Microsoft Power Point - Accounts Payables

5.
R12: Oracle Financials
Oracle Payables
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Analytics: Server Architect for Analytical Applications (Siebel 7.7)

COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED
Siebel Systems, Inc.
5.2
The Changing Face of Oracle Accounts Payable in Release 12
Originally presented at OOW 2006 by
Jayanta Bhowmik, Director, Application Development
Start with a few ice breaker type questions:
How many of you are in production with 11.5.10, 11.5.9, 11.5.8, etc.?
Thats great, thanks for participating. Id like to welcome you to todays presentation. Im Jayanta Bhowmik, a Director in the Development organization responsible for Payables and its a privilege to be here today to share with you The Changing Face of Accounts Payable in Release 12
Before I begin, Id like to pose some questions to get you to think about your environment today:
Does your payables department spend an excessive amount of time resolving invoice disputes?
Do you want to increase efficiency in your payment processing by processing across operating units, legal entities, currencies, pay groups, and payment methods?
Are your AP users challenged with having the right skill set or domain expertise to manage taxes and accounting on invoices?
5.3
R12 Payables New Features
New Features in Oracle Payables
Invoicing for Service Procurement Complex Terms
Suppliers Represented in TCA
New or Improved Workflows
Line Level and Invoice Level Approval
Approver entry of unmatched accounting and project information
Holds Notifications and streamlined resolution
Invoice Lines and Enhanced Asset Tracking
Reproting at Operating Unit Level
New Banking Model
Enhanced Payment Processing
MOAC-Multi-Org Access Control
Multiple Accounting Representations
AP/AR Netting
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5.4
R12 Suppliers
In
Organization Details, Addresses, and Contacts = TCA Supplier Terms and Controls = Supplier and Supplier Site New AP Tables Backward Compatible Views
R12, Suppliers join the Trading Community Architecture
R12 Suppliers & TCA Concepts

Organization Person Location
Party
Party (Physical Location) Party Site (Partys Address) Relationship Party Contact Relationships between Parties
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5.5
R12 Suppliers: New Tables & Views
New
AP_SUPPLIERS AP_SUPPLIER_SITES_ALL AP_SUPPLIER_CONTACTS AP_SUPPLIER_INT_REJECTIONS
Payables Tables:
New
PO_VENDORS PO_VENDOR_SITES_ALL PO_VENDOR_CONTACTS
Views:
Oracle Payables
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5.6
R12 Suppliers & TCA: Supplier

Migrating Suppliers to TCA TCA Organization Profiles (HZ_ORGANIZATION _PROFILES)
Suppliers (AP_SUPPLIERS)
Supplier Information
Parties (HZ_PARTIES) Parent of Party Usages (HZ_PARTY_USAGE _ASSIGNMENTS) (Supplier Usage)
PO_VENDORS
PO_VENDOR_SITES_ALL
Party Relationships (HZ_RELATIONSHIPS) (Parent Vendor)
APPS.PO_VENDORS APPS.PO_VENDORS
PO_VENDOR_CONTACTS
Supplier Profile
The Party Relationships is populated to transfer the Supplier Hierarchy information . Currently this information is represented using the parent _vendor_id column.
After we populated the TCA tables the AP _SUPPLIERS is updated with the PARTY_ID information.

5.7
R12 Suppliers & TCA: Trading Partner Information
Consolidated Supplies
TCA Party Information Sample

5.8
R12 Suppliers & TCA: Supplier Location

Migrating Supplier Sites to TCA TCA
Unique Addresses
AP_SUPPLIER_SITES_ALL Location Profile (HZ_LOCATION_PROFILES)
Address
OU
Location (HZ_LOCATIONS)
Profile
Combination of Party, Location & Duns Number
Party Sites (HZ_PARTY_SITES)
Site Uses
Unique Set of Site Uses Across OUs
Party Sites Uses (HZ_PARTY_SITE_USES)
Note: All address elements are used in the grouping logic to determine unique addresses.
APPS. PO_VENDOR_SITES_ALL APPS. PO_VENDOR_SITES_ALL
Address Line1 should be populated, otherwise AP will populate the Site Code for the address line1. We will document this as a part of the Upgrade documentation .
Country is a required field and AP will insert a valid value If one is available at the supplier site. In the absence of that, we will get the country from Default Country profile option or from the country of the OU of the supplier site . Upgrade documentation will have a recommendation for the same .
Upgrade will also stamp the Location ID and Party Site ID in ap _supplier_sites_all table.

