R12 Oracle Financials Functional Migration Fundamentals

Student Guide Volume 5

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July 2007

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Author

Richard Sears, Dee Fairbanks Simpson

Technical Contributors and Reviewers

David Barnacle, Melanie Featherstone, Wallace Gardipe, Theresa Hickman, Anant Iyer, Thierry Javelle, Ruth Kukla, Robert Macisaac, Vic Mitchell, Christine Rudd, Kathryn Wohnoutka

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Table of Contents

Oracle Financials Overview............................................................................................................................1-1

Oracle Financials Overview ..........................................................................................................................1-3Objectives ......................................................................................................................................................1-4Why R12?......................................................................................................................................................1-5Architecture ...................................................................................................................................................1-6Multi-Org Access Control (MOAC)..............................................................................................................1-8Subledger Accounting ...................................................................................................................................1-9Ledger............................................................................................................................................................1-11Ledger Sets ....................................................................................................................................................1-12Ledger Architecture.......................................................................................................................................1-13Legal Organization ........................................................................................................................................1-14Enhanced Legal Support................................................................................................................................1-15Benefits of Legal Entities ..............................................................................................................................1-16Oracle E-Business Tax ..................................................................................................................................1-17Advanced Global Intercompany System .......................................................................................................1-18Centralized Banking ......................................................................................................................................1-19Bank Model Example ....................................................................................................................................1-20Four Ways to Consolidate Information .........................................................................................................1-21Multi-Dimensional Analysis & Reporting.....................................................................................................1-22Financial Consolidation Hub .........................................................................................................................1-23Data Management..........................................................................................................................................1-24XML Publisher ..............................................................................................................................................1-25New Standard Reports ...................................................................................................................................1-26Other New Features .......................................................................................................................................1-27Summary........................................................................................................................................................1-29

Multi-Org Access Control Overview..............................................................................................................2-1

Multi-Org Access Control Overview.............................................................................................................2-3Objectives ......................................................................................................................................................2-4Agenda...........................................................................................................................................................2-5Multi-Org Access Control Description..........................................................................................................2-7Multi-Org Access Control Benefits ..............................................................................................................2-9Multi-Org Access Control Process Summary................................................................................................2-10Multi-Org Access Control Setup ...................................................................................................................2-11Multi-Org Access Control Setup – Create Operating Unit ............................................................................2-12Multi-Org Access Control Setup – Define Security Profile ..........................................................................2-14Multi-Org Access Control Setup – Run System List Maintenance ...............................................................2-15Multi-Org Access Control Setup – Set Profile Options.................................................................................2-16Implementation Considerations .....................................................................................................................2-17Agenda...........................................................................................................................................................2-18Multi-Org Preferences Description................................................................................................................2-19Multi-Org Preferences Benefits .....................................................................................................................2-20Multi-Org Preferences Process Summary.....................................................................................................2-21Multi-Org Preferences Setup .........................................................................................................................2-22Multi-Org Preferences Setup – Add to SubMenu..........................................................................................2-23Multi-Org Preferences Setup – Set Preferences............................................................................................2-24Agenda...........................................................................................................................................................2-25Enhanced Multi-Org Reporting Description..................................................................................................2-26Enhanced Multi-Org Reporting Benefits ......................................................................................................2-27Enhanced Multi-Org Reporting Process ........................................................................................................2-28Enhanced Multi-Org Reporting Process – Run Report.................................................................................2-29Guided Demonstration 1 Overview: Using MOAC......................................................................................2-30

Guided Demonstration - Using MOAC .....................................................................................................2-31

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Summary........................................................................................................................................................2-38

Subledger Accounting Overview ....................................................................................................................3-1

Subledger Accounting Overview...................................................................................................................3-3Objectives ......................................................................................................................................................3-4Agenda...........................................................................................................................................................3-5Subledger Accounting ...................................................................................................................................3-7Subledger Accounting Description................................................................................................................3-8Agenda...........................................................................................................................................................3-10Business Benefits...........................................................................................................................................3-11Business Benefits – Global Example.............................................................................................................3-12Business Benefits...........................................................................................................................................3-14Business Benefits - Auditability ....................................................................................................................3-15Business Benefits – Transaction Example.....................................................................................................3-16Business Benefits...........................................................................................................................................3-17Business Benefits - Accounting Reconciliation.............................................................................................3-18Agenda...........................................................................................................................................................3-19Key Concepts.................................................................................................................................................3-20Event Classes.................................................................................................................................................3-21Events ............................................................................................................................................................3-22Transaction Objects and Sources...................................................................................................................3-23Agenda...........................................................................................................................................................3-24Major Features...............................................................................................................................................3-25Accounting Methods Builder.........................................................................................................................3-27Online Accounting.........................................................................................................................................3-31Inquiries.........................................................................................................................................................3-32Offline Accounting ........................................................................................................................................3-34Standard Reports ...........................................................................................................................................3-35Agenda...........................................................................................................................................................3-36Setup..............................................................................................................................................................3-37Setup - Journal Line Type..............................................................................................................................3-38Setup – Journal Line Type.............................................................................................................................3-39Setup - Journal Line Type..............................................................................................................................3-40Guided Demonstration 1 Overview: Defining Journal Line Types for Payables..........................................3-41

Guided Demonstration - Defining Journal Line Types in Payables...........................................................3-42Practice 1 Overview: Defining Journal Line Types for Payables .................................................................3-44

Practice - Defining Journal Line Types for Payables ................................................................................3-45Solution – Defining Journal Line Types for Payables ...............................................................................3-47

Setup - Account Derivation Rule...................................................................................................................3-52Setup – Account Derivation Rule ..................................................................................................................3-53Setup - Account Derivation Rule...................................................................................................................3-54Guided Demonstration 2 Overview: Defining Account Derivation Rules for Payables...............................3-55

Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................3-56Practice 2 Overview: Defining Account Derivation Rules for Payables ......................................................3-58

Practice - Defining Account Derivation Rules for Payables......................................................................3-59Solution – Defining Account Derivation Rules for Payables ....................................................................3-61

Setup – Journal Entry Description.................................................................................................................3-69Setup – Journal Line Definition.....................................................................................................................3-70Setup - Journal Line Definition .....................................................................................................................3-71Guided Demonstration 3 Overview: Defining Journal Lines Definitions for Payables................................3-72

Guided Demonstration - Defining Journal Lines Definitions for Payables ...............................................3-73Practice 3 Overview: Defining Journal Lines Definitions for Payables .......................................................3-74

Practice - Defining Journal Lines Definitions for Payables.......................................................................3-75Solution – Defining Journal Lines Definitions for Payables .....................................................................3-76

Setup – Application Accounting Definition ..................................................................................................3-80Setup - Application Accounting Definition ...................................................................................................3-81Setup – Subledger Accounting Method .........................................................................................................3-82

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Setup - Subledger Accounting Method..........................................................................................................3-83Ledger Setup and SLAM Assignment ...........................................................................................................3-84Setup – Set Key Profile Options....................................................................................................................3-86Agenda...........................................................................................................................................................3-87Implementation Considerations .....................................................................................................................3-88Summary........................................................................................................................................................3-89

Oracle E-Business Tax Overview ...................................................................................................................4-1

Oracle E-Business Tax Overview..................................................................................................................4-3Objectives ......................................................................................................................................................4-4Agenda...........................................................................................................................................................4-5What is Oracle E-Business Tax (eBTax) .......................................................................................................4-7Agenda...........................................................................................................................................................4-8Business Requirements Met by eBTax..........................................................................................................4-9Business Needs Solutions ..............................................................................................................................4-11Agenda...........................................................................................................................................................4-15Key Concepts: Tax Authority........................................................................................................................4-16Key Concepts: Tax Regime ...........................................................................................................................4-17Key Concepts: Tax ........................................................................................................................................4-18Key Concepts: Tax Jurisdiction.....................................................................................................................4-19Agenda...........................................................................................................................................................4-20Architecture Overview ..................................................................................................................................4-21Agenda...........................................................................................................................................................4-22Processing Taxes for Transactions ................................................................................................................4-23Tax Determination Services Example ...........................................................................................................4-25Agenda...........................................................................................................................................................4-29User Interface ................................................................................................................................................4-30Agenda...........................................................................................................................................................4-32Upgraded and Redesigned Features...............................................................................................................4-33Upgraded and Enhanced Features .................................................................................................................4-34Tax Definition Hierarchy...............................................................................................................................4-35Tax Configuration Ownership .......................................................................................................................4-37Practice 1 Overview: Creating a Regime to Rate Tax Model.......................................................................4-38

Practice - Create a Regime to Rate Tax Model..........................................................................................4-39Solution - Create a Regime to Rate Tax Model .........................................................................................4-45

Tax Defaulting Hierarchy..............................................................................................................................4-53System Options for Tax.................................................................................................................................4-54Tax Groups ....................................................................................................................................................4-55Tax Jurisdiction Handling..............................................................................................................................4-56Practice 2 Overview: Creating Tax Zones....................................................................................................4-58

Practice - Create Tax Zones.......................................................................................................................4-59Solution – Create Tax Zones .....................................................................................................................4-61

Tax Compounding .........................................................................................................................................4-64Tax Inclusiveness ..........................................................................................................................................4-65Tax Recovery.................................................................................................................................................4-67Tax Rounding ................................................................................................................................................4-69Tax Overrides ................................................................................................................................................4-70Offset Taxes...................................................................................................................................................4-72Party Tax Attributes.......................................................................................................................................4-73Practice 3 Overview: Creating a First Party Tax Profile ..............................................................................4-74

Practice - Create a First Party Tax Profile .................................................................................................4-75Solution – Create a First Party Tax Profile ................................................................................................4-77

Multiple Tax Registrations ............................................................................................................................4-80Tax Exemptions.............................................................................................................................................4-82Tax Exceptions ..............................................................................................................................................4-84Tax Formulas.................................................................................................................................................4-85Global Descriptive Flexfields ........................................................................................................................4-87

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Transaction Tax Upgrade ..............................................................................................................................4-88Practice 4 Overview: Creating Transactions with Applicable Tax...............................................................4-90

Practice - Create Transactions with Applicable Tax..................................................................................4-91Solution – Create Transactions with Applicable Tax ................................................................................4-95

New Features .................................................................................................................................................4-100Content and Services Subscription ................................................................................................................4-101Events and Configuration Owner Options.....................................................................................................4-102Tax Jurisdictions............................................................................................................................................4-104Tax Rules.......................................................................................................................................................4-105Practice 5 Overview: Setting Up Tax Rule Defaults ....................................................................................4-106

Practice - Set Up Tax Rule Defaults ..........................................................................................................4-107Solution – Set Up Tax Rule Defaults.........................................................................................................4-108

Fiscal Classifications: Product.......................................................................................................................4-110Fiscal Classifications: Party...........................................................................................................................4-111Fiscal Classifications: Transaction ................................................................................................................4-113Tax Repository ..............................................................................................................................................4-115Practice 6 Overview: Creating Tax Accounts...............................................................................................4-116

Practice - Create Tax Accounts .................................................................................................................4-117Solution – Create Tax Accounts ................................................................................................................4-118

Tax Simulator ................................................................................................................................................4-120Practice 7 Overview: Reviewing Tax Configuration Results Using the Tax Simulator ...............................4-121

Practice - Review Tax Configuration Results Using the Tax Simulator....................................................4-122Solution – Review Tax Configuration Results Using the Tax Simulator ..................................................4-126

Guided Configuration ....................................................................................................................................4-130Profile Options for Tax..................................................................................................................................4-132Upgrade Considerations ................................................................................................................................4-133Implementation Information..........................................................................................................................4-134Summary........................................................................................................................................................4-135

Oracle General Ledger....................................................................................................................................5-1

Oracle General Ledger...................................................................................................................................5-3Objectives ......................................................................................................................................................5-4Agenda – Part 1 .............................................................................................................................................5-5Agenda – Part 2 .............................................................................................................................................5-6Agenda – Part 1 .............................................................................................................................................5-7Accounting Setup ..........................................................................................................................................5-8Accounting Setup Benefits ............................................................................................................................5-11Accounting Setup Manager ...........................................................................................................................5-12Accounting Setup Manager Benefits .............................................................................................................5-14Accounting Setup Process .............................................................................................................................5-15Implementation Considerations .....................................................................................................................5-17Practice 1 Overview - Define a Ledger .........................................................................................................5-18

Practice - Define a Ledger .........................................................................................................................5-19Solution – Define a Ledger........................................................................................................................5-22

Agenda – Part 1 .............................................................................................................................................5-28Multiple Currency Support For General Ledger Data From All Sources ......................................................5-29Multiple Currency Support For General Ledger Data From All Sources Benefits........................................5-32Multiple Currency Support For General Ledger Data From All Sources Process.........................................5-33Implementation Considerations .....................................................................................................................5-34Guided Demonstration 1 Overview: Create Accounting Setup ....................................................................5-35

Guided Demonstration - Create Accounting Setup....................................................................................5-36Agenda – Part 1 .............................................................................................................................................5-43Entered Currency Reporting and Analysis Description.................................................................................5-44Entered Currency Reporting and Analysis Description................................................................................5-45Entered Currency Reporting and Analysis Benefits .....................................................................................5-46Entered Currency Reporting and Analysis Setup ..........................................................................................5-47Agenda – Part 1 .............................................................................................................................................5-48

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Foreign Currency Recurring Journals Description .......................................................................................5-49Foreign Currency Recurring Journals Benefits.............................................................................................5-50Foreign Currency Recurring Journals Process...............................................................................................5-51Implementation Considerations .....................................................................................................................5-52Agenda – Part 1 .............................................................................................................................................5-53Data Access to Multiple Legal Entities and Ledgers Description .................................................................5-54Data Access to Multiple Legal Entities and Ledgers Benefits.......................................................................5-57Data Access to Multiple Legal Entities and Ledgers Process.......................................................................5-58Data Access to Multiple Legal Entities and Ledgers Setup..........................................................................5-59Data Access to Multiple Legal Entities and Ledgers Setup – Assign Data Access Set .................................5-60Guided Demonstration 2 Overview: Create Data Access Sets with Read/Write Access...............................5-61

Guided Demonstration - Create Data Access Sets with Read/Write Access .............................................5-62Implementation Considerations .....................................................................................................................5-65Agenda – Part 1 .............................................................................................................................................5-66Multi-Ledger Processing Description............................................................................................................5-67Multi-Ledger Processing Benefits ................................................................................................................5-69Multi-Ledger Processing ...............................................................................................................................5-70Guided Demonstration 3 Overview: Viewing Ledger Sets ..........................................................................5-71

Guided Demonstration - View Ledger Set.................................................................................................5-72Multi-Ledger Processing Process – Simultaneous Opening and Closing of Periods.....................................5-73Multi-Ledger Processing Process – Simultaneous Year-End Closing Journals.............................................5-74Multi-Ledger Processing Process – Simultaneous Currency Translation.....................................................5-75Multi-Ledger Processing Process – Financial Reporting Across Ledgers ..................................................5-76Multi-Ledger Processing Setup ....................................................................................................................5-77Guided Demonstration 4 Overview: Ledger Set Processing ........................................................................5-78

Guided Demonstration - Ledger Set Processing ........................................................................................5-79Practice 2 Overview: Create a Ledger Set .....................................................................................................5-84

Practice - Create a Ledger Set....................................................................................................................5-85Solution - Create a Ledger Set...................................................................................................................5-88

Agenda – Part 1 .............................................................................................................................................5-93Financial Reports Across Ledgers Description.............................................................................................5-94Financial Reports Across Ledgers Benefits..................................................................................................5-95Financial Reports Across Ledgers Process ...................................................................................................5-96Financial Reports Across Ledgers Setup ......................................................................................................5-97Guided Demonstration 5 Overview FSG Reporting Using Ledger Sets.......................................................5-98

Guided Demonstration - FSG Reporting Using Ledger Sets .....................................................................5-99Agenda – Part 1 .............................................................................................................................................5-101Cross-Ledger and Foreign Currency Allocations Description.....................................................................5-102Cross-Ledger and Foreign Currency Allocations Benefits ...........................................................................5-103Cross-Ledger and Foreign Currency Allocations Setup and Process ...........................................................5-104Agenda – Part 1 .............................................................................................................................................5-105Streamlined Automatic Posting/Reversal Description...................................................................................5-106Streamlined Automatic Posting/Reversal Benefits .......................................................................................5-107Streamlined Automatic Posting/Reversal Setup and Process .......................................................................5-108Agenda – Part 1 .............................................................................................................................................5-109Integrated Web-based Spreadsheet Interface Description .............................................................................5-110Integrated Web-based Spreadsheet Interface Benefits...................................................................................5-112Integrated Web-based Spreadsheet Interface Setup and Process...................................................................5-113Agenda – Part 1 .............................................................................................................................................5-114Journal Copy Description ..............................................................................................................................5-115Journal Copy Benefits ...................................................................................................................................5-116Journal Copy Setup and Process....................................................................................................................5-117Agenda – Part 2 .............................................................................................................................................5-118Streamlined Consolidation Mappings Description .......................................................................................5-119Streamlined Consolidation Mappings Benefits ............................................................................................5-122Streamlined Consolidation Mappings Setup and Process.............................................................................5-123Agenda – Part 2 .............................................................................................................................................5-124

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Replacement for Disabled Accounts Description .........................................................................................5-125Replacement for Disabled Accounts Benefits ..............................................................................................5-126Replacement for Disabled Accounts Setup and Process...............................................................................5-127Agenda – Part 2 .............................................................................................................................................5-128Management Reporting and Security Description........................................................................................5-129Management Reporting and Security ............................................................................................................5-130Management Reporting and Security Benefits .............................................................................................5-133Management Reporting and Security Setup .................................................................................................5-134Agenda – Part 2 .............................................................................................................................................5-135Data Access Security for Legal Entities and Ledgers Description ................................................................5-136Data Access Security for Legal Entities and Ledgers Description ...............................................................5-140Data Access Security for Legal Entities and Ledgers Benefits......................................................................5-142Data Access Security for Legal Entities and Ledgers Setup and Process.....................................................5-143Guided Demonstration 6 Overview: Entering Journals Using Different Balancing Segment Values (BSVs).......................................................................................................................................................................5-145

Guided Demonstration - Enter Journals Using Different Balancing Segment Values (BSVs)..................5-146Agenda – Part 2 .............................................................................................................................................5-148Journal Reversal Enhancements Description and Benefits...........................................................................5-149Journal Reversal Enhancements Setup .........................................................................................................5-150Agenda – Part 2 .............................................................................................................................................5-151Control Accounts Description and Benefits ..................................................................................................5-152Control Accounts Setup and Process .............................................................................................................5-153Agenda – Part 2 .............................................................................................................................................5-154Security for Definitions Description..............................................................................................................5-155Security for Definitions .................................................................................................................................5-157Security for Definitions - Example................................................................................................................5-158Security for Definitions Benefits ..................................................................................................................5-159Security for Definitions Setup and Process ..................................................................................................5-160Guided Demonstration 7 Overview: Defining Definition Access Sets and Secure Definitions ....................5-161

Guided Demonstration - Define Definition Access Sets and Secure Definitions ......................................5-162Agenda – Part 2 .............................................................................................................................................5-165Accounting and Reporting Sequencing Description......................................................................................5-166Accounting and Reporting Sequencing Benefits ..........................................................................................5-167Accounting and Reporting Sequencing Setup and Process ..........................................................................5-168Agenda – Part 2 .............................................................................................................................................5-169Journal Line Reconciliation Description .......................................................................................................5-170Journal Line Reconciliation Benefits............................................................................................................5-171Journal Line Reconciliation Setup and Process ............................................................................................5-172Agenda – Part 2 .............................................................................................................................................5-173Enhanced Intercompany Description.............................................................................................................5-174Enhanced Intercompany Benefits ..................................................................................................................5-175Enhanced Intercompany Accounting and Balancing Rules Process.............................................................5-176Enhanced Balancing Process – Intracompany Journals ................................................................................5-177Enhanced Intercompany Accounting and Balancing Rules Setup................................................................5-179Implementation Considerations .....................................................................................................................5-180Guided Demonstration 8 Overview: Advanced Intercompany Global System .............................................5-181

Guided Demonstration - Advanced Global Intercompany System............................................................5-182Summary........................................................................................................................................................5-199

Oracle Fixed Assets .........................................................................................................................................6-1

Oracle Fixed Assets .......................................................................................................................................6-3Objectives ......................................................................................................................................................6-4Agenda...........................................................................................................................................................6-5Subledger Accounting Architecture Description ...........................................................................................6-7Subledger Accounting Architecture Benefits ................................................................................................6-8Subledger Accounting Process ......................................................................................................................6-9Subledger Accounting Architecture Summary ..............................................................................................6-10

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Guided Demonstration 1 Overview: Performing Asset Inquiries .................................................................6-11Guided Demonstration -Perform Asset Inquiries.......................................................................................6-12

Practice 1 Overview: Performing Asset Inquiries ........................................................................................6-15Practice - Perform Asset Inquiries .............................................................................................................6-16Solution – Perform Asset Inquiries............................................................................................................6-18

Subledger Accounting Setup .........................................................................................................................6-24Agenda...........................................................................................................................................................6-25Enhanced Mass Additions for Legacy Conversions Description...................................................................6-26Guided Demonstration 2 Overview: Adding Assets Using Web ADI..........................................................6-28

Guided Demonstration - Add Assets Using Web ADI ..............................................................................6-29Practice 2 Overview: Adding Assets Using Web ADI (Optional)................................................................6-32

Practice - Add Assets Using Web ADI......................................................................................................6-33Solution – Add Assets Using Web ADI ....................................................................................................6-36

Enhanced Mass Additions for Legacy Conversions Benefits ........................................................................6-39Implementation Considerations .....................................................................................................................6-40Agenda...........................................................................................................................................................6-41Automatic Preparation of Mass Additions Description .................................................................................6-42Automatic Preparation of Mass Additions Benefits ......................................................................................6-43Automatic Preparation of Mass Additions Process.......................................................................................6-44Automatic Preparation of Mass Additions Process .......................................................................................6-45Guided Demonstration 3 Overview: Automatic Preparation of Mass Addition Lines .................................6-46

Guided Demonstration - Automatic Preparation of Mass Addition Lines.................................................6-47Automatic Preparation of Mass Additions Setup..........................................................................................6-56Automatic Preparation of Mass Additions Setup Quickcodes......................................................................6-57Agenda...........................................................................................................................................................6-58Flexible Reporting Using XML Publisher Description .................................................................................6-59Benefits..........................................................................................................................................................6-61Flexible Reporting Using XML Publisher Setup...........................................................................................6-62Flexible Reporting Using XML Publisher Example XML Output...............................................................6-63Agenda...........................................................................................................................................................6-64Automatic Depreciation Rollback Description..............................................................................................6-65Automatic Depreciation Rollback Benefits ...................................................................................................6-66Agenda...........................................................................................................................................................6-67Enhanced Functionality for Energy Industry Description .............................................................................6-68Practice 3 Overview: Setting Up Group Assets (Optional) ..........................................................................6-69

Practice - Set Up Group Assets..................................................................................................................6-70Solution – Set Up Group Assets ................................................................................................................6-72

Summary........................................................................................................................................................6-74

Oracle Purchasing ...........................................................................................................................................7-1

Oracle Purchasing..........................................................................................................................................7-3Objectives ......................................................................................................................................................7-4Agenda Part 1 ................................................................................................................................................7-5Agenda Part 2 ................................................................................................................................................7-6Agenda Part 1 ................................................................................................................................................7-7Professional Buyer's Work Center Description .............................................................................................7-8Professional Buyer's Work Center Benefits...................................................................................................7-9Professional Buyer's Work Center Overview ................................................................................................7-10Professional Buyer's Work Center Requisition Management........................................................................7-11Guided Demonstration 1 Overview: Using Professional Buyer's Work Center ...........................................7-13

