1because these e*pense reports have already been throu!h an approval process2 ?A recurrin! invoices if the recurrin! invoice template did not have the "pproval )orkflo# Required option enabled 1because recurrin! invoices are often approved in advance2 ?B invoices that e*isted before you enabled the feature ?< invoices that completed the ,nvoice "pproval )orkflo# process and the ,nvoice "pproval )orkflo# process determined that accordin! to the rules set up in Oracle "pprovals .ana!ement that no one needs to approve the invoice You can submit the ,nvoice "pproval )orkflo# for an invoice either from the ,nvoice "ctions #indo#, or from the Submit Requests #indo#. 1ystem 1etup ;oti/ication /rom pprovers "pprovers can approve or re-ect the invoice. ?@ ,f an approver approves the invoice, then the invoice !oes to the ne*t person in the approver list until all required people approve the invoice. ?A ,f an approver re-ects the invoice, then the #orkflo# pro!ram ends. ?B ,f an approver does not respond #ithin the time you specify, then )orkflo# #ill request approval from that person7s mana!er. ,f an approver re-ects an invoice, then you can perform one of the follo#in! actions from the ,nvoice "ctions #indo#$ ?< 9se the Force "pproval option to manually approve the invoice ?= 9se the ,nitiate "pproval option to resubmit the invoice to the ,nvoice "pproval )orkflo# after correctin! any issue that caused the approver to re-ect the invoice ?C 9se the &ancel ,nvoice option to cancel the invoice 1uggestion3 )e recommend that you schedule the ,nvoice "pproval Status Report to run ni!htly so you can closely monitor your re-ected invoices. You can revie# the approval status of an invoice that has started the ,nvoice "pproval )orkflo# in the follo#in! #ays$ ?D ,nvoice "pproval (istory #indo# ?E ,nvoice "pproval Status Report Invoice pproval 7or!/low Program

)hen you start this pro!ram, it updates the approval status of the invoice to ,nitiated. invoice is then placed in the )FN80F0RR08 queue.

he

he ne*t time the )orkflo# "!ent 4istener runs, the system initiates ,nvoice "pproval )orkflo# for the invoice. Prere'uisites3 ?@ 8efine all your invoice approval rules in Oracle "pprovals .ana!ement 1O".2. ?A Set up, and optionally customi3e, the ,nvoice "pproval )orkflo#. ?B 0nable the 9se ,nvoice "pproval )orkflo# Payables option. ?< 0ach invoice meets all selection criteria. ?= ,n the Submit Requests #indo# your system administrator should schedule the )orkflo# "!ent 4istener to run re!ularly. Invoice pproval 9istory 1>2 ,nvoices P ,nquiry 1.2 Reports P /ie# ,nvoice "pproval (istory his #indo# sho#s you all the approvers for an invoice in the order that the #orkflo# requests approval from them. You can see #ho has revie#ed the invoice, #hether the approver approved or re-ected it, the response date, #hat the invoice amount #as #hen the approver revie#ed it, and any comments the approver entered. You also see #ho the pendin! approver is and #ho the planned approvers are. ,f an invoice is force approved, then you see the username of the person #ho approved the invoice. ,nvoice "pproval (istory )indo# Reference ?A= ction *ate) 8ate that the approval action occurred. For e*ample, the date an approver re-ected the invoice. ?AC ction) he #indo# sho#s the action associated #ith each approver.

pproved) he invoice #as approved by this approver. $e8ected) he invoice #as re-ected by this approver. Pending) he invoice is in this approver7s queue. 5uture) he invoice is not yet in the approval queue of the approver. Manually pproved) "n accounts payable processor manually approved the invoice by usin! the Force "pproval feature.

?AD pprover) >ame of the approver #ho is assi!ned to perform an action in response to a request for approval notification or escalation notification. You set up approvers in Oracle "pprovals .ana!ement 1O".2. ,f an invoice #as force approved, this field sho#s the username of the accounts payable processor #ho force approved the invoice. ?AE mount pproved) ,nvoice total at the time of approval or re-ection. his field serves as an audit trail because the invoice amount can chan!e bet#een approvers. ?AK Comments) "s an invoice !oes throu!h the ,nvoice "pproval )orkflo# process, the approver can enter comments about the approved or re-ected invoice. ,f the invoice is force approved then this field is blank. =&A Tell me about the $eports in P

=2> 2atch Control $eport by 2atch ;ame ?BA 4ists invoice batches in order of batch name and batch date. "lso sorts by entry name. =22 2atch Control $eport by %ntered 2y ?B< 4ists invoice batches in order of entry person. "lso sorts by batch name. =2, Credit Memo Matching $eport

?BC his report lists credit memos and debit memos that match the supplier and date parameters you specify. he report also lists the total of the distribution line amounts of each credit memo in your entered currency and your functional currency. =20 Invoice ging $eport ?BE 9se this report to vie# your unpaid invoices. his report provides information about invoice payments due #ithin four time periods you specify in the "!in! Periods #indo#. his report does not included cancelled invoices. =2? Invoice udit .isting by Voucher ;umber ?BL 9se this report to revie# your invoices #ith assi!ned sequential voucher numbers. 0ither you or Payables can assi!n a unique, sequential number to an invoice durin! invoice entry, if you enable the Sequential >umberin! profile option. =+> Invoice udit .isting ?<A 9se the ,nvoice "udit 4istin! to audit invoices for duplicates. You should audit invoices periodically to ensure control of invoice payments. You can sort this listin! in si* different #ays. You can also use this report to obtain a listin! of your invoices by invoice type. =+2 Invoice udit $eport ?<< 9se the ,nvoice "udit Report to audit invoices for duplicates. he report lists invoices that appear as potential duplicates accordin! to several criteria. One criterion you specify is the number of characters in the invoice number #hich t#o or more invoices have in common. he report lists invoices that meet this criterion and have the same invoice amount, the same invoice date, and the same supplier. You can limit the search by checkin! for duplicate invoices #ithin a time period you specify. Payables sorts the report alphabetically by supplier name, and lists possible duplicates to!ether on consecutive lines. =+, Invoice 9istory $eport ?<C he ,nvoice (istory Report is needed to -ustify the balance for a !iven ran!e of invoices. ,t helps you to quickly identify and revie# a detailed list of all activities pertainin! to a specific invoice includin! all payments, !ainFloss, creditFdebit memos, and discounts. he balance of the invoices is then summed for each supplier site, for each supplier, and for the entire report. =+0 Invoice on 9old $eport ?<E 9se the ,nvoice on (old Report to revie# detailed information about invoices on hold. You can submit the ,nvoice /alidation process before submittin! this report to obtain the most up' to'date hold information. o obtain additional detail for invoices on matchin! hold, you can submit the .atchin! (old 8etail Report. =+? Invoice $egister ?<L 9se the ,nvoice Re!ister to revie# detailed information about invoices. You can also use this report to vie# the offsettin! liability accounts that Payables creates for each invoice distribution #hen you validate an invoice. Payables orders the report by invoice currency and, if you use batch control, the invoice batch name then by supplier name and invoice number. =,> Matching *etail $eport ?=A 9se this report to see the detail of ho# an invoice, purchase order, or receipt #as matched. his report is especially helpful #hen an invoice is on hold and you are tryin! determine #hy the hold #as placed. =,2 Matching 9old *etail $eport ?=< 9se the .atchin! (old 8etail Report to revie# detailed accounts payable and purchasin! information for invoices #ith matchin! holds and matchin! hold releases. You can print this report before initiatin! a payment batch to determine #hether to manually release any invoices for payment.

?== 9se this report to revie# recurrin! invoice templates you defined durin! a specific time period. You can revie# this report to determine the amount you have authori3ed for a recurrin! invoice template, ho# much you have released, and the ne*t amount you have scheduled. =,- Matching 9old gent ;otice ?=D 9se the .atchin! (old "!ent >otice to print a notice informin! a purchasin! a!ent of any matchin! holds due to a variance bet#een an invoice and the a!ent7s purchase order. )hen you submit this report, Payables prints a notice to each purchasin! a!ent #ho has issued a purchase order that has a variance #ith its matched invoice. =,@ Print Invoice ;otice ?=K 5enerate a standard invoice notice to send to a supplier to inform them about one or more invoices you have entered. For creditFdebit memos, the notice informs the supplier of outstandin! credit or debit memos that you #ill apply to future invoices. You can !enerate this report from either the ,nvoices #indo# or the Submit Requests #indo#. You can use Reports to chan!e the boilerplate te*t. =,A 1upplier Paid Invoice 9istory ?C@ You can submit the Supplier Paid ,nvoice (istory Report by supplier or supplier type to revie# payment history, discounts taken, and frequency of partial payments. =-& Matching 9olds by 2uyer ?CB /ie# matchin! holds placed on invoices by buyer associated #ith the purchase order. =-+ $eports =-, $eceiving 9old $e'uestor ;otice ?CC 9se the Receivin! (old Requestor >otice to print a notice informin! a requestor of an invoice hold because the requestor has not ackno#led!ed the receipt of invoiced items. =-0 *istribution 1et .isting ?CE 9se the 8istribution Set 4istin! to revie# a complete list of all the 8istribution Sets you have defined. 8istribution Sets simplify and speed invoice entry by automatically !eneratin! invoice distributions for invoices that have assi!ned 8istribution Sets. Pl) *escribe the new terms in $&2 Payables Iey concepts that are ne# to Payables in RAB include the follo#in!$ *ocument Payable) " document to be paid by the deployin! company 1Payer2. ,t may represent, for e*ample, a Payables invoice or scheduled payment. Pay $un:Payment Process $e'uest) " pay run is a broad term, #hich describes the process by #hich a !roup of invoices is selected and processed for payment. ,t is rou!hly equivalent to the Release AAi concept of a payment batch. he term Pay Run is often used interchan!eably #ith the term Payment Process Request. " payment process request is technically a request created by a source product for Oracle Payments payment services. he payment process request, #hich ori!inates in the source product durin! the invoice selection process, contains one or more documents payable to be paid. 8urin! the payment process, the documents payable in the payment process request are built into payments. Payee) he person or or!ani3ation that is bein! paid. For e*ample, the supplier, employee, or customer to #hom the payment is made. Payment Instruction) " payment instruction is a collection of payments, alon! #ith a!!re!ate payment information, that is formatted. 8ependin! on the setup, a payment instruction may be converted into a file to be printed onto checks or into a payment file that is transmitted to a payment system for further processin! and disbursement. Payment Process Pro/ile) " payment process profile is a payment attribute assi!ned to documents payable, #hich specifies handlin! of the documents payable, payments, and payment instructions. Payment process profiles includin! specifications for payment instruction formattin! and transmission.

Payment process profiles contain the follo#in! information$ ?@ payment instruction formattin! information ?A transmission information ?B payment !roupin! ?< payment limits ?= payment sortin! details Payment Process $e'uest Template) " blueprint that simplifies and e*pedites pay runs by preselectin! pertinent payment data, such as !eneral header information, payment selection criteria, payment attributes, processin! instructions, and ho# validation failures are handled. Payment 5ormat) " set of rules that determine ho# a payment instruction or settlement batch is converted into a payment file, readable by a payment system. Payment formats are re!istered and maintained in Oracle J.4 Publisher. Payment Method) " payment attribute on a document payable. he payment method indicates the medium by #hich the deployin! company 1first party payer2 makes a payment to a supplier 1third party payee2. 0*amples of payment methods are checks printed in'house by the payer, checks outsourced to the bank for printin!, and #ires. 4sing the Payments Manager 9sin! the Payments .ana!er, you can complete a pay run from start to finish. " pay run is the process by #hich a !roup of invoices is selected and processed for payment. ;ote3 " pay run is rou!hly equivalent to the Release AAi concept of a payment batch. he Payments .ana!er enables you to perform the follo#in! payment actions$ ?@ &reate payment process request templates by specifyin! invoice selection criteria. ?A 9se templates to automatically select invoices to pay that meet the criteria for payment. ?B Schedule pay runs. ?< .odify invoice selection and payment amounts. ?= "utomatically submit invoices for processin! and payment by schedulin! payment process requests. ?C ,nitiate payment instructions. ?D /ie# the status of payments. ?E /oid or record stop payments. 1eeded Payment Methods hese payment methods are seeded, but deployin! companies can create their o#n payment methods. Chec!) " paper check is printed and used as$ ?@ one payment in a !roup of multiple payments ?A a Quick payment ?B a .anual payment #utsourced chec!) his payment method is used to transmit payment information to an e*ternal party, such as your bank, that #ill print checks on your behalf. %lectronic) You use the 0lectronic payment method to create instructions for your bank to make payment to a supplier bank account. ypically, this communication is an electronic file that instructs your disbursement bank to pay your suppliers, and is in the specific format that your bank requires. /alidations ensure that you have recorded supplier bank account information #hen you use the 0lectronic payment method. 7ire) You can use the )ire payment method to manually record payment #hen you have used a process outside of your Oracle Payables system to instruct your disbursement bank to pay a supplier.

Payables does not require supplier bank account information #hen you use the )ire payment method. )hen you define payment documents for these payments, Oracle recommends you use the Recorded disbursement type because you are simply recordin! a payment made outside of the system. ;ote3 ,t is recommended that you record the transaction #ith a .anual payment. he system allo#s you to use any disbursement type. For e*ample, some users #ho re!ularly record )ire payments for multiple suppliers use payment documents #ith the &omputer 5enerated disbursement type, create an electronic pay run, and then delete the resultin! electronic file. 2an! ccount Model Payables levera!es Oracle radin! &ommunity "rchitecture and Oracle &ash .ana!ement to set up the bank accounts that you use to do business 1internal bank accounts2. %anks and %ank %ranches are created as parties in radin! &ommunity "rchitecture via the user interface in Oracle &ash .ana!ement. %ank "ccounts are defined in Oracle &ash .ana!ement. 0ach bank can have multiple branches and each branch can have multiple accounts. )hen you enable a bank account for use #ith Payables, you can associate the account #ith multiple payment documents. )hen you set up your suppliers in Oracle iSupplier, you can also set up supplier bank accounts 1e*ternal bank accounts2. Multiple Currency Payments) ,f you have enabled the 9se .ultiple &urrencies Payables option and you #ant to use this bank account to pay invoices entered in multiple currencies, enable this option. Pooled ccount) ,f you use "utomatic Offsets and you #ant to associate multiple companies #ith this bank account, then enable this option. )hen you enable the "utomatic Offsets Payables option, Payables creates one offsettin! liability distribution for each invoice distribution. ,f you pay an invoice from a pooled bank account, then #hen Payables accounts for the invoice payment, Payables creates one correspondin! cash accountin! entry for each liability distribution. ?@ ,n addition, Payables builds the cash account based on the &ash "ccount defined for the bank account and the account se!ments of the liability lines. ?A ,f you do not use a pooled account, then #hen the payment is accounted, a sin!le accountin! entry is created for the &ash account, usin! the &ash "ccount that is defined for the bank account #ithout modifyin! any account se!ments. =2 ?< *e/ining Payment *ocuments o define payments documents$ Query the bank account. &lick the .ana!e Payment 8ocuments button. &lick &reate. ,n the >ame field, enter a name for the payment documents. ?= A. ?C B. ?D <. ?E =.

?K C. ,n the Paper Stock ype field, select %lank Stock for non'numbered check stock or Prenumbered Stock from the drop'do#n list. ?L D. ,f your check stock has an attached remittance stub, select the "ttached Remittance Stub check bo*. ?A@ E. ,f your check stock has an attached remittance stub, specify the number of lines per remittance stub in the >umber of 4ines per Remittance Stub field. ?AA K. ,n the >umber of Setup 8ocuments field, specify the number of checks you #ant to allo# for testin! check stock setup. ?AB L. ,n the Format field, select a check format from the list of values. ?A< A@. ,n the Payment 8ocument &ate!ory field, select the type of payment document from the list of values.