5.9
R12 Suppliers & TCA: Trading Partners Site Address Location
4480 Morning Star, Dallas, TX
TCA Party Site Sample

5.10
R12 Suppliers & TCA: Trading Partner Contacts

Contacts Data Migration Flow
TCA
AP_SUPPLIER_CONTACTS
Person
HZ_PARTIES (Person Party )
Contact Of/Contact
HZ_RELATIONSHIPS (Contact Of)
Person @ Org
HZ_PARTIES (Relationship Party )
Mail Stop
HZ_PARTY_SITES (Contacts Mail Stop within ORGs Location for Relationship Party)
Department
HZ_ORG_CONTACTS (Contacts Department Info in the context of Relationship and Org Party Site ID)
APPS. PO_VENDOR_CONTACTS APPS. PO_VENDOR_CONTACTS
Contact Points
HZ_CONTACT_POINTS (eMail, Phone, Fax, URL, Alt Phone migrated in the context of Relationship Party)

5.11
R12 Suppliers & TCA: Trading Partner Contacts

5.12
R12 Suppliers & TCA: Supplier Sites

Terms and Controls between You and your Supplier
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5.13
R12 Payables Payables Invoice Approval

Line Level and Invoice Level Approval Matched Invoice Production Rule allows users to configure whether they would like invoices to go through approval if matched to a Purchase Order
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5.14
R12 Payables Unmatched Invoice Approval
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5.15
Oracle Payables
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5.16
Oracle Payables
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5.17
R12 Payables: Payables Holds Resolution
Streamlined Holds Resolution process
Any Manually Releasable Hold
Workflow enabled
Negotiation collaboration with suppliers for the following holds:
Price
Quantity Ordered
Quantity Received
Amount Ordered
Amount Received

5.18
R12 Payables: Payables Holds Resolution Holds
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5.19
R12 Payables: Payables Holds Resolution Approvals Management
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5.20
Invoice Lines and Enhanced Asset Tracking
Item Description Manufacturer Serial Number

5.21
New Reports / New Reporting Options
Operating Unit
Reporting at the Operating Unit Level

5.22
Centralised Banking and Payments

Funds Disbursements and Capture
LE
OU A OU B OU C
Bank account is associated with Legal Entity rather than Operating Unit Single bank account serves multiple Operating Units Any and all Operating Units associated with a ledger can be permitted to use the bank account
Inventory Receivables
Projects
Plus
Centralised Credit Card Model Credit Card Encryption Supplier & Customer Banks
Work in Process Purchasing Payables Assets
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Theres a few key points that Id like to make sure are understood here.
First, weve changed the bank model so that a Legal Entity can own a bank account and different Operating Units can access it or be serviced by that bank account, weve separated the bank account from the Operating Unit.
Bank accounts are now striped by Legal Entities not by Operating Units. Transactions (ap invoices, ap payments) are striped by OU's. So the bank account is used by OU-based transactions, but OU's are meaningless to the bank account itself.
Second, is the fact that all applications that require paymenting activity will use Oracle Payments (which is included as part of E-Business Suite Financials). Payments have been separated from payables and centralized. So, all funds disbursement and capture are centralized using Oracle Payments.
As the new central payment engine, Oracle Payments processes invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. Oracle Payments provides the infrastructure needed to connect these applications and others with third party payment systems and financial institutions.

