Payables

Accounts Payable is used to record the Invoices and payments.

AP Integration:-

General Ledger

Projects I Expenses

Purchasing AP Fixed Assets

Accounts Receivables

Options:-Options are nothing but a controlling the feature at operating unit level.
There are three types of options in AP Module.
1. Financial Options
2. Payable Options
3. Payable System Setup’s

(1).Financial Options:-It will be shared by Purchasing and Accounts Payable Module. Its is common
setup between the AP and PO Module.
Step1:-Define the Financial Option
We have defined Financial Options in Purchasing Module.

(2).Payable Options:-It will be shared by only AP Module

Step1:-Define the Payables Options
Navigation:-Setup>Options>Payables Options
Some of the options, it was enabled by default. If we want we can un-check also.
Enable the When payment Clears
Enable the When payment Clears at Gain/loss
Click on the “Currency”

Enable the Use “Multiple currencies”, after enable this option under this operating unit.it will allow
to enter multiple currencies Invoices/Payments.
We can assign the “Exchange Rate Type” by default or leave it black.
Enter the Realised Gain/Loss Accounts
Enter the Rounding Difference account.

Click on the “Tax Reporting”

This feature we can use for Income Tax Filling.
Click on the “Invoice”
Disable the “Confirm Date as Invoice Number”
Enable the “Allow Online Validation”
Enable the “Allow Adjustments to Paid Invoices”
Enable the “Recalculate Schedules Payments”
Enable the GL Date Basis “System Date”
Enter the “Payment Terms”
Click on the “Approval”
This feature we will enable, when we are using the AP Invoice Approval functionality.
Click on the “Matching”
Enable the “Allow Final Matching”
Enable the “Distribution Level Matching”
Enable the “Allow Matching Account Override”
Enable the “Transfer PO Descriptive Flex Field Information”
Click in the “Interest”
This feature we can use, when ever organization paying interest amount to vendor on late
payments.
Click on the “Expense Report”
Expense Feature also we will enable later.at the time of Expense Reports.
Click on the “Payment”
Enable the “Exclude Tax from discount calculation”
Enable the “Allow Pre-Date”
Enable the “Allow Void and Re-issue”
Enable the “Allow Address Change”
Click on the above Tab and will display the With Holding Tax.
Click on the “With Holding Tax”
We will enable this option later, at the time of with holding Tax Functionality.
Click on the “Report”
Save and close this form.

Payable System Setup’s:-This option will be enabled for only AP Module.

Setp1:-Define the Payable Options
Navigation:-Setup>Options>Payable System setup’s
Change the Currency to “INR”
Change the Payment Term to “Immediate”
Disable the “Always Take Discount”
Disable the “Hold unmatched Invoice”

Save and Close.

Pay Group:-It is used to group the suppliers and also used in the payment batch as parameter.
Term Date basis:-It will be determine the payment terms date, which date system should consider.
Payment Term:-Payment term will determine the due date for payment.
(1).Normal Payment Term:-
Step1:-Define the Normal Payment Term.
Navigation:-Setup>Invoice>Payment Terms

Enter the Name and Description.

Enter the %
Enter the Days

Save and Close.

Invoices:-Invoices will be Received from the supplier and entered in the Accounts Payable module.
Invoices can be entered in two ways.
1. Single Invoices
2. Batch Invoices
Invoice will contain the 3 levels of Information.
1. Header
2. Lines
3. Distribution
There are various types of Invoices
1. Standard Invoice
2. Credit Memo
3. Debit Memo
4. Prepayment Invoice
5. Interest Invoice
6. Expense Report
7. Mixed Invoice
8. Retainage Invoice
9. Transportation Invoice
10. Recurring Invoice
11. Withholding Tax Invoice.
(1)Standard Invoice:-An Invoice which is received from the supplier and entered in the payables
system.it will increase the supplier balances.
Step1:-Create Standard Invoice
Navigation:-Invoices>Entry>Invoices

Select the Supplier Name, Site and Number.