Guided Demonstration - Using the Buyer's Work Center..........................................................................7-14Practice 1 Overview: Creating a Purchase Order in the Buyer's Work Center ..............................................7-17

Practice - Create a Purchase Order in the Buyer's Work Center................................................................7-18Solution - Create a Purchase Order in the Buyer's Work Center ...............................................................7-19

Professional Buyer's Work Center Requisition Management – Key Profile Options...................................7-22Implementation Considerations .....................................................................................................................7-25Agenda Part 1 ................................................................................................................................................7-26

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Enhanced Catalog Access Description ..........................................................................................................7-27Enhanced Catalog Access Benefits................................................................................................................7-28Enhanced Catalog Access Setup Preferences ................................................................................................7-29Agenda Part 1 ................................................................................................................................................7-30Document Styles Description ........................................................................................................................7-31Document Styles Benefits .............................................................................................................................7-32Document Styles Process – Source Document Reference .............................................................................7-33Guided Demonstration 2 Overview: Creating and Using Document Styles .................................................7-34

Guided Demonstration - Using Document Styles......................................................................................7-35Agenda Part 1 ................................................................................................................................................7-37Procurement for Complex Services Description............................................................................................7-38Procurement for Complex Services High Level Business Flow....................................................................7-39Procurement for Complex Services New Purchasing Features.....................................................................7-40Procurement for Complex Services Benefits................................................................................................7-42Implementation Considerations .....................................................................................................................7-43Agenda Part 1 ................................................................................................................................................7-46Multi-Org Access Control Description..........................................................................................................7-47Multi-Org Access Control Benefits ...............................................................................................................7-48MOAC Effects – Forms and Pages................................................................................................................7-49Multi-Org Access Control Public APIs ........................................................................................................7-50Agenda Part 1 ................................................................................................................................................7-51E-Business Tax Description .........................................................................................................................7-52E-Business Tax Benefits................................................................................................................................7-53E-Business Tax Process – Tax Calculation ..................................................................................................7-54E-Business Tax Setup...................................................................................................................................7-55Implementation Considerations .....................................................................................................................7-56Agenda Part 1 ................................................................................................................................................7-57Document Publishing Enhancements Description.........................................................................................7-58Document Publishing Enhancements Benefits ..............................................................................................7-60Document Publishing Enhancements Setup and Process .............................................................................7-61Document Publishing Enhancements Setup – PDF Template ......................................................................7-62Document Publishing Enhancements Setup – RTF Template ......................................................................7-63Document Publishing Enhancements Setup – Upload Template..................................................................7-64Document Publishing Enhancements Process – Printing in Procurement Flow...........................................7-65Document Publishing Enhancements Process – Print Purchasing Document ..............................................7-66Implementation Considerations .....................................................................................................................7-67Agenda Part 1 ................................................................................................................................................7-68Document Attachments Description.............................................................................................................7-69Document Attachments Benefits ..................................................................................................................7-71Document Attachments Process ...................................................................................................................7-72Document Attachments Setup .......................................................................................................................7-73Document Attachments Setup – Define Purchasing Options .......................................................................7-74Agenda Part 1 ................................................................................................................................................7-75Oracle Supplier Network Description............................................................................................................7-76Transacting Over Oracle Supplier Network ..................................................................................................7-77Oracle Supplier Network Support Transactions with Purchasing..................................................................7-78Oracle Supplier Network Benefits.................................................................................................................7-79Oracle Supplier Network New Features ........................................................................................................7-80Implementation Considerations .....................................................................................................................7-81Agenda Part 2 ................................................................................................................................................7-82Maintain Sourcing Rules/ASLs for Agreement Items ...................................................................................7-83Maintain Sourcing Rules/ASLs for Agreement Items Benefits.....................................................................7-84Maintain Sourcing Rules/ASLs for Agreement Items - Define Rules for a Specific Plant ...........................7-85Agenda Part 2 ................................................................................................................................................7-87Support for Contractor Purchasing Users Description...................................................................................7-88Support for Contractor Purchasing Users Benefits ........................................................................................7-89Support for Contractor Purchasing Users Setup ...........................................................................................7-90

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Support for Contractor Purchasing Users Setup – Set Profile Option ..........................................................7-91Implementation Considerations .....................................................................................................................7-92Agenda Part 2 ................................................................................................................................................7-93Compliance to Packaging Constraints Description........................................................................................7-94Compliance to Packaging Constraints Benefits .............................................................................................7-96Compliance to Packaging Constraints Process Summary..............................................................................7-97Compliance to Packaging Constraints Process – Apply Order Modifiers .....................................................7-98Compliance to Packaging Constraints Process – Perform UOM Conversion ...............................................7-99Compliance to Packaging Constraints Process – Perform Quantity Rounding..............................................7-100Compliance to Packaging Constraints Setup and Process .............................................................................7-101Implementation Considerations .....................................................................................................................7-103Agenda Part 2 ................................................................................................................................................7-104Auto-Approval Tolerances for Change Orders Description ..........................................................................7-105Auto-Approval Tolerances for Change Orders Setup and Process................................................................7-106Agenda Part 2 ................................................................................................................................................7-107EAM Support for Services Procurement Description....................................................................................7-108EAM Support for Services Procurement Setup and Process .........................................................................7-109Additional Considerations .............................................................................................................................7-111Implementation Considerations .....................................................................................................................7-112Agenda Part 2 ................................................................................................................................................7-113Model Complex Pricing for Blanket Line Items Description ........................................................................7-114Model Complex Pricing for Blanket Line Items Benefits .............................................................................7-116Model Complex Pricing for Blanket Line Items Setup and Process..............................................................7-117Model Complex Pricing for Blanket Line Items Pricing Hierarchy ..............................................................7-118Model Complex Pricing for Blanket Line Items Profile Options ..................................................................7-119Implementation Considerations .....................................................................................................................7-123Agenda Part 2 ................................................................................................................................................7-124Mass Re-pricing of Purchasing Documents Description ...............................................................................7-125Mass Re-pricing of Purchasing Documents Benefits ...................................................................................7-126Mass Re-pricing of Purchasing Documents Process.....................................................................................7-127Implementation Considerations .....................................................................................................................7-128Agenda Part 2 ................................................................................................................................................7-129New User Interface for Oracle Purchasing Setups Description .....................................................................7-130New User Interface for Oracle Purchasing Setups Benefits .........................................................................7-132Agenda Part 2 ................................................................................................................................................7-133Advanced Approval Support for Requisitions Description ...........................................................................7-134Advanced Approval Support for Requisitions Benefits.................................................................................7-135Advanced Approval Support for Requisitions Parallel Approvals ...............................................................7-136Advanced Approval Support for Requisitions Voting Method.....................................................................7-137Advanced Approval Support for Requisitions Position Hierarchy Support .................................................7-138Advanced Approval Support for Requisitions Setup and Process .................................................................7-139Implementation Considerations .....................................................................................................................7-140Summary........................................................................................................................................................7-141

Oracle Accounts Payable ................................................................................................................................8-1

Oracle Accounts Payable...............................................................................................................................8-3Objectives ......................................................................................................................................................8-4Practices 1, 2, and 3 Overview: Prerequisite Practices ..................................................................................8-5

Practice - Create a New Employee (Required) ..........................................................................................8-6Solution - Create a New Employee (Required) .........................................................................................8-8Practice - Create a New User.....................................................................................................................8-11Solution - Create a New User ....................................................................................................................8-12Practice - Set Yourself Up As a Buyer (Required) ....................................................................................8-14Solution - Set Yourself Up As a Buyer......................................................................................................8-15

Agenda...........................................................................................................................................................8-17Suppliers in the Trading Community Architecture (TCA) ...........................................................................8-19TCA Security by Functional Areas................................................................................................................8-20

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Payment Banks, Branches, and Accounts......................................................................................................8-21Supplier Bank Accounts ................................................................................................................................8-22Collaboration with Suppliers to Resolve Disputes ........................................................................................8-23Invoice Requests............................................................................................................................................8-24Implementation Considerations .....................................................................................................................8-25Practice 4 Overview: Creating a Supplier......................................................................................................8-26

Practice - Create a Supplier With Two Sites .............................................................................................8-27Solution - Create a Supplier With Two Sites.............................................................................................8-30

Agenda...........................................................................................................................................................8-45Deferred Recoverability ................................................................................................................................8-46Deferred Recoverability Features ..................................................................................................................8-47Deferred Recoverability Benefits ..................................................................................................................8-48Deferred Recoverability Process Part 1: Set Up and Invoice .......................................................................8-49Deferred Recoverability Process Part 2: Set Up and Payment .....................................................................8-50Setup Taxes with Deferred Recoverability ....................................................................................................8-51Implementation Considerations .....................................................................................................................8-52Agenda...........................................................................................................................................................8-53Enhanced Asset Tracking ..............................................................................................................................8-54Enhanced Asset Tracking Benefits ................................................................................................................8-55Enhanced Asset Tracking Process .................................................................................................................8-56Invoice Lines .................................................................................................................................................8-57Implementation Considerations .....................................................................................................................8-58Practice 5 Overview: Matching to Purchase Order........................................................................................8-59

Practice - Match to Purchase Order ...........................................................................................................8-60Solution - Match to Purchase Order ..........................................................................................................8-64

Agenda...........................................................................................................................................................8-71Payment Requests Key Concepts ..................................................................................................................8-72Payment Requests Description ......................................................................................................................8-73Payment Requests Benefits............................................................................................................................8-75Payment Requests Process.............................................................................................................................8-76Oracle Receivables – Refund Example .........................................................................................................8-77Funds Disbursement Process- Loans .............................................................................................................8-78Payment Request – Additional Payables Actions..........................................................................................8-79Payment Requests: Synchronizing Between Products..................................................................................8-80Payment Requests Reporting.........................................................................................................................8-81Payment Requests Optional Setup.................................................................................................................8-82Payment Requests Miscellaneous Set up.......................................................................................................8-83Implementation Considerations .....................................................................................................................8-84Agenda...........................................................................................................................................................8-85Payment Method Controls and Enhanced Payment Information...................................................................8-86Key Concepts.................................................................................................................................................8-87Evaluate Payment Choices – Reporting and Payment Instruction Requirements..........................................8-90Enhanced Payment Method Controls Description.........................................................................................8-94Enhanced Payment Method Controls Benefits ..............................................................................................8-95Enhanced Payment Method Controls Process – Enter Payables Document ..................................................8-96Expanded Payment Attribute Availability and Defaulting - Definition.........................................................8-99Expanded Payment Attribute Availability and Defaulting Description.........................................................8-100Expanded Payment Attribute Availability and Defaulting - Benefits............................................................8-101Expanded Payment Attribute Availability and Defaulting – Enter Payables Document ...............................8-102Expanded Payment Attribute Availability and Defaulting - Payment Attributes Defaulting ........................8-103Expanded Payment Attribute Availability and Defaulting - UI.....................................................................8-104Practice 6 Overview: Entering Quick Invoices..............................................................................................8-105

Practice - Enter Quick Invoices .................................................................................................................8-106Solution - Enter Quick Invoices.................................................................................................................8-109

Configurable Payment Attribute Validation Description...............................................................................8-112Configurable Payment Attribute Validation Benefits....................................................................................8-113Configurable Payment Attribute Validation Invoice: Scheduled Payment Holds .........................................8-114

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Configurable Payment Attribute Validation Invoice: Invoice on Hold Report .............................................8-115Practice 7 Overview: Running Hold Reports.................................................................................................8-116

Practice - Run Hold Reports ......................................................................................................................8-117Solution – Run Hold Reports.....................................................................................................................8-118

Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-119Practice 8 Overview: Create a Payment Process Request Template..............................................................8-121

Practice - Create a Payment Process Request Template ............................................................................8-122Solution - Create a Payment Process Request Template ...........................................................................8-124

Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-127Practice 9 Overview: Creating a Payment Process Request ..........................................................................8-129

Practice - Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check...................................................................................................................................................................8-130Solution – Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check.........................................................................................................................................................8-134

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting - Benefits..............8-143Expanded Payment Attribute Availability Payment Instruction Formats and Reporting ..............................8-144Payment Instruction Formats and Reporting XML Publisher Templates ......................................................8-145Payment Instruction Formats & Reporting XML Publisher Templates.........................................................8-146Expanded Payment Attribute Availability Payment Instruction Formats and Reporting .............................8-147Formats & Reporting Payment Process .........................................................................................................8-148Formats and Reporting Payment Process ......................................................................................................8-149Formats & Reporting Payment Process .........................................................................................................8-150Formats and Reporting Payment Process ......................................................................................................8-151Formats & Reporting Payment Process .........................................................................................................8-152Setup Payment Method Controls and Enhanced Payment.............................................................................8-153Configurable Payment Attribute Validation Setup .......................................................................................8-154Configurable Payment Attribute Validation Setup Consideration................................................................8-155Configurable Payment Attribute Validation Setup: View Available Validations..........................................8-157Configurable Payment Attribute Validation Setup – Payment Methods .......................................................8-158Configurable Payment Attribute Validation Setup: Payment Process Format ..............................................8-159Configurable Payment Attribute Validation Setup: Payment Process Profile ...............................................8-160Expanded Payment Attribute Availability Payment Instruction Formats and Reporting Setup ....................8-161Enhanced Payment Method Controls Setup ..................................................................................................8-162Expanded Payment Attribute Availability and Defaulting - Setup................................................................8-163Implementation Considerations .....................................................................................................................8-164Agenda...........................................................................................................................................................8-165Self Assessed Tax Description ......................................................................................................................8-166Self Assessed Tax Features ...........................................................................................................................8-167Self Assessed Tax Benefits............................................................................................................................8-168Self Assessed Tax Predetermined Process.....................................................................................................8-169Self Assessed Tax Process – 1. Predetermined..............................................................................................8-170Self Assessed Tax: Predetermined Process – Invoice Entry..........................................................................8-171Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-172Self Assessed Tax: Predetermined Process – Calculate Tax Example .........................................................8-173Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-174Self Assessed Tax Process – Account ...........................................................................................................8-175Self Assessed Tax Setup – Reporting Choices ..............................................................................................8-177Self Assessed Tax Process – Report ..............................................................................................................8-179Self Assessed Tax Manual Determination Process........................................................................................8-180Self Assessed Tax Process – 2. Manual Determination.................................................................................8-181Self Assessed Tax: Manual Determination Set Up - E-Business Tax Controls.............................................8-182Self Assessed Tax: Manual Determination Process – Invoice Entry.............................................................8-183Self Assessed Tax: Manual Determination Process – Calculate Tax ............................................................8-184Self Assessed Tax: Manual Determination Process – Calculate Tax Example .............................................8-185Setup Self Asessed Tax .................................................................................................................................8-187Self Assessed Tax: Predetermined Set Up First Party, Party Tax Profile......................................................8-188Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile...................................................8-189

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Self Assessed Tax: Predetermined Set Up – Supplier Party Tax Profile .......................................................8-190Implementation Considerations .....................................................................................................................8-191Agenda...........................................................................................................................................................8-192Oracle Payables For Complex Contract Terms .............................................................................................8-193Oracle Payables for Complex Contract Terms Benefits ................................................................................8-194Complex Contract Terms Key Concepts .......................................................................................................8-195Oracle Procurement to Payables: High Level Business Flow.......................................................................8-197Integrated Products: High Level Business Flow............................................................................................8-203Oracle e-Business Tax Setup: Tax Configuration .........................................................................................8-204Business Flow: Payables Distinction.............................................................................................................8-205Contract Delivery Invoicing ..........................................................................................................................8-206Invoice Workbench: Contract Delivery Invoices ..........................................................................................8-207Oracle Payables: Ensure Billing Compliance ................................................................................................8-208Oracle Payables: Tolerances and Holds.........................................................................................................8-209Oracle Payables: Holds Notification Options ................................................................................................8-211Practices 10 and 11 Overview: Placing and Releasing Holds.......................................................................8-212

Practice - Place a Hold on an Invoice ........................................................................................................8-213Solution - Place a Hold on an Invoice .......................................................................................................8-214Practice - Release Holds ............................................................................................................................8-215Solution - Release Holds ...........................................................................................................................8-216

Oracle Payables for Complex Contract Terms Benefits ................................................................................8-217Oracle Procurement to Payables: Setup Overview ........................................................................................8-218Oracle Procurement Setup .............................................................................................................................8-219Payables Setup: Financial Options ................................................................................................................8-221Payables Setup – Payables Options ...............................................................................................................8-222Payables Setup: Invoice Tolerances ..............................................................................................................8-223Shared Setup: Supplier Terms & Controls ....................................................................................................8-224Oracle Approvals Management Setup Approval Rules .................................................................................8-225Oracle eBusiness Tax Setup: Tax Configuration...........................................................................................8-226Prepayments: Tax Configuration Example....................................................................................................8-227Practice 12 Overview: Setting Up US Sales Tax..........................................................................................8-228

Practice - Set Up US Sales Tax .................................................................................................................8-229Solution – Set Up US Sales Tax ................................................................................................................8-235

Practice 13 Overview: Entering an Invoice with US Sales Tax Lines...........................................................8-244Practice - Enter an Invoice with US Sales Tax Lines ................................................................................8-245Solution - Enter an Invoice with US Sales Tax Lines................................................................................8-246

Implementation Considerations .....................................................................................................................8-248Agenda...........................................................................................................................................................8-250Multi-Org Access Control in Payables Description.......................................................................................8-251Multi-Org Access Control in Payables Benefits ............................................................................................8-254Multi-Org Access Control Process ................................................................................................................8-255Multi-Org Access Control Process, Invoice Entry ........................................................................................8-256Multi-Org Access Control Process, Payment Templates...............................................................................8-258Multi-Org Access Control Process, Controlling Payables Periods...............................................................8-259Multi-Org Access Control Process, Submitting Concurrent Request ...........................................................8-260Multi-Org Access Control Process, Submitting Standard Report..................................................................8-261Multi-Org Access Control Process, Open Account Balances Listing Report................................................8-262Multi-Org Access Control Setup ...................................................................................................................8-263Multi-Org Access Control Payables Setup ....................................................................................................8-264Implementation Considerations .....................................................................................................................8-265Summary........................................................................................................................................................8-266

Oracle Receivables...........................................................................................................................................9-1

Oracle Receivables ........................................................................................................................................9-3Objectives ......................................................................................................................................................9-4Practice 1 Overview: Modify Your Responsibilities .....................................................................................9-5

Practice - Modify Your Responsibilities....................................................................................................9-6

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Solution - Modify Your Responsibilities...................................................................................................9-7Agenda...........................................................................................................................................................9-8New and Changed Features for Balance Forward Billing .............................................................................9-10Balance Forward Billing Description ............................................................................................................9-11Balance Forward Billing Benefits .................................................................................................................9-14Balance Forward Billing Setup and Process..................................................................................................9-16Balance Forward Billing Setup Define Billing Cycle....................................................................................9-18Balance Forward Billing Setup Define Payment Term .................................................................................9-20Balance Forward Billing Setup Customer Profile Class................................................................................9-22Practice 2 Overview: Create a Customer Class Profile..................................................................................9-24

Practice - Create a Customer Profile Class ................................................................................................9-25Solution - Create a Customer Profile Class ...............................................................................................9-26

Practices 3-7 Overview: Prerequisite Practices .............................................................................................9-27Practice - Create a Customer Using the Customers Set of Pages...............................................................9-28Solution - Create a Customer Using the Customers Set of Pages..............................................................9-30Practice - Add Customer Details Using the Customers Set of Pages.........................................................9-32Solution - Add Customer Details Using the Customers Set of Pages........................................................9-35Practice - Add Account Details Using the Customers Set of Pages...........................................................9-38Solution - Add Account Details Using the Customers Set of Pages..........................................................9-41Practice - Add Account Site Details Using the Customers Set of Pages ...................................................9-45Solution - Add Account Site Details Using the Customers Set of Pages...................................................9-49Practice - Create a Customer Account Relationship ..................................................................................9-54Solution - Create a Customer Account Relationship .................................................................................9-55

Balance Forward Billing Setup Account & Site Profile ................................................................................9-56Balance Forward Billing Setup Account Level Bill Example .......................................................................9-58Balance Forward Billing Setup Site Level Bill Example .............................................................................9-59Oracle BPA Rules Setup................................................................................................................................9-60Balance Forward Billing Process Enter Transaction ....................................................................................9-62Balance Forward Billing Process Imported Transactions.............................................................................9-63Balance Forward Billing Process Creating Bills ..........................................................................................9-64Balance Forward Billing Process Generating Bill Logic..............................................................................9-65Balance Forward Billing Use Cases ..............................................................................................................9-67Balance Forward Billing Process Generate Bill Program.............................................................................9-68Balance Forward Billing Process Confirm Bill .............................................................................................9-70Summary Balance Forward Bill Example .....................................................................................................9-72Detail Balance Forward Bill ..........................................................................................................................9-73Balance Forward Billing Process BPA Print Program..................................................................................9-74Balance Forward Billing Process Disable Payment Terms ...........................................................................9-76Balance Forward Billing Process Change Payment Terms ..........................................................................9-77Balance Forward Billing Dependencies and Interactions .............................................................................9-78Balance Forward Billing Functional Upgrade Script....................................................................................9-79Demo 1 Overview: Balance Forward Billing ................................................................................................9-82

Guided Demonstration - Balance Forward Billing ....................................................................................9-83Practice 8: Overview Printing Balance Forward Bills ..................................................................................9-89

Practice - Print Balance Forward Bills.......................................................................................................9-90Solution - Print Balance Forward Bills......................................................................................................9-92

Agenda...........................................................................................................................................................9-95Credit Card Chargeback Description.............................................................................................................9-96Credit Card Chargeback Benefits ..................................................................................................................9-98Credit Card Chargeback Process ...................................................................................................................9-99Credit Card Chargeback Process Receive Receipt .......................................................................................9-102Credit Card Chargeback Process Record Credit Card Chargeback ..............................................................9-104Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-105Credit Card Chargeback Process Validate Credit Card Chargeback .............................................................9-106Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-107Credit Card Chargeback Setup ......................................................................................................................9-108Practices 9-11 Overview: Applying and Updating a Receipt at Line Level ..................................................9-109

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Practice - Create an Invoice .......................................................................................................................9-110Solution - Create an Invoice ......................................................................................................................9-111Practice - Enter a Manual Receipt .............................................................................................................9-112Solution - Enter a Manual Receipt.............................................................................................................9-113Practice - Apply and Update Receipt at Line Level...................................................................................9-114Solution - Apply and Update Receipt at Line Level..................................................................................9-115