5.23
Bank Model: Example of what you can do

Pay invoices from different OUs with 1 instruction
OU A
New Payments Module New Bank Model New Bank & Credit Card Features
OU B
OU C Bank Payments
Single Payment Instruction
Sub Ledger Accounting
Invoices
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5.24
Example: Shared Service Disbursement

OU A
OU B
Centralised Accounting
OU C Bank Payments 1. 2. 3. Invoices 4. 5. Select invoices from multiple OUs Format for bank and disbursement countries Send single instruction to bank Generate separate payments for each OU Setup accounting policies
Single Payment Instruction
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So, combining the centralized banks and payments, lets take a look at an example where you can pay bills in different OUs with one bank instruction, which is key for a shared service environment.
1. Now looking at a shared service center payment, some setup is required. Youll need to define the intercompany payment and connect it to the intercompany API. Since we have various options here and we dont know how youve set that up, we dont do that out of the box. You do need to setup your subledger accounting to do this.
2. Youll next select the invoices from different Operating Units. So the shared service center person, using MOAC will go into different Operating Units and select different invoices.
3. Will create payment batches for each OU and then send off to Payments
4. Payments will combine those payment batches into one instruction to the bank (with the correct formatting for that bank) which will disburse the money.
5. Separate payment will be processed in each operating unit

5.25
Banks Define Owner of Bank Account
Legal Entity
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5.26
Banks Grant OU Access to Bank Account
Operating Units
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5.27
Multiple Organisation Access Control Summary of Changes
Security Profiles for data security

MO: Security Profile List of operating units for a responsibility Defined in HR
OU field on UI
all transactions setup data specific to OU, like transaction type
Enhanced Multi-Org Reporting and Processing

Ledger/Ledger Set parameter on accounting reports and processes OU parameter on other standard reports and processes For example: submit the Payables Open Interface Import to import all records across all OUs
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5.28
Multi-Org Access Control

Setup Define Security Profile
Classify Select Organization Operating Unit as operating classification unit
Now, Im going to explain how to define a security profile. Using Oracle HRMS, you can define your security profile using two forms: The Security Profile form or the Global Security Profile form that is shown here. Both forms look almost identical.
The Security Profile Form allows you to select operating units from only one Business Group. The Global Security profile Form allows you to select operating units from multiple Business Groups.
The decision on which form to use is really up to you and depends on your HR implementation and how you want to partition data. All you need to do is enter a name, and select the Security Type called Secure organizations by organization hierarchy and/or organization list. This allows you to assign multiple OUs. When assigning operating units, first select classification Operating Unit, and then select the organization or Operating Unit name. You can assign as many operating units as you want.

5.29
Reporting at the Operating Unit Level
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Here is an example of an Accounts Payable report called Supplier Audit. Notice the new Operating Unit field. When submitting this report, you can select any operating unit that you have access to.

5.30
MOAC - Typical Screen in Daily Use
Select OUs
Select OUs
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5.31
Multiple Accounting Representations Parallel Financial Reporting

Ledger B French Rules Plan Comptable French Calendar US GAAP US COA US Calendar Ledger A
EUR EUR
Dr Cr
Centralised Accounting
Single business transaction can create multiple accounting representations and in multiple currencies
Payables Invoice

5.32

5.33

5.34

5.35

5.36

5.37

5.38

5.39

5.40
R12 Other: AP/AR-Netting
Establish and Maintain Netting Agreements

- Business Rules - Trading Partner
Run Automated Netting Process
Request Trading Partner Approval Inquiry and Reporting

- Proposed Netting Report - Final Netting Report
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5.41
R12 Other: AP/AR-Netting
Example:
Find and order AP and AR Transactions (Order Rule: Amount Descending)
AP Transactions Inv AP01 AR01 AR02 AR03 50 12-Jul-06 50 10-Jul-06 100 8-Jul-06 AP03 AP02 50 15-Jul-06 100 20-Jul-06 Amount 200 Due Date 10-Jul-06 Inv Amount Due Date AR Transactions
Enter Netting Parameters
Netting Batch: Net_ABC
Netting Agreement: ABC
Settlement Date: 30-Jul-06
Transaction Due date: 20-Jul-06
Compare AP and AR Balances
AP Balance = 350, AR Balance = 200
So the Netting Amount = 200
Transactions Selected For Netting