?A= AA. ,f your check stock is prenumbered, enter the first and last document numbers in the fields under the 8ocument >umbers re!ion. ?AC AB. ,f your or!ani3ation uses a company checkbook, enter the appropriate information in the &heckbooks re!ion. Manual Payment #verview )hen you create a payment outside of Payables, such as a typed check or #ire transfer, you can record the payment #ithin Payables and update the invoice or invoices that you paid. )ith a .anual payment, you can override some payment controls of Payables. You can record a sin!le .anual payment for multiple Pay "lone invoices. You can record payment for invoices that are associated #ith any payment method e*cept 0lectronic. You can also pay an invoice for a supplier that has the (old "ll Payments option enabled. Prerequisites for processin! .anual payments in Payables are$ ?@ &reate the payment outside of Payables. ?A 0ach invoice you paid must be validated, uncanceled, #ithout holds and must have the same currency as the payment. Creating Manual Payments ?B )hen you create a payment outside of Payables by typin! a check or performin! a #ire transfer, you can record the payment #ithin Payables and update the invoices that you paid. You can also use this method to pay invoices #ith the &learin! payment method. ?< ;ote3 " .anual payment is typically used to record a #ire transfer. (o#ever, you can also use pay runs and Quick payments. $ecording a Manual Payment Payables Responsibility 1>2 Payments P 0ntry P Payments A. ,n the Payments #indo#, select .anual in the ype field. B. 0nter a radin! Partner. he Supplier >umber is automatically displayed. ,f there are multiple Supplier Sites, select the appropriate site from the list. <. 0nter the Payment 8ate. he date must be in an open or future period. You can only predate a computer !enerated payment if the "llo# Pre'8ate option is enabled in the Sin!le Payment re!ion of the Payment tab #ithin the Payables Options #indo#. =. 0nter the %ank "ccount from #hich you #ant to make the payment. C. Select a Payment .ethod. D. ,f Printed is selected as the Payment Process Profile, select the type of Payment 8ocument. E. Select a Payment Process Profile. K. ,f you enabled the "llo# Remit'to "ccount Override option in the ,nvoice tab of the Payables Options #indo#, then you can select a different, active Remit' o account. he list of values includes bank accounts assi!ned to the supplier that have the same payment currency. L. ,f the %ills Payable payment method is selected, enter a .aturity 8ate. A@. Select a Rate ype. AA. ,f necessary, enter or ad-ust other information$ ?@ ,f you created the payment for an address different from the supplier site and the "llo# "ddress &han!e option is enabled in the Sin!le Payment re!ion #ithin the Payment tab of the Payables Options #indo#, ad-ust the address. For e*ample, you may need to send an e*pense check to a consultant #orkin! at a site a#ay from home. ?A ,f you record voucher numbers either manually or usin! Sequential >umberin!, enter or revie# voucher information. ?B ,f the payment currency #as different from your functional currency, enter e*chan!e rate information.

AB. &hoose 0nterF"d-ust ,nvoices to navi!ate to the Select ,nvoices #indo#. Select the invoices you paid. he sum of the invoices must equal the payment "mount you entered. Optionally click the ,nvoice Overvie# button to see detailed information about an invoice. A<. Save your #ork. Payables records your payment and updates the invoices as paid. ,f you have selected the #ron! invoice, you can select the invoice, and then click the Reverse Payment button. his automatically creates a reversal, #hich disassociates the invoice from the .anual payment. You can no# select the correct ,nvoice. Initiating Manual Payments /rom the Invoice 7or!bench ,n the ,nvoice )orkbench, you can initiate .anual payment of one or more invoices or one or more scheduled payments. You do this by selectin! the invoices you #ant to pay manually, clickin! the "ctions button and selectin! the Pay in Full option to navi!ate to the Payments #indo#. You then select .anual as the Payment ype. Payables automatically enters most of the payment information for you 1such as payment amount and supplierFsite name2, and you skip the invoice selection step you #ould perform if you #ere to initiate the .anual payment from the Payment )orkbench 1Payments #indo#2. #verriding Payment Controls )ith a .anual payment, you can override some payment controls. You can$ ?< record a sin!le payment for multiple Pay "lone invoices ?= record payment for invoices that are associated #ith any Payment .ethod type, e*cept 0lectronic ?C pay an invoice for a supplier that has the (old "ll Payments option enabled 5uture *ated Manual Payments For future dated .anual payments, if the Payables option 9se Future 8ated Payment "ccount is set to Supplier Site, then you can select invoices for payment only if the supplier site Future 8ated Payment "ccount is the same as that of the supplier site in the payment header. 7ithholding Ta(es ,f you #ithhold ta*es at payment time, Payables does not automatically #ithhold ta*es if you pay #ith a .anual payment. Prere'uisites ?D &reate the payment outside of Oracle Payables. ?E 0ach invoice you #ant to pay must be validated, uncanceled, and #ithout holds. ?K ,f you use ,nvoice "pproval )orkflo#, then each invoice that requires approval must be approved before you can pay it. ?L 0ach invoice must have either the same currency as the payment or use an associated fi*ed'rate currency. ?A@ ?AA he bank account must have at least one payment document. he payment method is not electronic.

?AB For future dated payments, if the Payables option 9se Future 8ated Payment "ccount is set to Supplier Site, then you can select invoices for payment only if the supplier site Future 8ated Payment "ccount is the same as that of the supplier site in the payment header Creating 6uic! Payments You can create and print a computer !enerated payment to pay a supplier for one or more invoices. You can also create a check, save it, then print it later. )hen you create a quick payment, you can select an invoice re!ardless of the payments7 terms and due date. For e*ample, you can create a Quick payment for an invoice that is not yet due. Prere'uisites ?@ ,nvoices must be validated, uncanceled, and #ithout holds.

?A ,f you are creatin! an electronic payment, you must assi!n supplier banks to your supplier. Creating a 6uic! Payment Payables Responsibility 1>2 Payments P 0ntry P Payments A. ,n the Payments #indo#, if you have access to more than one Operatin! 9nit, select the appropriate operatin! unit, other#ise the default operatin! unit is automatically entered. B. 0nter a radin! Partner. he Supplier >umber is automatically displayed. ,f there are multiple Supplier Sites, select the appropriate site from the list. <. 0nter the Payment document 8ate. he date must be in an open or future period. You can only predate a computer !enerated payment if the "llo# Pre'8ate option is enabled in the Sin!le Payment re!ion of the Payment tab #ithin the Payables Options #indo#. =. 0nter the %ank "ccount from #hich you #ant to make the payment. C. Select a Payment .ethod. D. ,f Printed is selected as the Payment Process Profile, select the type of Payment 8ocument. E. Select a Payment Process Profile. K. ,f you have enabled the "llo# Remit' o "ccount Override option in the ,nvoice tab of the Payables Options #indo#, then you can select a different, active Remit' o account. he list of values includes bank accounts assi!ned to the supplier that have the same payment currency. Important3 he system ensures that Quick payments cannot be created for payment to inactive bank accounts. L. 0nter a .aturity 8ate if the %ills Payable payment method is selected. A@. Select a Rate ype. AA. &lick the 0nterF"d-ust ,nvoices button to navi!ate to the Select ,nvoices #indo#. Select the invoices you #ant to pay. AB. Optionally click the ,nvoice Overvie# button to revie# more information about an invoice. A<. Save your #ork. ,f any invoices are sub-ect to #ithholdin! ta*, a messa!e is displayed. You can choose to proceed, chan!e your selection, or cancel the process. ,f applicable, any +apanese bank char!es are then calculated. 5ormatting and optionally printing the Chec! ?B ?< o format and print, first verify the payment document is in your printer, then select Print >o#, optionally chan!e the printer name, and choose OI. o format only and print the check later, select Format and choose OI. )hen you are ready to print, print from the Submit Requests #indo#. You can use the Print >o# option in the "ctions #indo# to print only if you print immediately after formattin!.

6uic! Payment $estrictions ?= >9.%0R OF ,>/O,&0S. You can only pay as many invoices as you defined for the remittance advice of the payment document. ?C S".0 S9PP4,0R S, 0. You can only select invoices that have the same supplier site as the payment supplier site you enter. You can, ho#ever, chan!e the payment mailin! address if the "llo# "ddress &han!e option is enabled in the Sin!le Payment re!ion of the Payment tab of the Payables Options #indo#. ?D P"Y "4O>0 ,>/O,&0S. he system ad-usts the list of values to ensure that you donHt pay a Pay "lone invoice #hen you pay multiple invoices. ,f you have selected an invoice for payment and then select more invoices for payment, then Payables does not include Pay "lone invoices on this list of values. ,f you select a Pay "lone invoice for Payment, you cannot select more invoices.

?E P"Y,>5 ,> " FOR0,5> &9RR0>&Y. You must pay in the same currency as the invoice. You can enter and pay a forei!n currency invoice only if the 9se .ultiple &urrencies option is enabled in the &urrency tab of the Payables Options #indo#, and you have defined a multi'currency or forei!n currency denominated bank account. ?K &">>O S OP FOR." it has been formatted. 08 Q9,&I P"Y.0> S. You cannot stop a Quick Payment before

Processing 1top Payments /or 1ingle Payments in the Payment 7or!bench 1>2 Payments P 0ntry P Payments P Payments #indo# "fter you call your bank to initiate a stop payment on a payment document, you can record the stop payment status. You can void the payment to reverse the accountin! and payment records 1assumin! the bank has confirmed that the payment has not cleared2, or you can release the stop payment to reset the payment status to ne!otiable 1assumin! the bank has notified you that the payment has cleared or the supplier has contacted you that they located the payment document2. You can revie# all current stop payments in the Stop Payments Report. You can query all payments #ith a status of Stop ,nitiated by selectin! that status in the Find Payments #indo# and then selectin! the Find button. 1topping a Payment ?@ &ontact bank and request stop payment. ?A Find the payment online. ,n the Payments #indo#, select the payment and choose the "ctions button. ?B ,n the Payment "ctions #indo#, select ,nitiate Stop. ?< &hoose the OI button to update the payment status to Stop ,nitiated. $eleasing a 1top on a Payment ?= Find the payment online. ,n the Payments #indo#, select the payment and choose the "ctions button. ?C ,n the Payment "ctions #indo#, select Release Stop. ?D &hoose the OI button to release the stop on the payment and reset the status to >e!otiable. 1top Payment $estrictions ?E PR0P"Y.0> S. You cannot initiate a stop payment on a payment document that pays a prepayment that you have applied to an invoice. You must first unapply any prepayments, and then you can stop payment. ?K Q9,&I P"Y.0> S. You cannot initiate a stop payment on a Quick Payment that has been formatted. Voiding 1ingle Payments in the Payment 7or!bench 1>2 Payments P 0ntry P Payments P Payments #indo# )hen you void a payment, Payables automatically reverses the accountin! associated #ith the payment. he status of the paid invoices is also reset to 9npaid or &ancelled dependin! on the ,nvoice "ction you select #hen you void the payment. Payable also reverses any reali3ed !ains or losses on forei!n currency invoices recorded as paid by the payment. )hen you void a payment, you can select the action you #ant Payables to take on the invoices paid by the void payment. You can choose to$ ?@ place the invoices on hold ?A cancel the invoices ?B do nothin! #ith the invoices, thereby leavin! them available for payment ;ote3 Since you cannot reverse a void on a void payment, you should have the payment you #ant to void in your possession or proof that it has not cleared the bank or has been destroyed before you record it as voided. You may also #ant to revie# the invoices paid by that payment

before you void it, to ensure that you are voidin! the correct payment. You can revie# these invoices in the ,nvoice )orkbench. Prere'uisites ?< &all your bank to initiate a stop payment if the payment has been sent to an employee or supplier. ?= )ait until you !et confirmation of the stop payment before you void the payment 1optional but recommended2. Voiding a Payment Find the payment online, and from the Payments #indo#, select the payment and choose the "ctions button. ,n the Payment "ctions #indo#, select /oid. Revie# and optionally chan!e the void 8ate and the 54 8ate you #ant Payables to use for the accountin! distributions. ?C ,f you #ant to chan!e the status of the related invoices to 9npaid, select >one for the ,nvoice "ction. he invoices #ill be available for payment on a ne# payment. ?D ,f you #ant to apply a hold to the related invoices, select (old for the ,nvoice "ction and select a (old >ame in the (old #indo#. Payables voids the payment, resets the status of the related invoices to 9npaid, and applies the hold you selected to the related invoices. ?E ,f you #ant to cancel all related invoices and reset their "mounts to 3ero, select &ancel for the ,nvoice "ction. Payables voids the payment and cancels the related invoices. Voiding and $eissuing 6uic! Payments You can$ ?K void a Quick payment and automatically reissue payment for the same invoices ?L void the ori!inal payment and reissue a ne# Quick payment Prere'uisites 0nable the "llo# /oid and Reissue option in the Sin!le Payment re!ion of the Payment tab #ithin the Payables Options #indo#. o void and reissue a Quick payment$ ?A@ 4oad and properly ali!n your payment document in the printer. ?AA Find the Quick payment online, and from the Payments #indo# select the payment and choose the "ctions button. ?AB ,n the Payment "ctions #indo#, select Reissue. 0nter the Payment 8ate and confirm the >e# &heck >umber. Payables automatically selects /oid for you. Revie# and optionally update the void dates. Payables voids the selected Quick payment and creates a ne# Quick payment to pay the invoices. $estrictions ,>/O,&0S P",8 %Y ">O (0R P"Y.0> . )hen you void a payment, you cannot cancel a related invoice if it #as partially paid by a second payment. ,nstead, #hen you choose &ancel ,nvoice, the system applies an Q,nvoice &ancelQ hold to the invoice for your reference. You can release the hold manually in the ,nvoice (olds #indo#. &">&044,>5 "SSO&," 08 ,>/O,&0S. ,f you attempt to cancel an invoice that has been partially paid by another payment by usin! the &ancel ,nvoice "ction, instead of cancellin! the invoice, Payables applies an ,nvoice &ancel hold to the invoice. his hold is manually releasable. &40"R08 P"Y.0> S. You cannot void a payment that the bank has already cleared. PR0P"Y.0> S. You cannot void payment on a payment document that pays a prepayment that you have applied to an invoice. You must first unapply any prepayments, and then you can void the payment. 1etting 4p 2ills Payable he follo#in! setups must be done to use bills payable in Payables. 5unds *isbursement Payment Method 1etup Oracle Payments Payment "dministrator responsibility

1>2 Oracle Payments Setup P Funds 8isbursement Setup P &lick 5o .ethods P Payment .ethods pa!e

ask icon for Payment

A. &lick the &reate button. he &reate Payment .ethod$ 5eneral pa!e appears. B. ,n the %ills Payable re!ion, select the 9se Payment .ethod to ,ssue %ills Payable check bo*. )hen you enable this check bo*, the payment method is used only for creatin! bills payable. <. ,n the .aturity 8ate Override field, specify the number of days to add to the payment date to determine the maturity date. ;ote3 Payments created #ith a bills payable payment method #ill have a maturity date that is based on the earliest available discount or due date #hen the payment is created. You can optionally override this calculation by enterin! a value for the number of days in the .aturity 8ate Override field. he maturity date is then calculated by addin! that number of days to the payment date. Payment Process Pro/ile 1etup Oracle Payments Payment "dministrator responsibility 1>2 Oracle Payments Setup P Funds 8isbursement Setup P &lick 5o Process Profile P Payment Process Profiles pa!e o ensure that a payment instruction contains only bills payable$ A. &lick the &reate button. he &reate Payment Process Profile pa!e appears. B. ,n the Payment 5roupin! re!ion, select the %ills Payable check bo* so only bills payable #ill be !rouped into a sin!le payment instruction. Prepayments #verview " supplier mi!ht send an invoice that references a prepayment. ,f a supplier reduces the invoice amount by the amount of the prepayment and associated ta*, you can use the Prepayment on ,nvoice feature to enter the invoice. You can enter t#o types of prepayments$ emporary and Permanent. Temporary Prepayments emporary prepayments can be applied to invoices or e*pense reports you receive. For e*ample, you use a emporary prepayment to pay a hotel a caterin! deposit. )hen the hotel7s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay. Permanent Prepayments Permanent prepayments cannot be applied to invoices. For e*ample, you use a Permanent prepayment to pay a lease deposit for #hich you do not e*pect to be invoiced. pplying Prepayments to Invoices and %(pense $eports Pay a prepayment -ust as you #ould any other invoice. (o#ever, you cannot partially pay a prepayment6 you must fully pay it. You must fully pay a prepayment before you can apply the prepayment to an invoice. ,f you entered the prepayment as a Permanent type and #ant to apply it, you can query the prepayment in the ,nvoices #indo# and chan!e the Prepayment ype to emporary. ,f you use "utomatic Offsets then your settin! for the Prevent Prepayment "pplication "cross %alancin! Se!ments Payables option controls #hether you can apply a prepayment to an invoice or e*pense report #ith a different balancin! se!ment. $econciling Payments with Cash Management ,f you enable the "ccount for Payment )hen Payment &lears option in the Payables Options #indo#, "ccountin! Option tab, the follo#in! accountin! events !enerate reconciliation accountin! entries #hen you submit the &reate "ccountin! process$ ?@ the delay in the bank clearin! of payments from the time of issuance to the time of reconciliation o ask icon for Payment