Agenda...........................................................................................................................................................9-117Legal Entity Background...............................................................................................................................9-118Legal Entity Model........................................................................................................................................9-119Legal Entity Background...............................................................................................................................9-120Legal Entity Description................................................................................................................................9-121Legal Entities and Accounting.......................................................................................................................9-122Legal Entities and Shared Accounting...........................................................................................................9-123Legal Entity Description Defaulting for Transactions...................................................................................9-124Legal Entity Description Defaulting for Transactions..................................................................................9-125Legal Entity Description Defaulting for Receipts ........................................................................................9-126Legal Entity Benefits .....................................................................................................................................9-128Legal Entity Setup and Automated Process...................................................................................................9-129Legal Entity Setup Update Transaction Type...............................................................................................9-131Legal Entity Setup Update Batch Source .....................................................................................................9-132Legal Entity Process - AutoInvoice ...............................................................................................................9-133Legal Entity Setup and Manual Process ........................................................................................................9-136Legal Entity Process – Manual Transaction ..................................................................................................9-138Legal Entity Process – On Account Credit Memos .......................................................................................9-139Legal Entity Process – Bills Receivable ........................................................................................................9-140Legal Entity Process - Receipts .....................................................................................................................9-141Legal Entity Process – Claim LE Defaulting.................................................................................................9-142Implementation Considerations .....................................................................................................................9-143Agenda...........................................................................................................................................................9-144E-Business Tax..............................................................................................................................................9-145Receivables E-Business Tax Integration Key Benefits.................................................................................9-146E-Business Suite Tax Prior to Release 12 .....................................................................................................9-148E-Business Suite Tax Integration 12.0 ..........................................................................................................9-149Architecture of a Tax Line in E-Business Tax...............................................................................................9-150Example of US Sales Tax in 12.0..................................................................................................................9-152Example of UK VAT Tax in 12.0 .................................................................................................................9-153Migrating Taxes from 11.5 to 12.0 ................................................................................................................9-154Migrating of Tax Codes and Tax Group Codes.............................................................................................9-156Use of Tax Rate Codes in Receivables..........................................................................................................9-158Use of Tax Classifications in Receivables.....................................................................................................9-159Setting Up New Taxes in E-Business Tax.....................................................................................................9-160Receivables Specific Tax Setups ...................................................................................................................9-162System Options..............................................................................................................................................9-163Customer Tax ................................................................................................................................................9-164Transaction Type ...........................................................................................................................................9-165Receivables Activity......................................................................................................................................9-166Adjustments, Receipt Discounts, and Recoverable Tax ................................................................................9-167Standard Memo Lines....................................................................................................................................9-168Legal Entity and Ship To...............................................................................................................................9-169Transactions and Migrated Taxes ..................................................................................................................9-171Transactions and Migrated Taxes: Key Differences.....................................................................................9-172Transactions and New Taxes .........................................................................................................................9-174Transactions and Manual Taxes ....................................................................................................................9-175Implementation Considerations .....................................................................................................................9-176Agenda...........................................................................................................................................................9-177Subledger Accounting Overview...................................................................................................................9-178Subledger Accounting Benefits .....................................................................................................................9-179

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Subledger Accounting in Receivables Overview ..........................................................................................9-180Subledger Accounting in Receivables Benefits .............................................................................................9-181Subledger Accounting in Receivables Process Submit Accounting Program ...............................................9-182Subledger Accounting in Receivables Process Create/View Accounting ....................................................9-183Subledger Accounting in Receivables Process Online Create Accounting ...................................................9-184Subledger Accounting in Receivables Setup .................................................................................................9-185Subledger Accounting in Receivables Setup Ledgers and SLAMs ...............................................................9-186Subledger Accounting in Receivables Setup Sources for Accounting Definitions........................................9-187Subledger Accounting in Receivables Setup Predefined Event Classes/Types .............................................9-188Subledger Accounting in Receivables Setup AR Predefined Event Classes/Types .....................................9-189Subledger Accounting in Receivables Setup Anatomy of a Journal Entry....................................................9-190Subledger Accounting in Receivables Setup Journal Line Types .................................................................9-191Subledger Accounting in Receivables Setup Account Derivation Rule ........................................................9-192Subledger Accounting in Receivables Setup Journal Line Definition of Invoices ........................................9-193Subledger Accounting in Receivables Setup Assigning the JLD to the AAD...............................................9-194Subledger Accounting in Receivables Setup Assigning the AAD to the SLAM...........................................9-195Subledger Accounting in Receivables Setup Assigning the SLAM to the Ledger ........................................9-196Subledger Accounting in Receivables Setup Predefined SLAMs ................................................................9-197Subledger Accounting in Receivables Process Invoice Accounting..............................................................9-198Subledger Accounting in Receivables Process Multi-Fund Receivables Accounting ...................................9-199Subledger Accounting in Receivables Process Adjustment Accounting .......................................................9-200Subledger Accounting in Receivables Process Receipt Application Accounting..........................................9-201Implementation Considerations .....................................................................................................................9-203Agenda...........................................................................................................................................................9-204Obsolescence and Replacement of Features Description ..............................................................................9-205Demo 2 Overview: Oracle Advanced Collections.........................................................................................9-206

Guided Demonstration - Oracle Advanced Collections.............................................................................9-207Obsolescence and Replacement of Features Description ..............................................................................9-209Practice 12 Overview: Using the New Customer Standard HTML Interface................................................9-215

Practice - Using the New Customer Standard HTML Interface ................................................................9-216Solution - Using the New Customer Standard HTML Interface................................................................9-218

Obsolescence and Replacement of Features Description ..............................................................................9-222Obsolescence and Replacement of Features Benefits....................................................................................9-223Transition to New Features Collections Workbench ....................................................................................9-224Transition to New Features Collections Workbench - Menu and Forms......................................................9-226Transition to New Features Collections Workbench - Account Details .......................................................9-228Transition to New Features Collections Workbench - Dunning Reprint ......................................................9-229Transition to New Features Bills Receivable.................................................................................................9-230Transition to New Features Trade Accounting..............................................................................................9-231Transition to New Features Customer Standard Form..................................................................................9-232Transition to New Features Tax Setup and Calculation ...............................................................................9-233Transition to New Features Tax Reporting...................................................................................................9-234Transition to New Features Subledger Accounting ......................................................................................9-235Transition to New Features COGS and Revenue Matching .........................................................................9-236Transition to New Features AR Customer Supplier Netting ........................................................................9-237Transition to New Features On Account Credit Memo Refund ...................................................................9-238Transition to New Features Consolidated Billing.........................................................................................9-239Agenda...........................................................................................................................................................9-240Centralized Payment Process Description .....................................................................................................9-241Centralized Payment Process Setup and Process...........................................................................................9-244Centralized Payment Process Setup Create Receipt Class/Method ...............................................................9-245Centralized Payment Process Process Invoice Payment...............................................................................9-247Centralized Payment Process Error Handling................................................................................................9-248Centralized Payment Process Setup Customer's Payment Details.................................................................9-249Implementation Considerations .....................................................................................................................9-250Agenda...........................................................................................................................................................9-251Automated Refunds Description....................................................................................................................9-252

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Automated Refunds Setup and Process .........................................................................................................9-253Automated Refunds Setup Receivables Activity...........................................................................................9-254Automated Refunds Setup Transaction Sources............................................................................................9-255Automated Refunds Process Applications Form ...........................................................................................9-257Automated Refunds Process New Refund Attributes Form ..........................................................................9-258Automated Refunds Process View Refund Status .........................................................................................9-259Implementation Considerations .....................................................................................................................9-260Agenda...........................................................................................................................................................9-261AP/AR Netting Description...........................................................................................................................9-262AP/AR Netting Benefits ................................................................................................................................9-263AP/AR Netting Process Access .....................................................................................................................9-264AP/AR Netting Process Accessing................................................................................................................9-265Demo 3 Overview: AP/AR Netting ...............................................................................................................9-266

Demo - AP/AR Netting .............................................................................................................................9-267Agenda...........................................................................................................................................................9-272Daily Revenue Description............................................................................................................................9-273Daily Revenue Setup and Process .................................................................................................................9-278Daily Revenue Setup Accounting Rules........................................................................................................9-279Daily Revenue Process Create Invoice Line..................................................................................................9-280Implementation Considerations .....................................................................................................................9-281Agenda...........................................................................................................................................................9-282Revenue Contingencies Overview.................................................................................................................9-283Revenue Contingencies Description..............................................................................................................9-284Revenue Contingencies Setup and Process....................................................................................................9-287Revenue Contingencies Setup Policy Threshold ...........................................................................................9-288Revenue Contingencies Setup Seeded Contingencies ..................................................................................9-289Revenue Contingencies Setup Contingency Codes/ID..................................................................................9-290Revenue Contingencies Setup Create Rules ..................................................................................................9-291Revenue Contingencies Process Contingency Assignment ..........................................................................9-292Revenue Contingency Process Manage Contingencies ................................................................................9-293Implementation Considerations .....................................................................................................................9-294Practice 13 Overview: Setting Up Revenue Contingencies..........................................................................9-295

Practice - Set Up Revenue Contingencies .................................................................................................9-296Solution – Set Up Revenue Contingencies ................................................................................................9-298

Agenda...........................................................................................................................................................9-300COGS and Revenue Matching Description ...................................................................................................9-301COGS and Revenue Matching Benefits ........................................................................................................9-302COGS and Revenue Matching Process COGS Recognition ........................................................................9-303Implementation Considerations .....................................................................................................................9-304Agenda...........................................................................................................................................................9-305Multi-Org Access Control Description..........................................................................................................9-306Multi-Org Access Control Benefits ...............................................................................................................9-308Receivables & Multi-Org Access Control .....................................................................................................9-309Multi-Org Access Control Process ................................................................................................................9-312Multi-Org Access Control Reporting ............................................................................................................9-313Multi-Org Access Control Reporting Process ...............................................................................................9-314Summary........................................................................................................................................................9-316

Oracle Cash Management...............................................................................................................................10-1

Oracle Cash Management..............................................................................................................................10-3Objectives ......................................................................................................................................................10-4Agenda...........................................................................................................................................................10-5Bank Account Model Definition ...................................................................................................................10-7Bank Account Model Integration ..................................................................................................................10-8Bank Account Model Benefits.......................................................................................................................10-9Cash Management Security Components ......................................................................................................10-10Bank Account Model Summary ....................................................................................................................10-12

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Practice 1 Overview: Creating a Bank Account ...........................................................................................10-13Practice - Create a Bank Account ..............................................................................................................10-14Solution - Create a Bank Account .............................................................................................................10-16

Bank Account Model Setup and Process.......................................................................................................10-19Implementation Considerations .....................................................................................................................10-20Agenda...........................................................................................................................................................10-21Bank Account Balances and Interest Calculations Description.....................................................................10-22Bank Account Balances and Interest Calculations Benefits ..........................................................................10-23Bank Account Balances and Interest Calculations Maintenance..................................................................10-24Bank Account Balances and Interest Calculations Summary .......................................................................10-25Bank Account Balances and Interest Calculations Setup .............................................................................10-26Implementation Considerations .....................................................................................................................10-27Agenda...........................................................................................................................................................10-28Bank Account Transfers Description............................................................................................................10-29Bank Account Transfers Benefits .................................................................................................................10-31Bank Account Transfers Process ...................................................................................................................10-32Bank Account Transfers Dependencies and Interactions ..............................................................................10-33Bank Account Transfers Summary................................................................................................................10-34Bank Account Transfers Setup ......................................................................................................................10-35Bank Account Transfers Setup – Set System Profile....................................................................................10-36Practice 2 Overview: Setting Up Payment Templates ..................................................................................10-37

Practice - Create a Bank Transfer ..............................................................................................................10-38Solution - Create a Bank Transfer .............................................................................................................10-39

Practice 3 Overview: Setting Up Bank Transfers .........................................................................................10-41Practice - Create a Bank Transfer ..............................................................................................................10-42Solution - Create a Bank Transfer .............................................................................................................10-43

Implementation Considerations .....................................................................................................................10-45Agenda...........................................................................................................................................................10-46Subledger Accounting Description...............................................................................................................10-47Subledger Accounting Benefits ....................................................................................................................10-49Subledger Accounting Key Concepts ............................................................................................................10-50Subledger Accounting Key Concepts Flow..................................................................................................10-51Subledger Accounting Summary...................................................................................................................10-52Implementation Considerations .....................................................................................................................10-53Agenda...........................................................................................................................................................10-54Bank Statement Reconciliation Description ..................................................................................................10-55Bank Statement Reconciliation Benefits ......................................................................................................10-56Bank Statement Reconciliation Setup............................................................................................................10-57Agenda...........................................................................................................................................................10-58Multi-Org Access Control and Security Description....................................................................................10-59Multi-Org Access Control and Security Benefits ..........................................................................................10-61Guided Demonstration 1 Overview: Creating a Security Profile.................................................................10-62

Guided Demonstration - Create Security Profile .......................................................................................10-63Guided Demonstration 2 Overview: Creating Security Grants.....................................................................10-66

Guided Demonstration - Create Security Grants .......................................................................................10-67Multi-Org Access Control and Security Summary........................................................................................10-69Implementation Considerations .....................................................................................................................10-70Agenda...........................................................................................................................................................10-71Cash Pooling Description ..............................................................................................................................10-72Creating Cash Pools.......................................................................................................................................10-73Viewing and Updating Cash Pools ................................................................................................................10-74Practices 5 and 6 Overview: Creating Cash Pools........................................................................................10-75

Practice - Create Notional Cash Pool ........................................................................................................10-76Solution - Create Notional Cash Pool........................................................................................................10-77Practice - Create Physical Cash Pool .........................................................................................................10-78Solution - Create Physical Cash Pool ........................................................................................................10-79

Implementation Considerations .....................................................................................................................10-80

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xviii

Summary........................................................................................................................................................10-81

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xix

Preface

Profile

Before You Begin This Course

• Functional knowledge of Oracle General Ledger

• Functional knowledge of Oracle Payables

• Functional knowledge of Oracle Purchasing

• Functional knowledge of Oracle Receivables

• Functional knowledge of Oracle Cash Management

Prerequisites

• There are no prerequisites for this course.

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xx

Related Publications

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxi

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (if there is a glossary)

The algorithm inserts the new key.

Caps and lowercase

Buttons,check boxes, triggers,windows

Click the Executable button. Select the Can’t Delete Card check box. Assign a When-Validate-Item trigger to the ORD block. Open the Master Schedule window.

Courier new, case sensitive (default is lowercase)

Code output, directory names, filenames, passwords,pathnames,URLs,user input,usernames

Code output: debug.set (‘I”, 300);Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projectsURL: Go to http://www.oracle.comUser input: Enter 300Username: Log on as scott

Initial cap Graphics labels(unless the term is a proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words and phrases,titles of books and courses,variables

Do not save changes to the database. For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter user_id@us.oracle.com, where user_id is the

name of the user.

Quotationmarks

Interface elements with long names that have only initial caps;lesson and chapter titles in cross-references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with Objects.”

Uppercase SQL column names, commands, functions, schemas, table names

Use the SELECT command to view information stored in the LAST_NAME column of the EMP table.

Arrow Menu paths Select File > Save.

Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time: [Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxii

Typographic Conventions in Code

Convention Element Example

Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’))

Lowercase italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and functions

SELECT userid FROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxiii

Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system window.

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxiv

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Oracle Accounts Payable Chapter 8 - Page 1

Oracle Accounts Payable

Chapter 8

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Oracle Accounts Payable Chapter 8 - Page 2

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Oracle Accounts Payable Chapter 8 - Page 3

Oracle Accounts Payable

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Oracle Accounts Payable Chapter 8 - Page 4

Objectives

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Oracle Accounts Payable Chapter 8 - Page 5

Practices 1, 2, and 3 Overview: Prerequisite Practices

Practices 1, 2, and 3 Overview: Prerequisite Practices

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Oracle Accounts Payable Chapter 8 - Page 6

Practice - Create a New Employee (Required)

Responsibility: Human Resources, Vision Enterprises

Define an Employee

1. (N) > People > Enter and Maintain

2. (B) New

3. Last = Your last name

4. First = Your first name

5. Gender = Choose a gender

6. Action = Create Employment

7. Person Type = Employee

8. Social Security = Enter a 9 digit number (xxx-xx-xxxx)

Note: If you get the error message *This social security number already exists. Continue?* Click OK or enter another Social security number

9. (T) Personal

10. Birth Date = Enter a birthday (dd-mmm-yyyy)

11. Save

Note: If you get the error message *Potential Duplicate People* choose No Match and (B) OK.

12. (B) Assignment

13. Organization = Vision Operations

14. (B) Correction

Note: Cancel out of the people group flexfield window.

15. Job = MGR500.Manager

16. Position = MM400.Materials Manager

17. (B) Yes to accept the default values

18. Location = M1 - Seattle

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Oracle Accounts Payable Chapter 8 - Page 7

19. (T) Supervisor

20. Name = Brown, Ms. Casey

21. (T) Purchase Order Information

22. Set of Books = Vision Operations

23. Default Expense Account = 01-110-7740-0000-000

24. (B) OK to accept the Default Expense Account values.

25. Save.

26. A note appears asking if you want to use the location of the new position. Click (B) Cancel. Otherwise, the location will change from M1, to HR.

27. Close windows until you are back at the Navigator.

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Oracle Accounts Payable Chapter 8 - Page 8

Solution - Create a New Employee (Required)

Responsibility: Human Resources, Vision Enterprises

Define an Employee

1. (N) > People > Enter and Maintain

2. (B) New

3. Last = yourlastname

4. First = yourfirstname

5. Gender = Choose a gender

6. Action = Create Employment

7. Person Type = Employee

8. Social Security = Enter a 9 digit number (xxx-xx-xxxx)

Note: If you get the error message *This social security number already exists. Continue?* Click OK or enter another Social security number

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Oracle Accounts Payable Chapter 8 - Page 9

9. (T) Personal

10. Birth Date = Enter a birthday (dd-mmm-yyyy)

11. Save

Note: If you get the error message *Potential Duplicate People* choose No Match and (B) OK.

12. (B) Assignment

13. Organization = Vision Operations

14. (B) Correction

Note: Cancel out of the people group flexfield window.

15. Job = MGR500.Manager

16. Position = MM400.Materials Manager

17. (B) Yes to accept the default values

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Oracle Accounts Payable Chapter 8 - Page 10

18. Location = M1 - Seattle

19. (T) Supervisor

20. Name = Brown, Ms. Casey

21. (T) Purchase Order Information

22. Set of Books = Vision Operations

23. Default Expense Account = 01-110-7740-0000-000

24. (B) OK to accept the Default Expense Account values.

25. Save.

26. A note appears asking if you want to use the location of the new position. Click (B) Cancel. Otherwise, the location will change from M1, to HR.

27. Close windows until you are back at the Navigator.

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Oracle Accounts Payable Chapter 8 - Page 11

Practice - Create a New User

Overview

In this practice, you will create a new user.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

1. Switch to the System Administrator responsibility.

− (I) Black Hat (on toolbar)

− Responsibility = System Adminstrator

2. Create a New User

− User Name = XXUSER

− Password = welcome1

− Person = The employee you created in the first practice

Note: You have to tab and enter the Password again.

3. Enter the responsibilities for this user.

Responsibility Security Group

General Ledger, Vision Operations (USA) Standard

Payables, Vision Operations (USA) Standard

Purchasing, Vision Operations (USA) Standard

Cash Management, Vision Operations (USA) Standard

US HRMS Manager Standard

Human Resources, Vision Enterprises Standard

iExpenses Standard

System Administrator Standard

Oracle Payments Payment Administrator Standard

4. Sign on as your new user.

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Oracle Accounts Payable Chapter 8 - Page 12

Solution - Create a New User

Tasks

Sign on

1. Switch to the System Administrator responsibility.

− (I) Black Hat (on toolbar)

− Responsibility = System Adminstrator

Create a New User

2. Navigate to the Define User form

• (N) Security : User > Define

− User Name = XXUSER, where XX is your terminal ID.

− Password = welcome (tab, re-enter to verify)

− Person = The employee you created in the first practice

Add Responsibilities

3. Add the following responsibilities to your new username

Responsibility Security Group

General Ledger, Vision Operations (USA) Standard

Payables, Vision Operations (USA) Standard

Purchasing, Vision Operations (USA) Standard

Cash Management, Vision Operations (USA) Standard

US HRMS Manager Standard

Human Resources, Vision Enterprises Standard

iExpenses Standard

System Administrator Standard

Oracle Payments Payment Administrator Standard

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Oracle Accounts Payable Chapter 8 - Page 13

4. Save and Close Form.

Login as New User

5. Exit Oracle Applications

− (M) File > Exit Oracle Applications

− (B) OK

6. From the Oracle e-Business Suite home page:

− (L) Logout

7. Log back into the system with your newly created User ID and password.

− Old Password = welcome1

− New Password = XXuser (Tab, re-enter to verify)

8. (B) Submit.

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Oracle Accounts Payable Chapter 8 - Page 14

Practice - Set Yourself Up As a Buyer (Required)

Overview

In this exercise, you will set up a buyer.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

1. Responsibility = Purchasing, Vision Operations (USA)

2. Navigate to the Buyer definition window

4. Add your employee as a Buyer with a Ship-To Location of M1 – Seattle.

6. Close windows until you are back at the navigator.

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Oracle Accounts Payable Chapter 8 - Page 15

Solution - Set Yourself Up As a Buyer

Tasks

1. Responsibility = Purchasing, Vision Operations (USA)

2. Navigate to the Buyer definition window

• (N) Setup > Personnel > Buyers

• (B) Add Buyer

3. (I) Search

4. Name = your employee name (last name first name)

• (I) Quick Select your employee

• Ship-To = M1 – Seattle

5. (B) Save

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Oracle Accounts Payable Chapter 8 - Page 16

6. Close windows until you are back at the navigator.

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Oracle Accounts Payable Chapter 8 - Page 17

Agenda

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Oracle Accounts Payable Chapter 8 - Page 18

Agenda

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Oracle Accounts Payable Chapter 8 - Page 19

Suppliers in the Trading Community Architecture (TCA)

Suppliers in the Trading Community Architecture (TCA)

By representing Suppliers as part of the trading community, you have access to TCA features, including:

• Data Librarian Function & Processes

• Integrated Enrichment Capabilities including D&B

• Address Validation

• Data Consistency

• Ease of Data Maintenance

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Oracle Accounts Payable Chapter 8 - Page 20

TCA Security by Functional Areas

TCA Security by Functional Areas

A new user interface presents a clear distinction between the supplier’s company details and terms and controls for the trading relationship. Managing the attributes specific to particular functional areas such as Oracle Payables,

Purchasing and Receiving can be controlled with the use of Function Security.

• You can add new locations or relationships with additional operating units

• You can modify a quick update page with those values most often updated for faster maintenance

• Additional tax and legal registrations provide key information to meet reporting and compliance needs

The new supplier UI also includes a Survey section that provides administrators with access to the results of questionnaires that the supplier has been asked to complete, either during self-registration or as part of profile maintenance through iSupplier Portal. Purchasing Category assignments further designate the type of goods and services the supplier will provide.

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Oracle Accounts Payable Chapter 8 - Page 21

Payment Banks, Branches, and Accounts

Payment Banks, Branches, and Accounts

Banks and Bank Branches are represented in Oracle’s Trading Community Architecture and shared by other Oracle E-Business Suite applications.

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Oracle Accounts Payable Chapter 8 - Page 22

Supplier Bank Accounts

Supplier Bank Accounts

The bank account is tied directly to the trading partner allowing one bank account definition to be leveraged by a ‘supplier’ trading partner and shared if the trading partner is also an employee or customer. This approach provides for easier and centralized maintenance and security of the bank account information

This definition is targeted directly towards ‘trading partner’ bank accounts leaving internal bank accounts out of the user interface. In other words, the supplier’s banking information is entered and assigned right in the Supplier Entry and Maintenance user interface.

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Oracle Accounts Payable Chapter 8 - Page 23

Collaboration with Suppliers to Resolve Disputes

Collaboration with Suppliers to Resolve Disputes

Holds on invoices that are a result of differences between the invoiced and planned amounts or quantity result in disputes that must be resolved. Invoices that have been approved by the owner of the purchasing transaction but rejected during the approval process may also be subject to disputes with the supplier.

Leveraging workflow notification, disputes are communicated and negotiations can be suggested to the Supplier. Suppliers are able to accept the suggested changes, withdraw their invoice, or submit their counter proposal. The negotiation continues until the issues are finally resolved. Suppliers can also negotiate online via iSupplier Portal. All changes and comments entered during the collaboration are tracked in Payables and can be viewed at any time.