AR Transactions Inv AR01 AR02 AP03 50 12-Jul-06 50 10-Jul-06 100 8-Jul-06 Amount Due Date
AP Transactions
Inv AP01
Amount 200
Due Date 10-Jul-06

5.42
Payables Setup Steps
Setup Steps need to complete in Payables
Choosing
Defining
a Ledger Financial Options Defining Payables System Setup Defining Payable Options Defining Payment Terms Control Payables Periods

5.43
Choosing a Ledger
The Operating Unit popup window will allow you to select the Operating Unit which is tied to your Ledger and Business Group
Choose your Operating Unit Payments that are withheld until work under a contract is completed and accepted
Number of future periods you can maintain in the Control Payables Periods window

5.44
Defining Financials Options
The options you define in Supplier-Purchasing region, except for Inventory Organization, are used as default values for the Purchasing region of the Suppliers window
requisition preparers to have the option to reserve funds
Purchasing creates journal entries and transfers them to GL to encumber funds for purchase requisitions
Payables will encumber funds for it during Payables Invoice Validation

5.45
The options you enter in this region control VAT registration for tax purposes

5.46
Payables System Setup
Payables System Setup window to define supplier control options and defaults Payables uses as the payment terms start date when Payables calculates the due and discount dates for invoice scheduled payments.
Select the date that Payables uses to select invoices for payment
Select the terms that Payables uses to schedule payments for an invoice

5.47
Defining Payables Options

Payables to automatically create balancing accounting entries for your invoice and payment transactions
Payables to use for distributing the discounts you take when making payments

5.48
Payables to use as the default accounting date for invoices during invoice entry
Allow users to update the distributions of a paid invoice
Allow users to select Invoice Validation from the Invoice Actions

5.49
Payables subtracts the tax amount from the invoice amount when it calculates the discountable amount for a scheduled payment
create payments with a payment date before the system date
allow users to deduct bank charges from payment

5.50
Defining payment terms
Cutoff Day. For Day of Month type terms only, the day of month after which the due and discount dates of the scheduled payment will be in a future month. The exact month depends on the value you enter for Months Ahead. Payables compares the invoice terms date to the Cutoff Day
Payables uses ranks to choose the most favorable payment terms from invoice and purchase order

5.51
Control Payables Periods
The period statuses available in Payables are Never Opened, Future, Open, Closed, and Permanently Closed

5.52
Suppliers

5.53
How Oracle Products Use Supplier Information
Payables
Assets
Purchasing
Property Manager
iSupplier Portal MOAC Trading Community Architecture
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How Oracle Products Use Supplier Information
Suppliers can be set up from many different applications, but the data is stored in a single repository called the Trading Community Architecture (TCA). TCA provides a single, common definition that can be used to identify customers, suppliers, and organizations that provide you with goods or services, and are in turn, a customer of your own products or services. The TCA repository stores the key elements that define an organization, identity, business locations, and key contacts, so that different Oracle products use a common trading partner definition.
Applications that share supplier information are:
Purchasing
Purchasing uses supplier defaults, such as freight terms and shipping details, on requisitions, purchase orders, requests for quotations, etc.
Payables
Payables uses supplier defaults, such as method of payment and bank account information, during invoice entry and payment processing.
Assets
Assets maintains the supplier name and number for each asset record.
5.54
Flow of Default Values

Procurement Flow Financials options Purchasing/Receiving /Payables/Payables System Setup options Supplier Supplier site Item Payables Flow
2
Invoice Lines
Invoice
1
PO Documents
1
Oracle Payables
Takes precedence over 2
Distribution line
Scheduled payment line
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Flow of Default Values
Defaults set at higher levels flow down to lower levels where you can override them.
Defaults reduce data entry by providing default values based on corporate policy. Optional defaults (especially the higher level ones) should be left blank if you frequently override them.
Purchase order matched invoices will receive defaults from the purchase order you specify when you match.
Note: Changes to default values affect only new records, not existing records. For example, if payment terms in the Payables Options window are reset to Net 30 from Net 45, new suppliers will have a default of Net 30. Existing suppliers will have terms of Net 45.