?A differences bet#een the ori!inal payment amount and the cleared payment amount due to e*chan!e rate fluctuations, bank char!es, or bank errors ?B reconciled payments ?< unreconciled payments Important3 You can reconcile forei!n currency payments that have no e*chan!e rates. (o#ever, Oracle Subled!er "ccountin! #ill not create reconciliation accountin! entries. ,f you enter the e*chan!e rate in the 54 8aily Rates table and then submit the "utoRate pro!ram, the reconciliation accountin! entries are created for payments that #ere reconciled #ithout e*chan!e rates. $eports 2an! ccount .isting 9se this report to revie# information for each internal bank account you use. Payables provides detail information about each bank, bank branch, bank account, and payment document that you have defined. Cash $e'uirement $eport 9se the &ash Requirement Report to forecast your immediate cash needs for invoice payments. You can submit this report before every pay run to determine your cash requirements for the run. You can also submit this report for the ne*t t#o or three pay runs to forecast your cash requirements for the future and improve your cash mana!ement. *iscounts vailable $eport 9se the 8iscounts "vailable Report to identify payments #here you can take advanta!eous discounts. ,f you find that you are losin! discounts, you can chan!e your system and supplier defaults and modify your pay run selection criteria to make sure that you take all valid discounts. *iscounts Ta!en and .ost $eport 9se the 8iscounts aken and 4ost report to identify payments for #hich you could have taken a discount, but did not. ,f you find that you are losin! discounts, you can chan!e your system and supplier defaults and modify your pay run selection criteria to make sure that you take all valid discounts. 5inal Payment $egister 9se the Final Payment Re!ister to list each payment that #as included in a pay run. he report lists each payment in a pay run, includin! setup, overflo#, and subsequently voided payment documents, in ascendin! order by payment number. Payment udit by Voucher ;umber $eport 9se the Payment "udit by /oucher >umber Report to revie# payments #ith assi!ned sequential voucher numbers. ,f you enable the Sequential >umberin! profile option, either you or Payables can assi!n a unique, sequential number to each payment you create. You can also use this report to revie# assi!ned and available voucher numbers for the sequence name you specify, as #ell as sequential numbers that have been deleted. Payment %(ceptions $eport 9se this report to revie# e*ception payments in Payables. his report provides you #ith a state'of'the'system listin! of the e*ception payments in Payables at any time. 0*ception payments are payments that your bank has$ >ot yet cleared, &leared for an amount different from the payment amount, &leared before the payment date, &leared, but the payment is void in Payables. Payment Cain D .oss $eport For each payment that has both a !ain and a loss, Payables lists each currency e*chan!e rate !ain and loss included in the payment. 9se this report if you need to kno# the e*act !ain or loss for an invoice in a payment, or ho# the total !ain and loss of the payment is distributed across a payment7s invoices.

Payment $egister 9se the Payment Re!ister to revie# payments created for each bank account you use durin! a time period you specify. he report lists each payment, as #ell as the total payment amount and cleared amount of all payments. Positive Pay 5ile " positive pay file is a security measure in the form of a document that the deployin! company sends to its payment system or bank to inform it of payments made by check. )hen you print checks, then you can electronically transmit a list of payments to the bank or payment system that indicates the checks you printed, so the bank or payment system kno#s #hat checks to pay. his list prevents the payment system or bank from payin! fraudulent checks, since such checks are not listed on the positive pay file. o !enerate and transmit the positive pay file #hen checks are printed, select the "utomatically ransmit File check bo* under the Positive Pay Re!ion, Reportin! subtab, of the 9pdate Payment Process Profile pa!e. Payment Process $e'uest 1tatus $eport 9se the Payment Process Request Status Report to revie# the payments Payables #ill create #hen you format payments for the invoices in a pay run. 1eparate $emittance dvice Separate remittance advice is a document that lists the invoices paid #ith a particular payment. You can specify the format for the separate remittance advice document and the delivery method. o specify #hen or for #hich payments remittance advice is !enerated, select an option from the &ondition drop'do#n list under the Separate Remittance "dvice Re!ion, Reportin! subtab, of the 9pdate Payment Process Profile pa!e. ?@ >umber of 8ocuments option$ indicates the number of payments that must be included in a payment instruction for the system to !enerate separate remittance advice for the included payments. ?A he Payment 8etail 4en!th option$ indicates the minimum payment detail len!th required to !enerate separate remittance advice for a payment.

1top Payments $eport 9se the Stop Payments Report to revie# all current stop payments. Payables does not list any stop payments #hich #ere initiated, but then released, or voided at a later time. 1upplier Payment 9istory $eport 9se the Supplier Payment (istory Report to revie# the payment history for a supplier, or a !roup of suppliers #ith the same supplier type. 4nclaimed Property $eport his report identifies uncleared payments and is useful #here you need to identify unclaimed property that must be escheated to a desi!nated authority. Void Payment $egister 9se the /oid Payment Re!ister to obtain a listin! of void payments. he /oid Payment Re!ister provides you #ith payment and supplier information for each void payment. Payment Terms Payables Responsibility 1>2 Setup P ,nvoice P Payment erms 4sing Payment Terms ,n the Payment erms #indo#, you can create an unlimited number of payment terms. Payment terms have one or more payment term lines, each of #hich creates one scheduled payment. 0ach payment term line and each correspondin! scheduled payment have a due date or a discount date based on one of the follo#in!$

?= a specific day of a month, such as the ACth of the month ?C a specific date, such as "u!ust AC, B@@E ?D the number of days added to your terms date, such as A= days after the terms date ?E a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. 8iscount dates cannot be based on a special calendar. 0ach payment term line also defines the due or discount amount on a scheduled payment. )hen you define payment terms, you specify payment amounts by percenta!es or by fi*ed amounts. "fter you define payment terms, you can select default payment terms that Payables automatically assi!ns to the suppliers and supplier sites you enter. he payment terms for a supplier site default to the invoices you enter for the site. *e/ining Payment Terms ;ame) 0nter a unique payment term name and a description. 9se names that make it easy to identify the usa!e of payment terms. For e*ample, use AFA@ >et <@ to refer to a payment term #hich indicates you receive a AM discount if you pay #ithin A@ days and the invoice is due in <@ days. his name #ill appear on a list of values #ith the description #henever you select a payment term. *escription) 8escription of payment term. Cut"o// *ay) For 8ay of .onth terms only, the day of the month, after #hich the due and discount dates of the scheduled payment #ill be in a future month. he e*act month depends on the value you enter for the .onths "head field. Payables compares the invoice terms date to the &ut'off 8ay. ,f you leave this field blank, Payables al#ays uses the current accountin! month to determine the due and discount dates. For e*ample, suppose your &ut'off 8ay is AA, your .onths "head is @ 13ero2, and your 8ay Of .onth due date is AC. ,f you enter an invoice #ith a payment term date of +anuary AB, Payables #ill set the due date for February AC. ;ote3 ,f you use due 8ays or Fi*ed 8ate terms, do not enter a cut'off day. $an!) ,f you enable Recalculate Scheduled Payment, enter a unique value to rank your invoice terms. One is the hi!hest rank. Payables uses ranks to choose the most favorable payment terms from the invoice and purchase order. 8urin! ,nvoice /alidation, Payables recalculates the scheduled payment usin! the most favorable terms only if the Recalculate Scheduled Payment Payables option is enabled. %//ective *ates $egion E5rom ToF) ,f you #ant to make this payment term valid on a certain date, enter that date in the 0ffective 8ates From field. ,f you #ant to make this payment term invalid on and after a certain date, enter that date in the 0ffective 8ates o field. *ue 1ubtab 0nter one of the follo#in! to determine the portion of an invoice due on the scheduled payment$ ?K M 8ue ' he portion of an invoice due. he total of your scheduled payment lines must equal A@@M. You cannot combine percenta!es due and amounts due for one set of payment terms. ?L "mount ' For amount due terms only, enter the amount due. ypically amount due terms have more than one payment term line since you must specify 3ero as the amount on your last payment term line. Payables uses the 3ero amount payment line to determine the remainin! amount due on the last scheduled payment. 0nter one of the follo#in! to determine the due date on the scheduled payment line$ ?A@ &alendar ' ,f you enter a value in the &alendar field, Payables determines due dates for scheduled payments by usin! a special calendar. " special calendar is divided into periods, and each period has a due date assi!ned to it. )hen you assi!n due dates

to the periods of a payment terms calendar, you can avoid #eekends and holidays. You can define special calendars for payment terms in the Special &alendar #indo#. ?AA Fi*ed 8ate ' Specific month, day, and year on #hich a payment term is due. ?AB 8ays ' Payables adds this number of days to the invoice terms date to determine the due or discount date on your scheduled payment line. ;ote3 You cannot enter values in the 8ay of .onth and .onths "head fields for a payment term line if you enter a value in this field. ?A< 8ay of .onthF.onths "head

8ay of .onth ' Payables uses the value you enter to calculate a due or discount date for a scheduled payment. For e*ample, enter AC to have Payables schedule payment for the ACth day of the month. 0nter <A if you #ant Payables to schedule payment for the final day of the month, includin! months #ith less than <A days. .onths "head ' For 8ay of .onth terms only. Payables uses the value you enter in con-unction #ith the &ut'off 8ay you enter to calculate the due or discount date of a scheduled payment line. ,f you enter 3ero 1@2 in this field and the terms date of an invoice is the same as or later than the &ut'off 8ay, then Payables uses the day in the 8ay of .onth field for the ne*t month as the due date of an invoice payment line. ,f you enter A in this field, Payables uses one month beyond the ne*t month as the due date. ;ote3 You cannot enter a value in this field if you enter a value in the due 8ays field.

5irst *iscountG 1econd *iscountG and Third *iscount 1ubtabs ,f you are usin! discount terms, define payment term lines in the First, Second, and hird 8iscount subtabs. 8efine discounts so that the first discount has an earlier discount date than the second, and so on. You can reali3e only one discount on a payment term line. 0nter one of the follo#in! to determine the portion of the invoice to discount on the scheduled payment$ M 8ue or "mount. ,n the M 8iscount field, enter the discount percent. Payables uses the percenta!e you enter to calculate the discount amount available for a scheduled payment. Payables multiply this percenta!e #ith the amount due on the scheduled payment line to determine the discount amount available on the scheduled payment line. ;ote3 ,n the Second and hird 8iscount subtabs, you can enter second and third discount percenta!es for discounts available if you miss the first discount date. 8o not enter a value in this field if there is no discount available. 0nter one of the follo#in! to determine the due date on the scheduled payment line$ 8ays, 8ay of .onth, or .onths "head.

Managing Cash $e'uirements For various reasons, there may be times #hen your or!ani3ation does not have the necessary cash to pay the invoices selected. Several options e*ist to mana!e your cash requirements so that they better match the cash you have available. hese options are discussed belo#. $un Cash $e'uirement $eport 9se the &ash Requirement Report to forecast your immediate cash needs for invoice payments. You can submit this report$ ?@ before every pay run to determine your cash requirements for the batch ?A for the ne*t t#o or three pay runs to forecast your cash requirements for the future and improve cash mana!ement ;arrow 1election o/ Invoices in Pay $un

"lthou!h you can revie# invoices and payments that have been selected for a particular pay run, lar!er cash flo# problems can be more efficiently handled by alterin! the invoice selection criteria for the pay run. Options include$ ?B "dditional Pay hrou!h 8ays ' he defaulted date is created by referencin! the "dditional Pay hrou!h 8ays settin! on the Scheduled Payment Selection &riteria tab in the &reate Payment Process Request emplate pa!e. his selection criteria is typically set to coincide #ith the frequency of your pay runs. For e*ample, if you process pay runs t#ice a month, you #ould probably specify the "dditional Pay hrou!h 8ays field #ith a value AC. ,n times of lo# cash availability, you can chan!e this value to E to pay only those invoices due in the ne*t E days rather than the ne*t AC. ?< Payment Priorities (i!hF4o# ' You may not normally use this criteria durin! invoice selection. ,f, ho#ever, you have assi!ned priorities to your suppliers appropriately, you may reduce the number of invoices selected for payment by establishin! selection criteria for your hi!her priority suppliers to prevent delayed delivery of !oods or services critical to your operations. ?= ,nclude Only 8ue ' Payables selects invoices #ith due dates that fall #ithin the >umber of Pay From 8ays and "dditional Pay hrou!h 8ays. hese invoices may be ones that are bein! paid #ithin a discount period or simply #hen due. You may choose to override the Pay 8ate %asis on supplier records for a particular pay run by enablin! the ,nclude Only 8ue option. he system then drops invoices from the pay run that #ere bein! paid #ithin a discount period, thereby fore!oin! the discount available. ?C Payment 4imits ' You can further mana!e your cash requirements by lo#erin! the ma*imum dollar amounts set for a total pay run 1.a*imum Outlay2 or for an individual payment #ithin the pay run 1.a*imum Payment2, re!ardless of the number and dollar amount of the invoices comprisin! the payment. %e certain that you7re a#are of the impact that these chan!ed selection criteria #ill have on your or!ani3ation. ,n the case of payin! only invoices due in the subsequent #eek, consider #hen and ho# you #ill be able to !et back to a re!ular schedule. "lso, revie# the 8iscounts "vailable Report so that you7ll be a#are of the cost of fore!oin! these discounts and payin! the full amount on the due date. Internet %(penses #verview Oracle ,nternet 0*penses helps employees to enter and submit e*pense reports usin! a computer or standard )eb bro#ser, )eb'enabled mobile device, or 0*cel spreadsheet. ?@ Oracle ,nternet 0*penses inte!rates #ith Oracle Payables to provide quick processin! of e*pense reports for payment. ?A Oracle )orkflo# automatically routes e*pense reports for approval and enforces reimbursement policies.

Internet %(penses #verview dvantages o/ 4sing #racle Internet %(penses ,nternet 0*penses streamlines and automates e*pense mana!ement for a hi!her return on investment. ?@ ,t reduces administrative costs and data entry errors since data entry is streamlined and accessible any#here online 1mobile, desktop, bro#ser2 or offline 1spreadsheet2. ?A ,t enforces spend policy to control e*penses, sho#in! any policy deviations. ?B ,t eliminates e*pensive , customi3ations throu!h !lobal accommodation for local statutory re!ulations and automates audit mana!ement, conservin! staff for analytical #ork and providin! better information to mana!ement.