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Oracle Accounts Payable Chapter 8 - Page 24

Invoice Requests

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Oracle Accounts Payable Chapter 8 - Page 25

Implementation Considerations

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Oracle Accounts Payable Chapter 8 - Page 26

Practice 4 Overview: Creating a Supplier

Practice 4 Overview: Creating a Supplier

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Oracle Accounts Payable Chapter 8 - Page 27

Practice - Create a Supplier With Two Sites

Overview

Your supervisor has notified you that the company will be purchasing materials and services from new suppliers. In this practice, you will create a pay group and a supplier with two sites.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility = Purchasing, Vision Operations

1. Create a new pay group.

• (N) Setup : Purchasing > Lookup Codes

Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group

2. Switch to the Payables, Vision Operations (USA) responsibility

3. Create a supplier.

• (N) Suppliers > Entry

• (B) Create

− Supplier Type = Standard supplier

− Organization Name = XXIBM Corporation

− Type = Manufacturing

− Party Risk Profile = No Risk

− Allow Tax Applicability = Checked

− Create Debit Memo from RTS Transaction = Checked

− Receipt Routing = Standard Receipt

− Allow Substitute Receipts = Checked

− Match Approval Level = 3-Way

− Invoice Match Option = Purchase Order

− Terms = Immediate

− Pay Group = XXPay Group

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Oracle Accounts Payable Chapter 8 - Page 28

− Always Take Discount = Checked

− Payment Method : Electronic = Checked

4. Create a pay site.

− Address Line 1 = 1 Main St.

− City = San Francisco

− County = San Francisco

− State = CA

− Postal Code = 94105

− Address Name = San Francisco

− Addressee = San Francisco

− Phone Area Code = 415

− Phone Number = 555-1234

− Email Address = sanfrancisco@xxibm.com

− Address Purpose, Payment option = Checked

5. Assign the San Francisco address to the Vision Operations operating unit.

6. Create a purchasing site.

− Address Line 1 = 520 Madison Ave.

− City = New York

− County = New York

− State = NY

− Postal Code = 10022

− Address Name = New York

− Addressee = New York

− Phone Area Code = 212

− Phone Number = 555-7703

− Email Address = newyork@xxibm.com

− Address Purpose, Purchasing option = Checked

7. Assign the New York address to the Vision Operations operating unit.

8. Create a contact for the pay site.

− Navigate to (L) Contact Directory

− (B) Create

− First Name = John

− Last Name = Doe

− Email Address = johndoe@xxibm.com

− Phone Area Code = 415

− Phone Number = 555-1234

− Phone Extension = 1234

− Create User Account for this Contact = Checked

− iSupplier Portal Full Access = Checked

9. Create a contact for the purchasing site.

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Oracle Accounts Payable Chapter 8 - Page 29

− (B) Create

− First Name = Jane

− Last Name = Doe

− Email Address = janedoe@xxibm.com

− Phone Area Code = 212

− Phone Number = 555-7703

− Create User Account for this Contact = Checked

− iSupplier Portal Full Access = Checked

10. Set the Tolerance level for the San Francisco and New York supplier sites to Vision Operations – Tolerance.

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Oracle Accounts Payable Chapter 8 - Page 30

Solution - Create a Supplier With Two Sites

Tasks

Responsibility = Purchasing, Vision Operations (USA)

Create a New Pay Group

We will create a new pay group and assign it to your suppliers. The Pay Group will default to new supplier sites you enter and from your supplier sites to all invoices you enter. When we select invoices for payment during this course, you will use your pay group so you select only YOUR invoices for payment!

1. Navigate to the Oracle Purchasing lookups

• (N) Setup : Purchasing > Lookup Codes

2. Query the PAY GROUP lookup code

− (F11)

− Enter search criteria ‘P%G%’ in the Type field

− (Ctrl)+(F11)

3. Create a new pay group by inserting your cursor in the bottom of the grid, then clicking (I) Add New Row. Use the information below to create the new pay group:

Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group

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Oracle Accounts Payable Chapter 8 - Page 31

4. Save. Close the form to return to the Navigator.

Create a Supplier

5. Switch to the Payables, Vision Operations (USA) responsibility.

− (I) Black Hat (on toolbar)

− Responsibility = Payables, Vision Operations (USA)

6. Navigate to the Suppliers page.

− (N) Suppliers > Entry

7. (B) Create Supplier.

− Supplier Type = Standard supplier

− Organization Name = XXIBM Corporation

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Oracle Accounts Payable Chapter 8 - Page 32

8. (B) Apply.

9. Navigate to (L) Organization.

− Type = Manufacturing

− Party Risk Profile = No Risk

10. (B) Save.

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Oracle Accounts Payable Chapter 8 - Page 33

11. Navigate to (L) Tax and Reporting.

− Allow Tax Applicability = Checked

12. (B) Save.

13. Navigate to (L) Purchasing.

− Create Debit Memo from RTS Transaction = Checked

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Oracle Accounts Payable Chapter 8 - Page 34

Note: Enable the Create Debit Memo From RTS Transaction option if you want the system to automatically create a Debit Memo in Payables when you enter a Return to Supplier (RTS) in Purchasing. The value for supplier site defaults from the Purchasing Options window.

14. (B) Save.

15. Navigate to (L) Receiving.

− Receipt Routing = Standard Receipt

− Note: To find Standard Receipt:

− (I) Search

− Change the search criteria to Routing Name, not Routing Description.

− Receipt Routing = Standard Receipt

− Match Approval Level = 3-Way

− Allow Substitute Receipts = Checked

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16. (B) Save.

17. Navigate to (L) Invoice Management.

− Invoice Match Option = Purchase Order

− Terms = Immediate

− Pay Group = XXPay Group

− Always Take Discount = Checked

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18. (B) Save.

19. Navigate to (L) Payment Details.

− Payment Method : Electronic = Checked

20. (B) Save.

Create a Pay Site

21. Navigate to (L) Address Book.

22. (B) Create.

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23. Enter the supplier site address information as follows:

− Country = United States

− Address Line 1 = 1 Main St.

− City = San Francisco

− County = San Francisco

− State = CA

− Postal Code = 94105

− Address Name = San Francisco

− Addressee = San Francisco

− Phone Area Code = 415

− Phone Number = 555-1234

− Email Address = sanfrancisco@xxibm.com

− Address Purpose, Payment = Checked

Note: This address should be complete as this is the address that will appear on any checks cut to this site!

24. (B) Continue.

Note: If you get a message about the postal code, click (B) Continue to accept the Zip code.

25. Assign the address to the Vision Operations operating unit, enable the Select check box.

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26. (B) Apply. This creates the basic supplier site.

27. To update the supplier site attributes, click Manage Sites.

28. (T) Uses.

− Pay = Checked

− Primary Pay = Checked

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29. (T) Communication.

− Supplier Notification Method = Print

30. Apply.

Create a Purchasing Site

31. In the Address Book page, click (B) Create.

32. Enter the supplier site address information as follows:

− Country = United States

− Address Line 1 = 520 Madison Ave.

− City = New York

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− County = New York

− State = NY

− Postal Code = 10022

− Address Name = New York

− Addressee = New York

− Phone Area Code = 212

− Phone Number = 555-7703

− Email Address = newyork@xxibm.com

− Address Purpose, Purchasing option = Checked

Note: This address should be complete as this is the address that will appear on any checks cut to this site!

33. (B) Continue.

34. Assign the address to the Vision Operations operating unit, by enabling the Select check box.

35. (B) Apply. This creates the basic supplier site.

36. To update the New York supplier site attributes, click Manage Sites.

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37. (T) Communication.

− Supplier Notification Method = Print

Note: When you enter and approve purchase orders for this supplier, the Supplier Notification Method will default. We’ve chosen printed document here. However, if we chose e-Mail and specified an e-mail address, that information would default during purchase order approval so we could send the purchase order using the supplier’s preferred method. Valid options are e-Mail, Fax and Printed Document.

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38. Apply.

Create a Contact for the Pay Site

39. Navigate to (L) Contact Directory.

40. (B) Create.

− First Name = John

− Last Name = Doe

− Email Address = johndoe@xxibm.com

− Phone Area Code = 415

− Phone Number = 555-1234

− Phone Extension = 1234

− Create User Account for this Contact = Checked

− iSupplier Portal Full Access = Checked

41. In the Addresses for the Contact Region, click (B) Add Another Row.

42. Type 'San Francisco' in the Address Name Field.

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43. (B) Apply.

Create a Contact for the Purchasing Site

44. Navigate to (L) Contact Directory.

45. (B) Create.

− First Name = Jane

− Last Name = Doe

− Email Address = janedoe@xxibm.com

− Phone Area Code = 212

− Phone Number = 555-7703

− Create User Account for this Contact = Checked

− iSupplier Portal Full Access = Checked

46. In the Addresses for the Contact Region, click (B) Add Another Row.

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47. Type 'New York' in the Address Name Field.

48. (B) Apply.

Set the Supplier Site Tolerance

49. (L) Invoice Management

50. Scroll to the Supplier Sites region.

51. (ST) Invoicing

52. For the New York and San Francisco sites, select Vision Operations – Tolerance from the list of values.

− (L) More . . .

− Search = Vision Operations – Tolerance

− (B) Go

− (B) Select

53. (B) Save.

54. Close the form back to the Navigation menu.

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Agenda

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Deferred Recoverability

Deferred Recoverability

Deferred Recoverability refers to an accounting process where tax recovery is reported when the invoice is paid. The accrual (and therefore the settlement and/or reporting) of recoverable taxes is delayed due to special tax rules either enforced by the Tax Authority, or allowed with the agreement of the Tax Authority.

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Deferred Recoverability Features

Deferred Recoverability Features

• Accurate reporting and accounting of pending recoverable tax amounts for the recoverable portion of the tax.

• When payment is made, whether fully or partially, the corresponding tax is automatically recorded as recoverable and reversed from the interim recoverable account.

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Deferred Recoverability Benefits

Deferred Recoverability Benefits

This feature allows you to meet the challenge of adhering to local tax laws that require deferred recoverability whether you need this feature now or plan to expand into new, international markets in the future.

Streamlined operations and operational excellence both contribute to lower costs. Automatic accrual means less time spent accruing accounts manually, providing better control over accounting and reducing the propensity for manual errors.

Fiscal Discipline is improved as General Ledger accounts reflect transactions that have occurred and automated accounting reduces auditing time

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Deferred Recoverability Process Part 1: Set Up and Invoice

Deferred Recoverability Process Part 1: Set Up and Invoice

You must first configure E-Business Tax Service for deferred recoverability and optionally tailor the Subledger Accounting definition if needed for accounting.

• During Invoice Entry, Validation, and Import, Payables gathers information known as tax drivers that are entered on the invoice header and lines and passes that information to the new e-Business Tax module.

• Based on these tax drivers and additional information derived by e-Business Tax such as the supplier’s party tax profile and buyer’s and supplier’s tax registrations, the engine determines the applicable tax, returns both recoverable and non-recoverable amounts and, in the case of deferred recoverability, the interim tax General Ledger account for recoverable taxes.

• Payables displays the tax amount in a column on the Invoice Header and in the Summary region, creates the tax lines in the Lines tab, and records the Distributions including the interim recoverable tax account.

• When the Invoice is Accounted, the interim recoverable tax account is posted to General Ledger.

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Deferred Recoverability Process Part 2: Set Up and Payment

Deferred Recoverability Process Part 2: Set Up and Payment

At payment time, Payables determines if the invoices being paid are subject to deferred recoverability. If so, Payables requests the distribution accounts for the recoverable tax from E-Business Tax.

Payables determines how much is recoverable based on how much of the invoice is paid, then records the amount and corresponding distribution account.

When the payment is accounted, the interim recoverable tax account is reversed and the recoverable tax is posted to General Ledger.

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Setup Taxes with Deferred Recoverability

Setup Taxes with Deferred Recoverability

• Responsibility: Payables

• Navigation: Setup > Tax > E Business Tax Home > Task List > Task Configuration >

[Tax Regime, Tax, Tax Status, Tax Rate] > Create > Controls and Defaults > Allow

Tax Recovery

To enable taxes with deferred recoverability, enable the Allow Tax Recovery and the Default Recovery Settlement options at the Regime, Tax, Tax Status, or Tax Rate levels. Set the Default Recovery Settlement option to Deferred.

In addition, when you set up a Tax with deferred recoverability, ensure that you define the following Tax Accounts for that tax:

• Tax Expense

• Recoverable Tax

• Interim Tax (used only for Accrual Based accounting)

The default account for recoverable taxes in Subledger Accounting is Accounts Payable deferred. You can change this account if necessary.

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Implementation Considerations

Implementation Considerations

E-Business Tax is a common module available with Oracle Financial Applications.

• The e-Business Tax engine is responsible for calculating tax amounts applicable to invoices.

• E Business Tax configuration qualifies taxes with attributes to meet tax compliance requirements

Subledger Accounting is also a common module available with Oracle Financial Applications. Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs.

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Agenda

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Enhanced Asset Tracking

Enhanced Asset Tracking

R12 provides the ability to track attributes of an item, such as manufacturer, serial number, from Purchasing through Accounts Payable to Fixed Assets. This increases processing efficiency and eliminates manual updates in FA that may have been required in the past.

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Enhanced Asset Tracking Benefits

Enhanced Asset Tracking Benefits

Increased Efficiency and Reduced Costs

• Asset information typically entered on a purchase order, such as manufacturer, serial number, and model number, can now flow seamlessly into Payables and Assets.

Improved accuracy of information

• The Create Mass Additions process can now be submitted to select only those invoice distributions with a specific Asset Book, reducing the possibility of errors that need to be manually corrected.

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Enhanced Asset Tracking Process

Enhanced Asset Tracking Process

• Enter or import a Payables Invoice and Match to Purchase Order.

• Payables retains the asset information.

• Optionally, update asset information on the invoice line or distribution.

• Submit the Create Mass Additions Process to transfer the Assets.

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Oracle Accounts Payable Chapter 8 - Page 57

Invoice Lines

Invoice Lines

Oracle Payables incorporates Invoice Lines into the invoice model. Adding Invoice Lines is a key architectural change, which enables Oracle Payables to better model the paper or electronic business document yet maintain key features that exist at the invoice distributions level.

Merged into the current invoice transaction business flows, Invoice Lines support the representation of the goods or services as well as tax, freight, and other charges as lines with distributions tied to each line. Additional fields record attributes such as serial numbers and item descriptions.

This feature offers the ability for line level approval and matching between an invoice line and a purchase order shipment pay item, or receipt. Furthermore, it facilitates the capture and transfer of additional, pertinent information to and from Oracle Projects and Oracle Assets.

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Implementation Considerations

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Practice 5 Overview: Matching to Purchase Order

Practice 5 Overview: Matching to Purchase Order

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Practice - Match to Purchase Order

Overview

In this practice you will enter invoices and match them to a standard purchase order in the following ways:

• Match to PO Shipment Lines – Your supplier shipped 26 units of the item and billed you for them. The shipments were for the first and second shipment lines. The rest of the purchase order will be shipped and billed at a later date. Use Invoice XX5000 to match to PO for this method.

• Match to PO Distributions - Your supplier has shipped 5 more units of the item you ordered and therefore has billed you for them. The shipments were for the second and third shipment lines. The remainder of the purchase order is on back order and will be shipped and billed at a later date. Use Invoice XX6000 to match to PO for this method.

• Quick Match – Your supplier has finally shipped the remaining units and therefore has billed you for them. The shipment was for the balance of the second and third shipment lines. Use Invoice XX7000 to match to PO for this method.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Sign On = XXUser/Welcome

Responsibility: Payables, Vision Operations (USA)

Match to PO Shipment Lines

1. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

2. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

Standard XXIBM Corporation XX5000 2600 Electronic

3. (B) Match.

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− Supplier Name = XXIBM Corporation

− Purchase Order Num = your standard PO number

4. (B) Find.

5. Enter match details according to the following table:

Match Qty Invoiced Unit Price Match Amount

Checked 18 100 1800

Checked 8 100 800

6. (B) Match.

7. In the Invoices window, click (B) All Distributions.

8. In the Invoices window, verify that the distribution total equals the invoice amount.

Match to PO Distributions

9. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

10. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

Standard XXIBM Corporation XX6000 500 Electronic

11. (B) Match.

− Supplier Name = XXIBM Corporation

− Purchase Order Num = your standard invoice number

12. (B) Find.

13. Enter match details for line 2, according to the following table:

Match Qty Invoiced Unit Price Match Amount

100

Checked 2 100 200

Note: Leave line 1 blank.

14. Decide whether or not to accept the warning note.

15. With your cursor on line 2, select (B) Distribute.

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16. Use the following information for your distribution:

Match Qty Invoiced Unit Price Match Amount

Checked 2 100 200

17. (B) Match.

18. Close the Distributions window and return to the Matching window.

19. Enter match details for line 3, according to the following table:

Match Qty Invoiced Unit Price Match Amount

100

100

Checked 3 100 300

Note: Leave lines 1 and 2 blank.

20. With your cursor on line 3, select (B) Distribute.

21. Use the following information for your distribution:

Match Qty Invoiced Unit Price Match Amount

Checked 2 100 200

Checked 1 100 100

22. (B) Match.

23. Close the matching windows.

24. In the Invoices window, verify that the distribution total equals the invoice amount.

Quick Match

25. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

26. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

PO

Number

Standard XXIBM Corporation XX7000 2600 Electronic Your

purchase

order

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number

27. (B) QuickMatch.

Note that the invoice lines are automatically populated based on the remaining purchase order shipment lines.

28. (B) All Distributions.

29. In the Invoices window, verify that the distribution total equals the invoice amount.

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Solution - Match to Purchase Order

Sign On = XXUser/Welcome

Responsibility: Payables, Vision Operations (USA)

Match to PO Shipment Lines

1. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

2. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

Standard XXIBM Corporation XX5000 2600 Electronic

3. (B) Match.

− Supplier Name = XXIBM Corporation

− Purchase Order Num = your standard invoice number

4. (B) Find.

5. Enter match details according to the following table:

Match Qty Invoiced Unit Price Match Amount

Checked 18 100 1800

Checked 8 100 800

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6. (B) Match.

7. In the Invoices window, click (B) All Distributions.

8. In the Invoices window, verify that the distribution total equals the invoice amount.

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Match to PO Distributions

9. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

10. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

Standard XXIBM Corporation XX6000 500 Electronic

11. (B) Match.

− Supplier Name = XXIBM Corporation

− Purchase Order Num = your standard invoice number

12. (B) Find.

13. Enter match details for line 2, according to the following table:

Match Qty Invoiced Unit Price Match Amount

100

Checked 2 100 200

Note: Leave line 1 blank.

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14. Decide whether or not to accept the warning note.

15. With your cursor on line 2, select (B) Distribute.

16. Use the following information for your distribution:

Match Qty Invoiced Unit Price Match Amount

Checked 2 100 200

17. (B) Match.

18. Close the Distributions window and return to the Matching window.

19. Enter match details for line 3, according to the following table:

Match Qty Invoiced Unit Price Match Amount

100

100

Checked 3 100 300

Note: Leave lines 1 and 2 blank.

20. With your cursor on line 3, select (B) Distribute.

21. Use the following information for your distribution:

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Match Qty Invoiced Unit Price Match Amount

Checked 2 100 200

Checked 1 100 100

22. (B) Match.

23. Close the windows to return to the Invoices window.

24. In the Invoices window, verify that the distribution total equals the invoice amount.

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Quick Match

25. Navigate to the Invoices window

• (N) Invoices > Entry > Invoices

26. Enter the following invoice:

Type Trading Partner Invoice Num Amount Payment

Method

PO

Number

Standard XXIBM Corporation XX7000 2600 Electronic Your

purchase

order

number

27. (B) QuickMatch.

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Note that the invoice lines are automatically populated based on the remaining purchase order shipment lines.

28. (B) All Distributions.

29. In the Invoices window, verify that the distribution total equals the invoice amount.

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Agenda

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Payment Requests Key Concepts

Payment Requests Key Concepts

Payment Request: A request for payment without requiring a supplier, purchase order or standard invoice.

• In Release 12, Oracle Loans uses this feature for Loan Funding Disbursement and Oracle Receivables for non-credit card Refund Requests.

Payee: The party on the payment request to which payment will be made. This definition also applies to supplier invoices. The result is that the payee can be a supplier, borrower, or a customer.

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Payment Requests Description

Payment Requests

You can use Payables to disburse funds to a party (a payee) who is not defined as a trading partner in your supplier master. E-Business Suite products, such as Oracle Receivables and Oracle Loans, can submit disbursement requests to Payables, where you can disburse the funds and manage the payment process using the payment management features that are available in Payables. When a disbursement request is submitted to Payables, it is recorded as a payment request.

Using payment requests you can:

• Approve payment requests using the Invoice Approval Workflow

• Account for payment requests, through Payables' integration with Oracle Subledger Accounting

• Calculate and manage tax, through Payables' integration with Oracle E-Business Tax

• Pay and report on payment requests

You can submit a payment request from another application, for example, from Receivables to pay a customer for an On Account Credit Memo, or from Loans to disburse funds for a loan, and Payables will verify, account, tax, and approve the payment request. You can

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track the progress of the payment request in the originating application. Once the payment request is approved, you can report and audit the payment request in Payables.

You can only submit a payment request from other applications; you cannot enter a payment request for a payee directly in Payables.

The payment request process is as follows:

1. Submit a request to disburse funds from another application, such as Receivables or Loans. Note that you cannot submit a payment request in Payables.

2. Payables automatically creates a payment request, in real-time.

3. Once the payment request is created, you can search for it just as you would search for an invoice. Enter Payment Request in the Type field and enter the payee name in the Trading Partner field. Note that because the payee is not a supplier, do not enter a Supplier Number.

4. If the payment request requires approval, use the Invoice Approval Workflow to approve payment requests.

5. Payables applies holds to the payment request if there are any exceptions.

6. Once the holds are released and the payment request is approved, it can be paid as a single payment or as part of a payment batch. Once the payment request is paid, your auditors can view the request to disburse funds in the originating application and the payment request in Payables.

Once you enter a payment request, you cannot delete the payment request or update the payment request fields. If necessary, you can cancel the payment request or void the payment, just as you would for an invoice. Payables notifies the originating application to respond to these actions.

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Payment Requests Benefits

Payment Requests Benefits

For Payables:

• Ensures that your Supplier Master stays clean.

• By centralizing disbursements requests for your company in Payables, it empowers the Payables Manager with visibility and control over the items selected for payment processing plus comprehensive liability and payment reporting.

Other E-Business Suite products:

• Can leverage what Payables already offers from an Oracle Financials product to the trained personnel on your Payables team.

• Have visibility to the current, detailed status of their request.

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Payment Requests Process

Payment Requests Process

The Receipts, Credit Memo’s and Loans are handled outside of Payables The Payment Request is submitted to Payables where Payables Verifies, Accounts, Taxes and Approves, depending on the requesting product’s requirements. During Payables processing the requesting products are kept up to date. Once any exceptions have been handled and the payment request is approved, Payment takes place, allowing reporting and auditing of the payment request process.

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Oracle Receivables – Refund Example

Oracle Receivables – Refund Example

Here is an example of the business processes surrounding a Refund Request from Oracle Receivables. ABC Company has purchased and paid for 3 Copy Machines. They then decide to return one and ask for a refund.

Within Vision Corporation, the Order Management system manages the return and submits a credit memo to Receivables. Vision Corporation’s Receivables staff verifies that the initial payment was made and that, due to the credit memo, they must initiate a Payment Request to their Payables Department.

Next, the Payment Request is submitted for approval, leveraging Oracle Payables Invoice Approval Workflow. The Payables staff may also manage any specific Payables’ attribute verification issues they may need for successful payment processing. Once the Payment Request is approved and there are no holds, the payment manager has control over all items to be paid including the Payment Request. Once paid, the customer receives the refund.

Note: The Vision Corporation Receivables Analyst can view the Refund Status Window at any time.

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Oracle Accounts Payable Chapter 8 - Page 78

Funds Disbursement Process- Loans

Funds Disbursement Process- Loans

IGNF Foods requests a loan from Vision Loans for $350,000. The loan agent handles the Application Processing, Manage Risk, and follows through with the necessary approvals for the loan. Once the loan is approved, the loan agent can request that the loan be funded, which immediately creates a payment request to Payables. The payment manager has visibility into the payable liabilities, and manages the items to be paid, and has the information available to provide key updates to upper management as needed. If there are no holds, the payment request is paid to the borrower and the loan considered funded. Oracle Loans has its own approval process and does not require Payables invoice approval. Also, tax calculation is not required for loan disbursements.

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Oracle Accounts Payable Chapter 8 - Page 79

Payment Request – Additional Payables Actions

Payment Request – Additional Payables Actions

Payables users may need to void the payment and cancel the payment request.

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Oracle Accounts Payable Chapter 8 - Page 80

Payment Requests: Synchronizing Between Products

Payment Requests: Synchronizing Between Products

Payables provides the ability for requesting E-Business Suite products to respond to actions taken on the Payment Request. These actions include:

• Canceling the payment request and/or

• Voiding the payment

Payables also prevents deletion of the payment request and any update to many fields.

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Oracle Accounts Payable Chapter 8 - Page 81

Payment Requests Reporting

Payment Requests Reporting

The reports shown have been updated to include Payment Requests providing the needed visibility to all your payable liabilities.

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Oracle Accounts Payable Chapter 8 - Page 82

Payment Requests Optional Setup

Payment Requests Optional Setup

• Responsibility: Payables

• Navigation: (N) Setup: Options > Payables Options : (T) Approval

For Payables or Payments, there is no specific setup to utilize the Payment Requests feature, however these are some setups that you can do that will add value to your Payment Request Business Flows.

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Oracle Accounts Payable Chapter 8 - Page 83

Payment Requests Miscellaneous Set up

Payment Requests Miscellaneous Set up

If the Sequential Numbering profile is set to Partially Used or Always Used, Payables defaults the “Payment Request” Document Category to the payment request. Ensure that you have assigned a sequence to the document category.

Depending on the extent of information provided by the E-Business Suite product submitting the Payment Request, Payables may default attributes from the Payables and Financials Options setups. These attributes include: Liability GL Account, Payment Terms, Pay Group, and Terms Date Basis.

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Oracle Accounts Payable Chapter 8 - Page 84

Implementation Considerations

Implementation Considerations

The Payment Requests feature interacts with the other eBusiness Suite products shown.

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Oracle Accounts Payable Chapter 8 - Page 85

Agenda

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Oracle Accounts Payable Chapter 8 - Page 86

Payment Method Controls and Enhanced Payment Information

Payment Method Controls and Enhanced Payment Information

Enhanced Payment Method Controls allow users to control the availability of payment methods by Legal Entity, Operating Unit, Transaction Type, and Foreign or Domestic Currency and Locations.

Invoices now include additional payment attributes that can default from the payee or be entered directly by Payables users on the invoice.

To further compliment the attribute availability, you can configure attribute validation for items on the invoice and payee to ensure seamless payment processing or in-house check printing and add data integrity to your reports.

We have provided extensive format and reporting capabilities giving you the ability to meet your remittance and payment report needs by leveraging XML Publisher.

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Oracle Accounts Payable Chapter 8 - Page 87

Key Concepts

Key Concepts

• Document Payable: A scheduled payment on the invoices in Oracle Payables.

• Payee: The person or organization that will be paid. For example, the supplier, employee, borrower, or even the customer to whom the payment is made out to.

• Payment Process Request: A way to group invoices for payment, then request payment processing for those invoices. This may sometimes be referred to as Payment Batches or Pay Runs.

• Payment Instruction: The formatted payment information that is either transmitted to a financial institution for payment or used in-house to print check documents.

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Oracle Accounts Payable Chapter 8 - Page 88

Key Concepts

Key Concepts

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles

Each Payment Profile controls:

• When the profile is used based on lists of operating units, payment methods, banks, and currencies

• How the documents should be grouped into payments

• How the payments should be grouped into payment instructions

• Which formats should the payment instructions and reports use

• Which transmission protocol should be used to transmit the payment file

Oracle Payments

Oracle Payments is an E-Business Suite module Payables uses to group invoices into payments, create instructions, and print or communicate with the bank.

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Oracle Accounts Payable Chapter 8 - Page 89

Key Concepts

Key Concepts

Payment Method is an attribute on the document payable that indicates how the payer is going to make the payment. However, it is also the basis for determining what payment choices to offer and, based on payment instruction and reporting needs, the payment attributes required to make that process successful.

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Oracle Accounts Payable Chapter 8 - Page 90

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

When evaluating payment method policies, first look at the payment method choices your banks offer and the information they require.

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Oracle Accounts Payable Chapter 8 - Page 91

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Next, evaluate your internal organization and business processes. You have the ability to control the availability of payment methods based on:

• Legal Entity

• Operating Unit

• Transaction Types such as customer refunds verses supplier payments

• Foreign or Domestic Currencies

• Foreign or Domestic Locations

Also evaluate any reporting needs to understand what is required based on the payment method and perhaps other indicators such as foreign or domestic.

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Oracle Accounts Payable Chapter 8 - Page 92

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Determine if you will allow payee’s to have their own payment method preferences. For example, you may offer employee expense reports to be paid using the preferred payment method of the employee but for supplier invoices for a particular operating unit, you expect checks to be printed only.

Evaluate other preferences you may offer such as payment delivery options, bank charge bearer, and settlement priority. Evaluate what information your payee’s may require to successfully apply your payments to their open receivables.

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Oracle Accounts Payable Chapter 8 - Page 93

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Evaluate Payment Choices – Reporting and Payment Instruction Requirements

Based on your evaluation:

1. Define your payment method policy including usage rules and your payee payment preferences control.

2. Enter other payment related attributes for your Payees.

3. Review the formatting requirements for printing in-house checks or transmitting electronic instructions. Create Payment Process Profiles to bring the Reporting Requirements, Banking Relationships, and Payee needs together when processing your Payments.

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Oracle Accounts Payable Chapter 8 - Page 94

Enhanced Payment Method Controls Description

Enhanced Payment Method Controls Description

With this feature, payment methods expand from the simple lookup for check, EFT and WIRE to a controlled policy based on offerings by your bank, your internal organization and business processes, and any reporting you may need internally or externally to government offices or suppliers.

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Oracle Accounts Payable Chapter 8 - Page 95

Enhanced Payment Method Controls Benefits

Enhanced Payment Method Controls Benefits

This feature provides the ability to configure your own Payment Method policies as and when you need providing flexibility, adaptability and controlled availability.

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Oracle Accounts Payable Chapter 8 - Page 96

Enhanced Payment Method Controls Process – Enter Payables Document

Enhanced Payment Method Controls Process – Enter Payables Document

There are many ways to create invoices in Payables whether your supplier is sending an EDI or XML file or entering it via Oracle iSupplier Portal, your Payables’ analysts are entering them, or they are imported from another Oracle E-Business Suite application. Your payment method controls will be followed based on key elements on the invoice itself. These include:

• The E-Business Suite Application

• Operating Unit

• Legal Entity

• Type

• Trading Partner

• Supplier Site

• Invoice Currency

• Functional Currency

Note that all Invoice Types are considered as having the Payables Document Payment Processing Transaction Type with the exception of Expense Reports and Payment Requests.

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Oracle Accounts Payable Chapter 8 - Page 97

The Product will always be Payables with the exception of Payment Requests where we process on behalf of the calling product such as Oracle Loans and Receivables.

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Oracle Accounts Payable Chapter 8 - Page 98

Enhanced Payment Method Controls Process – Enter Payables Document

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Oracle Accounts Payable Chapter 8 - Page 99

Expanded Payment Attribute Availability and Defaulting - Definition

Expanded Payment Attribute Availability and Defaulting – Definition

Payment Attributes are items on the document payable that play a role in:

• The successful payment processing of a document payable

• Meeting requirements for internal reporting

• Payee payment and remittance

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Oracle Accounts Payable Chapter 8 - Page 100

Expanded Payment Attribute Availability and Defaulting Description

Expanded Payment Attribute Availability and Defaulting - Description

In previous releases of Oracle Payables, many of the payment attributes were part of localizations and involved defining Global Descriptive Flex Fields on the Supplier Site, Supplier Bank Account, or on the Invoice. Many of these attributes have been shifted to specific fields within Payables.

You can assign payment processing values to the Payee such as payment and remittance advice delivery instructions.

The payment processing attributes can also be used with a payment method marked for Bills Payable when creating payments with a future maturity date.

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Oracle Accounts Payable Chapter 8 - Page 101

Expanded Payment Attribute Availability and Defaulting - Benefits

Expanded Payment Attribute Availability and Defaulting – Benefits

The benefits include the ability to:

• Enhance your supplier relationships by capturing and utilizing payee payment preferences.

• Minimize time consuming data-entry with Payment Attribute Defaulting.

• Payee’s reconciliation of payment and open debt is facilitated by unique remittance identifier and remittance messages.

• You can meet the reporting requirements of your country or company by utilizing payment attributes such as Payment Reason and Payment Reason Comments.

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Oracle Accounts Payable Chapter 8 - Page 102

Expanded Payment Attribute Availability and Defaulting – Enter Payables Document

Expanded Payment Attribute Availability and Defaulting – Enter Payables Document

The payment attributes defined for the Payee default onto the invoices created in Payables no matter where the invoices are entered. As mentioned, Payment Attributes are pulled from the invoices being paid and the Payee during payment processing and reporting. Since there are so many ways for invoices to be entered, the defaulting of payment attributes lessens the data entry burden and risk of missing information.

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Oracle Accounts Payable Chapter 8 - Page 103

Expanded Payment Attribute Availability and Defaulting - Payment Attributes Defaulting

Expanded Payment Attribute Availability and Defaulting - Payment Attributes Defaulting

• For Payables users, the Invoice Workbench is accessed through the folder form technology; you can tailor the UI for updating defaulted values or entering them.

• The Payment Method, Remit To Bank Account Number and Name, and Remittance Messages do appear on the Invoice Header, however, these are used to default to the Scheduled Payments.

- The Payment Method Defaults from Defaulting Rules or Payee

• Users can enter the Unique Remittance Identifier and Check Digit per invoice and Remittance Messages per scheduled payment which can be used to help suppliers reconcile the payments with their open receivables if provided on the remittance advice.

• Payment Attributes default from Supplier Payment Details setup.

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Oracle Accounts Payable Chapter 8 - Page 104

Expanded Payment Attribute Availability and Defaulting - UI

Expanded Payment Attribute Availability and Defaulting – UI

• Responsibility: Payables

• Navigation: Invoices : Entry > Quick Invoices

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Oracle Accounts Payable Chapter 8 - Page 105

Practice 6 Overview: Entering Quick Invoices

Practice 6 Overview: Entering Quick Invoices

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Oracle Accounts Payable Chapter 8 - Page 106

Practice - Enter Quick Invoices

Overview

The Quick Invoices window supports “heads-down” data entry for invoices that do not require much research. In this practice, you will enter standard invoices in using the Quick Invoices window.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility: Payables, Vision Operations (USA)

Challenge: Try to do this lab without touching the mouse.

1. Use the following keystrokes when possible:

Action Keyboard Shortcut

Switch to bottom region [Shift+PgDown]

Switch to top region [Shift+PgUp]

Add a new invoice (from top region) [Ctrl+Down]

2. Navigate to the Quick Invoices window.

• Invoices > Entry > Quick Invoices

− Source = Quick Invoices

− Batch = XXQuick

3. (B) Enter

3. Enter the first invoice using the information provided on the invoice below.

Note: Quick Invoices supports one invoice per form. Use the Save and Next button to create a new invoice.

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XXIBM Corporation Invoice No. XX1001 1 Main St.San Francisco, CA

Quantity Description Unit Price Total

5 XXIBM Thinkpad 3000.00 15000.00

Subtotal 15000.00 Shipping 0.00 Tax 0.00 Total 15000.00

Code these invoices to the Asset Clearing Account: 01-000-1570-0000-000

4. Save your work.

5. Enter the second invoice using the information provided on the invoice below.

XXIBM Corporation Invoice No. XX1002 1 Main St.San Francisco, CA

Quantity Description Unit Price Total

2 Dell Desktops 1250.00 2500.00

Subtotal 2500.00 Shipping 0.00 Tax 0.00 Total 2500.00

Code these invoices to the Asset Clearing Account: 01-000-1570-0000-000

6. Save your work.

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Oracle Accounts Payable Chapter 8 - Page 108

7. Enter the third invoice using the information provided on the invoice below.

XXIBM Corporation Invoice No. XX1003 1 Main St.San Francisco, CA

Quantity Description Unit Price Total

2 Dye sublimation 3500.00 7000.00 printers

Subtotal 7000.00 Shipping 0.00 Tax 0.00 Total 7000.00

Code these invoices to the Asset Clearing Account: 01-000-1570-0000-000

9. Create the invoices from Quick Invoices.

10. Verify that:

− Source = Quick Invoices

− Quick Invoice Batch = XXQuick

11. Submit your invoices.

12. Review the output once the request completes.

13. View your newly created invoices.

14. Navigate to the Invoice Workbench.

15. Query your invoices and ensure the system created all of your invoices.

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Oracle Accounts Payable Chapter 8 - Page 109

Solution - Enter Quick Invoices

Tasks

Responsibility: Payables, Vision Operations (USA)

Challenge: Try to do this lab without touching the mouse.

1. Use the following keystrokes when possible:

Action Keyboard Shortcut

Switch to bottom region [Shift+PgDown]

Switch to top region [Shift+PgUp]

Add a new invoice (from top region) [Ctrl+Down]

Enter Invoices

2. Navigate to the Quick Invoices window.

• Invoices > Entry > Quick Invoices

− Source = Quick Invoices

− Batch = XXQuick

3. (B) Enter

Note: The fields that are not shown as required will default information during the creation process.

Note: Account must be entered or the creation process will fail. Note that the Track as Asset field is not checked, but will be checked once the invoices are created on the Invoice Workbench.

4. Enter the first invoice header using the information provided below.

Supplier Site Invoice Num Invoice

Amount

Payment

Method

XXIBMCorporation

SANFRANCISCO

XX1001 15000 Electronic

5. Enter the first invoice lines based on the following table:

Type Amount Account Unit of Measure Quantity

Invoiced

Unit Price

Item 15000 01-000-1570-0000-000

Each 5 3000

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Note that you must specify a Unit of Measure if you are entering data in the Quantity Invoiced and Unit Price fields.

6. (B) Save and Next

7. Enter the second invoice header using the information provided below.

Supplier Site Invoice Num Invoice

Amount

Payment

Method

XXIBMCorporation

SANFRANCISCO

XX1002 2500 Electronic

8. Enter the second invoice line based on the following table:

Type Amount Account Unit of Measure Quantity

Invoiced

Unit Price

Item 2500 01-000-1570-0000-000

Each 2 1250

9. (B) Save and Next

10. Enter the third invoice header using the information provided below.

Supplier Site Invoice Num Invoice

Amount

Payment

Method

XXIBMCorporation

SANFRANCISCO

XX1003 7000 Electronic

11. Enter the third invoice line based on the following table:

Type Amount Account Unit of Measure Quantity

Invoiced

Unit Price

Item 7000 01-000-1570-0000-000

Each 2 3500

Create Invoices from Quick Invoices

13. (B) Create Invoices

14. Verify that:

− Source = Quick Invoices

− Quick Invoice Batch = XXQuick

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Oracle Accounts Payable Chapter 8 - Page 111

15. (B) OK to submit

16. (B) OK to accept the note.

17. Review the output once the request completes.

− (M) View > Requests

− All my requests = Checked

− (B) Find

− Select your request once it completes.

− (B) View Output.

View Newly Created Invoices

18. Navigate to the Invoice Workbench:

• (N) Invoices > Entry > Invoices

19. Query the invoices to ensure the system created them.

• (M) View > Find

− Trading Partner = XXIBM Corporation

• (B) Find

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Oracle Accounts Payable Chapter 8 - Page 112

Configurable Payment Attribute Validation Description

Configurable Payment Attribute Validation Description

Enhanced Invoice Entry verification is achieved by specifying validations on the Payment Method. Any issues will result in invoices being put on Scheduled Payment holds. This gives Payables personnel the ability to analyze and resolve validation failures at invoice-entry time.

Enhanced Payment Processing validation is achieved by specifying validations on the Payment Instruction Format assigned to the Payment Process Profile.

The Payables staff member that manages the payment process can specify what they would like to happen to the pay run if validation exceptions for invoice attributes or payment attributes are found during payment processing, then resolve those issues.

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Oracle Accounts Payable Chapter 8 - Page 113

Configurable Payment Attribute Validation Benefits

Configurable Payment Attribute Validation Benefits

• Both upstream Invoice Entry and downstream Payment Processing validations increase payment process efficiency by notifying users of problems at key processing points.

• The flexible validation model reduces the effort and cost required to resolve problems and to catch issues before there is wasted check stock or fees charged by your bank.

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Oracle Accounts Payable Chapter 8 - Page 114

Configurable Payment Attribute Validation Invoice: Scheduled Payment Holds

Configurable Payment Attribute Validation Invoice: Scheduled Payment Holds

Example: A Payables analyst enters an invoice for the supplier “Universal Paper Company”, and the Payment Method “Payables Direct Deposit” defaults.

• The Payment Method definition can have a validation that requires the Payment Reason entry. However, if the Supplier setup does not have the value for Payment Reason, it will not default on the invoice.

• If the Payables analyst forgets to choose a value from the list of values, when the invoice is saved, it is put on Scheduled Payment Hold with the Hold Reason “Payment reason is required”

• The user must resolve the issue and remove the hold.

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Oracle Accounts Payable Chapter 8 - Page 115

Configurable Payment Attribute Validation Invoice: Invoice on Hold Report

Configurable Payment Attribute Validation Invoice: Invoice on Hold Report

• This report can be used to help catch errors from Payables data entry or for Imported Invoices.

• Operating Unit, Hold Name, Trading Partner, Entered Date range, Due or Discount date range are some of the parameters you can enter to select invoices.

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Oracle Accounts Payable Chapter 8 - Page 116

Practice 7 Overview: Running Hold Reports

Practice 7 Overview: Running Hold Reports

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Oracle Accounts Payable Chapter 8 - Page 117

Practice - Run Hold Reports

Overview

In this practice, you will run Hold reports.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility = Purchasing, Vision Operations (USA)

1. Submit the Matching Hold Detail Report

2. Submit the Invoice on Hold Report

3. Monitor the requests until they complete successfully and review the output.

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Oracle Accounts Payable Chapter 8 - Page 118

Solution – Run Hold Reports

Tasks

Responsibility = Purchasing, Vision Operations (USA)

Submit the Matching Hold Detail Report

The Matching Hold Detail report shows invoices that were held or released due to matching issues.

1. Navigate to the Standard Request Submission window,

• Other > Requests > Run

2. Submit the Matching Hold Detail report:

− Supplier Name = XXIBM Corporation

3. (B) OK

4. (B) Submit

5. Monitor the request until it completes successfully and review the output.

Submit the Invoice on Hold Report

The Invoice on Hold report shows invoices on hold due to matching or non-matching issues.

1. Navigate to the Standard Request Submission window,

• Other > Requests > Run

2. Submit the Invoice on Hold report:

− Trading Partner = XXIBM Corporation

3. (B) OK

4. (B) Submit

5. Monitor the request until it completes successfully and review the output.

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Oracle Accounts Payable Chapter 8 - Page 119

Configurable Payment Attribute Validation Payment: Payment Processing Choices

Configurable Payment Attribute Validation Payment: Payment Processing Choices

• Responsibility: Payables

• Navigation: Payments : Entry > Payments Manager > (T) Templates > (B) Create

During the payment process, determine what should happen if validation errors occur. The first choice is if there are document validation errors. There are four options here:

• Stop the Process For Review allowing you to review the issue and determine if you can correct it or would like to manually remove the invoices with issues.

• Reject Only Documents with errors – this will allow invoices that do not have errors to continue in the payment process.

• Reject All Documents for the Payee when a document fails – this will reject all the documents for the Payee as soon as one invoice fails letting the invoices for other Payees that did not fail validation continue in the payment process.

• Reject all the Documents in the Payment Process Request, in which case, the payment process will stop and the payment process request will be cancelled.

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Oracle Accounts Payable Chapter 8 - Page 120

Separately, determine how you would like payment level validation issues to be handled.

• Stop the Process For Review allowing you to review the issue and determine if you can correct it or would like to manually remove the invoices with issues.

• Reject Only the Payments with errors allowing others to continue.

• Reject all Payments in the payment process request, where, just as in the document case, the entire payment process request will be stopped and cancelled.

One thing to note here is a special case when Payment Time Withholding is enabled – due to withholding thresholds, if validation errors occur, Payables will automatically stop the payment process and cancel the payment process request.

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Oracle Accounts Payable Chapter 8 - Page 121

Practice 8 Overview: Create a Payment Process Request Template

Practice 8 Overview: Create a Payment Process Request Template

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Oracle Accounts Payable Chapter 8 - Page 122

Practice - Create a Payment Process Request Template

Overview

A payment process request template is a blueprint that simplifies and expedites pay runs by preselecting pertinent payment data, such as general header information, payment selection criteria, payment attributes, processing instructions, and how validation failures are handled. Payment process request templates enable you to:

• Minimize data entry by saving you from re-keying frequently used values, which simplifies and expedites pay runs

• Use a template as a starting point for submitting scheduled pay runs

In this practice, you will create a payment process request template.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility: Payables, Vision Operations (USA)

Navigation

1. Navigate to the Payments Manager.

• (N) Payments > Entry > Payments Manager

2. Navigate to the Create Payment Process Request Template page.

• (T) Templates > (B) Create

Specify Template Header Information

3. Enter header information in the following fields:

− Name = XXTemplate

− Description = XXTemplate Description

Specify Payment Selection Criteria

4. (T) Scheduled Payment Selection Criteria.

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Oracle Accounts Payable Chapter 8 - Page 123

5. Enter data in the following fields.

− Number of Pay From Days = leave blank

− Additional Pay through Days = 0

− Payee = XXIBM Corporation

− Payment Method = Check

6. Under the Pay Groups region, select the Specify radio button.

7. (B) Add.

8. Select XXPay Group.

Specify Payment Attributes

10. (ST) Payment Attributes.

11. Enter data in the following fields.

− Disbursement Bank Account = XXAP Disbursement

− Payment Document = XXAP Check Stock (Note: The format of the Payment Document must match the format of the Payment Process Profile.)

− Payment Process Profile = Long Check Format

− Payment Exchange Rate Type = Corporate

Specify Degree of Payment Process Request Automation

12. (ST) Process Automation.

13. Select the check box for Stop Process for Review After Scheduled Payment Selection.

14. Select the check box for Stop Process for Review After Creation of Proposed Payments.

15. In the Create Payment Instructions drop-down list, select the Initiate When Payment Process Request is Complete option.

16. (B) Apply.

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Solution - Create a Payment Process Request Template

Responsibility: Payables, Vision Operations (USA)

Navigation

1. Navigate to the Payments Manager.

• (N) Payments > Entry > Payments Manager

2. Navigate to the Create Payment Process Request Template page.

• (T) Templates > (B) Create

Specify Template Header Information

3. Enter header information in the following fields:

− Name = XXTemplate

− Description = XXTemplate Description

Specify Payment Selection Criteria

4. (T) Scheduled Payment Selection Criteria.

5. Enter data in the following fields.

− Number of Pay From Days = leave blank

− Additional Pay through Days = 0

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− Payee = XXIBM Corporation

− Payment Method = Check

6. Under the Pay Groups region, select the Specify radio button.

7. (B) Add.

8. Select XXPay Group.

Note: The fields used to limit invoices selected for a pay run will vary, depending on your business process.

Specify Payment Attributes

10. (ST) Payment Attributes.

11. Enter data in the following fields.

− Disbursement Bank Account = XXAP Disbursement

− Payment Document = XXAP Check Stock (Note: The format of the Payment Document must match the format of the Payment Process Profile.)

− Payment Process Profile = Long Check Format

− Payment Exchange Rate Type = Corporate

Specify Degree of Payment Process Request Automation

12. (ST) Process Automation.

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13. Select the check box for Stop Process for Review After Scheduled Payment Selection.

14. Select the check box for Stop Process for Review After Creation of Proposed Payments.

15. In the Create Payment Instructions drop-down list, select the Initiate When Payment Process Request is Complete option.

16. (B) Apply.

The confirmation message displays, indicating that you have successfully created the payment process request template.

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Configurable Payment Attribute Validation Payment: Payment Processing Choices

Configurable Payment Attribute Validation Payment: Payment Processing Choices

Should validation errors occur, the results are shown directly on the Payment Manager Home Page. The Pending Actions area displays payment process requests with validation errors where the user chooses to Stop the Process for Review. Based on the Payment Process Request Status, you are directed to the correct UI to manage the action by clicking on the Start Action icon.

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Configurable Payment Attribute Validation Payment: Payment Processing Choices

Configurable Payment Attribute Validation Payment: Payment Processing Choices

• Responsibility: Payables

• Navigation: Payments Manager > (T) Payment Process Requests

Navigate to the Payables Payment Process Requests Page to create, monitor, and query payment requests.

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Practice 9 Overview: Creating a Payment Process Request

Practice 9 Overview: Creating a Payment Process Request

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Practice - Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check

Overview

In this practice, you will enter invoices, then create a payment process request with straight-through processing for a payment method of check. With straight-through processing, the system does not wait for a scheduled Create Payment Instruction program.

Assumptions

• Replace XX with your terminal number or initials.

• To complete this practice, you must have access to an Oracle Application Vision database or comparable training or test instance at your site.

Tasks

Prerequisites

To create a payment process request with no stops, you will use the following three (3) invoices that you used for the practice entitled Run the Cash Requirement Report:

• XX1001

• XX1002

• XX1003

Tasks

Responsibility: Payables, Vision Operations (USA)

1. Navigate to the Payments Manager.

• (N) Payments > Entry > Payments Manager

2. Navigate to the Submit Payment Process Request page.

• (T) Payment Process Requests

• (B) Submit Single Request

Enter Header Information

3. Enter data in the following fields:

− Payment Process Request Name = XX Single Payment Process Request

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− Use Template = XXTemplate

Enter Selection Criteria

4. (T) Scheduled Payment Selection Criteria.

5. Data defaults from the template into the following fields:

− Pay From Date = Today’s date or the earliest invoice date of the following invoices:

XX1001, XX1002, or XX1003.

− Pay Through Date = Today’s date or the latest invoice date of the following

invoices: XX1001, XX1002, or XX1003.

− Payee = XXIBM Corporation

− Payment Method = Check

− Pay Group = XXPay Group

Enter Payment Attributes

6. (ST) Payment Attributes.

7. In the Payment Date field, enter today’s date.

8. Data defaults from the template into the following fields:

− Disbursement Bank Account = XXAP Disbursement

− Payment Document = XXAP Check Stock (Note: The format of the Payment Document must match the format of the Payment Process Profile.)

− Payment Process Profile = Long Check Format

− Payment Exchange Rate Type = Corporate

Specify the Degree of Automation for Payment Processing

9. (ST) Processing.

10. Override the template by changing data in the following fields:

− Stop Process for Review After Scheduled Payment Selection = Uncheck because you do not want the process to stop for this payrun.

− Stop Process for Review After Creation of Proposed Payments = Uncheck because you do not want the process to stop for this payrun.

− Create Payment Instructions = Automatically Initiate When Payment Process

Request is Complete

Because neither of the stop check boxes has been selected in the Processing subtab and automatic initiation of the payment instructions has been specified, the XX Single Payment Process Request will run without human intervention.

11. (B) Submit

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Find the Newly Created Payment Process Request

12. (T) Payment Process Requests.

13. In the Payment Process Request field (XX Single Payment Process Request), search on your payment process request and (B) Go.

The newly created payment process request displays.

14. (L) Show, which changes to Hide, to view the payment instruction.

15. (B) Refresh Status to view the most recent status of the payment process request.

Print Payment Instructions

16. To print the payment instruction, which in this case, means to print onto a check, (I) Take Action.

17. In the Printer field, select noprint from the list of values.

18. (B) Print to print the check, which represents payment of three invoices; invoice XX1001, invoice XX1002, and invoice XX1003.

Note: Because you specified noprint in the Printer field, you will not actually print the check or take any further action.

View Payment Process Request Details

19. To view the details of the newly created payment process request, click the payment process request name (XX Single Payment Process Request) in the Payment Process Requests page to navigate to the Payment Process Request: <Name> page.

View Payment Details

20. To view details of the payment, (L) Amount.

Note: To view the three invoices you created, click the + (plus sign) to the left of the Documents region.

Record Print Status of Prenumbered Payment Documents

Note: Depending upon your business practice, you may be interested in using a similar dashboard, which is designed to support a payment factory model, where payment processing is centralized. For added experience, you will switch to the Funds Disbursement Process Home, which is an alternate dashboard. Note that the process can be continued from either dashboard.

Since check printing occurs outside of Oracle Applications and has several potential failure points, the system does not know the outcome of printing or reprinting payment documents. Consequently, you need to provide that information to the system through the Record Print

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Status page. This page enables you to update the print statuses by marking payment documents Printed, Spoiled, or Skipped.

Note: You can only select a print status of Skipped for payment documents that use a paper stock type of Prenumbered.

21. Switch to Responsibility: Oracle Payments Payment Administrator.

22. (L) Funds Disbursement Process Home .

23. Under the Pending Actions region, note that the Payment Instruction has a status of Submitted for Printing.

Note that the Payment Instruction has a status of Submitted for Printing.

24. To view details of the payment instruction you created, click the Take Action icon.

25. (B) Record Print Status to record the print status of the printed check.

26. Check your printer and note that the check printed successfully so there is no spoiled or skipped check to record in the Record Spoiled Payment Documents or Record Skipped Payment Documents regions.

Note: By default, all payment documents are initially displayed as Printed. The exception is payment documents that have been marked spoiled during the reprinting process are displayed as Spoiled in the Record Print Status page.

27. Select the Submit Positive Pay Program Immediately check box.

If the applicable setup enables positive pay, selecting the check box results in submission of the Positive Pay program immediately after you finish recording the print status. The program creates a positive pay file, formats it, and transmits it electronically to your bank. This prevents check fraud by informing the bank which payment documents are issued and for what amount.

28. (B) Continue.

A warning displays regarding confirmation of the print status.

29. (B) Apply if you are sure that all documents with the status of Printed were, in fact, successfully printed.

A confirmation print status displays for your payment instruction.

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Oracle Accounts Payable Chapter 8 - Page 134

Solution – Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check

Prerequisites

To create a payment process request with no stops, you will use the following three (3) invoices that you used for the practice entitled Run the Cash Requirement Report:

• XX1001

• XX1002

• XX1003

Navigation

Responsibility: Payables, Vision Operations (USA)

1. Navigate to the Payments Manager.

• (N) Payments > Entry > Payments Manager

2. Navigate to the Submit Payment Process Request page.

• (T) Payment Process Requests

• (B) Submit Single Request

Enter Header Information

3. Enter data in the following fields:

− Payment Process Request Name = XX Single Payment Process Request

− Use Template = XXTemplate

Data from the template defaults onto the payment process request. You can now change data in any subtab of the payment process request if desirable.

Enter Selection Criteria

4. (T) Scheduled Payment Selection Criteria.

5. Data defaults from the template into the following fields:

− Pay From Date = Today’s date or the earliest invoice date of the following invoices:

XX1001, XX1002, or XX1003.

− Pay Through Date = Today’s date or the latest invoice date of the following

invoices: XX1001, XX1002, or XX1003.

− Payee = XXIBM Corporation

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− Payment Method = Check

− Pay Group = XXPay Group

Enter Payment Attributes

6. (ST) Payment Attributes.

7. In the Payment Date field, enter today’s date.

8. Data defaults from the template into the following fields:

− Disbursement Bank Account = XXAP Disbursement

− Payment Document = XXAP Check Stock (Note: The format of the Payment Document must match the format of the Payment Process Profile.)

− Payment Process Profile = Long Check Format

− Payment Exchange Rate Type = Corporate

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Specify the Degree of Automation for Payment Processing

9. (ST) Processing.

10. Override the template by changing data in the following fields:

− Stop Process for Review After Scheduled Payment Selection = Uncheck because you do not want the process to stop for this payrun.

− Stop Process for Review After Creation of Proposed Payments = Uncheck because you do not want the process to stop for this payrun.

− Create Payment Instructions = Automatically Initiate When Payment Process

Request is Complete

Because neither of the stop check boxes has been selected in the Processing subtab and automatic initiation of the payment instructions has been specified, the XX Single Payment Process Request will run without human intervention.

11. (B) Submit

The confirmation window displays.

Find the Newly Created Payment Process Request

12. (T) Payment Process Requests.

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13. In the Payment Process Request field, search on your payment process request (XX Single Payment Process Request) and (B) Go.

The newly created payment process request displays.

14. (L) Show, which changes to Hide, to view the payment instruction.

15. (B) Refresh Status to view the most recent status of the payment process request.

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Note that the newly created payment process request shows a payment instructions Reference Assigned by Administrator of XX Single Payment Process Request, with a Reference number. Make a note of the Reference number __________.

The Payment Process Request page also displays the following statuses:

• Payment process request status = Formatting

• Payment instructions status = Formatted – Ready for Printing.

Note: The Reference nmber represents the printed payment instruction that was automatically created because the option selected for the Create Payment Instructions field in the Processing subtab was Automatically Initiate When Payment Process Request is Complete.

Note: You can also query the newly created payment process request as follows:

− (T) Payment Instructions, enter the payment instruction Reference number in the Reference field, and (B) Go.

− (T) Payments tab, enter the payment process request number in the Payment Reference Number field, and (B) Go.

Note: If for some reason your pay run pulls invoices other than invoices XX1001, XX1002, and XX1003, cancel the extra invoices or place them on hold so they are not included in the pay run.

Print Payment Instructions

16. To print the payment instruction, which in this case, means to print onto a check, (I) Take Action.

The Print Payment Documents: Payment Instruction <Number> page displays.

17. In the Printer field, select noprint from the list of values.

18. (B) Print to print the check, which represents payment of three invoices; invoice XX1001, invoice XX1002, and invoice XX1003.

Note: Because you specified noprint in the Printer field, you will not actually print the check or take any further action.

View Payment Process Request Details

19. To view the details of the newly created payment process request, click the payment process request name (XX Single Payment Process Request) in the Payment Process Requests page to navigate to the Payment Process Request: <Name> page. Note that the newly created payment process request displays pertinent information in the Payment and Document Summary region and in the Payments region.

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View Payment Details

20. To view details of the payment, (L) Amount.

Note: To view the three invoices you created, click the + (plus sign) to the left of the Documents region.

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The Payment: <Number> page shows the three invoices you created in the Documents region, which confirms the following:

• The payment process request (XX Single Payment Process Request) contains the Payment, which includes three invoices.

Record Print Status of Prenumbered Payment Documents

Note: Depending upon your business practice, you may be interested in using a similar dashboard, which is designed to support a payment factory model, where payment processing is centralized. For added experience, you will switch to the Funds Disbursement Process Home, which is an alternate dashboard. Note that the process can be continued from either dashboard.

Since check printing occurs outside of Oracle Applications and has several potential failure points, the system does not know the outcome of printing or reprinting payment documents. Consequently, you need to provide that information to the system through the Record Print Status page. This page enables you to:

• Update the print statuses by marking payment documents Printed, Spoiled, or Skipped.

Note: You can only select a print status of Skipped for payment documents that use a paper stock type of Prenumbered.

21. Log in to the following responsibility: Oracle Payments Payment Administrator.

22. (L) Funds Disbursement Process Home.

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23. Under the Pending Actions region, note that the Payment Instruction has a status of Submitted for Printing.

24. To view details of the payment instruction you created, (I) Take Action.

25. (B) Record Print Status to record the print status of the printed check.

The Record Print Status: Payment Instruction <Number> page displays.

26. You check your printer and note that the check printed successfully so there is no spoiled or skipped check to record in the Record Spoiled Payment Documents or Record Skipped Payment Documents regions.

Note: By default, all payment documents are initially displayed as Printed. The exception is payment documents that have been marked spoiled during the reprinting process are displayed as Spoiled in the Record Print Status page.

27. Select the Submit Positive Pay Program Immediately check box.

If the applicable setup enables positive pay, selecting the check box results in submission of the Positive Pay program immediately after you finish recording the print status. The program creates a positive pay file, formats it, and transmits it electronically to your bank. This prevents check fraud by informing the bank which payment documents are issued and for what amount.

28. (B) Continue.

A warning displays regarding confirmation of the print status.

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29. (B) Apply if you are sure that all documents with the status of Printed were, in fact, successfully printed.

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Oracle Accounts Payable Chapter 8 - Page 143

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting - Benefits

Expanded Payment Attribute Availability Payment Instructions Formats and Reporting - Benefits

The benefits include:

• Reducing the reaction time to changing banking relationships with easily configurable payment instruction formats

• Have the flexibility to provide Payee’s with the information they can best use to apply payments to open receivables.

• Manage the reporting requirements of your country or company and easily adapt to changing requirements.

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Expanded Payment Attribute Availability Payment Instruction Formats and Reporting

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting

• Responsibility: Payables

• Navigation: Setup:Payment > Payment Administrator > Shared Setup > Formats

The first step is to manage the XML Publisher items where you can create and register formatting templates and assign data extracts to payment instructions and reports. Choose the Go To Task Icon for XML Publisher Format Templates.

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Payment Instruction Formats and Reporting XML Publisher Templates

Payment Instruction Formats and Reporting XML Publisher Templates

• Responsibility: Payables

• Navigation: Setup:Payment > Payment Administrator > Shared Setup > Formats >

Search area

Search on the “Payments” application and Funds Disbursement data types to view “out of the box” templates. To view the template layout, drill down from the Name link, then click on Download.

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Oracle Accounts Payable Chapter 8 - Page 146

Payment Instruction Formats & Reporting XML Publisher Templates

Payment Instruction Formats & Reporting XML Publisher Templates

This example is a template used to send an electronic file to the bank. Obviously a more technical version of a layout, however, you will see payment attributes available such as Payment Reason, Payment Reason Comments, Bank Charge Bearer, and Settlement Priority. XML Publisher allows you to manage changes or new templates easily and quickly, even for layouts that are following the electronic media spec for your bank or payment processing system.

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Expanded Payment Attribute Availability Payment Instruction Formats and Reporting

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting

You can also tie payment attribute validations to the Payment Instructions that will be used during the payment processing.

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Formats & Reporting Payment Process

Formats & Reporting Payment Process

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles

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Formats and Reporting Payment Process

Formats and Reporting Payment Process

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles > (B) Create > (T) Payment Creation

Note that the tab does not appear until after you have saved the profile and chosen (B) Save and Add Details.

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Formats & Reporting Payment Process

Formats & Reporting Payment Process

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles > (B) Create > (T) Payment Instruction Creation (Note

that the tab does not appear until after you have saved the profile and chosen (B)

Save and Add Details)

On the Payment Instruction Creation tab, you follow-up with rules on how the built payments should be grouped into Payment Instructions. In other words, one Payment Process Request can result in more than one Payment Instruction file but note that each payment instruction will be formatted.

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Formats and Reporting Payment Process

Formats & Reporting Payment Process

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles > (B) Create > (T) Payment Instruction Format

Note that the tab does not appear until after you have saved the profile and chosen (B) Save and Add Details

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Formats & Reporting Payment Process

Formats & Reporting Payment Process

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles > (B) Create > (T) Reporting

Note that the tab does not appear until after you have saved the profile and chosen (B) Save and Add Details

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Oracle Accounts Payable Chapter 8 - Page 153

Setup Payment Method Controls and Enhanced Payment

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Oracle Accounts Payable Chapter 8 - Page 154

Configurable Payment Attribute Validation Setup

Configurable Payment Attribute Validation Setup

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Methods (H) Validations

Payment Instruction Formats are used to assign the output format but also where you associate validations to be evaluated during payment processing. Then to the Payment Process Profile where the payment method and payment instruction format are defined together to be used at payment time.

You can View preconfigured Validation Options – it is not a setup step, however, you can evaluate what is available to you.

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Oracle Accounts Payable Chapter 8 - Page 155

Configurable Payment Attribute Validation Setup Consideration

Configurable Payment Attribute Validation Setup Consideration

On the previous slide, the steps are sequential. However when considering your payment method and formatting definitions, evaluate all three together. There are three models you can consider.

• The first is One Payment Method to One Payment Process Profile – in other words, one payment method – one payment instruction format and one set of reports. In this case, you can determine how much validation you would like up front on your invoices or later at payment time equally based on your Payables’ staffing.

• The second model, “One Payment Method to many Payment Process Profiles” , needs to be reviewed based on the collective Payment Instruction and reporting needs. This model means that the actual Payment Process Profile will not be determined until payment time. Based on the differences between the “back end” formats, you can determine just how much can be validated upfront on the invoices.

• The third model is “Many Payment Methods to One Payment Process Profile”. In this model, you can again determine how much validation you would like upfront on your invoices or later at payment time equally based on your Payables’ staffing since you can assign format validation per payment method.

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Oracle Accounts Payable Chapter 8 - Page 156

All setup options for validation are available via the Payment Administrator menu.

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Configurable Payment Attribute Validation Setup: View Available Validations

Configurable Payment Attribute Validation Setup: View Available Validations

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Methods > (H) Validations >(B) Go in Search area

Payment Methods may be assigned Document level validations and Document, Payment, & Payment Instruction validations may be assigned to the Payment Instruction Format.

There are many country specific validations that are considered Pre-defined validations, then there are Rule based validations that allow you to configure the meaning when it comes to defining Payment Methods and Formats.

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Configurable Payment Attribute Validation Setup – Payment Methods

Configurable Payment Attribute Validation Setup – Payment Methods

In the validations area, assign pre-defined validations or configure your own. When configuring your own, choose a Field Name from the list of values. Based on the field name, assign a validation name. For example, you can specify that the Payee’s bank account is required and can be only integers and that a Payment Reason is required.

Ensure the Integrity of your Reporting and Formatting by Verifying Information upfront on the Invoice.

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Configurable Payment Attribute Validation Setup: Payment Process Format

Configurable Payment Attribute Validation Setup: Payment Process Format

Assign or configure your validations to be used at Payment Time for your Payment Instructions. Since Payment Instructions can include many payment methods, optionally assign the payment time validations per payment method. Include pre-defined or user–defined validations or supplement pre-defined validations with your own user-defined options.

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Configurable Payment Attribute Validation Setup: Payment Process Profile

Configurable Payment Attribute Validation Setup: Payment Process Profile

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Process Profiles

Each Payment Process Profile is a cornerstone for your payment instruction and reporting needs for the documents that will be paid using it. A Profile includes the type of processing (electronic or in-house printing), use controls based on a list of payment methods, bank accounts, first party legal entities, and currencies. It also contains payment system configuration and payment creation rules.

• Specify Usage Rules: Payment Methods

• Tie the Payment Method to the Payment Process Profiles

• Each single payment or Pay Run must have a Payment Process Profile.

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Oracle Accounts Payable Chapter 8 - Page 161

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting Setup

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting Setup

Release 12 leverages XML Publisher for layouts and report types such as text or PDF. The XML Publisher Templates are then assigned to Formats for payment instructions and reports. The formats are assigned to your Payment Process Profiles.

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Enhanced Payment Method Controls Setup

Enhanced Payment Method Controls Setup

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Payment Methods

There are seeded items already provided for your use, so all setup steps shown are optional.

• Payment Methods. There are some payment methods automatically available. These include Check, EFT, and Wire. You can update these payment methods or enter new payment methods to meet your demands.

• Payment Method Defaulting Rule. These let you create a set of rules to default Payment Methods centrally, based on something other than individual payees.

• Disbursement System Options. These allow you to specify whether the Payment Methods should default from Defaulting Rules only or take the default payment method from the Payee. Disbursement Options can be defined at the enterprise level, legal entity, business group or for specific Operating Units.

• Payee Preferences. Controls assigned to an individual payee. Since you can create defaulting rules centrally, assigning Payment Methods to individual payees is optional.

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Oracle Accounts Payable Chapter 8 - Page 163

Expanded Payment Attribute Availability and Defaulting - Setup

Expanded Payment Attribute Availability and Defaulting – Setup

• Responsibility: Payables

• Navigation: Setup : Payment > Payment Administrator > Funds Disbursement Setup

> Codes

The first set of setups include the Delivery Channels, Payment Reason, and Bank Instruction Codes. These provide a list of values for your Payee definition and in the document payable.

Next define the attributes on the Payee – these are used for defaulting purposes during invoice entry and import or during payment processing.

Tailor the Payables Invoice Workbench or Quick Invoices forms using Oracle Folder Form technology if desired. Predetermine the folders or let users tailor the look to meet their individual data entry style or task.

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Oracle Accounts Payable Chapter 8 - Page 164

Implementation Considerations

Implementation Considerations

This feature has been provided by Oracle Payables in partnership with Oracle Payments, a new module provided with Oracle Financials. XML Publisher, another module available with Oracle Financials, is leveraged for the solution formats.

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Oracle Accounts Payable Chapter 8 - Page 165

Agenda

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Oracle Accounts Payable Chapter 8 - Page 166

Self Assessed Tax Description

Self-Assed Tax - Description

Self Assessed tax differs from regular taxes in one way: as a purchaser, you are responsible for reporting and paying the tax and the supplier is not.

This was also known as USE TAX in previous releases.

For example: You receive an invoice for $1000 which is due to be paid to the supplier. Tax A for 10% was not charged on the invoice however, as the purchaser, you recognize that you are responsible to pay tax A. You would self-assess Tax A for the $100 and include it in your filings to the corresponding tax authority.

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Oracle Accounts Payable Chapter 8 - Page 167

Self Assessed Tax Features

Self Assessed Tax Features

• The flexibility to have self assessed tax automatically assessed (based on tax setup) or to manually mark the calculated tax as self assessed during invoice entry.

• An ability to have recoverable and non-recoverable portions of self assessed tax amounts based on your invoice details.

• The ability to report and account detailed recoverable and non-recoverable self assessed tax AND the corresponding Self Assessed Tax Liabilities when the transaction is accounted.

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Oracle Accounts Payable Chapter 8 - Page 168

Self Assessed Tax Benefits

Self Assessed Tax Benefits

Improved Fiscal Discipline

• Automatic reporting and accrual helps maintain an audit trail for the tax amounts and the invoices they tie to.

• Separate liability accounts for self assessed taxes translate to more granular and accurate accounting.