5.55
Suppliers Page
Search: You can find suppliers by using the Search region of the Suppliers
page.
Quick Update: You can use Quick Update for routine maintenance of
supplier information.
Organisation:
Parent Supplier Name & Number

Customer Numbe Supplier Type, Taxpayer ID/Tax Registration Number
Tax Details:
Rounding Rule Set Invoice Values as Tax Inclusive Allow Withholding Tax Withholding Tax Group Tax Registrations
Address Book and Contact Directory
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Finding Suppliers
Use the Search region of the Suppliers page to enter a wide variety of search criteria including:
Supplier Name
Supplier Number
Supplier Type
Tax Registration
DUNS number
From the Suppliers page, you can review, update, or create new suppliers.

5.56
Business Classification: Classification, Minority Type
Suppliers Products and Services: Manufacturing, Financial
Supplier Banking Details: Name, Number, Primary, Currency, Start/End Dates
Suppliers Surveys: Create custom questionnaires that can be used to gather feedback from suppliers' surveys
Supplier Accounting: Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.
Supplier Tax and Reporting: Allow Tax Applicability, Set for Self Assessment/Reverse Change, Allow Offset Taxes, Tax Classification Code & Income Tax Reporting Site.
Supplier Purchasing: All New Orders, Ship-To Location, Bill-To Location, Ship via, FOB
Supplier Receiving: Enforce Ship-To Location, Receipt Routing, Match Approval Level, Quantity Received Exception

5.57
Defining supplier
Record information about individuals and companies from whom you purchase goods and services, and also to record information about employees whom you reimburse for expense reports
Define supplier addresses in your address book

5.58
You can click on continue on address book window and define sites for this, you can create sites for use when processing transactions with your suppliers
click on manage site for update of site details

5.59
Merging Suppliers
Run supplier audit report Merge suppliers
Identify duplicate suppliers
ABC Corporation
ABC Corp
Maintain audit trail
Review merge results
ABC Corporation
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Oracle Payables
Merging Suppliers
Use the Supplier Merge program to maintain your supplier records. You can use it to merge duplicate suppliers into a single, consolidated supplier and to merge transactions within the same supplier from one supplier site to a different supplier site. You can choose to merge all transactions for a supplier into a new supplier, or you can just choose to merge unpaid invoices. This option is useful in the case of an acquisition. In that case, you might want to leave all of the transaction history with the original supplier and only merge unpaid invoices to the new supplier who now wants to receive the payments.
Note: Merging suppliers is an irreversible action. You cannot reverse the merge once it has completed. Before you initiate the merge program, you should be sure that the action you want to take is final.
Once the merge process is complete, the resulting site names for each supplier at the end of the process must be unique within that supplier. For example, the request to copy a site named TX-DALLAS to a supplier with a site with the same name would not be successful as it would result in duplicate site names for the same supplier after the merge. Where this situation exists, rename one of the sites to complete the merge. In addition, you need to decide the effect the merge will have on existing purchase orders and invoices.
For purchase orders, you indicate whether you want all or noneDUPLICATION IS PROHIBITED orders to be updated COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION of the existing purchase with the new supplier/site names.
5.60
Merging Suppliers
After
you have merged suppliers, Payables automatically prints the following reports:
Purchase Order Header Updates Report Supplier Merge Report
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Merging Suppliers
The Supplier Merge Report will list invoices that could not be merged because they would result in duplicate invoice numbers for the same supplier. Youll need to research these invoices and adjust them as appropriate. Consider attaching both reports to each supplier record for future reference. Additionally consider creating an attachment to be placed on both supplier records documenting the discovery and research that supports how the merge was carried out in the system.

5.61
Financials Options
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Financials Options
(N) Setup > Options > Financial Options
Use Financials Options to define Supplier defaults across all Oracle Financials applications, including Payables. You can define supplier- and supplier site-specific defaults in the Suppliers page.
RFQ Only Site
Indicates that you can create RFQs in Purchasing for this site. You cannot, however, create purchase orders using an RFQ Only site.
Ship-To Location and Bill-To Location
These locations are your addresses where suppliers generally send either shipments for goods or services or where they send the invoice. These locations are often not the same.
Inventory Organization
The Purchasing inventory organization.

Ship Via
Indicates the preferred freight carrier your company uses.
5.62
Profile Options
PO: Secondary E-mail Address PO: In File Path PO: Terms and Conditions File Name
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Profile Options
System Administrator Responsibility
(N) Profiles > System
PO: Secondary E-mail Address
This profile option allows you to send a copy of the e-mail PO to your company. If you wish to resend the e-mail, you will need to log into this secondary e-mail account and resend it from there.
PO: In File Path
Enter the absolute path of the directory where the generic terms and conditions file is placed.
PO: Terms and Conditions File Name
Enter the name of the generic terms and condition file that will be printed on your purchase documents.

5.63
Invoices
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5.64
Overview of Invoices
Enter supplier Import/Enter invoice Validate invoice
Pay invoice Match to PO Create PO
Enter requisition
Create accounting entries in Subledger Accounting
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Overview of Invoices
Note: The Payables product fits within the procure to pay process flow. Entering suppliers should have been covered at this point.
An invoice is an itemized list of goods shipped or services rendered, with an account of all costs. Oracle Payables lets you capture all the attributes of the real-life invoice documents you receive from your suppliers. You can import invoices from external sources (other Oracle applications or Third Party applications) using the Payables Open Interface, or you can enter them in Payables, using the Invoice Workbench or Quick Invoices windows.

5.65
Invoice Types
Standard Credit Memo Debit Memo Mixed Prepayment Expense Report Withholding Tax Interest Retainage Release Transportation Invoices
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Invoice Types
Standard
An invoice from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched.
Credit Memo
A memo from a supplier representing a credit amount toward goods or services.
Debit Memo
An invoice you enter to record a credit for a supplier who does not send you a credit memo.
Mixed
An invoice type you enter for matching to both purchase orders and invoices. You can enter either a positive or a negative amount for a Mixed invoice type.
Prepayment
A type of invoice you enterCONFIDENTIAL AND PROPRIETARY for expenses DUPLICATION IS PROHIBITED to pay an advance payment INFORMATION to a supplier or employee. COMPANY
Expense Report
5.66
Creating Invoices Manually
You
can manually enter invoices into Payables using:
Invoice Workbench Quick Invoices window
Creating Invoices Automatically
Your system can create the following types of invoices:
Recurring Invoices RTS Invoices Retroactive Price Adjustment Invoices