?< ,t increases productivity #hen employees can fle*ibly create e*pense reports usin! a standard )eb bro#ser, a connected )eb'enabled mobile device, a disconnected spreadsheet, andFor do#nloaded credit card transactions. ?= ,t improves cycle times by routin! e*pense reports via #orkflo#. ?C ,t increases employee satisfaction #hen their status'related questions can be self' ans#ered #ithin the application. =0 %(pense $eporting Process ?E You create and submit an e*pense report usin! Oracle Payables or Oracle ,nternet 0*penses. he basic e*pense reportin! process is as follo#s$ ?K A. ?L B. he 0mployee submits an e*pense report. he 0*penses )orkflo# notifies the approvin! authority for online revie#.

?A@ <. ,f the report is re-ected, the Re-ection process notifies the employee by email. You can access and update the re-ected e*pense report from Payables, if you submitted the e*pense report from Payables, or from ,nternet 0*penses if you submitted the e*pense report from ,nternet 0*penses. ?AA =. For Payables approvals, the Payables "pproval process determines #hether a report requires audit. ,t automatically approves if audit is not needed. he audit rules determine #hether audit is required. ,f required receipts are missin! or there are questions about policy compliance, auditors can request more information, shortpay, re-ect or ad-ust the e*pense report. For all cases, notifications are sent to the preparer. ?AB C. "fter mana!er andFor accounts payable department approval, the 0*pense Report 0*port pro!ram converts the e*pense report into an invoice. ,n Oracle Payables, the system either creates the payment or it prints the ,nvoice 0*port 0*ceptions Report for e*pense reports that cannot be imported and have to be resubmitted. ?A< D. he employee is notified and receives payment by check or direct deposit, dependin! on the company policy or setup. =&, %ntering %(pense $eports ?AC You can enter e*pense reports in either Oracle Payables or Oracle ,nternet 0*penses. his module focuses on enterin! e*pense reports in Payables only. ?AD ,t is important to note that althou!h the e*pense report process is similar in these applications, that if you enter e*pense reports in Payables, you can only vie# and modify those e*pense reports in Payables6 if you enter e*pense reports in ,nternet 0*penses, you can only vie# and modify those e*pense reports in ,nternet 0*penses. ?AE ?AK ?AL A. 0ither enters the employee name in the 0mployee field or the employee number in the >umber field. ?B@ B. Optionally chan!e the 54 "ccount, #hich defaults from the employee record. ?BA <. ,n the Send to field, optionally chan!e the location to #hich you #ant to send payment for the e*pense report. You control the default e*pense address in the Financials Options #indo#. ?BB =. ,n the 8ate field, enter the period endin! date for the e*pense report. Payables uses this date as the 54 8ate for invoice distributions created from the e*pense report. )hen you submit 0*pense Report 0*port you have the option to override this date. ?B< C. 0nter an ,nvoice >umber, or Payables #ill enter the invoice date or the e*pense report date as the ,nvoice >umber. 0nter a 8escription of the e*pense report. his #ill become the invoice description, and it #ill appear on reports. ?B= D. 0nter the total "mount of the e*pense report. Payables #ill confirm that the sum of the item amounts matches this amount. o enter e*pense reports in the Payables 0*pense Reports #indo#$

?BC E. ,f you enable the Revie#ed %y Payables check bo*, this indicates that receipts are not required for this e*pense report. &onsequently, the Receipt /erified check bo* in the 0*pense "udit tabbed re!ion becomes non'updatable. ?BD K. 0nter the e*pense report emplate you #ant to use. ,f a default template is defined in the Payables Options #indo# and the template is active, then Payables displays that default template. he template determines #hich items you can select. he template also mi!ht provide default values for ype, ,ncludes a*, and 54 "ccount. 8urin! 0*pense Report 0*port, Payables creates invoice distributions from the lines. ?BE L. For each line on the e*pense report, select the line and enter the amount. Optionally update the 54 "ccount. he default 54 "ccount for each item line is the 54 "ccount for the employee overlaid #ith any se!ments defined on the template for the e*pense item. "s #ith invoices, ta*es are automatically calculated for the 0*pense report usin! the Oracle 0'%usiness a* setup. ?BK A@. Save your #ork. ype ; ?BL o enter an e*pense reports in Payables7 ,nvoices #indo#, ensure that invoice 0*pense Report.

?<@ You must use the ,nvoices #indo# to enter pro-ect'related e*pense reports in the ,nvoices #indo#. his #indo# captures the necessary pro-ect and task related information required for pro-ect'related e*pense reports. ?<A Oracle ,nternet 0*penses is a self'service application that helps employees to enter and submit e*pense reports usin! a standard )eb bro#ser or 0*cel spreadsheet. =+2 ?<< Procurement Card Process he flo# pictured in the slide above illustrates the procurement card process$

?<= A. 9se a SQ4?4oader script to load the procurement card transactions into the "PN0*penseNFeedN4inesN"ll ?<C B. /alidate the transactions by submittin! the Procurement &ard ransaction /alidation pro!ram. his pro!ram creates default accountin! distributions for procurement card transactions. ,t also validates imported transactions and identifies e*ceptions. 0*ceptions include$ ransaction loaded for an employee #ho is not defined in Oracle Payables6 ransaction loaded for a card number that is not defined in Oracle Payables6 8uplicate reference numbers of transactions posted by your card issuer 1the reference number is the unique number assi!ned to each transaction by the card issuer2. ?<D <. /erify the transactions #ith the employee by submittin! the Procurement &ard ransaction /erification pro!ram. his pro!ram initiates the 0mployee /erification )orkflo# pro!ram and runs based on the level of notification you define at the card profile level. ,f verification is required at the profile level, the employee is able to verify transactions directly from the #orkflo# notification 1for all or none2. "lternatively, the employee can use Oracle )eb 0mployees to verify transactions individually. )ith Oracle )eb 0mployees, you can also verify transactions usin! different statuses, update the default cost center, account for a transaction, and split a transaction. ,f verification is not required at the profile level, the employee receives a notification that requires no action 1unless notification level is set to >one2. ?<E =. Send the transactions for mana!ement approval by submittin! the Procurement &ard ransactions "pproval Process. his pro!ram initiates the .ana!er "pproval )orkflo# pro!ram and runs based on the level of notification you define at the card profile level. ,f approval is required at the profile level, the mana!er can only approve or re-ect transactions directly from the #orkflo# notification. ,f approval is not required, the mana!er receives a notification that requires no action 1unless notification level is set to >one2. ?<K C. ,f the transactions need to be ad-usted, procurement card administrators can ad-ust them or create transaction distributions usin! the Procurement &ard ransactions #indo#.

?<L D. Once the transactions are approved, create invoices for the transactions by submittin! the &reate Procurement &ard ,ssuer ,nvoice pro!ram. his pro!ram moves the transaction data from the "PN0JP0>S0NF008N8,S SN"44 table to the "PN,>/O,&0SN,> 0RF"&0 and "PN,>/O,&0N4,>0SN,> 0RF"&0 tables. hen, submit the Payables Open ,nterface ,mport pro!ram to move invoices into Oracle Payables #here they can be validated and paid. =,> 1etting 4p Procurement Cards and Credit Cards ?=A 9se the &ard Pro!rams #indo# and the &redit &ards #indo# to set up your credit cards, #hich are used for employee e*pense reports, and your procurement cards, #hich are used by qualified employees to purchase items directly from suppliers. ,f you are usin! ,nternet 0*penses, there are additional setup steps. See$ 0stablishin! &orporate &redit &ards, Oracle Internet Expenses Implementation and Administration Guide. =,2 Code 1ets 7indow ?=< Your card issuer maintains card codes, for e*ample, Standard ,ndustry &lassification 1S,&2 codes or .erchant &ate!ory &odes 1.&&2, to identify suppliers and supplier types for the transactions that your employees incur #hen usin! a procurement card. ?== You can assi!n a default account to a card code so that #hen you import a transaction for that card code, you can create a default accountin! distribution for the transaction based on the card code for the transaction. ?=C You define sets of credit card codes in this #indo#. You assi!n credit card code sets to credit card profiles. You then assi!n credit card profiles to credit cards. ?=D Hey Processes Create ccounting Process he parameters you use #hen you submit the &reate "ccountin! pro!ram determine ho# accountin! entries are transferred to the led!ers in your !eneral led!er. "ccountin! can be created in draft or final mode. You can transfer subled!er accountin! entries in summary or detail. Re!ardless of the option you choose, you can al#ays drill do#n to the subled!er to vie# the details that build the !eneral led!er balances. Create ccounting I *ra/t ,f you submit the &reate "ccountin! in 8raft mode, you can revie# the subled!er accountin! entries !enerated for your Payables transactions. ,f any accountin! is incorrect, you can update the transaction in Payables to correct the accountin! before you create final accountin!. Create ccounting I 5inal Run the &reate "ccountin! process in Final mode to !enerate your final subled!er accountin! entries. Once you !enerate final accountin!, you cannot correct the accountin!. ,nstead, you must enter correctin! transactions in Payables. Integration with #ther pplications Other applications that inte!rate #ith Oracle Payables such as Oracle "ssets, Oracle Procurement, Oracle Pro-ects, and Oracle ,nventory no# provide Payables'related accountin! information to Oracle Subled!er "ccountin!. ,nvoice 4ines and 8istribution details continue to be provided to Payables directly. Trans/er Journal %ntries to C. Submit the ransfer +ournal 0ntries to 54 process to transfer accountin! information from Oracle Subled!er "ccountin! to the 54 ,nterface. he ransfer +ournal 0ntries to 54 process transfers summary or detail accountin! activity for any open period into the !eneral led!er interface. )hen more than one period is open, the transfer selects transactions from the first open period up to the entered transfer date, and passes the correct accountin! date and financial information into the !eneral led!er interface. Journal Import

Once subled!er accountin! entries are transferred to the 54 ,nterface table, use the +ournal ,mport process to import accountin! information from the 54 ,nterface to the !eneral led!er. Posting Journals 9se the post -ournals process to update the account balances of your detail and summary accounts. You can post actual, bud!et, or encumbrance -ournal batches. #verview o/ the Period Close ?@ "t the end of each accountin! period, companies must complete the closin! process in Payables and reconcile Payables activity for the period. ?A You close a Payables period after you have completed subled!er accountin! for transactions for the period and you have transferred the subled!er accountin! entries to !eneral led!er. " #eek before your first period close, create a copy of the production database and then do a dry run follo#in! your period close procedures. he dry run #ill help you identify problems and issues #ell in advance of the actual period close. Prepare /or Period Close Complete all receipt processing Process all possible receivin! transactions so #hen remainin! invoices are matched, ,nvoice /alidation #ill place fe#er matchin! holds. 9se the ransaction Status Summary #indo# to ensure all receipts #ere processed and that none have a status of 0rror. his form looks like a vie# only form, ho#ever, you can delete records so they may be re'processed. Receipt "ccruals are not !enerated for errored transactions so make sure you do not skip this step. Con/irm or cancel all pending pay runs Pay runs must be either confirmed or canceled or you #ill not be able to close the period. "fter all activities relatin! to pay runs are completed, process any manual payments, and Quick Payments. "lso, process any stop or void payments. 4pdate matured bills payable ,f you use bills payable 1future dated payments2, either manually update the payment status or use the 9pdate .ature %ills Payable Status pro!ram to update the status of any bills payable that have reached their maturity date, but still have a status of ,ssued. Import invoices Process any invoices that are loaded throu!h the Payables Open ,nterface #ith the Payables Open ,nterface ,mport pro!ram. Revie# the e*ceptions report and resolve any invoice related issues. ypical types of invoices that are imported throu!h this open interface include$ ?@ 08, inbound invoices 1KA@2 ?A ,nvoices from e*ternal systems ?B ,nvoices created from credit card transactions if usin! procurement cards ?< "dvance Shipment and %illin! >otices 1"S%>s2 %(port and process e(pense reports Process any e*pense reports that are entered usin! the Payables 0*pense Reports #indo# as #ell as invoices comin! from e*ternal sources. Inter/ace ad8ustments to supplier invoices to payables ,f you are usin! Pro-ects, you #ill most likely be updatin! pro-ect balances #ith invoices entered in Payables throu!h the accountin! period. Final ad-ustments to supplier invoices like reclassifyin! from pro-ect to pro-ect or task to task, should be interfaced back to Payables usin! the PR&$ ,nterface Supplier ,nvoice "d-ustment &osts to Payables pro!ram. For ad-ustments to e*pense reports, use the PR&$ ,nterface 0*pense Reports from Payables in Oracle Pro-ects pro!ram. hese pro!rams are submitted in Pro-ects. $econcile ban! statements

Reconcile any outstandin! bank statements. 8ependin! on ho# your Payables Options are set up, you may !enerate clearin! events #hen you reconcile payments. )hen you run the &reate "ccountin! process, the accountin! #ill be !enerated and subsequently sent to the 5eneral 4ed!er durin! the ransfer +ournal 0ntries to 54 process. $un Validation:$eview and $esolve 9olds $un the Invoice Validation Process he ,nvoice /alidation process attempts to validate invoices and remove any e*istin! holds. Some invoices may be placed on hold and not validated. ,f an invoice contains a system hold manually correct the problem that caused the hold and then rerun the ,nvoice /alidation process to remove the hold. "ll user defined holds must be manually removed. $esolve Invoice 9olds ?@ .atchin! (old 8etail Report ' 9se the .atchin! (old 8etail Report to revie# detailed accounts payable and purchasin! information for invoices #ith matchin! holds and matchin! hold releases. ?A ,nvoice on (old Report ' 9se the ,nvoice on (old Report to revie# detailed information about invoices on hold. You can submit the /alidation process before submittin! this report to obtain the most up'to'date hold information. $erun the Invoice Validation Process i/ ;ecessary For many system holds it #ill be necessary to fi* the problem that caused the hold. Rerun the ,nvoice /alidation process after resolvin! any invoice hold issues to update the status of the invoice to /alidated. Create 1ubledger ccounting &reate subled!er accountin! entries for invoice and payment transactions in Payables usin! Oracle Subled!er "ccountin!. %efore you can account for transactions, the follo#in! conditions must be met$ ?@ ,nvoices must complete ,nvoice /alidation and must have no holds that prevent accountin!. You can define #hether a hold prevents accountin! in the ,nvoice (old and Release >ames tab. he system also defines several holds that prevent accountin!. You can revie# these holds in the ,nvoice (old and Release >ames tab. ?A Payments must have all their invoices accounted first. here are t#o #ays to create subled!er accountin! entries for invoice and payment transactions$ ?B &reate online accountin! for a sin!le transaction, invoice batch, or pay run. o do this, select the transaction, and use the "ctions button to launch the &reate "ccountin! process. ?< Submit the &reate "ccountin! process from the Submit Requests #indo#. You can schedule this process to run periodically. ,f you set the process to provide 8etailed information, the process lists any transactions that accounted #ith errors. Revie# all unaccounted transactions, correct the problems, and resubmit the accountin! process. "fter you create subled!er accountin! entries, you can vie# them in the /ie# "ccountin! #indo#. You can update subled!er accountin! entries in Payables only if you create draft accountin! entries. ,f you revie# the draft accountin! entries and notice that the accountin! is incorrect, you can correct the underlyin! transaction, and recreate the subled!er accountin! entries. You cannot ad-ust accountin! once you create final accountin! entries. ,nstead, create an ad-ustin! transaction or create a manual -ournal entry. Create ccounting Program he &reate "ccountin! pro!ram$ ?@ /alidates and creates subled!er -ournal entries

?A

ransfers the final -ournal entries in the current batch run to 5eneral 4ed!er and starts the 5eneral 4ed!er postin! process