Improved Operational Excellence

• By automating previously manual processes and providing functionality available during invoice entry, the propensity for human error or delayed information is reduced.

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Oracle Accounts Payable Chapter 8 - Page 169

Self Assessed Tax Predetermined Process

Self Assessed Tax Predetermined Process

• During Invoice Entry, Validation, and Import, Payables gathers information known as “tax drivers’ entered on the invoice header and lines and passes that information to the new E-Business Tax module.

• Based on these tax drivers and additional information derived by E-Business Tax such as the supplier’s party tax profile and buyer’s and supplier’s tax registrations, the engine determines if any self assessed tax is applicable to the invoice.

• The self assessed tax will be passed back to Payables along with the recoverable and non-recoverable tax amounts and the General Ledger Accounts for the recoverable tax and self assessed liability.

• Payables displays the self assessed tax amount in a column on the Invoice header in the Invoice Workbench. Payables will also derive the accounts for the non-recoverable portion of the self assessed tax then store all accounts to be used later when the invoice is accounted.

• When the Invoice is Accounted, the self assessed tax and corresponding self assessed tax liabilities will be accounted along with the rest of the invoice.

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Oracle Accounts Payable Chapter 8 - Page 170

Self Assessed Tax Process – 1. Predetermined

Self Assessed Tax Process – 1. Predetermined

Predetermined self assessed tax calculation example: (That is, cases where self assessed taxes are calculated by the application automatically). This will include setup, invoicing, tax calculation, accounting, and reporting.

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Oracle Accounts Payable Chapter 8 - Page 171

Self Assessed Tax: Predetermined Process – Invoice Entry

Self Assessed Tax: Predetermined Process – Invoice Entry

• Responsibility: Payables

• Navigation: Invoices : Entry > Invoices

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Oracle Accounts Payable Chapter 8 - Page 172

Self Assessed Tax: Predetermined Process – Calculate Tax

Self Assessed Tax: Predetermined Process – Invoice Entry

• Responsibility: Payables

• Navigation: Invoices : Entry > Invoices > (T) Lines > (B) Calculate Tax

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Oracle Accounts Payable Chapter 8 - Page 173

Self Assessed Tax: Predetermined Process – Calculate Tax Example

Self Assessed Tax: Predetermined Process – Calculate Tax Example

Here we see the self assessed tax amount returned by E-Business Tax ($50.00). We also see that this has no impact on the supplier’s invoice details. The tax for the Supplier’s invoice is $0 and the amount due to the supplier is $1000.

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Oracle Accounts Payable Chapter 8 - Page 174

Self Assessed Tax: Predetermined Process – Calculate Tax

Self Assessed Tax: Predetermined Process – Calculate Tax

The Tax Lines Summary window provides further information about the summarized tax.

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Oracle Accounts Payable Chapter 8 - Page 175

Self Assessed Tax Process – Account

Self Assessed Tax Process – Account

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Oracle Accounts Payable Chapter 8 - Page 176

Self Assessed Tax Process – Account

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Oracle Accounts Payable Chapter 8 - Page 177

Self Assessed Tax Setup – Reporting Choices

Self Assessed Tax Setup – Reporting Choices

Subledger Accounting provides many reports for your accounting activity including your self assessed tax liability. These reports use XML Publisher, giving you the flexibility to configure the layout and report type at any time.

Report types include Account Analysis Report and the Open Account Balance Listing report.The Open Account Balance Listing report is primarily used for the Payables Liability, however, you can leverage it for any account you would like to have for transactional and accounting detailed data. There are two configurable portions to the Open Account Balance Listing report: the XML Publisher Layout and the Definition.

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Oracle Accounts Payable Chapter 8 - Page 178

Self Assessed Tax Setup – Reporting Choices

Self Assessed Tax Setup – Reporting Choices

• Responsibility: Payables

• Navigation: Setup : Accounting Setups : Subledger Accounting Setup > Open

Account Balances Listing Definitions

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Oracle Accounts Payable Chapter 8 - Page 179

Self Assessed Tax Process – Report

Self Assessed Tax Process – Report

Here are two examples of the reports, each using a configured XML Template.

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Oracle Accounts Payable Chapter 8 - Page 180

Self Assessed Tax Manual Determination Process

Self Assessed Tax Manual Determination Process

• This slide illustrates the process for an invoice where the calculated tax returned by the E-Business Tax engine is expected to be paid to the supplier and the Payables’ user updates the it as Self Assessed instead.

• Just like the first example, Payables gathers tax drivers entered on the invoice header and lines and passes that information to the E-Business Tax module.

• Based on these tax drivers and additional information derived by E-Business Tax, the engine calculates the tax that is expected to be paid to the supplier (in other words: Non-self assessed taxes)

• From the Tax Summary Window, the Payables user marks the tax as self assessed. E-Business Tax updates their records and returns the tax details to Payables.

• Payables stores the GL Accounts, displays the self assessed tax amount in a column on the Invoice header and the validated invoice is ready for accounting.

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Oracle Accounts Payable Chapter 8 - Page 181

Self Assessed Tax Process – 2. Manual Determination

Self Assessed Tax Process – 2. Manual Determination

The flexibility to manually mark tax as self assessed, if allowed by your tax department, can be done when the circumstances arise. The Accounting and Reporting are the same as our previous example so that won’t be covered again.

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Oracle Accounts Payable Chapter 8 - Page 182

Self Assessed Tax: Manual Determination Set Up - E-Business Tax Controls

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Oracle Accounts Payable Chapter 8 - Page 183

Self Assessed Tax: Manual Determination Process – Invoice Entry

Self Assessed Tax: Manual Determination Process – Invoice Entry

This step is the same process for the Payables Analyst in the first example where the invoice header and line details are entered.

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Oracle Accounts Payable Chapter 8 - Page 184

Self Assessed Tax: Manual Determination Process – Calculate Tax

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Oracle Accounts Payable Chapter 8 - Page 185

Self Assessed Tax: Manual Determination Process – Calculate Tax Example

Self Assessed Tax: Manual Determination Process – Calculate Tax Example

In this example, E-Business Tax has returned a $50.00 tax summary line; that is, the calculated tax was not automatically set as self assessed. The total tax has been “classified” as the tax we are expecting to pay the supplier on the invoice header. Note that the Invoice Amount is only for $1,000.00. In other words, the supplier’s invoice did not include the $50.00 tax.

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Oracle Accounts Payable Chapter 8 - Page 186

Self Assessed Tax: Manual Determination Process – Calculate Tax Example

Self Assessed Tax: Manual Determination Process – Calculate Tax Example

The Tax Lines Summary window (accessed by clicking the Tax Details button) displays further information about the summarized tax. For example, you can determine if the calculated tax has been marked as self assessed tax.

You can mark the tax row as self assessed by checking the corresponding checkbox and clicking the [OK] button.

In this example, we have selected the Self Assessed Tax option. Now we see that the header level view of the total tax displays the $50.00 as self assessed, and the $50.00 tax line has been removed.

Note: The Account and Report flows are the same as covered in the first example, and are not repeated here.

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Oracle Accounts Payable Chapter 8 - Page 187

Setup Self Asessed Tax

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Oracle Accounts Payable Chapter 8 - Page 188

Self Assessed Tax: Predetermined Set Up First Party, Party Tax Profile

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile

To enable the application to automatically assess self assessed taxes for the First Party or for certain Third Party Suppliers, you need to first set up the Party Tax Profile. The Party Tax Profile is party specific, tax related information that can be associated to 1st and 3rd parties. It includes information such as defaults, tax registrations, classifications and tax reporting codes.

Using the Tax Managers responsibility, navigate to the Parties, Party Tax Profiles page.Search based on the Party Type of First Party Legal Establishment and the desired party name.

You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels based on your needs:

• Registration, Regime

• Registration, Regime, Tax

• Registration, Regime, Tax, Tax Jurisdiction

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Oracle Accounts Payable Chapter 8 - Page 189

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile

• Responsibility: Payables

• Navigation: Setup : Tax > E-Business Tax Home > Create Party Tax Profiles

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Oracle Accounts Payable Chapter 8 - Page 190

Self Assessed Tax: Predetermined Set Up – Supplier Party Tax Profile

Self Assessed Tax: Predetermined Set Up – Supplier Party Tax Profile

The difference between the previous slide and this, is that if set up as shown here, self assessed taxes will only be assessed for this supplier according to the level it is set:

• Registration, Regime level

• Registration, Regime, Tax level

• Registration, Regime, Tax, Tax Jurisdiction level

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Oracle Accounts Payable Chapter 8 - Page 191

Implementation Considerations

Implementation Considerations

E-Business Tax is a common module available with Oracle Financial Applications.

• The E-Business Tax engine is responsible for calculating tax amounts applicable to invoices.

• It also assists in automatically identifying taxes as self assessed and allows setting options for manual determination.

Subledger Accounting is also a common module available with Oracle Financial Applications.

• Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs.

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Oracle Accounts Payable Chapter 8 - Page 192

Agenda

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Oracle Accounts Payable Chapter 8 - Page 193

Oracle Payables For Complex Contract Terms

Oracle Payables For Complex Contract Terms

These contracts tend to have high dollar values, often running into several millions of dollars. They also tend to be long lead time contracts, sometimes extending over multiple years. They include payment terms characterized by progress payments, financing with advances or based on completed work, and may provide for retainage options. The area of target for this release are fixed-priced contracts which include lump sum, rate based, and milestone driven progress.

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Oracle Accounts Payable Chapter 8 - Page 194

Oracle Payables for Complex Contract Terms Benefits

Oracle Payables for Complex Contract Terms Benefits

We are continuing our efforts to reduce the cost of compliance for such corporate governance rulings as Sarbanes-Oxley and similar rulings found in other geographic areas. By automating retainage and financing recoupment, tolerance checking, and self billing options for approved work, there is less to worry about when auditing these functions. Workflow processing for approval and holds resolution provide a means of representing your processing procedures in the Payables application. Again, an auditing win particularly with complete approval and holds resolution history visible from the Invoice Workbench.

Real-time update of the purchase order, adherence to budgetary controls through funds checking and encumbrance accounting, accounting and tax reporting provide important business intelligence and transparency into your business.

Automating many items in the invoice area also reduces the cost of invoice processing and the opportunity for errors which may result in overpaying your suppliers.

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Oracle Accounts Payable Chapter 8 - Page 195

Complex Contract Terms Key Concepts

Complex Contract Terms Key Concepts

• A Progress Payment Schedule is an industry term that represents a schedule of services and work components required to complete a complex services contract. Each of these service components is typically associated with payments. Specifically in the Construction Industry, the Progress Payment Schedule is also referred to as the Schedule of Values.

• Progress Payments are payments released for work partially or fully completed on a Progress Payment Schedule.

• Pay Items refers to a specific work or service component of the Progress Payment Schedule. It describes the work or service that needs to be completed, and the payment amount associated with that work or service. So a Progress Payment Schedule basically consists of several pay items. Pay Items can be of different types – they can be based on rate of work or service being delivered, or based on a lump sum amount for a service, or they can even be based on a event or milestone on the contract

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Oracle Accounts Payable Chapter 8 - Page 196

Complex Contract Terms Key Concepts

Complex Contract Terms Key Concepts

• Progress Payment Rate - a payment term used on cost reimbursement contracts. On these contracts progress payments released to the Contractor are based on the costs incurred by the contractor during the execution of the contract. The progress payment rate is used on these contracts to compute the reimbursement amount based on the cost incurred by a contractor. The Progress Payment Rate is usually negotiated between the Buying Organization and the Contractor.

• Financing is often used on Public Sector Contracts. Contract financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met, financing is given to aid in the completion of subsequent work prior to the delivery of the contract line item.

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Oracle Accounts Payable Chapter 8 - Page 197

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

In order to fully understand the story for Oracle Payables, we’ll first talk about the high-level business flow for the procurement of complex services.

Procurement for complex services often starts off from a request for services, and this can originate from one of several sources – Project Managers in charge of a construction project, engineers in the field, or even architects.

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Oracle Accounts Payable Chapter 8 - Page 198

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

If the Service Requests have high dollar values, and involve services that require longer lead times to be fulfilled, buying organizations can determine that fulfilling the request will need sourcing and negotiation activity. The sourcing event and negotiation include determining the complex payment requirements.

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Oracle Accounts Payable Chapter 8 - Page 199

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

Once negotiation is complete, the best party is awarded the contract. The complex payment terms and the progress payment schedule now become a part of the contract and the contract is now ready for execution.

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Oracle Accounts Payable Chapter 8 - Page 200

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

If there are provisions on the contract for advance financing, the supplier can request payment before work starts.

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Oracle Accounts Payable Chapter 8 - Page 201

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

The contractor now performs work on the progress payment schedule and periodically reports progress and requests payment either in the form of a Work Confirmation or an Invoice. These documents state the amount of work completed on different components of the progress payment schedule, and usually need to be approved by designated individuals like Engineers, Project Managers or Architects on the client’s side before any payment can be released.

Once the work confirmation is approved, the contract is updated with the progress made. If the work is accrued, this information is also updated on the Project which allows the Project Manager to view actuals and commitments for this specific portion of work along with the rest of the work against the Project.

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Oracle Accounts Payable Chapter 8 - Page 202

Oracle Procurement to Payables: High Level Business Flow

Oracle Procurement to Payables: High Level Business Flow

Once an invoice is received or generated, the Complex Payment Terms specified on the contract are used to calculate the payment due to the contractor. Previous financing payments, if any, can be recouped, and applicable retainage can be withheld before a payment is made to the contractor.

Alternatively, if the contractor’s invoice is for contract financing payments, these can be released and tracked as such on the contract so that they can be recouped subsequently from invoices for services deliveries.

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Oracle Accounts Payable Chapter 8 - Page 203

Integrated Products: High Level Business Flow

Integrated Products: High Level Business Flow

This slide shows the products that are integrated to form the complex services procurement solution – Oracle Projects, Oracle Payables, and Oracle Advanced Procurement which includes Oracle iProcurement, Oracle Sourcing, Oracle iSupplier Portal, and Oracle Procurement Contracts. All these products integrate seamlessly to provide a complete solution.

Oracle Projects can be used to manage the overall Project, it’s Tasks, as well as monitor the commitments and actuals throughout the complex procurement cycle along side other project costs and work progress. Service Requests can be created from the deliverables of the individual tasks, and in Oracle Sourcing these can be negotiated, sourced and awarded to a Contract in Oracle Purchasing. Oracle Purchasing and Oracle iSupplier Portal provide the capability to specify complex payment terms, execute on the contract, and report and track progress against the Progress Payment Schedule. Oracle Payables provides the functionality to record invoices using the complex payment terms and process payments for the contract.

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Oracle Accounts Payable Chapter 8 - Page 204

Oracle e-Business Tax Setup: Tax Configuration

Oracle e-Business Tax Setup: Tax Configuration

If you do plan on taxing the Advance or Contract Financing Prepayment and want to “reverse” the tax when you recoup, you can then determine your recoupment tax treatment: either recalculate based on today’s rates or prorate the prepaid tax based on the recoupment amount.

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Oracle Accounts Payable Chapter 8 - Page 205

Business Flow: Payables Distinction

Business Flow: Payables Distinction

This slide represents the same flow discussed earlier but from the different perspective of providing a distinction between the Procurement processing and the Payables processing.

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Oracle Accounts Payable Chapter 8 - Page 206

Contract Delivery Invoicing

Contract Delivery Invoicing

Delivery invoices can be submitted using same entry points covered previously including self billing with the Pay On Receipt feature.

The delivery invoice will also have the financing automatically recouped.

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Oracle Accounts Payable Chapter 8 - Page 207

Invoice Workbench: Contract Delivery Invoices

Invoice Workbench: Contract Delivery Invoices

When viewing distributions, tailor the columns using the folder window to create a view that meet your requirements. This slide shows the Prepayment Number to illustrate the different prepayment invoices that are now recouped on this invoice.

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Oracle Accounts Payable Chapter 8 - Page 208

Oracle Payables: Ensure Billing Compliance

Oracle Payables: Ensure Billing Compliance

We have already covered how Payables adapts to the type contract being billed against and automates retainage and recoupment. We noted that the PO is always updated immediately when billing activity occurs enabling real time information. We will now touch upon managing tolerances and holds.

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Oracle Accounts Payable Chapter 8 - Page 209

Oracle Payables: Tolerances and Holds

Oracle Payables: Tolerances and Holds

• Fixed Price Services: Lump Sum Pay Items = Amount Based Tolerance Checking

- For Fixed Price PO lines, use the Services template assigned to the supplier site when the Pay Items are Lump Sum.

• Fixed Price Services: Rate Based Pay Items = Quantity Based Tolerance Checking

- For Fixed Price PO lines, use the Goods template assigned to the supplier site when the Pay Items are Rate based. While the template is called Goods, it represents Quantity Based matches.

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Oracle Accounts Payable Chapter 8 - Page 210

Oracle Payables: Tolerances and Holds

Oracle Payables: Tolerances and Holds

Milestone Pay Items are unique. They represent a specific point in the contract and any tolerance is not acceptable. In other words, milestone pay items are not compared with a tolerance template.

• Payables will place a Milestone hold for Goods if the price and amount are not exact or if the quantity billed is over the quantity ordered. The bill cannot be for a partial quantity such as .5. Payables will allow for less, whole quantities to be billed, however, the price and amount must be exact or a hold will be placed.

• For Fixed Price Services, the amount must be exact – anything less or more will have a hold placed.

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Oracle Accounts Payable Chapter 8 - Page 211

Oracle Payables: Holds Notification Options

Oracle Payables: Holds Notification Options

• Payables has introduced a new Holds Resolution Workflow in R12. This feature enables you to release any hold that can be manually released.

• The Notify After days allows a period of time to see if the hold on the invoice resolves itself. For example, a Quantity Received hold may resolve itself when a receipt is recorded.

• The workflow notification includes two options – release the hold; acknowledge the issue.

• By choosing acknowledge, the person being notified is expected to take some action such as enter a change to the PO for a Price hold. The Remind After Days will send a reminder to this person if the hold is still on the invoice after they first acknowledged the issue.

• The Hold Instructions entered here will appear on the notification to provide instructions to the person being notified.

• This history of any actions that are done through this workflow are updated and available for viewing from Payables’ Invoice Workbench, Tools.

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Oracle Accounts Payable Chapter 8 - Page 212

Practices 10 and 11 Overview: Placing and Releasing Holds

Practices 10 and 11 Overview: Placing and Releasing Holds

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Oracle Accounts Payable Chapter 8 - Page 213

Practice - Place a Hold on an Invoice

Overview

There are several types of holds including Supplier Site Holds, Invoice Holds and Scheduled Payment Holds. Some holds can be manually released and others may not. If an invoice is on a hold that cannot be manually released (like a distribution variance hold), the problem must be fixed. In this practice, you will place a hold on an invoice.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility: Payables, Vision Operations (USA)

1. Navigate to the Invoices window.

• (N) Invoices > Entry > Invoices

2. Query invoice number XX2000

• (M) View > Find

− Trading Partner = XXIBM Corporation

− Invoice Number = XX2000

3. Place an amount hold on your invoice.

4. Save your work.

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Solution - Place a Hold on an Invoice

Tasks

Responsibility: Payables, Vision Operations (USA)

Query an Invoice

1. Navigate to the Invoices window.

• (N) Invoices > Entry > Invoices

2. Query invoice number XX2000

• (M) View > Find

− Trading Partner = XXIBM Corporation

− Invoice Number = XX2000

3. (B) Find

Place a Hold on an Invoice

5. (T) Holds

− Hold Name = Amount

6. Save

7. (T) General

Note that Holds = 1.

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Practice - Release Holds

Overview

You have received formal approval from the management to release invoice number 2000. When you have completed this practice, please find and approve all the invoices you have entered. If any of your invoices are on hold, please release the hold(s). Remember you may need to correct the reason the invoice is on hold prior to being able to approve it. In this practice, you will release holds.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Responsibility: Payables, Vision Operations (USA)

1. Navigate to the Invoices window and query your invoice.

• (N) Invoices > Entry > Invoices

3. Release the hold on your invoice.

4. Save your work.

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Solution - Release Holds

Tasks

Responsibility: Payables, Vision Operations (USA)

Query an Invoice

1. Navigate to the Invoices window.

• (N) Invoices > Entry > Invoices

− (M) View > Find

− Trading Partner = XXIBM Corporation.

− Invoice Number = XX2000

2. (B) Find.

Release the Hold

3. Use any Release Name to release your invoice on hold.

4. (T) Holds

− Release Name = your choice from LOV

5. Save

6. (T) General

Note that Holds = 0

7. Close the form back to the Navigation menu

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Oracle Payables for Complex Contract Terms Benefits

Oracle Payables for Complex Contract Terms Benefits

Reduce the cost of compliance for such corporate governance rulings as Sarbanes-Oxley and similar rulings found in other geographic areas. By automating retainage and financing recoupment, tolerance checking, and self billing options for approved work, there is less to worry about when auditing these functions. Workflow processing for approval and holds resolution provide a means of representing your processing procedures in the Payables application. Again, an auditing win particularly with complete approval and holds resolution history visible from the Invoice Workbench.

Real-time update of the purchase order, adherence to budgetary controls through funds checking and encumbrance accounting, accounting and tax reporting provide important business intelligence and transparency into your business.

Automating many items in the invoice area also reduces the cost of invoice processing and the opportunity for errors which may result in overpaying your suppliers.

Suppliers, Project Managers, Spend Managers, Buyers, Auditors, Accounting and Tax Staff, Payables Analysts and Payables Managers, stock holders and executive management are some of the key stakeholders who will benefit from streamlined processes, reduced costs for purchases and projects, minimized risks, and seamless collaboration.

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Oracle Procurement to Payables: Setup Overview

Oracle Procurement to Payables: Setup Overview

The setup for this solution set falls into 5 main areas:

1. System Administrator: Profile Options

2. Purchasing: includes Document Styles which are required and Change Order Tolerances

3. Payables: has some options in Payables Options and invoice tolerance policies. Payables requires a setup in Financial Options and both Purchasing and Payables have items when defining the supplier

4. Oracle Approval Management Module approval rules allow configurability for approving work confirmations, invoices, and resolving invoice holds

5. Oracle e-Business Tax Module offers solutions for your global tax needs.

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Oracle Procurement Setup

Oracle Procurement Setup

• Responsibility: Purchasing

• Navigation: Setup:Purchasing > Document Styles

The profile option POR: Amount Based Services Line Type specifies how services are to be quantified and ordered on the transaction document. In order to use the Complex Services functionality, the value for this profile option should be set to ‘Fixed Price Services’, which means that services will be ordered as an amount. You can find this setup via the System Administrator responsibility under System Profiles.

The Purchase Order Document style is key. It defines the basic document rules of the Complex Work Purchase Order. A Document Style builds additional functionality on the Document Type and provides the user the flexibility to tailor purchasing transaction documents like Orders and Agreements by exposing or suppressing specific features such as line types and complex payment term details.

Document Styles allow control regarding which commodities are purchased on the order. You can setup specific document styles for the purchase of goods and have a separate document style for the purchase of services.

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Styles also allow flexibility to use Progress Payments, Contract Financing and Advances, and Retainage on a contract.

There is also a checkbox that allows the Progress Payment Schedule to be treated as Contract Financing. This feature allows every payment released for work performed on the progress payment schedule to be treated as a financing payment that can be recouped from payments for deliveries on the contract.

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Oracle Accounts Payable Chapter 8 - Page 221

Payables Setup: Financial Options

Payables Setup: Financial Options

• Responsibility: Payables

• Navigation: Setup:Options > Financial Options

You can define one retainage account for the Operating Unit which Payables uses to record the distribution account on progress invoices and subsequent retainage release invoices for funds withheld from suppliers doing business with the organization. The retainage distribution account on the invoice is used in the seeded accounting setup in Subledger Accounting.

