Creating Bills Payable Transaction

Overview

The payment method that defaults onto the invoice or is entered in the invoice is what controls
whether that invoice is paid as a bill payable. You can create bills payable using any payment
method if it is enabled for bills payable creation.

Create an invoice using the supplier with Bills Payable payment method enabled.

Assumptions
Replace XX with your terminal number or student number.
You must have access to an Oracle Application database or comparable training or test
instance at your site on which to complete this practice.

Tasks

Prerequisites
Bills Payables setup must be completed.

Entering Bills Payable Invoice

1. Navigate to the Invoices Workbench.

(N) Invoices > Entry > Invoices

Type = Standard
Trading Partner = XYZ Corporation (Supplier where you assigned Bills Payable default
payment method)
Upon entering the Trading Partner name, the following fields are automatically populated:
Supplier Number = <Supplier Number>
Site = <Supplier Site>
Invoice Date = <Current Date> e.g. FUTURE PAY SITE
Invoice Number = <Enter Invoice Number>
Invoice Curr = PHP
Invoice Amount = <Enter Amount>
The following fields are automatically populated:
GL Date = <Current Date>
Payment Curr = PHP
Terms Date = <Current Date>
Terms = IMMEDIATE
Payment Method = <XX Bills Payable>
Pay Group = <Optional>
Line Num 1
Type = Item
Amount = 10,000.00
Description = Test-Bills Payable Invoice
Default Distribution Account:
10-580-7740-0000-000
 Invoice Withholding Tax: < 5% CWTAX RENT >
2. Process Invoice
2.1. Validate
(B) Action {Select} Validate

2.2. Click (B) OK

Invoice is validated.

2.3. Create Accounting

(B) Action Create Accounting

Select = Final

2.4. Click (B) OK

Accounting entry is created for the invoice.

2.5. Approval
(B) Action Create Accounting
For this exercises, select Force Approval

2.6. Click (B) OK

Invoice is approved.

Bills Payable Invoice Payment

Prerequisite:
- Invoice with payment method of bills payable.

3. (N)Payments > Entry > Payments

Payments window is displayed.
4. Enter payment information and pay the invoice.
Type = Quick
Trading Partner = XYZ Corporation
Payment Date = <Current Date>
Bank Account = XXBank Account
Payment Method = XXBills Payable
Payment Profile = XXBP Pay Process Profile
Maturity Date: <Value defaults from the payment method>
5. Click
Select Invoices Window is displayed.
6. Select Bills Payable Invoice from list of values for payment

7. Click (B) OK

8. Click to Save.
9. Click to close Select Invoices Window.
10. Account Payment
10.1. Create Accounting
(B) Action Create Accounting
Select = Final

10.2. Click (B) OK

Accounting entry is created for the invoice payment.

Check Payment status is Issued

Entries upon payment:

Generate Bills Payable Maturity Date Report
Submit Bills Payable Maturity Date report to review the amounts outstanding bills payable due to
mature on a certain date.

11. Submit Bills Payable Maturity Date report

(T)View Request

12. Click (B)

13. Select Single Request Type

14. Click (B) OK

15. Select Request Name from the list of values and parameters
Name = Bills Payable Maturity Date Report (XML)
Operating Unit = FIT DEMO OU

Parameters:
Bank Account = <null>
Maturity Date = <null>
Payee = <null>
Supplier Site =<null>
16. Click (B) Submit
17. Click (B) No

18. Click (B) Find

19. Click (B) View Output
- Review Output
Update the Matured Bills Payable Status
Submit the Update Matured Bills Payable Status program to update the status of your bills payable
from Issued to Negotiable

This program creates journal entries to record the status change of the payment. It then creates
the Matured Bills Payable Report, which lists the updated payments and notifies you of any
exceptions the program encountered.

20. Submit Bills Payable Maturity Date report

(T)View Request

21. Click (B)

22. Select Single Request Type

23. Click (B) OK

24. Select Request Name from the list of values and parameters
Name = Update Matured Bills Payable Status
Operating Unit = FIT DEMO OU
 Parameters:
Maturity Date = <current date>
25. Click (B) Submit
26. Click (B) No

27. Click (B) Find

28. Click (B) View Output
- Review Output

Check Payment status from Issued to Negotiable

Entries After Update Matured Bills Payable Status: