R12 Payables Features

CSC Proprietary 4/29/2012 3:13:49 AM 008_fmt_blk

R12 Highlights
Oracle Payables is a high-productivity accounting solution that helps to maintain strong financial controls. You can Prevent duplicate payments Pay for only the goods and services that you order and receive MOAC Features added in Payables. Introduction to Invoice lines Improved Invoice Approvals Sub Ledger Accounting in AP (SLA) Suppliers in TCA Banks in TCA Fund Disbursements are handled by Oracle Payments. Defining Tax and Tax calculations are moved to Centralized E-Business Tax. New and Obsolete Database Objects

MOAC in Payables
Multi-Org Access control allow users to enter Invoices or Batches of Invoices for one operating unit and seamlessly enter invoices for another operating unit. Select Invoices across operating units for payment processing within a single payrun.

Introduction to Invoice Lines

Invoice Lines has been added between Invoice Headers and Distributions Each Invoice line can have multiple distributions.

Introduction to Invoice Lines (Contin)

Invoice Lines supports the representation of the goods or services as well as tax, freight, other charges as lines with distributions tied to each line. Additional fields record attributes such as serial numbers, warranty number and item descriptions. Can approve the Invoice at Line levels.

Item Description Serial Number Warranty Number Manufacturer Details

Improved Invoice Approvals

Line Level Approval:
With the introduction invoice lines, Payables is also able to offer line level approval followed by the additional control of invoice level approval. Notification details are targeted to the level of approval required and embedded with a view of the invoice including summary amounts, essential line information, approver sequence, and attachments.

Invoice Dispute Management: Invoices that are on hold due to differences between the purchase order or discrepancies identified by approvers for non-PO invoices can be negotiated with the supplier through email notifications or online via iSupplier Portal. The negotiation process is tracked and updates are made real-time providing immediate information for suppliers, approvers, auditors and Payables users.

Integration with SLA

Oracle Subledger Accounting is a rule-based accounting engine, toolset, and repository that centralizes accounting across the E-Business Suite. Acting as an intermediate step between each of the subledger applications and Oracle General Ledger With the Introduction of SLA payables no longer create accounting entries, instead SLA engine will create and transfers into GL.

Posting to GL

Suppliers in TCA What is TCA?

TCA registry is the single source of party information for multiple Oracle E-Business Suite applications. Structure designed to support complex trading relationships within an organization. TCA is an Architecture and a Modelnot a Module.
In Oracle R12 Suppliers are become TCA party and can be accessed across OUs. Single change in Supplier contacts can be seen instantly by all OUs Payables updates the existing party information to have Party Usage of Supplier, but it does not migrate the employee address to the party site. This implies Data Security. Three new AP tables are introduced and it has links to TCA tables

Suppliers in TCA Model (Contin.)

Access rights to Operating Units

Banks in TCA - Internal Bank Accounts

In 11i
Internal Bank accounts and payment documents are owned by Operating Unit. Internal Banks defined in AP and is shared by AP, AR, CE, Payroll and Treasury. Bank accounts replicated in multiple operating units.

In R12
Bank accounts and payment documents are owned by legal entity. Operating units have granted usage rights. Bank and bank branches become TCA party. Internal banks are defined in Cash Management. Single access points for defining and managing internal bank accounts for AP, AR, CE, Payroll and Treasury.

Banks in TCA (Contin)

Supplier Bank Accounts In 11i
Supplier Banks defined in AP and ownership taken by Payables. Bank accounts and their payment documents are owned by operating unit and it replicates in multiple operating units. OU A

LE
OU B OU C

In R12
Inventory

Supplier Bank details are defined in AP.

Receivables

Projects

Ownership moved to payments. Bank and bank branches become TCA party. Bank accounts and payment documents are owned by legal entity. Operating units have granted usage rights.