Historically the prepayment account entered here would default to the supplier site and be used when creating prepayments for the supplier. However, the new Advances and Contract Financing prepayments introduced with this solution will use the distribution account on the Purchase Order and not the supplier site.

If you plan on using encumbrance – review the Encumbrance options for Purchasing in the Encumbrance tab. For Payables, Encumbrance options are defined in Subledger Accounting.

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Oracle Accounts Payable Chapter 8 - Page 222

Payables Setup – Payables Options

Payables Setup – Payables Options

• Responsibility: Payables

• Navigation: Setup:Options > Payables Options

Use the Payables Options window to enable Payables Invoice Approval. This is used in conjunction with the Approval Management setup, discussed later in this presentation.

• Invoices Tab: Note the settlement days in particular. Settlement days provide you with an option to consider payment clearing days when recouping your prepayments. For example, even though you have approved and paid a prepayment advance, you may want to add additional settlement days before the advance can be recouped.

• Accounting Tab, the prepayment account setting is only used as a Subledger account derivation rule – in other words, you will see this option used when you View Accounting.

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Oracle Accounts Payable Chapter 8 - Page 223

Payables Setup: Invoice Tolerances

Payables Setup: Invoice Tolerances

• Responsibility: Payables

• Navigation: Setup:Options > Payables Options > (T) Invoice

Use the Invoice Tolerances Template, Service Type to define the matching tolerances policy for variances between the amount being invoiced and the amount planned on the Services Procurement Contract or the work to date represented by the approved work confirmations. You can define both percentage–based and amount–based tolerances. While it states Services, this is really for all amount based matching. Define Goods Tolerance templates for quantity based purchases. You can define many tolerance templates for goods or services and then assign the most appropriate templates to the supplier sites. This allows you to manage your tolerances values centrally yet assign your policies at the trading partner location.

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Oracle Accounts Payable Chapter 8 - Page 224

Shared Setup: Supplier Terms & Controls

Shared Setup: Supplier Terms & Controls

• Responsibility: Payables

• Navigation: Supply Base > Suppliers

Set up suppliers in the Suppliers page to record information about individuals and companies from whom you purchase goods and services.

Tax registrations and profiles are defined for the supplier and the buying Organization can specify Payables accounting defaults, the Invoice Match Option, Match Approval Level, and Retainage Rate to default on the purchase order, Self Billing options, and the Tolerance Templates just mentioned on the previous slide.

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Oracle Accounts Payable Chapter 8 - Page 225

Oracle Approvals Management Setup Approval Rules

Oracle Approvals Management Setup: Approval Rules

• Responsibility: Payables

• Navigation: Setup:Invoice > Approval Workflow

Oracle Approvals Management is a common module that provides users the ability to configure rules which determine the approvers within the enterprise for business transactions or activities. In other words, a software application representation of your approval policies.The Work Confirmation and Payables Holds Resolution transaction types are new in Release 12.

• The Work Confirmation transaction type allows rule configuration for determining the most appropriate person to evaluate, certify and approve the work confirmation. This could be a field engineer, a project manager or even an architect.

• The Payables Holds Resolution transaction type allows rule configuration for determining the most appropriate person to research and resolve invoice holds.

• The Payables Invoice Approval transaction type has been enhanced to support line level and document level approvals plus optional rules which allows you to forgo invoice approval if the invoice is matched to a purchase order.

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Oracle Accounts Payable Chapter 8 - Page 226

Oracle eBusiness Tax Setup: Tax Configuration

Oracle eBusiness Tax Setup: Tax Configuration

• Responsibility: Payables

• Navigation: Setup:Tax > E-Business Tax Home

Oracle eBusiness Tax is a new infrastructure for tax knowledge management and delivery using a global system architecture that is configurable and scalable for adding country specific tax content. As the single point solution for managing transaction-based tax, Oracle e-Business Tax uniformly delivers tax services to all Oracle E-Business Suite business flows through one application interface.

Note that if you are already using Oracle in 11i – all tax setup will already be available for you when you upgrade to R12.

Standard invoices for progress and deliveries are taxed. You can configure how you would like prepayments and prepayment recoupment to be taxed. Retainage Release is taxed based on the original invoice's tax drivers.

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Oracle Accounts Payable Chapter 8 - Page 227

Prepayments: Tax Configuration Example

Prepayments: Tax Configuration Example

To configure specific tax treatment for advances and contract financing, use the new features offered by Oracle e-Business tax based on their Regime to Rate flow. For example, you may want to tax Contract Financing prepayments but not Advances. In this case, you can create a tax rule which will look specifically for line classes of P2P Advance or P2P Contract Financing to assign a specific tax rate.

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Oracle Accounts Payable Chapter 8 - Page 228

Practice 12 Overview: Setting Up US Sales Tax

Practice 12 Overview: Setting Up US Sales Tax

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Practice - Set Up US Sales Tax

Overview

In this practice, you will create a US Sales Tax in E-Business Tax using the regime to rate flow.

Assumptions

• Replace XX with your terminal number.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Sign On:

− Username: sscnewall

− Password: welcome

Responsibility: Payables, SSC US OU 01

Creating a Tax Regime

1. Navigate to the E-Business Tax Home Page

− (N) Setup > Tax > E-Business Tax Home > Tax Configuration (Expand)

2. Navigate to the Create Tax Regime page.

− (N) Create Tax Regime: Go To Task

3. Enter a new tax regime based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code and Name XXAP US SALES

Regime Level Country

Country Name United States

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

4. Enter tax regime controls:

Field US Sales and Use Tax

Allow Tax Recovery No

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Allow Override and Entry of Inclusive Tax Lines

No

Allow Tax Exemptions No

Allow Tax Exceptions No

5. Enter tax regime defaults:

Field US Sales and Use Tax

Tax Currency USD

Minimum Accountable Unit 0.01

Rounding Rule Nearest

Tax Precision 2

6. (B) Continue.

7. Enter tax regime configuration options:

Field US Sales and Use Tax

Party Name SSC US 01

Configuration for Taxes and Rules Common Configuration

Effective From 01-JAN-YYYY

• YYYY = Current year

Creating a Tax

8. Navigate to the Create Taxes page.

− (N) Create Tax: Go To Task

9. Create a new tax based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

Tax and Tax Name XXAP US SALES

Tax Type SALES

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Geography Type and Parent Country

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Geography Type

Parent Geography Name United States

Exchange Rate Type Corporate

10. (B) Apply.

Creating a Tax Status

11. Navigate to the Create Tax Status page.

− (N) Create Tax Status: Go To Task

12. Create a new tax status based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

Tax XXAP US SALES

Tax Status Code and Name XXAP US SALES

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Set as Default Tax Status Yes

Default Status Effective From 01-JAN-YYYY

• YYYY = Current year

Default Status Effective To Blank

13. (B) Apply.

Creating a Tax Rate

14. Navigate to the Create Tax Rate page.

− (N) Create Tax Rate: Go To Task

15. Create a new tax rate based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

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Tax XXAP US SALES

Tax Status Code XXAP US SALES

Tax Rate Code XXAP US SALES

Rate 7%

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

16. Enter tax rate details:

− (I) Rate Details

Field US Sales and Use Tax

Tax Rate Name XXAP US SALES

Set as Default Rate Yes

Default Effective From 01-JAN-YYYY

• YYYY = Current year

Default Effective To Blank

17. (B) Apply.

Creating a Tax Jurisdiction

18. Navigate to the Create Tax Jurisdiction page.

− (N) Create Tax Jurisdiction: Go To Task

19. Create a new tax jurisdiction based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Jurisdiction Code and Name XXAP US SALES

Tax Regime Code and Tax XXAP US SALES

Geography Type Country

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Geography Name United States

Set as Default Tax Jurisdiction Yes

Default Effective From 01-JAN-YYYY

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• YYYY = Current year

Default Effective To Blank

20. (B) Apply.

Set Tax Status as Default Status

21. Navigate to the Tax Status window.

− (N) Create Tax Status: Go To Task

22. Select the Tax Status you defined earlier.

− (B) Update

− Set as Default Tax Status = Checked

− Default Status Effective From = 01-JAN-YYYY. Note that YYYY=current year.

23. (B) Apply.

Ensure Tax Rate is Set as Default Rate

24. Navigate to the Tax Rate window

− (N) Create Tax Rate: Go To Task

25. Select the Tax Rate you defined earlier

− (B) Update

− Set as Default Rate= Checked

− Default Status Effective From = 01-JAN-YYYY. Note that YYYY=current year.

26. (B) Apply.

Define Tax Rules

27. Navigate to the Tax Rules window

− (N) Create Tax Rules: Go To Task

28. Find the Tax Rules you created earlier.

− Configuration Owner = Global Configuration Owner

− Tax Regime Code = XXAP US SALES TAX

− Tax = XXAP US SALES

29. (B) Find.

30. Set the Tax Rules as Follows:

Determine Place of Supply

− (I) Set Default

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− Rule Type Default: Ship From

− (B) Apply

Determine Tax Applicability:

− (I) Set Default

− Rule Type Default: Applicable

− (B) Apply

Determine Tax Registration

− (I) Set Default

− Rule Type Default: Bill From Party

− (B) Apply

Note: The Determine Tax Status and Determine Tax Rate do not allow update, both default to XXAP US Sales

Determine Taxable Basis:

− (I) Set Default

− Rule Type Default: STANDARD_TB

− (B) Apply

Calculate Tax Amounts:

− (I) Set Default

− Rule Type Default: STANDARD_TC

− (B) Apply

Enable Tax for Transactions

31. Navigate to the Tax window

− (N) Create Tax: Go To Task

32. Find the Tax you created earlier.

− Country = United States

− Tax Regime = XXAP US SALES TAX

− Tax = XXAP US SALES

33. (B) Find.

34. Select the tax and click (I) Update.

35. Ensure the tax is available for transactions.

− Make Tax Available for Transactions = Checked

36. (B) Apply.

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Oracle Accounts Payable Chapter 8 - Page 235

Solution – Set Up US Sales Tax

Tasks

Sign On:

− Username: sscnewall

− Password: welcome

Responsibility: Payables, SSC US OU 01

Creating a Tax Regime

1. Navigate to the E-Business Tax Home Page

− (N) Setup > Tax > E-Business Tax Home > Tax Configuration (Expand)

2. Navigate to the Create Tax Regime page.

− (N) Create Tax Regime: Go To Task

3. Enter a new tax regime based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code and Name XXAP US SALES

Regime Level Country

Country Name United States

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

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4. (L) Show Controls and Defaults.

Enter tax regime controls:

Field US Sales and Use Tax

Allow Tax Recovery No

Allow Override and Entry of Inclusive Tax Lines

No

Allow Tax Exemptions No

Allow Tax Exceptions No

5. Enter tax regime defaults:

Field US Sales and Use Tax

Tax Currency USD

Minimum Accountable Unit 0.01

Rounding Rule Nearest

Tax Precision 2

6. (B) Continue.

7. Enter tax regime configuration options:

Field US Sales and Use Tax

Party Name SSC US 01

Configuration for Taxes and Rules Common Configuration

Effective From 01-JAN-YYYY

• YYYY = Current

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year

8. (B) Finish

Creating a Tax

9. Navigate to the Create Taxes page.

− (N) Create Taxes: Go To Task

10. Create a new tax based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

Tax and Tax Name XXAP US SALES

Tax Type SALES

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Geography Type and Parent Geography Type

Country

Parent Geography Name United States

Exchange Rate Type Corporate

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11. (B) Apply

Creating a Tax Status

12. Navigate to the Create Tax Status page.

− (N) Create Tax Status: Go To Task

13. Create a new tax status based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

Tax XXAP US SALES

Tax Status Code and Name XXAP US SALES

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Set as Default Tax Status Yes

Default Status Effective From 01-JAN-YYYY

• YYYY = Current year

Default Status Effective To Blank

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14. (B) Apply

Creating a Tax Rate

15. Navigate to the Create Tax Rate page.

− (N) Tax Rate: Go To Task

16. Create a new tax rate based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Regime Code XXAP US SALES

Configuration Owner Global Configuration Owner

Tax XXAP US SALES

Tax Status Code XXAP US SALES

Tax Rate Code XXAP US SALES

Rate 7%

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

17. Enter tax rate details:

− (I) Rate Details

Field US Sales and Use Tax

Tax Rate Name XXAP US SALES

Set as Default Rate Yes

Default Effective From 01-JAN-YYYY

• YYYY = Current year

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Effective To Blank

18. (B) Apply

19. (B) Apply

Creating a Tax Jurisdiction

20. Navigate to the Create Tax Jurisdiction page.

− (N) Create Tax Jurisdiction: Go To Task

21. Create a new tax jurisdiction based on the following information:

− (B) Create

Field US Sales and Use Tax

Tax Jurisdiction Code and Name XXAP US SALES

Tax Regime Code and Tax XXAP US SALES

Geography Type Country

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

Geography Name United States

Set as Default Tax Jurisdiction Yes

Effective From 01-JAN-YYYY

• YYYY = Current year

Effective To Blank

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22. (B) Apply.

Set Tax Status as Default Status

23. Navigate to the Tax Status window

− (N) Create Tax Status: Go To Task

24. Select the Tax Status you defined earlier.

− (B) Update

− Set as Default Tax Status = Checked

− Default Status Effective From = 01-JAN-YYYY. Note that YYYY=current year.

25. (B) Apply.

Ensure Tax Rate is Set as Default Rate

26. Navigate to the Tax Rate window

− (N) Create Tax Rate: Go To Task

27. Select the Tax Rate you defined earlier and ensure the following fields are set:

− (B) Update

− Set as Default Tax Rate = Checked

− Default Status Effective From = 01-JAN-YYYY. Note that YYYY=current year.

28. (B) Apply.

Define Tax Rules

29. Navigate to the Tax Rules window

− (N) Create Tax Rules: Go To Task

30. Find the Tax Rules you created earlier.

− Configuration Owner = Global Configuration Owner

− Tax Regime Code = XXAP US SALES TAX

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− Tax = XXAP US SALES

31. (B) Find.

32. Set the Tax Rules as Follows:

Determine Place of Supply

− (I) Set Default

− Rule Type Default: Ship From

− (B) Apply

Determine Tax Applicability:

− (I) Set Default

− Rule Type Default: Applicable

− (B) Apply

Determine Tax Registration

− (I) Set Default

− Rule Type Default: Bill From Party

− (B) Apply

Note: The Determine Tax Status and Determine Tax Rate do not allow update, both default to XXAP US Sales

Determine Taxable Basis:

− (I) Set Default

− Rule Type Default: STANDARD_TB

− (B) Apply

Calculate Tax Amounts:

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− (I) Set Default

− Rule Type Default: STANDARD_TC

− (B) Apply

Enable Tax for Transactions

33. Navigate to the Tax window

− (N) Create Tax : Go To Task

34. Find the Tax you created earlier.

− Country = United States

− Tax Regime = XXAP US SALES TAX

− Tax = XXAP US SALES

35. (B) Find.

36. Select the tax and click (I) Update.

37. Ensure the tax is available for transactions.

− Make Tax Available for Transactions = Checked

38. (B) Apply.

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Oracle Accounts Payable Chapter 8 - Page 244

Practice 13 Overview: Entering an Invoice with US Sales Tax Lines

Practice 13 Overview: Entering an Invoice with US Sales Tax Lines

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Oracle Accounts Payable Chapter 8 - Page 245

Practice - Enter an Invoice with US Sales Tax Lines

Overview

You have received an invoice. Enter it into the system using your full distribution set. In this practice, you will create enter an invoice using a distribution set.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

Sign On:

− Username: sscnewall

− Password: welcome

Responsibility: Payables, SSC US OU 01

1. Navigate to the Invoices window.

2. Enter the following invoice:

Type Trading Partner Supplier

Site

Invoice

Num

Invoice

Amount

Standard Advantage Corp US Check

XX3000 10000

3. Enter the following invoice line

Type Amount Distribution Account

Item 10000 001.100.11200.0000.000.000.000

4. Calculate Tax.

5. View the Tax Lines in the Lines tab of the Invoices window.

6. View the Tax Details in the Detailed Tax Lines window.

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Solution - Enter an Invoice with US Sales Tax Lines

Tasks

Enter an Invoice using a Distribution Set

1. Navigate to the Invoices window.

• (N) Invoices > Entry > Invoices

2. Enter the following invoice:

Type Trading Partner Supplier

Site

Invoice

Num

Invoice

Amount

Standard Advantage Corp US Check

XX3000 10000

3. Enter the following invoice line

− (T) Lines

Type Amount Distribution Account

Item 10000 001.100.11200.0000.000.000.000

4. (B) Calculate Tax.

5. In the lines tab, review the calculated tax lines.

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Note that the tax that you defined in the previous practice is applied to the invoice.

6. To view the details for the tax lines, click (B) Tax Details.

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Implementation Considerations

Implementation Considerations

Payables, Purchasing, and Services Procurement are required for this feature. With Payables, you will have Oracle Financials supporting modules including e-Business Tax and Subledger Accounting. Approvals Management is required to approve work confirmations and optional depending on if you will leverage Payables Invoice Approval feature – however using Payables Invoice Approval feature is recommended.

Additional Procurement and Projects products participated in this solution set and you can choose your product combination based on your needs.

• Oracle Sourcing (Optional)

- Negotiate with Suppliers on Payment Terms and Payment Schedule

• Oracle Procurement Contracts (Optional)

- Use Clauses & deliverables on Contract

• Oracle iSupplier Portal (Optional)

- Track execution of Contract

- Create & Submit Work Confirmation

- Create & Submit Invoices for Progress Payments, Advances & Financing

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• Oracle iProcurement (Optional)

- Create Service Requests

• Oracle Projects (Optional)

- Create requisitions for complex work.

- Track commitments and actuals against other project work

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Agenda

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Multi-Org Access Control in Payables Description

Multi-Org Access Control in Payables Description

MOAC is an enhancement to the Multiple Organizations feature of Oracle Applications. MOAC allows a user to access data from one or many Operating Units while within a given responsibility. In prior releases, each responsibility was linked to one and only one Operating Unit.

Data security is maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.

Multi-Org Access Control also provides a basis for use to expand the scope of some of our standard reports. Reports such as the Posted Payments Register now run for a ledger and include transaction data for all OUs that are part of that ledger.

• There is now an exposed OU field for all transactions and setup data that is not shared across operating units, like Payables Options.

• On data entry, OU will be derived by the system, when possible. For example, if a user enters a PO default invoice, the supplier site will determine the OU.

• A user can submit concurrent programs for all operating units or one operating unit. To submit a concurrent program for all operating units, leave the Operating Unit parameter

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blank. Oracle Payables will process data for that user’s set of accessible Operating Units, as determined by their Multi-Org Security Profile, defined in Oracle HRMS.

• The following Payables reports can now be run across multiple OUs: Posted Invoice Register, Posted Payments Register, and the Open Account Balances Listing (formerly known as the Trial Balance). When a user submits one of these reports, they can select a ledger or ledger set in the Ledger/Ledger Set parameter. Oracle Payables will include data for all Operating Units for which the user has access, as determined by their Multi-Org Security Profile, belonging to that Ledger/Ledger Set. All other Payables Standard Reports now have an OU parameter that is mandatory and will set the context for that run of the report.

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Multi-Org Access Control in Payables Description

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Multi-Org Access Control in Payables Benefits

Multi-Org Access Control in Payables Benefits

Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers, as users and processes no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time.

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Multi-Org Access Control Process

Multi-Org Access Control Setup and Process

The MOAC setup steps referenced above pertain to general Multi-Org Access Control setup, not specifically MOAC in Payables. Do this setup once and all applications will be setup for MOAC.

Payables Process includes:

• Setting up processing options, like Financials and Payables Options

• Entering transaction data like Invoices and Payments. Many setup items are not specific to an operating unit, like Payment Terms. You can define Payment Terms once then specify which particular Payment Term is the default for a given Operating Unit and Supplier Site in the new Suppliers Invoice Management form.

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Multi-Org Access Control Process, Invoice Entry

Multi-Org Access Control Process, Invoice Entry

• Responsibility: Payables

• Navigation: Invoices:Entry > Invoices

On the Invoice Workbench, you can select an Operating Unit, or enter another field, such as PO or Supplier Site, from which the system will default an OU. Your list of available OUs is determined by your multi-org security profile defined in Oracle HR and associated to their responsibility through the MO Security Profile profile option.

The application automatically provides the operating unit of new (uncommitted) invoices during entry. The following are methods by which the operating unit is derived:

• Default Operating Unit from “MO: Default Operating Unit” Profile Option

• Default Operating Unit from Invoice Batch Header

- When entering invoice batches, users have the option of establishing a default operating unit for the invoices entered in the batch. This can be overridden at the invoice level as with any other value (Payment Method, for example) entered in the Invoice Batches window.

• Derive Operating Unit from Transaction Attributes

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- Oracle Payables will derive the operating unit of an invoice based on certain user entered attributes. If the user chooses a PO (via PO Default or QuickMatch features) or supplier site when the Operating Unit field is empty, the Operating Unit corresponding to the selected value will be populated onto the invoice.

• Set Operating Unit from Single Operating Unit Security Profile

- When a user’s security profile contains only one operating unit, it can be said that the user’s operating unit context has been “set” to this operating unit. This value is automatically defaulted to all new invoices and it cannot be overridden.

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Multi-Org Access Control Process, Payment Templates

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Multi-Org Access Control Process, Controlling Payables Periods

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Multi-Org Access Control Process, Submitting Concurrent Request

Multi-Org Access Control Process, Submitting Concurrent Request

Details on Open Interface Import: Payables Open Interface Import is a concurrent process that validates and imports invoice records from external applications. Leave the OU parameter blank to have the system import any record having an org_id identifier and ignore those without it. Specify an operating unit to have the system import any records belonging to that operating unit, as well as any records having no org_id identifier, placing them in this operating unit.

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Multi-Org Access Control Process, Submitting Standard Report

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Multi-Org Access Control Process, Open Account Balances Listing Report

Multi-Org Access Control Process, Open Account Balances Listing Report

In Release 12, the Trial Balance is known as the Open Account Balances Listing report. It runs based on the Open Account Balances Listing Definition that you define then select as a parameter when you submit the Open Account Balances Listing report.

As a prerequisite, you must run the Open Account Balances Data Manager and select the Open Account Balances Listing Definition in the parameter labeled “Trial Balance Definition”. You can define the Listing Definition at a Ledger or Ledger Set level such that when you run the report, you can view open liability balances for all operating units belonging to a given ledger or ledgers within a ledger set.

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Multi-Org Access Control Setup

Multi-Org Access Control Setup and Process

The MOAC setup steps referenced above pertain to general Multi-Org Access Control setup, not specifically MOAC in Payables. Do this setup once and all applications will be setup for MOAC.

Payables Process includes:

• Setting up processing options, like Financials and Payables Options

• Entering transaction data like Invoices and Payments. Many setup items are not specific to an operating unit, like Payment Terms. You can define Payment Terms once then specify which particular Payment Term is the default for a given Operating Unit and Supplier Site in the new Suppliers Invoice Management form.

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Multi-Org Access Control Payables Setup

Multi-Org Access Control Payables Setup

• Responsibility: Payables

• Navigation: Setup:Options > User Operating Unit Preferences

The Payables Options form is an example of one of the Payables setup forms that now requires you to specify an Operating Unit. You can select from a list of operating units for which you have access, as determined by your Multi-Org Security Profile. The other setup forms that require OU include:

• Financials Options

• Withholding Tax Codes and Details

• Supplier Sites

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Implementation Considerations

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Summary

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