?B 5enerates the Subled!er "ccountin! Pro!ram Report, #hich documents the results of the &reate "ccountin! pro!ram he pro!ram has the follo#in! parameters$ .edger) Required6 limits accountin! events selected for processin! to those of a particular led!er. Process Category) Optional6 restricts the events selected for accountin! to a particular process cate!ory. %nd *ate) Required6 end date for the &reate "ccountin! pro!ram6 processes only those events #ith event dates on or before the end date Mode) Required6 determines #hether the subled!er -ournal entries are created in 8raft or Final mode %rrors #nly) Required6 limits the creation of accountin! to those events for #hich accountin! has previously failed $eport) Required6 determines #hether to !enerate a report sho#in! the results of the Subled!er "ccountin! pro!ram in summary or detail format Trans/er to Ceneral .edger) Required if .ode is set to Final6 determines #hether to transfer the subled!er -ournal entries to 5eneral 4ed!er. Post in Ceneral .edger) Required if .ode is set to Final or &reate "ccountin! is set to >o6 determines #hether to post subled!er -ournal entries in 5eneral 4ed!er. Ceneral .edger 2atch ;ame) Optional6 user'entered batch name that appears on the transferred 5eneral 4ed!er subled!er -ournal entries. ransfer to 54 option must be set to Yes. Include 4ser Transaction Identi/iers) Required6 controls #hether the report displays user identifiersH names and values. his pro!ram !enerates the Subled!er "ccountin! Pro!ram Report. follo#in!$ ?= 0rrors for failed events You can run the report in summary or detail mode as follo#s$ ?C Summary mode provides a summary of events processed and detailed information about their errors. ?D 8etail mode provides details of subled!er -ournal entries !enerated from the processin! of completed events and a detailed error report. =@ =? Trans/er and $eview $un Trans/er Journals to Ceneral .edger his report lists the

?< Successful events and the subled!er -ournal entries created for those events

?L he ransfer +ournal 0ntries to 54 pro!ram is used to transfer accountin! entries from Subled!er "ccountin! to 5eneral 4ed!er. ?A@ he ransfer +ournal 0ntries to 54 process automatically !enerates the ransfer +ournal 0ntries to 54 report. ,t sho#s the results of the ransfer +ournal 0ntries to 54 process. ?AA o obtain a detailed report of accountin! entries that #ere transferred to the !eneral led!er, use the +ournal 0ntries Report #ith the appropriate date ran!e and 54 ransfer Status parameters. =&2 $eview Trans/er $esults ?A< You can use the Subled!er "ccountin! Pro!ram Report, the ransfer to +ournal 0ntries to 54 Report, and the Period &lose 0*ception report to revie# the subled!er accountin! entries and revie# any unaccounted transactions. =&, $un Import Journal

?AC Run the ,mport +ournal process after submittin! ransfer +ournal 0ntries to 54, in order to create unposted -ournal entries in 5eneral 4ed!er. his process must be submitted from 5eneral 4ed!er. =&0 $eview ccount nalysis $eport ?AE Run the "ccount "nalysis report in 5eneral 4ed!er to revie# and analy3e accountin! entries. You can use the report parameters to limit the report to -ust the accountin! information you #ant to revie#. Trans/er Journal %ntries to C. Program he ransfer +ournal 0ntries to 54 pro!ram consists of a subset of parameters used in the &reate "ccountin! pro!ram as listed belo#$ ?@ 4ed!er ?A Process &ate!ory ?B 0nd 8ate ?< Post in 5eneral 4ed!er ?= 5eneral 4ed!er %atch >ame he ransfer to +ournal 0ntries to 54 Report is !enerated by the pro!ram and lists the follo#in!$ ?C =@ =? ?L ransfer to 54 Summary Post Journal %ntries in C. Post Journals in C. Once -ournals are imported into 5eneral 4ed!er, post them. dditions ?D 5eneral errors ransfer +ournal 0ntries to 54

=&> Create $emaining Mass

?AA Run the .ass "dditions &reate pro!ram after Payables subled!er accountin! entries have been transferred to 5eneral 4ed!er 1the -ournals do not need to be posted2. 0specially if the volume of your asset purchases is hi!h, the .ass "dditions &reate pro!ram #ill typically be run several times throu!hout the accountin! period so distributions associated #ith the purchase of assets may be processed. Subled!er accountin! entries 1based on information in the invoice lines and distributions2 are transferred, and they become -ournal entries in 54. Ieep in mind that it is not mandatory that all invoices for asset purchases be processed durin! the period in #hich the asset #as purchased. For e*ample, invoices entered in .ay for assets purchased in +anuary #ill be processed in "ssets as prior period additions if they #ere actually placed in service in +anuary. $econcile P to C. 9se the follo#in! reports to reconcile your transferred invoices and payments to your "ccounts Payable rial %alance to ensure that your rial %alance accurately reflects your accounts payable liability$ ?@ "ccounts Payable rial %alance 1for last day of prior period2 ?A Payables Posted ,nvoice Re!ister ' ,nvoice -ournals must be posted in !eneral led!er to appear on this report. ?B Payables Posted Payment Re!ister ' Payment -ournals must be posted in !eneral led!er to appear on this report. ?< "ccounts Payables rial %alance 1for last day of current period2 his balancin! process #ill help you ensure that all liabilities recorded in Payables are reflected in the !eneral led!er "P liability accounts. ,f the balance reported by the accounts payables trial balance does not equal the balance in the "P liability account, you can use the "ccount "nalysis report and the 5eneral 4ed!er reports to determine #hat -ournals are bein! posted to that account. %efore runnin! your reports, run the ransfer +ournal 0ntries to 54 Pro!ram for

all transactions in the period that you are reconcilin!. "lso, be sure to post the transactions in the !eneral led!er. Close the P Period Period Close %(ceptions $eport 9se the Period &lose 0*ceptions report to revie# a complete list of e*ceptions that are preventin! the close of a selected accountin! period. Submit this report to revie# a complete list of e*ceptions that are preventin! you from closin! a Payables accountin! period. his report lists, for each or!ani3ation #ithin the set of books, the follo#in! e*ceptions$ ?@ Outstandin! Pay Runs ?A "ccountin! 0ntries not ransferred to 5eneral 4ed!er ?B %ills Payable Requirin! .aturity 0vent and "ccountin! ?< 9naccounted ,nvoices ?= 9naccounted Payments &orrect any e*ceptions before you close the "P period. Close the P Period 9se the &ontrol Payables Periods #indo# to close the "P period. Close the P# Period $eview the 4nnoticed $eceipts report he 9ninvoiced Receipts Report should be run before the Receipt "ccrual ' Period'0nd process. )ith this report, you can revie# all or specific uninvoiced receipts for both period end and online accruals. 9ninvoiced receipts are !oods and services you have received that your supplier did not invoice yet. his report indicates e*actly #hat you have to accrue and for #hat amount, and helps you analy3e your receipt accrual entries. he accrual amount is the difference bet#een the quantity received and the quantity billed multiplied by the unit price of the item. Process period"end receipt accruals 9se the Receipt "ccruals ' Period'0nd process to create period'end accruals for your uninvoiced receipts for 0*pense distributions. Purchasin! creates an accrual -ournal entry in your !eneral led!er for each uninvoiced receipt you choose usin! this #indo#. 0ach time you create accrual entries for a specific uninvoiced receipt, Purchasin! marks this receipt as accrued and i!nores it the ne*t time you run the Receipt "ccrual ' Period'0nd process. Purchasin! creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts. Once the Receipt "ccruals ' Period'0nd process completes, use ransfer +ournal 0ntries to 54 pro!ram from Receivin! to transfer the subled!er -ournal entries to 5eneral 4ed!er. he -ournal is assi!ned a reversal period based on the cate!ory setup. his -ournal must be reversed in the subsequent period and posted. ,f the -ournal is not reversed and posted, your uninvoiced receipt liability #ill be overstated.

Close the purchasing period 9se the &ontrol Purchasin! Periods #indo# to control the purchasin! periods defined in the "ccountin! &alendar #indo#. Purchasin! lets you create -ournal entries only for transactions you enter in an open purchasin! period. 9se the &ontrol Purchasin! Periods #indo# to chan!e the status of the period to &losed. Once the Purchasin! period is closed, the correspondin! Payables period cannot be re'opened unless the purchasin! period is re'opened. 0ach period in the purchasin! calendar #ill have one of the follo#in! statuses$ ?@ &losed ' )hen you close a purchasin! period, Purchasin! does not allo# further accruals durin! the period. Purchasin! reverses the status of accrued purchase order lines that are set to accrue at period end so that you can accrue them in the ne*t period if you need to.

?A Future ' 9se this option if you #ant to open the purchasin! period in the future. option is available only #hen the current status is >ever Opened.

his

?B >ever Opened ' Purchasin! displays this default status if you have not opened the period in the past. ?< Open ' 9se this option to open the purchasin! period. ?= Permanently &losed ' 9se this option if you do not #ant to re'open the period in the future. his option is irreversible. Process remaining inventory transactions Process any remainin! inventory transactions and close the inventory accountin! period. $un ccrual $eports Run the accrual reconciliation load pro!ram and then use the follo#in! reports to analy3e the balance of the accrual accounts. A. Summary "ccrual Reconciliation Report B. "P and PO "ccrual Reconciliation Report <. .iscellaneous "ccrual Reconciliation Report =. "ccrual )rite'Off Report C. ),P "ccrual )rite'Offs Report. >ote that this report only sho#s ),P #rite'offs that #ere performed in prior releases. You can also use the follo#in! #indo#s to vie# #rite'off details$ A. "P and PO "ccrual )rite'Off B. .iscellaneous "ccrual )rite'Off <. /ie# )rite'Off ransactions 7rite o// accrued transactions as necessary "fter you have researched the reported accrual balances, you can use the "ccrual )rite'Offs #indo# to indicate #hich entries you #ish to remove and #rite off from this report. 8o not create manual -ournal entries for #rite offs since the -ournal entries #ill be automatically created a!ainst the #rite off transaction in the costin! subled!er. Hey ccounts ccount $eceiving Inventory

he Receivin! ,nventory "ccount is a clearin! account. he account is used for perpetual 1on receipt2 accruals. "fter receivin! transactions are processed and the ransfer ransactions to 54 process is run, the Receivin! ,nventory "ccount is cleared and the .aterial account is char!ed #ith the cost of the capitali3ed inventory. Specify this account #hen you define Receivin! ,nformation for your inventory or!ani3ations. Inventory P ccrual

his is the account used by Purchasin! to accrue your payable liabilities #hen you receive items you #ill capitali3e as inventory. his account represents your uninvoiced receipt liability and is usually part of your "ccounts Payable 4iabilities in the balance sheet. Payables relieves this account #hen the invoice is matched and validated. Specify this account #hen you define ,nventory ,nformation for your inventory or!ani3ations in the Other "ccounts tab. P .iability his defaults from the supplier site and is credited #hen a standard invoice is entered or debited #hen a credit memo or debit memo is entered. he account is relieved #hen the invoice is paid. %(pense P ccrual his is the account used by Purchasin! to accrue your payable liabilities #hen you receive items you #ill e*pense. his account represents your uninvoiced receipt liability #hen you run the Receipt "ccruals ' Period 0nd process. Specify this account on the "ccrual tab #hen you set up Purchasin! Options.

Material "n asset account that tracks material cost. For avera!e costin!, this account holds your inventory and in transit values. Once you perform transactions, you cannot chan!e this account. Specify this account #hen you define ,nventory ,nformation for your inventory or!ani3ations in the /aluation "ccounts re!ion for the &ostin! ,nformation tab. Charge ccount his is the char!e account is the account that #ill be char!ed for the purchase on either the balance sheet or income statement. ,f the destination type for the distribution is ,nventory, this account #ill be the .aterial account associated #ith the subinventory and you cannot override it. his is the balance sheet account that #ill be char!ed after inventory is capitali3ed. ,f the destination type is e*pense, you can specify this account 1provided it isn7t pro-ect related2 and override any defaults. his account #ill be either an asset clearin! account that #ill be included on the balance sheet or an e*pense account that #ill be included on the income statement. his account is either created or specified #hen you create a purchase order. Purchase Price Variance his account is used to record differences bet#een purchase order line price and standard cost. he Purchase Price /ariance is calculated #hen items delivered to inventory are costed. his account is not used #ith the avera!e cost method. For e*ample, assume the purchase order line price for an item #as set at OA@ per item but standard cost #as set to OAB per item and you purchased A@ items. he Purchase Price /ariance #ould be OB@. Specify the Purchase Price /ariance account #hen you define ,nventory ,nformation for your inventory or!ani3ations in the Other "ccounts tab. Invoice Price Variance he variance account used to record differences bet#een purchase order price and invoice price. his account is used by Payables to record the invoice price variance for inventory items. For e*pense items, the account !enerator uses the char!e account to record any invoice price variance. For e*ample, assume the purchase order line price for an item #as set at OA@ per item but you #ere char!ed OAB per item and you purchased A@ items. he ,nvoice Price /ariance #ould be OB@. Specify this account #hen you define ,nventory ,nformation for your inventory or!ani3ations in the Other "ccounts tab. ccrual ccounting " Perpetual ccrual (#n $eceipt) %nter purchase order (&) )hen you enter a purchase order, accounts are created and stored #ith the purchase order distribution. he accounts #ill eventually be used as a basis for creatin! accountin! that is sent to the !eneral led!er. &reatin! a purchase order in and of itself !enerates no accountin! that is sent to the !eneral led!er. $eceive (2) )hen you accrue on receipt, processin! a receivin! transaction automatically sends a receipt accrual to the !eneral led!er. The $eceiving Inventory ccount is debited ('uantity ( purchase order line unit price) and the Inventory P ccrual account (uninvoiced receipts account) is credited the same amount) Run the ,mport +ournal process #ith a source of Purchasin! to create unposted -ournals in the !eneral led!er. *eliver and cost (+) "fter deliverin! to the final destination, the $eceiving Inventory ccount is cleared and the Material account is debited) ,f you use standard costin!, the .aterial account is debited with the standard cost o/ the item and any di//erence is charged to the Purchase Price Variance account) Period end accrual (,)

)hen items are accrued on receipt, no period'end accrual is !enerated by the Receipt "ccruals ' Period'0nd process. he receipt accrual is automatically !enerated #hen the receipt is processed. Invoice and match (-) %ntering an invoice and matching creates a debit to the Inventory P ccrual account to clear the liability /or the uninvoiced receipt (you now have an invoice)) he credit is to the "P 4iability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. ny di//erence is charged to the Invoice Price Variance account) For items #ith destination type of ,nventory, the ,nvoice Price /ariance account #ill be the ,nvoice Price /ariance account specified #hen you defined ,nventory ,nformation for your inventory or!ani3ations in the Other "ccounts tab. he "P 4iability account is cleared #hen the invoice is paid. %nter purchase order (&) )hen you enter a purchase order, accounts are created and stored #ith the purchase order distribution. he accounts #ill eventually be used as a basis for creatin! accountin! that is sent to the !eneral led!er. &reatin! a purchase order in and of itself !enerates no accountin! that is sent to the !eneral led!er. $eceive (2) )hen you process a receipt, no accountin! is created for period end accruals. Receipts that are accrued at period end #ill al#ays be for a destination type of e*pense. *eliver and cost (+) )hen you deliver a receipt to its final destination, no accountin! is created. he e*pense #ill be recorded after matchin! to the purchase order, runnin! the &reate "ccountin! process and subsequently runnin! the ransfer +ournal 0ntries to 54 process. Period end accrual (,) ,f an invoice is not entered by period end, the Receipt "ccruals ' Period 0nd process #ill !enerate accruals and transfer the accountin! for them to the 54 ,nterface. 9se the ,mport +ournal pro!ram to create unposted -ournals. his -ournal is created #ith a reversal date in a subsequent period. he -ournal must be reversed so your receipt liability is not overstated. $everse accrual in the general ledger (-) ,n the subsequent period, reverse the prior period accrual. Invoice and match (0) 0nterin! an invoice and matchin! creates a debit to the Inventory P ccrual account to clear the liability for the uninvoiced receipt 1you no# have an invoice2. he entire credit is to the P .iability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. ny di//erence is charged to the Invoice Price Variance account) For items #ith destination type of 0*pense, the ,nvoice Price /ariance account #ill be the same as the char!e account. The P .iability account is cleared when a payment is processed) he Post .ass "dditions process places the asset in service. )hen the &reate "ccountin! process is run in "ssets, the char!e account 1the clearin! account on the invoice distribution2 is relieved and the cost account associated #ith the asset cate!ory is char!ed for the cost of the asset. ccounting /or Payments without Cash in Transit (Cash Clearing) %nter invoice (&) " standardG unmatched invoice entered into Payables #ill !enerate a credit to the P .iability account and a debit to the charge account specified on the invoice distribution. For e*penses, this #ill be an income statement account6 for assets that #ill be capitali3ed in "ssets and depreciated, this account #ill be a balance sheet account 1 asset clearing account26 for inventory received, the account #ill be the Inventory P ccrual account. Pay invoice (2)