Enter the Invoice Date
Enter the Invoice Number
Enter the Invoice Currency
Enter the Invoice Amount
Enter the GL Date
Enter the Payment Currency
Enter the Terms
Enter the Payment Method

Scroll to Right side

Select the Payment Method.

Click on the “Lines”
Enter the Line amount
Click on the “Distribution”

Enter the Amount

Enter the Account
Save and close.

Click on the “General”

Verify the Invoice Status “Never Validated”
Click on the “Action”
Enable the “Validate” button
Click on the “OK”

Invoice Status has been “Validated”

Click on the Action and “Create accounting”

Enable the “Create Accounting”
Enable the “Final”
Click on the “OK

Accounting Preview Final Final Post

Draft Yes No No
Final Yes Yes Yes
Final Post Yes Yes Yes

Click on the “OK”

Invoice got accounted

Step2:-Verify the Supplier Balances.

Navigation:-Invoices>Inquiry>Invoices

Enter the Supplier Name

Click on the “Calculated Balance Owed”

Select the “Operating Unit Name”

Click on the “Calculate”
Supplier out standing balances.

Banks:-If we want to make the payment bank needs to be created.

Grant Bank Access to the Legal Entity:-In R12 Bank creation has been changed
Log into the “System administrator” Module and assign to user id the “User Management” Module.
Navigation:-Security>User>Define
Assign the “User Management” Responsibility
Save and close the form.
Note:-If any errors are occurring using own user id, we can use another user id password (user
id=sysadmin,password=sysadmin).we won’t get any errors using this user id.

Log into the Sysadmin user id.

Click on the “User Management” Responsibility

Click on the “Roles & Role Inheritance”

Select the Type is “Roles & Responsibilities”
Select the Category is “Miscellaneous”
Select the Name “XYZ%Payable%Supe%”
Select the Application “Payables”

Click on the “GO”

Click on the “Update”

Click on the “Security Wizards”

Click on the CE UMX Security Wizard “Run Wizard”

Click on the “Add Legal Entity”

Enter the XYZ%

Click on the “GO”
Select the Legal Entity
Click on the “Select”

Click on the “Apply”

Again click on the “Apply”

Step2:-Log into the Payables Module and Create the Banks

Navigation: - Setup>Payment>Banks and Bank Branches

Click on the “Bank”

Click on the “Create” button.

Step3:-Define the Bank Branches.
Navigation:-Setup>Payment>Bank and Branches

Step3:-Define the Bank Accounts

Navigation:-Setup>Payment>Bank Accounts

Internal Accounts:-It’s an organization account, it is used to receive the Money from the customers
and make the payments to Suppliers.

Manage Payment Documents:-Payment document will deter mine the payment document format
and payment document numbers
Step1:-Define the Payment documents.

Supplier Bank Accounts:-We can define the supplier bank account for EFT Fund transfers.
Step1:-Define the Supplier Bank account
Navigation:-Supplier>Entry
Query the Supplier and Define the Supplier bank accounts.

Payment Process Profile:-This is the new Feature in R12.Using this feature we can control some of
the options.
Step1:-Define the Payment Process Profile.
Navigation:-Setup>Payment>Payment Administrator

Payments:-Payments can be define in two ways

1. Single Payments
2. Batch Payments
(1)Single Payments:-There are 3 types of single payments.
1. Quick
2. Manual
3. Refund
(1).Quick Payment:-Quick payment type will be used to print the check by system it self.

Step1:-Verify the Payment status in Invoice level.

Navigation:-Invoices>Entry>Invoices

Step2:-Verify the Supplier Balances

Navigation:-Invoices>Inquiry>Invoices

Step3:-Create a Payment
Navigation:-Payment >Entry>Payment

Step4:-Verify the Invoice Level Payment Status

Navigation:-Invoice>Entry>Invoice

Step5:-Verify the Supplier Balances

Navigation:-Invoices>Inquiry>Invoices