Work in Process

Purchasing

Payables

Assets

R12 Bank Architecture

Payments
New central payment engine, Oracle Payments processes invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. The product supports features designed specifically for its two payment process activities: funds disbursement (paying money owed to creditors, such as suppliers) and funds capture (electrically receiving money owed by debtors such as customers).

Oracle iPayment in 11i has been obsolete and now the functionality of iPayment offered by Oracle Payments.

Benefits
Companies are able to efficiently centralize the payment process across multiple organizations, currencies, and regions. Better working capital management can be achieved by providing cash managers realtime visibility into cash inflows and outflows. A full audit trail and control is supported through a single point of payment administration.

Payments (Contin)
In Payables, Fund disbursement functionality has been moved to new Payment module, which provides,

Creation & validation of payments Aggregation of payments into files Format & transmission of files
Where as selection & approval of invoices remains in Payables itself.

Oracle Payments offers a rich library of payment formats that support various types of payment files and messages. Oracle has defined some rules for validation. Oracle Payments offers a new user dashboard for managing the funds disbursement process.

AP/AR Netting
In R12 there is no separate responsibility for AP/AR Netting. When a trading partner is a customer as well as supplier, an agreement may be made to offset open receivables against open payables items. Netting Agreements add trading partner terms as well as deploying company controls. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes prior to determining the final netting amount. A review process and trading partner approval afford further verification to support the netting event

Benefits
AP/AR Netting provides for the ability to collect on your receivables balances with the amount owed for your purchases by offsetting one against the other.

Data Flow from AP to GL

Accounting in 11i AP_INVOICES_ALL AP_INVOICE_DISTRIBUTIONS_ALL AP_ACCOUNTING_EVENTS_ALL XLA_EVENTS_ALL AP_AE_HEADERS_ALL AP_AE_LINES_ALL GL Interface Tables GL_JE_HEADERS GL_JE_LINES XLA_HEADERS_ALL XLA_LINES_ALL GL Interface Tables GL_JE_HEADERS GL_JE_LINES Accounting in R12 AP_INVOICES_ALL AP_INVOICE_LINES_ALL AP_INVOICE_DISTRIBUTIONS_ALL

New and Obsolete Database Objects (Contin)

New Tables Table Name
AP_PREPAY_HISTORY_ALL AP_PREPAY_APP_DISTS AP_NEGOTIATION_HIST AP_PAYMENT_HIST_DISTS CE_BANK_ACCOUNTS CE_PAYMENT_DOCUMENTS IBY_EXTERNAL_PAYMENTS_ALL IBY_PMT_INSTR_USES_ALL

Feature Area
Prepayment Application Prepayment Application distribution for Accounting Hold Resolution Workflow Payment distribution for Accounting Internal Bank Accounts Payment Documents to be used for printed type Payments Payee (Trading Partner information for paying Invoices) Used for Remit to Banking Accounts

New and Obsolete Database Objects (Contin)

Obsolete Tables Table Name
AP_AE_HEADERS_ALL AP_AE_LINES_ALL AP_ACCOUNTING_EVENTS_ALL AP_ENCUMBRANCE_LINES_ALL AP_LINE_APRVL_HIST_ALL

Replaced By
Data moved to XLA_AE_HEADERS Data moved to XLA_AE_LINES Data moved to XLA_EVENTS New Data should be stored XLA_AE_HEADERS AP_INV_APRVL_HIST_ALL

AP_BANK_BRANCHES
AP_BANK_ACCOUNT_USES_ALL AP_BANK_ACCOUNTS_ALL Still existing as Views PO_VENDORS PO_VENDOR_SITES_ALL PO_VENDOR_CONTACTS

CE_BANK_BRANCHES_V
IBY_PMT_INSTR_USES_ALL CE_BANK_USES_OU_V IBY_EXT_BANK_AC AP_SUPPLIERS_ALL AP_SUPPLIER_SITES_ALL AP_SUPPLIER_CONTACTS

The End

CSC Proprietary 4/29/2012 3:13:53 AM 008_fmt_blk

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