)hen not usin! cash clearing (cash in transit) account #ith &ash .ana!ement or not usin! &ash .ana!ement, the "P 4iability account is cleared #hen the payment is issued. $eports ccounts Payable Trial 2alance 9se the "ccounts Payable rial %alance Report to verify that total accounts payable liabilities in Payables equal those in the !eneral led!er. o reconcile these balances you can compare the cumulative total liability provided by this report #ith the total liability provided by your !eneral led!er. ccrual $ebuild $econciliation $eport 9se the "ccrual Rebuild Reconciliation Report to analy3e the balance of the "ccounts Payable 1"FP2 accrual accounts. You can accrue both e*pense and inventory purchases as you receive them. )hen this happens, you temporarily record an accounts payable liability to your 0*pense or ,nventory "FP accrual accounts. )hen Payables creates the accountin! for the matched and validated invoice, Payables clears the "FP accrual accounts and records the liability from the supplier site. Run this report at period end. ccrual 7rite"#// $eport 9se the "ccrual )rite'Off Report to provide supportin! detail for your #rite'off -ournal entries. he process is as follo#s. First, you analy3e the "ccrual Reconciliation Report for transactions that you should e*pense out of the accrual accounts. "fter you have researched the reported accrual balances, you then use the "ccrual )rite'Off #indo# to indicate #hich entries you #ish to remove and #rite off from this report. "nd, after you have #ritten off these entries, you use the "ccrual )rite'Off Report as supportin! detail for your manual -ournal entry. Matched and Modi/ied $eceipts $eport "fter you automatically create invoice distributions by matchin! an invoice for !oods to a receipt, that receipt can be modified in Purchasin!. For e*ample, you mi!ht need to ad-ust a receipt because the quantity received #as incorrectly recorded, or the product #as defective and returned to the supplier. 9se this report to identify receipts that have been chan!ed after invoice matchin!, and for #hich no users have seen modifications. ccount nalysis $eport Run the "ccount "nalysis report to revie# and analy3e subled!er accountin! entries from Payables. You can use the report parameters to limit the report to -ust the accountin! information you #ant to revie#. he "ccount "nalysis report is helpful #hen you reconcile your accounts #ith your !eneral led!er. Payables Posted Invoice $egister 9se the Payables Posted ,nvoice Re!ister to revie# accountin! lines, summari3ed by invoice, that have been transferred to the !eneral led!er. %ecause it presents amounts that have been char!ed to liability accounts, this report is valid only for an accrual led!er. he Payables Posted ,nvoice Re!ister is primarily a reconciliation tool. 9se this report alon! #ith the Posted Payment Re!ister and the "ccounts Payables rial %alance Report to reconcile balances bet#een Payables and your !eneral led!er. Payables Posted Payment $egister 9se the Posted Payment Re!ister to revie# accountin! lines, summari3ed by payments that have been transferred to the !eneral led!er. %ecause it presents amounts that have been char!ed to liability accounts, this report is valid only for an accrual led!er. You can submit the Posted Payment Re!ister for one payment -ournal entry batch or all payment -ournal entry batches. he Posted Payment Re!ister is primarily a reconciliation tool. 9se this report alon! #ith the Payables Posted ,nvoice Re!ister and the "ccounts Payables rial %alance Report to reconcile balances bet#een Payables and your !eneral led!er. $eceipt ccruals " Period %nd

9se the Receipt "ccruals ' Period'0nd process to create period'end accruals for your uninvoiced receipts for e*pense distributions. Purchasin! creates an accrual -ournal entry in your !eneral led!er for each uninvoiced receipt you choose usin! this #indo#. $eceiving ccount *istribution $eport he Receivin! "ccount 8istribution Report lists the accountin! distributions for your receivin! transactions. his report supports the distributions created for the follo#in! transactions$ ?@ Purchase Order Receipts ?A Purchase Order Receipt "d-ustments ?B Purchase Order Returns to Supplier ?< 8eliver to 0*pense 8estinations ?= Return to Receivin! from 0*pense 8estinations ?C .atch 9nordered Receipts his report helps you reconcile your receivin! accountin! to your !eneral led!er. 4naccounted Transactions $eport 9se this report to identify and revie# all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. Run this report after you have run the &reate "ccountin! process. he report #ill then sho# only transactions that had problems that prevented accountin!. You can then correct the problems and resubmit the accountin! process. >ote that this report does not include invoices that have no distributions.

4ninvoiced $eceipts $eport he 9ninvoiced Receipts Report should be run before the Receipt "ccrual ' Period'0nd process. )ith this report, you can revie# all or specific uninvoiced receipts for both period end and online accruals. 9ninvoiced receipts are !oods and services you have received that your supplier did not invoice yet. his report indicates e*actly #hat you have to accrue and for #hat amount, and helps you analy3e your receipt accrual entries. he accrual amount is the difference bet#een the quantity received and the quantity billed multiplied by the unit price of the item. Tell me about invoices wor!bench? ,nvoices #orkbench used for to ad-ust or pay invoices after search. "lso, ,t7s used for either apply or release holds to invoices and approve or cancel invoices. o approve invoices online, you must enable Allow Online Approval. You can select one or more invoices online to be approved online in the ,nvoice )orkbench. You can use the Approve Related Invoices option to approve debitFcredit memos to!ether #ith their associated invoices. You can approve the entire invoice if you allo# online approval and you enter invoices by batch. Sometimes, you can make ad-ustments to invoice distribution, scheduled payments, or invoice details even thou!h the transactions have been paid and posted to the 5eneral 4ed!er. "ll chan!es can be made from the ,nvoice )orkbench. You can chan!e the invoice amount and chan!e the distribution amounts and scheduled payments to match the ad-usted amount. ,f you are usin! PO matchin!, you can reverse the matchin! and rematch to correct an error. o cancel an invoice, use the ,nvoice )orkbench and select the ctions button. he ,nvoice "ctions form #ill !ive you several options to choose from. Select Cancel Invoice and the invoice distributions #ill be reversed. he invoice amounts and scheduled payments #ill be set to 3ero. Once the invoice is cancelled, you cannot make any more chan!es to it. From the ,nvoice )orkbench, select the invoice or invoices you #ish to pay and choose the ctions button. he ,nvoice "ctions form #ill display. Select the Pay in Full checkbo* and then click on the #H button. he Payment )orkbench #ill be invoked and you can create either a quick payment or manual payment. "lso, if you do not #ant to pay in full, you can select scheduled payment1s2 to be paid as a quick payment or a manual payment.

"fter you enter invoice records in the Quick ,nvoices #indo#, you can submit a customi3ed #orkflo# pro!ram to automate your processes for mana!in! invoices. For e*ample, you can customi3e the #orkflo# pro!ram to validate the cost center on all invoices before you import them. You then submit the Payables Open ,nterface ,mport Pro!ram to validate the values you entered, provide any default values, and then create invoices #ith distributions and scheduled payments in the re!ular Payables tables. "fter import, Payables provides a report that lists invoice records that #ere successfully imported and any that could not be imported because they had invalid or missin! information. You can query the re-ected invoice records in the Quick ,nvoices #indo#, correct them, and then resubmit them for import. )hen you import invoice records successfully, Payables creates re!ular invoices that you can vie#, modify, and validate in the ,nvoice )orkbench. *escribe the close process in Payables3 A. Validate all invoices) B. Con/irm or cancel all incomplete payment batches) <. I/ you use /uture dated paymentsG submit the 4pdate Matured 5uture *ated Payment 1tatus Program) his #ill update the status of matured future dated payments to >e!otiable so you can account for them. =. $esolve all unaccounted transactions) Submit the Payables "ccountin! Process to account for all unaccounted transactions. Revie# the 9naccounted ransactions Report. Revie# any unaccounted transactions and correct data as necessary. hen resubmit the Payables "ccountin! Process to account for transactions you corrected. Or move any unresolved accountin! transaction e*ceptions to another period 1optional2. C. Trans/er invoices and payments to the Ceneral .edger and resolve any problems D. In the Control Payables Periods windowG close the period in Payables) E. $econcile Payables activity /or the period) See$ Reconcilin! Payables "ctivity, R "ccounts Payable rial %alance Report, 1this period and last period2. R Posted ,nvoice Re!ister, R Posted Payment Re!ister,. K. I/ you use #racle PurchasingG accrue uninvoiced receipts) L. I/ you use #racle ssetsG run the Mass dditions Create Program trans/er capital invoice line distributions /rom #racle Payables to #racle ssets) A@. Post 8ournal entries to the general ledger and reconcile the trial balance to the Ceneral .edger) 2an! ccount Model Payables levera!es Oracle radin! &ommunity "rchitecture and Oracle &ash .ana!ement to set up the bank accounts that you use to do business 1internal bank accounts2. %anks and %ank %ranches are created as parties in radin! &ommunity "rchitecture via the user interface in Oracle &ash .ana!ement. %ank "ccounts are defined in Oracle &ash .ana!ement. 0ach bank can have multiple branches and each branch can have multiple accounts. )hen you enable a bank account for use #ith Payables, you can associate the account #ith multiple payment documents. )hen you set up your suppliers in Oracle iSupplier, you can also set up supplier bank accounts 1e*ternal bank accounts2. %ntering 2an! and 2an! 2ranch In/ormation &ash .ana!ement, /ision Operations 19S"2 Responsibility 1>2 Setup P %anks %ntering 2an!s You can create a ne# bank or add bank details to an e*istin! party defined in your &ommunity. radin!

For each bank, define the country in #hich the bank operates, the name of the bank, the bank address1es2, and contacts. Optionally, you can define additional bank information$ "lternative

%ank >ame, Short %ank >ame, %ank >umber, 8escription, a*payer ,8, >umber, J.4 .essa!es 0mail, ,nactive 8ate, and &onte*t /alue. %ntering 2an! 2ranches 1>2 Setup P %anks $ 1 2 %ranches

a* Re!istration

0ach %ank can have more than one bank branch. )hen you create a bank branch, you can create a ne# branch or add branch details to an e*istin! party defined in your radin! &ommunity. For each bank branch, define the country in #hich the bank operates, the bank the branch belon!s to, the branch name, the branch type, address1es2, and contacts. ,n addition to definin! the branch type, you can define additional bank branch details$ "lternate %ranch >ame, Routin! ransit >umber, %,&, %ank &ode, 08, 4ocation, 0F >umber, 8escription, RF& ,dentifier, ,nactive 8ate, and &onte*t /alue. %ntering 2an! ccount In/ormation &ash .ana!ement, /ision Operations 19S"2 Responsibility 1>2 Setup$ %anks P %ank "ccounts P &reate P &reate %ank "ccount pa!e P &reate %ank "ccount$ "ccount O#ner and 9se pa!e P &reate %ank "ccount$ "ccount ,nformation pa!e 2an! ccount #wner) he bank account o#ner is the le!al entity that o#ns the account. ccount 4se) "ccount use refers to the applications that are !oin! to use this internal bank account$ Payables, Payroll, Receivables, andFor reasury. ,f the reasury option is enabled, you must link this bank branch to the counterparty in reasury. In/ormation) You enter the name of the account, account number, currency, and description. You should have the name of the account match the name on the bank7s records and then use the description field to indicate ho# the account is used, for e*ample, main disbursement account. he account type is a free'form field that you mi!ht use to indicate #hether the account is a savin!s or checkin! account or #hether it7s a corporate or division account. Optionally, enter or select the "lternate "ccount >ame, Short "ccount >ame, &heck 8i!it, .ultiple &urrencies "llo#ed, ,nternational %ank "ccount >umber 1,%">2, "ccount ype, "ccount Suffi*, 0F >umber, Secondary "ccount Reference, "ccount (older, "lternate "ccount (older, 8escription, Start 8ate, and 0nd 8ate. %ntering 2an! ccount In/ormation &ash .ana!ement, /ision Operations 19S"2 Responsibility 1>2 Setup$ %anks P %ank "ccounts P &reate P &reate %ank "ccount pa!e P &reate %ank "ccount$ "ccount O#ner and 9se pa!e P &reate %ank "ccount$ "ccount ,nformation pa!e P &reate %ank "ccount$ "ccount &ontrols pa!e Ceneral Controls $egion 0nter the cash account number that should be char!ed for payments made from this bank account. You can also enter accounts for cash clearin!, bank char!es, bank errors, forei!n e*chan!e char!es, and a!ency location code that #ill be used #hen you reconcile #ith Oracle &ash .ana!ement. ,f you specify these codes in the 5eneral &ontrols re!ion, the accounts you specify #ill be used as the default accounts for all applications that use this account. You can also specify #hether the bank account you are creatin! is a nettin! account. >ote that you can specify Payables'specific accounts later on.

Payables Controls $egion Multiple Currency Payments) ,f you have enabled the 9se .ultiple &urrencies Payables option and you #ant to use this bank account to pay invoices entered in multiple currencies, enable this option.

Pooled ccount) ,f you use "utomatic Offsets and you #ant to associate multiple companies #ith this bank account, then enable this option. )hen you enable the "utomatic Offsets Payables option, Payables creates one offsettin! liability distribution for each invoice distribution. ,f you pay an invoice from a pooled bank account, then #hen Payables accounts for the invoice payment, Payables creates one correspondin! cash accountin! entry for each liability distribution. ?@ ,n addition, Payables builds the cash account based on the &ash "ccount defined for the bank account and the account se!ments of the liability lines. ?A ,f you do not use a pooled account, then #hen the payment is accounted, a sin!le accountin! entry is created for the &ash account, usin! the &ash "ccount that is defined for the bank account #ithout modifyin! any account se!ments. Minimum:Ma(imum Payment) .inimumF.a*imum payment refers to the smallest and lar!est payment amounts that you allo# in a pay run. )hen you initiate a pay run usin! the bank account, Payables uses the bank account7s .a*imum Payment as a default. You can override this default. llow Kero Payments) ,f you allo# 3ero'amount payments from this bank account, enable this option. Ma(imum #utlay) .a*imum outlay is the lar!est currency outlay that you allo# for a pay run for this bank account. ,f the total outlay of a pay run e*ceeds the ma*imum outlay for the pay run, Payables displays a #arnin!, but allo#s you to continue processin! the pay run. he .a*imum Outlay for a bank account defaults from the Payables Options #indo#. )hen you initiate a pay run usin! the bank account, Payables uses the bank account7s .a*imum Outlay as a default. You can override this default. %ntering 2an! ccount In/ormation &ash .ana!ement, /ision Operations 19S"2 Responsibility ccount 4se) Select the types of functions that this internal bank account is !oin! to be used for$ Payables, Payroll, Receivables, andFor reasury. ,nternal banks are the bank accounts for #hich you are the account holder. Receivables uses internal bank accounts to receive payments from customers. Payables uses internal bank accounts to disburse funds to suppliers. #rgani<ation) 0nter or select the Or!ani3ation that can access the account. ccounts) For each payables document cate!ory and payment method combination you can update the follo#in! accounts that default from the bank account$ cash clearin!, bank char!es, bank errors, reali3ed !ain, loss accounts, and future dated payments. *e/ining Payment *ocuments and Payment Methods) You must create at least one payment document before you can use a bank account to create invoice payments. )hen you define payment documents, you can only select payment methods that use the same currency as the bank account currency. ,f the bank account is a multiple currency bank account, you can choose forei!n currency payment methods or multiple currency payment methods. Contact You can enter the prefi*, name, title, and telephone for a contact specific to this bank account. *e/ining Payment *ocuments o define payments documents$ A. Query the bank account. B. &lick the .ana!e Payment 8ocuments button. <. &lick &reate. =. ,n the >ame field, enter a name for the payment documents. C. ,n the Paper Stock ype field, select %lank Stock for non'numbered check stock or Prenumbered Stock from the drop'do#n list. D. ,f your check stock has an attached remittance stub, select the "ttached Remittance Stub check bo*.

E. ,f your check stock has an attached remittance stub, specify the number of lines per remittance stub in the >umber of 4ines per Remittance Stub field. K. ,n the >umber of Setup 8ocuments field, specify the number of checks you #ant to allo# for testin! check stock setup. L. ,n the Format field, select a check format from the list of values. A@. ,n the Payment 8ocument &ate!ory field, select the type of payment document from the list of values. AA. ,f your check stock is prenumbered, enter the first and last document numbers in the fields under the 8ocument >umbers re!ion. AB. ,f your or!ani3ation uses a company checkbook, enter the appropriate information in the &heckbooks re!ion. Tell me about online approving invoices? he #orkflo# be!ins by findin! the first approver on the ordered list of approvers. ,f the invoice requires no approvers to approve it, then the invoice7s approval status is set to >ot Required and the #orkflo# pro!ram ends. ,f the invoice has a first approver, then the #orkflo# pro!ram sends an invoice approval request to the approver7s e'mail or Oracle )orkflo# >otifications )orklist #eb pa!e 1or both2. ,f that approver approves the invoice, the #orkflo# pro!ram then looks for the ne*t approver on the ordered list. ,f there is another approver, the #orkflo# requests approval from that person. he #orkflo# completes #hen all persons on the ordered list approve the invoice, or if an approver re-ects the invoice. ,f an approver does not respond #ithin the specified time period, the #orkflo# removes the ori!inal notification from the approver7s >otifications )orklist and sends a reminder notification to the approver. ,f the approver still does not respond, then the #orkflo# removes the reminder notification from that approver7s >otifications )orklist and sends that person7s mana!er an escalation notification. )henever an invoice is approved or re-ected, Payables updates the approval record of the invoice, #hich you can revie# in the ,nvoice "pproval (istory #indo# or the ,nvoice "pproval (istory Status Report. See$ ,nvoice "pproval (istory )indo#. he invoice approval status is updated #hen the #orkflo# completes. You can initiate the ,nvoice "pproval )orkflo# Pro!ram in the follo#in! #ays$ R Schedule re!ular submission of the ,nvoice "pproval )orkflo# concurrent pro!ram R ,nitiate the ,nvoice "pproval )orkflo# Pro!ram from the Submit Request #indo# R .anually initiate the #orkflo# by selectin! one or more invoices in the ,nvoices #indo# and then from the ,nvoice "ctions #indo# selectin! ,nitiate "pproval Tell me about Payment batches? " payment batc set !roups several payment batches to!ether so you can simultaneously submit the selection, build, or format process for each payment batch in the set. )ith a payment batch set you can submit several payment batches #ith different payment currencies simultaneously. You define a payment batch set by enterin! invoice selection criteria for one or more payment batches in the Payment %atch Sets #indo#. Once you define a payment batch set you can use it as a template to re!ularly mana!e and submit similar !roups of payment batches. You can also set up payment batch sets to automatically submit at re!ular intervals. For e*ample, you can set up a payment batch set and schedule it to automatically run every Friday. R 1elect:2uild3 ,f you #ant to revie# and modify the invoices selected in the payment batch before you format payments, choose Select ,nvoices and %uild Payments to have Payables select invoices and build payments. 1Payable automatically builds payments #hen you initiate invoice selection.2 "fter the build process is complete, you continue to process the individual payment batches in the Payment %atches #indo#. R 5ormat3 ,f you #ant to format the payments #ithout modifyin! them, also select Format Payments to have Payables automatically format payments. "fter formattin! is complete,

continue to process the individual payment batches in the Payment %atches #indo#. or, if you are creatin! electronic payments, proceed #ith &onfirmin! Payment %atches. R Con/irm3 Select &onfirm Payment %atch to confirm electronic payments. You cannot select this option if any payment batches in the set use payment documents set up for checks. &onfirmin! is the final step in processin! a payment batch. his step is very important because it updates the payment history of invoices paid in a payment batch and associates payment document numbers #ith the invoices and invoice payments. "lso, if you have any unconfirmed payment batches, you cannot close a period or use the same payment document for any other payments until you confirm the payment batch. ,f all the documents in a payment batch are dama!ed, you cannot confirm the batch and must cancel the entire payment batch. You #ill assi!n one of four status types to each document$ R 1etup) Payable automatically displays the setup checks used to ali!n your printer. Payable automatically voids these checks #hen you confirm a payment batch. You control the number of setup checks in the Payment 8ocument re!ion of the %ank "ccounts #indo#. R Printed. 0ither the checks printed properly or the 0lectronic payments formatted correctly. Ran!es of Printed documents must end on a ne!otiable document. R 1!ipped) he printer skipped over these checks and nothin! printed on them. You can reuse these documents. R 1poiled) hese documents are ruined and you cannot reuse them. For e*ample, the printer malfunctioned and ruined the documents. Payable automatically voids these documents #hen you record them as spoiled. You may have check overflo#, a situation #here there are more invoices paid by a check than can fit on the remittance stub of one check. ,f you use the check overflo# method /oid e*cept 4ast, Payables voids all checks e*cept the last one for the supplier site. You should record the status of all the checks as Printed. 9ow to void payment a/ter print and send a chec!? 1topping Payments "fter you call your bank to initiate a stop payment on a payment document, you can record the stop payment status in Payables. You can then either void the payment to reverse the accountin! and payment records, or you can release the stop payment to reset the invoice status to ne!otiable. You can revie# all current stop payments in the Stopped Payments Voiding Payments )hen you void a payment, Payables automatically reverses the accountin! and payment records so your !eneral led!er #ill have the correct information, and so the status of the paid invoices is reset to 9npaid. Payable also reverses any reali3ed !ains or losses on forei!n currency invoices recorded as paid by the payment. )hen you void a payment, you can select the action you #ant Payables to take on the invoices paid by the void payment. You can choose to place the invoices on hold, cancel the invoices, or do nothin! #ith the invoices, leavin! them available for payment. ,f you enable the "llo# ,nterest ,nvoices option for a supplier site, Payables automatically reverses all related interest invoices #hen you void a past'due payment for the supplier site. ,f you #ithhold ta*es at payment time and you void a payment that paid an invoice #ith an associated #ithholdin! ta* invoice, then Payables automatically creates a ne!ative 1reversin!2 invoice for the ta* authority supplier to offset the amount of the ta* #ithholdin! invoice. You Void Payment $estrictions3 I;V#IC%1 P I* 2L ;#T9%$ P LM%;T3 )hen you void a payment, you cannot cancel a related invoice if it #as partially paid by a second payment. ,nstead, #hen you choose &ancel ,nvoice, the system applies an S,nvoice &ancelS hold to the invoice for your reference. You can release the hold manually in the ,nvoice (olds tab. C ;C%..I;C 11#CI T%* I;V#IC%1) ,f you attempt to cancel an invoice that has been partially paid by another payment by usin! the &ancel ,nvoice "ction, instead of cancelin! the invoice, Payables applies an ,nvoice &ancel hold to the invoice. his hold is manually releasable. C.% $%* P LM%;T13 You cannot void a payment that the bank has already cleared.

P$%P LM%;T13 You cannot void payment on a payment document that pays a prepayment that you have applied to an invoice. You must first unapply any prepayments, and then you can void the payment. 7hat is payment : payable document? Payable or Payment document is a order to pay amounts to supplier like &heques, 8emand 8raft, 0lectronic Payment etc. 9se the Payment 8ocuments #indo# to define payment documents for an internal bank account. 0*amples of payment documents are checks or electronic payments. You must create at least one payment document before you can use a bank account to create invoice payments. You can create an unlimited number of payment documents for an internal bank account. )hen you define payment documents, you can only select payment formats that use the same currency as the bank account currency. ,f the bank account is a multiple currency bank account, you can choose forei!n currency payment formats or multiple currency payment formats. C. ccounts $egion o/ the 2an! ccounts 7indow You cannot enter 54 "ccount information for Supplier bank accounts. Cash) 0nter the cash account you are associatin! #ith a bank account. his account must be an asset account. )hen you create a payment, Payables creates accountin! entries to credit this cash account. For future dated payments, on the payment7s maturity date, Payables credits the cash account and debits either the /uture dated payment account or the clearin! account 1dependin! on ho# you account for payments2. ,f you set up Payables to account for payments at clearin! time, then Payables creates accountin! entries for your unreconciled invoice payments to credit your cash clearin! account, instead of your cash account, usin! the cash clearin! account defined in the ne*t field. "fter you reconcile your payments usin! Oracle &ash .ana!ement, #hen you create accountin! entries for the reconciled invoice paymentsG you debit your cash clearing account and credit the cash account you enter here. ,f you enable the "utomatic Offsets Payables option and enable the Pooled "ccount option in the Payables Options re!ion of the %ank "ccounts #indo#, then #hen you create a payment, Payables creates a correspondin! cash accountin! entry for each liability distribution that you pay usin! this bank account. Payable uses the cash account you define here to!ether #ith the "utomatic Offset .ethod you choose in the Payables Options #indo# to create the cash accountin! entry. Cash Clearing) ,f you set up Payables to account for payments at clearin! time, enter the cash clearin! account you are associatin! #ith a bank account. )hen you create accountin! entries for your unreconciled invoice payments, you credit your cash clearin! account usin! this account. "fter you reconcile your invoice payments usin! Oracle &ash .ana!ement, #hen you create accountin! entries for the cleared payments, you debit this cash clearin! account and credit this bank account7s cash account. he account you enter here defaults to the &ash &learin! "ccount field in the 54 "ccounts re!ion of the Payment 8ocuments #indo#. Con/irmed $eceipts) ,f you use "utomatic Receipts in Receivables and are required to send receipt information to your customer before applyin! the receipt, the receivable is maintained in the "ccounts Receivable account until it is confirmed by the customer. 9pon confirmation, it is reversed from the "ccounts Receivable account and placed into the &onfirmed Receipts account. ,f you are not required to send receipt information to your customer, the receivable is automatically reversed from "ccounts Receivable and placed into &onfirmed Receipts. 5uture *ated Payment) ,f you #ill use this bank account to disburse future dated payments, enter the default value for the future dated payment account. his value #ill default to payment documents you enter for this bank account. )hen Payables accounts for future dated payments, it uses the future dated payment account from either the payment document or supplier site, dependin! on ho# the 9se Future 8ated Payment "ccount Payables option is set. Multiple Currency Payments) 0nable this option if you #ant to use this bank account to pay invoices entered in multiple currencies. You can select this option only if the 9se .ultiple &urrencies Payables option is enabled and if the bank account is in your functional currency.

Prepayments Overview A supplier might send an invoice that references a prepayment. If a supplier reduces the invoice amount by the amount of the prepayment and associated tax, you can use the Prepayment on Invoice feature to enter the invoice. You can enter two types of prepayments: Temporary and Permanent. Temporary Prepayments Temporary prepayments can be applied to invoices or expense reports you receive. or example, you use a Temporary prepayment to pay a hotel a catering deposit. !hen the hotel"s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay. Permanent Prepayments Permanent prepayments cannot be applied to invoices. or example, you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.
Hey Processes Create ccounting Process he parameters you use #hen you submit the &reate "ccountin! pro!ram determine ho# accountin! entries are transferred to the led!ers in your !eneral led!er. "ccountin! can be created in draft or final mode. You can transfer subled!er accountin! entries in summary or detail. Re!ardless of the option you choose, you can al#ays drill do#n to the subled!er to vie# the details that build the !eneral led!er balances. Create ccounting I *ra/t ,f you submit the &reate "ccountin! in 8raft mode, you can revie# the subled!er accountin! entries !enerated for your Payables transactions. ,f any accountin! is incorrect, you can update the transaction in Payables to correct the accountin! before you create final accountin!. Create ccounting I 5inal Run the &reate "ccountin! process in Final mode to !enerate your final subled!er accountin! entries. Once you !enerate final accountin!, you cannot correct the accountin!. ,nstead, you must enter correctin! transactions in Payables. Integration with #ther pplications Other applications that inte!rate #ith Oracle Payables such as Oracle "ssets, Oracle Procurement, Oracle Pro-ects, and Oracle ,nventory no# provide Payables'related accountin! information to Oracle Subled!er "ccountin!. ,nvoice 4ines and 8istribution details continue to be provided to Payables directly. Trans/er Journal %ntries to C. Submit the ransfer +ournal 0ntries to 54 process to transfer accountin! information from Oracle Subled!er "ccountin! to the 54 ,nterface. he ransfer +ournal 0ntries to 54 process transfers summary or detail accountin! activity for any open period into the !eneral led!er interface. )hen more than one period is open, the transfer selects transactions from the first open period up to the entered transfer date, and passes the correct accountin! date and financial information into the !eneral led!er interface. Journal Import Once subled!er accountin! entries are transferred to the 54 ,nterface table, use the +ournal ,mport process to import accountin! information from the 54 ,nterface to the !eneral led!er. Posting Journals 9se the post -ournals process to update the account balances of your detail and summary accounts. You can post actual, bud!et, or encumbrance -ournal batches.

1etting 4p Ta(es in %"2usiness Ta( 1>2 Setup P a* P 0'%usiness a* (ome P 142 a* &onfi!uration Set up ta*es for Payables by definin! the basic ta* confi!uration in 0'%usiness a*. he basic a* &onfi!uration is the re!ime'to'rate flo# for each ta* re!ime. Ta( uthority " !overnment entity that re!ulates ta* la#, administers, or audits one or more ta*es. Ta( $egime he set of ta* re!ulations that determine the treatment of one or more ta*es administered by a ta* authority. 0*amples of a ta* re!ime include$ ?@ " sales and use ta* in the 9nited States includes rules for state, county, and city sales and use ta*es. ?A "n e*cise ta* re!ime in ,ndia includes rules for e*cise ta* and additional e*cise ta*. ?B " /" ta* re!ime in "r!entina includes rules for standard /" , additional /" , and perception /" . Ta( " distinct char!e imposed throu!h a fiscal or ta* authority. 0*amples of a ta* include /" for the 9nited Iin!dom and /" for France. Ta( Jurisdiction " !eo!raphical area #here a ta* is levied by a specific ta* authority or #here a specific ta* rate applies. 0*amples of ta* -urisdictions include$ ?< he ta* -urisdiction for /" in 5ermany is the country of 5ermany. ?= he ta* -urisdiction for a San +ose city ta* is the &ity of San +ose, &alifornia. ?C he ta* -urisdiction for Provincial 5oods and Services ta* 1PS 2 in &anada is a particular Province, such as Ontario or %ritish &olumbia. Ta( 1tatus he ta*able nature of a product or service in the conte*t of a transaction for a ta* type. 0*amples of a ta* status include ta*able standard rate, 3ero rated, e*empt, and non'ta*able. " ta* status is similar to the concept of the ta* type definition used #ithin Payables and Receivables in releases prior to Release AB. Ta( $ate he rate specified for a ta* status in effect for a period of time. You can e*press the ta* rate as a percenta!e or as a value per unit quantity. "n e*ample of a ta* rate is E.CM for a state sales and use ta*. $ecovery $ate he rate of input ta* that is allo#ed to be recovered or offset a!ainst output ta*. he recovery rate is applicable to /" ta*es. For e*ample, or!ani3ations that only produce /" applicable !oods and services can use A@@M recovery rate on most purchases. Or!ani3ations that produce /" e*empt !oods and services, for e*ample, financial institutions, have a @M recovery rate. #perating 4nit Ta( ccounts

he ta* accounts that the system uses to post the ta* amounts derived from your transactions. he ta* accounts you define serve as default accountin! information for ta*es, ta* rates, ta* -urisdictions, and ta* recovery rates. 9ow many types o/ accounting methods in Payable? )hen you set up Payables you choose a primary accountin! method. ,n the Payables Options #indo# you can also choose a secondary accountin! method. he accountin! method determines the types of accountin! entries Payables creates. For each accountin! method, cash or accrual, you choose a 4ed!er in #hich you #ill account for transactions. You account only for payments, and do not record liability information for invoices. he payment accountin! entries typically debit your e*pense or asset account and credit your cash or cash clearin! account. )hen you create accountin! entries, Payables mi!ht also create entries for discount taken and forei!n currency e*chan!e !ain or loss. You create accountin! entries for invoices and payments. he invoice accountin! entries !enerally debit your e*pense or asset account and credit your liability account. For prepayments, Payables creates accountin! entries that debit your prepayment account and credit your liability account. For prepayment applications, Payables creates accountin! entries that debit your liability account and credit your prepayment account. Payment accountin! entries typically debit the liability account and credit the cash or cash clearin! account. Payables mi!ht also create accountin! entries for discount taken and forei!n currency e*chan!e !ain or loss. )hen you reconcile payments usin! Oracle &ash .ana!ement, Payables mi!ht also create accountin! entries for cash clearin!, bank char!es, bank errors, and forei!n currency e*chan!e !ain or loss bet#een payment and reconciliation time. You maintain one 4ed!er for cash accountin! and one 4ed!er for accrual accountin!. You choose #hich #ill be your primary and your secondary 4ed!er. ,nvoice accountin! entries are recorded for your accrual 4ed!er, and payment accountin! entries are recorded in both your cash 4ed!er and accrual 4ed!er. &ombined basis accountin! allo#s you to produce financial reports for either your cash or accrual 4ed!er. For e*ample, you may #ant to mana!e your company on an accrual basis, but require cash basis accountin! information for certain re!ulatory reportin! on a periodic basis. 9ow many accounting options in 5inancials #ptions in P? .iability) Payable assi!ns this account as the default 4iability "ccount for all ne# suppliers you enter. You can override this value durin! supplier entry. ,f you use "ccrual %asis accountin!, then the 4iability "ccount for an invoice determines the liability account1s2 char!ed #hen you create accountin! entries for invoices. Prepayment) he Prepayment account and description for a supplier site7s invoices. he Financials option value defaults to ne# suppliers, and the supplier value defaults to ne# supplier sites. 5uture *ated Payment) ,f you use future dated payments, then enter a value for Future 8ated Payment account. his value defaults to all ne# suppliers and ne# bank accounts. he supplier value defaults to all ne# supplier sites. he bank account value defaults to ne# payment documents. )hen Payables accounts for future dated payments, it uses the Future 8ated Payment "ccount from either the supplier site or the payment document, dependin! on the option you select in the Payment "ccountin! re!ion of the Payables Options #indo#. ,f you relieve liability payment time, this should be an asset account. ,f you relieve liability at future dated payment maturity, then this should be a liability account. *iscount Ta!en) ,f you choose to distribute your discounts to the system 8iscount aken "ccount, Payables uses this account to record the discounts you take on payments. 9se the Payables Options #indo# to select your method for distributin! discounts for your invoices. P# $ate Variance Cain:.oss) Payable uses these accounts to record the e*chan!e rate variance !ainsFlosses for your inventory items. he variance is calculated bet#een the invoice and either the purchase order or the receipt, dependin! on ho# you matched the invoice. hese accounts are not used to record variances for your e*pense items. "ny e*chan!e rate variance

for your e*pense items is recorded to the char!e account of the purchase order. Payable calculates these amounts durin! Payables ,nvoice /alidation. %(penses Clearing) his account is optional #hen you use the &ompany Pay payment option of Oracle ,nternet 0*penses. Payable uses this as a temporary account to record credit card transaction activity. Payable debits this account #hen you create an invoice to pay a credit card issuer for credit card transactions. Payables credits this account #ith offsets to the ori!inal debit entries #hen you submit 0*pense Report ,mport for an employee e*pense report entered in ,nternet 0*penses that has credit card transactions on it. ,f you enter an e*penses clearin! account in this field and in the 0*penses &learin! "ccount field of the &ard Pro!rams #indo#, the account entered in the 0*penses &learin! "ccount field of the &ard Pro!rams #indo# takes precedence

5oreign Currency Transactions You can enter all types of invoices, includin! prepayments, e*pense reports, and recurrin! invoices, in a forei!n currency and then pay them in that currency. )hen you enter an invoice, Payables uses the e*chan!e rate you select to convert the invoice distributions into functional currency. You define your functional currency durin! setup for your 4ed!er. )hen you create a payment for a forei!n currency invoice, Payables uses the e*chan!e rate you enter at that time to convert the payment lines into your functional currency. "ny difference in functional currency bet#een invoice entry and invoice payment is recorded as reali3ed 5ainF4oss. )hen you reconcile your payments usin! Oracle &ash .ana!ement, Payables also creates 5ainF4oss accountin! entries to record differences bet#een the ori!inal payment amount and the cleared payment amount due to e*chan!e rate fluctuations. ransactions must have any necessary e*chan!e rates before you can account for them. Payables creates accountin! entries for your invoices and payments in both the functional and forei!n currency. o make a forei!n currency payment, use a bank account #ith a payment document that uses a payment format that is either multi:currency or defined for the forei!n currency. he follo#in! dia!ram sho#s the !eneral steps you follo# to enter and pay a forei!n currency invoice. 1ystem 1etup /or Multiple Currency ? ,n the &urrencies #indo#, enable the forei!n currencies you #ant to use. ? &hoose your functional currency in the 4ed!er #indo#. ? 8efine your Payables options in the Payables Options #indo#. 0nable the "llo# .ultiple &urrency Payables option. 0nable the Require 0*chan!e Rate 0ntry Payables option for forei!n currency invoice entry. 1optional2 8efine a default e*chan!e rate type #hich defaults to all forei!n currency invoices. 1optional2 8efine a default invoice and payment currency #hich defaults to all supplier sites you enter. 1optional2 Select one or both options for "ccount for 5ainF4oss$ )hen Payment is ,ssued, )hen Payment &lears. 1optional2 Select an option for &alculate 5ainF4oss$ For 0ach ,nvoice or For otal Payment.? 8efine PO Rate /ariance 5ainF4oss "ccounts #hen you define Financials Options or durin! bank setup.? 8efine &onversion Rate ypes. See$ 8efinin! &onversion Rate ypes !Oracle General "ed#er $ser Guide%.q 0nter 8aily 0*chan!e Rates. See$ 0nterin! 8aily Rates !Oracle General "ed#er $ser Guide% 1optional2? 8efine forei!n currency bank accounts and payment documents. *e/ining 5oreign Currency 2an! ccounts Prere'uisites ? 0nable the 9se .ultiple &urrencies Payables option. ? 0nable the currencies you need in the &urrencies #indo#. See$ To de/ine a /oreign currency ban! account3 A. 8efine a basic bank account for receipts or disbursements. ,f you are definin! a bank account for disbursements, in the Payables Options tabbed re!ion, enter Reali3ed 5ain and Reali3ed 4oss "ccounts. Proceed #ith 8efinin! and .aintainin! Payables Payment . &hoose a payment document that uses a payment format #ith the same forei!n currency as the bank account. B. Save your #ork. *e/ining and Maintaining Payables Payment *ocuments

9se the Payment 8ocuments #indo# to define payment documents for an internal bank account. 0*amples of payment documents are checks or electronic payments. You must create at least one payment document before you can use a bank account to create invoice *e/ining Multiple Currency 2an! ccounts " multiple currency bank account is an account that accepts payments in more than one currency. ,f you define a multiple currency bank account for payments, the currency of the bank account must be the same as your functional currency. Prere'uisites ? 0nable the 9se .ultiple &urrencies Payables option. 1Oracle Payables2 ? 0nable the currencies you need in the &urrencies #indo#. To de/ine a multiple currency ban! account3 A. 8efine a basic bank account for receipts or disbursements. ,f you are definin! a bank account for receipts, in the Receivables Options re!ion, enable the .ultiple &urrency Receipts option. ,f you are definin! a bank account for disbursements, in the Payables Options re!ion, enable the .ultiple &urrency Payments option and enter Reali3ed 5ain and Reali3ed 4oss accounts. Proceed #ith 8efinin! and .aintainin! Payables Payment . You can define payment documents that use a payment format #ith any currency. B. Save your #ork. Monthly Pay Integration with ban!s to credit salary ,f you use a third party or custom positive pay pro!ram to notify your bank of ne!otiable and non:ne!otiable checks, you can submit the Positive Pay Report in Payables to create a flat file that contains information for checks you specify. You can then use your positive pay pro!ram to format the payment data in the format required by your bank and transmit the data electronically to your bank. You set up your positive pay pro!ram to periodically dial up your bank and do#nload a list of e*ceptions. "n e*ception is a check that is listed on the file you submitted to your bank that is presented to the bank for cashin! t#ice, or is not on the list, or has an amount different from the amount listed. ,f you do not approve or re-ect an e*ception, the bank #ill pay the check as presented. Future dated payments are included as ne!otiable payments even if they have not yet matured. 1etting"4p Lour 1ystem /or Positive Pay NTo set up Payables /or integration with Positive Pay3 A. ,n your positive pay pro!ram, specify the path for the output of Payables flat file. he file #ill be in your apNout directory. B. Optionally prevent certain users from creatin! positive pay files from the Payment %atches "ctions #indo# by hidin! the &reate Positive Pay check bo* for their responsibility. <. Set your third party or custom positive pay pro!ram to automatically dial the bank at re!ular intervals and do#nload e*ceptions. =. For each bank account you #ill include on positive pay files, confirm that the %ank "ccount number and %ranch number in the %anks #indo# is correct. he positive pay file must contain accurate bank information. For 9.S. based banks, enter the L:di!it "%" transit routin! code in the %ank %ranch >umber field. Prere'uisite ,n the %anks #indo#, enter the %ranch >umber and %ank "ccount >umber for the bank you are usin! for the payment batch. he positive pay file must contain accurate bank information. For 9.S. based banks, enter the L:di!it "%" transit routin! code in the %ank %ranch >umber field. Mass dditions Create Program Run the .ass "dditions &reate pro!ram to transfer capital invoice line distributions from Oracle Payables to Oracle "ssets. For forei!n currency assets, Payables sends the invoice distribution amount in the converted functional currency. he mass addition line appears in Oracle "ssets #ith the functional currency amount. Oracle "ssets creates -ournal entries for the functional currency amount, so you must clear the forei!n currency amount in your !eneral led!er manually.

"fter you create mass additions, you can revie# them in the Prepare .ass "dditions #indo# in Oracle "ssets. Prere'uisites ? Set up your corporate book in Oracle "ssets.? Set up your asset cate!ories in Oracle "ssets for the corporate book you #ant to use #ith mass additions. ? 0nter invoices in Oracle Payables &reate accountin! entries for the invoices. ? ransfer accountin! entries to !eneral led!er.? 0nsure your invoice line distributions meet the necessary criteria to be imported from Payables to Oracle "ssets. N To create mass additions /or #racle ssets3 A. >avi!ate to the Submit Request #indo#. B. &hoose .ass "dditions &reate from the request >ame list of values. <. ,n the Parameters #indo#, enter a 54 8ate and %ook. C. *ate3 Payables creates mass additions from invoice distribution lines #ith 54 dates that are on or before the date you enter in this field. You must enter a date on or before the current date. 2oo!3 0nter the name of the Oracle "ssets corporate book for #hich you #ant to create mass additions. =. &hoose Submit to submit the concurrent request Payables automatically runs the .ass "dditions &reate report so you can revie# a list of the mass additions created. C. Revie# the lo! files and report after the request completes. utomatic Payment Programs ,f you use Oracle Payables, use the "utomatic Payment Pro!rams #indo# to define payment pro!rams. ,f you use Oracle Receivables, use this #indo# to define additional receipt and remittance format pro!rams. Payables users3 9se the "utomatic Payment Pro!rams #indo# to define payment pro!rams that you use to format payment documents and separate remittance advice. You specify #hether each pro!ram is for buildin! payments, formattin! payments, or creatin! a payment remittance advice. Payable predefines one pro!ram for buildin! payments and many standard pro!rams for formattin! payments. Payable also predefines a pro!ram for creatin! a separate remittance advice for payments. You can select these predefined pro!rams #hen you define a payment format, or you can use these pro!rams as templates for creatin! your o#n custom payment pro!rams. $eceivables users3 9se the "utomatic Payment Pro!rams #indo# to define additional receipt format pro!rams you use to create receipt documents such as checks or bills of e*chan!e. You can define as many receipt pro!rams as you #ant. Payable already provides sample receipt pro!rams that you can use to create and format receipt and remittance documents. ,f you need a different automatic receipt pro!ram, then you should copy the sample pro!ram and modify it. You specify #hether each pro!ram is for the creation, printin!, or transmission of automatic receipts or remittances. *e/ining Payment Programs /or Payables and *e/ining $eceipt and $emittance Programs /or $eceivables Payables Prere'uisites ? ,f you are not usin! Payables predefined payment pro!rams, define a payment pro!ram usin! Oracle Reports.? Re!ister your pro!ram in the System "dministrator7s &oncurrent Pro!rams #indo#. Optionally assi!n a default printer to the pro!ram. ,f you do not assi!n a default printer then #hen you use the payment pro!ram, Payables #ill use the printer you defined as your default as the Printer profile option. $eceivables Prere'uisites ? &reate a receipt pro!ram usin! Oracle Reports.? Re!ister your pro!ram in the System "dministrator7s &oncurrent Pro!rams #indo#. To de/ine paymentG receiptG or remittance programs3 A. ,n the "utomatic Payment Pro!rams #indo#, enter a unique >ame for the pro!ram you are definin!. his name #ill appear on a list of values #henever you need to enter the pro!ram name. 0nter a pro!ram ype. 0nter the Re!istered >ame. he concurrent mana!er uses the Re!istered >ame to refer to the payment pro!ram. B. Save your #ork.

utomatic Payment Programs 7indow $e/erence ;ame) he name of the pro!ram you are definin!. his name #ill appear on a list of values #hen you need to enter the name of the pro!ram. ,f you use Receivables, since you use both a format receipts and a transmit receipts pro!ram #ith a sin!le receipt format, you should !ive both the same name. You can use the same name if the pro!ram type is different. Payables Types3 2uild Payments) " pro!ram Payables uses to build payments for the invoices in a payment batch. Payables submits this pro!ram durin! payment batch selection to calculate the payment totals for your payments and determine on #hich payment documents the payment appears. Payables provides a predefined %uild Payments pro!ram called the Standard %uild Payments Pro!ram. Payables uses this standard build pro!ram to !roup the selected invoices for each payment, order the payments usin! the order option you specify in the Payment %atches #indo#, create any necessary overflo# documents, and determine the total number and amount of payments for a payment batch. You do not need to define any additional %uild Payment pro!rams. 9se the Standard %uild Payments Pro!ram that Payables provides. 5ormat Payments) " pro!ram Payables uses to format your payment documents. 8urin! the Format Payments pro!ram, Payables uses your payment format to create the layout of your checks or electronic payments. $emittance dvice) " pro!ram Payables uses to format a separate remittance advice document. For e*ample, you can use a remittance pro!ram to create separate remittance advice documents for your electronic funds transfers.