5.67
Assigning a Default GL Date

GL Date Basis Payables Option Invoice date, system date, or invoice received date
Determines default Invoice GL date Defaults to
Distribution GL date
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Assigning a Default GL Date
Payables determines the accounting period in which an invoice or payment will be included by comparing the invoice or payment GL date to the ranges of dates you have defined for your accounting periods in your accounting calendar. The default invoice GL date is based on the GL Date Basis Payables option. Payables automatically defaults this GL date to new invoice distributions added to the invoice. If you specify a GL date on the invoice batch, that GL date will default to invoices you enter into the batch. You can change the GL date for individual invoice lines. The GL date is stored at the invoice header so if you were to add additional invoice lines, the GL dates on the lines would be the same as the date on the invoice header.
The GL Date Basis Payables option determines what date is used as the GL date. The GL date for each invoice will default based on one of the following options:
Invoice date
System date
Receipt/Invoice
Receipt/System
(Payables uses the payment date as the GL date for your payments.)
5.68
Invoice Workbench
Invoices Window Invoice Header General Lines Holds View Payments Scheduled Payments View Prepayment Applications
Other Features Actions Calculate Tax Tax Details Corrections Quick Match Match Distributions
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Invoice Workbench
The Invoice Workbench is a group of windows that you can use to enter complex invoices or invoices that require online validation and defaulting. Also, use the Invoice Workbench when entering an invoice that needs immediate action, such as payment.
The primary window in the Invoice Workbench is the Invoices window. The Invoices window is divided into the following regions:
Invoice Header
General
Lines
Holds
View Payments
Scheduled Payments
View Prepayment Applications
These regions are described in detail in this presentation.
5.69
Invoice Workbench

5.70
Match Approval Level Options

Invoice
2-Way
PO Quantity Ordered PO Line Price Quantity Received Quantity Accepted
Quantity Billed Unit Price
3-Way
Quantity Billed Quantity Billed
4-Way
Entering Purchase Order and Receipt Matched Invoices

Match
Purchase order Purchase order shipments Purchase order distributions Purchase order receipts and receipt lines
invoices to:
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Match Approval Level Options
The match approval level defaults to purchase order shipment lines when the purchase order is entered. You can override the default on the purchase order shipment. If you find that you are frequently overriding this value, change the default at the supplier site level.
If an item is used on the PO, the match approval level will default from the item and will override the supplier site. If the Item match approval level for the Item = Receipt required, then it results in a 3-way match. If the Item match approval level for the Item = Inspection required, then it results in a 4-way match.
When quantities and prices exceed specific tolerances you define, the Payables Validation process will place a matching hold on the invoice. You can configure matching holds so manual override is not possible in the Invoice Holds and Release Names window.
2-Way (Invoice to Purchase Order)
Quantity billed vs. quantity ordered on shipment line

Invoice unit price vs. purchase order line unit price
3-Way (Invoice to Purchase Order and Receipt) COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED
2-Way match criteria AND
5.71
Final Matching
During matching, select the Final Match option to indicate that no more
invoices should be matched to the purchase order.

5.72
Price Correction Example

1
Match Invoice 5 Units @ $12/Unit Total QTY Billed = 5 Total IPV = 0 PO 5 units @ $10/Unit IPV = $10 Qty Billed = 5
2
Match & Price Correct PO 5 units @ $-2/Unit IPV = -$10Total Qty Billed = 0
Credit Memo 5 Units @ $-2/Unit
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Price Correction Example
For example, you may want to record a price correction for a purchase order shipment if you receive an invoice from the supplier that is an adjustment to the unit price of an invoice you previously matched to that purchase order shipment. Price corrections adjust the unit price without adjusting the quantity billed on the purchase order.
In this example, the original invoice is overbilled by $2/unit. The invoice was within tolerance so it was matched and paid. After the invoice price variance (IPV) was discovered, the buyer contacted the supplier who agreed to issue a credit memo to offset the over billed amount. The credit memo could be entered into the system without using the price correct functionality, but the invoice price variance offset would not be reflected. Using the price correction functionality corrects the invoice price variance but does not increment the quantity billed against the purchase order shipment.
Note: The IPV is calculated as (invoice unit price - purchase order line unit price) x quantity invoiced.

5.73
Quick Invoices
Use the Quick Invoices window to enter a large volume of invoices that do not
require extensive online validation or extensive online defaulting of values.
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Quick Invoices
You use the Quick Invoices window for your everyday entry of invoice records. You use this window for rapid, high volume entry of Standard and Credit Memo invoices that are not complex and do not require extensive online validation or defaulting of values during entry. You can use this window for purchase order matching and for applying prepayments to the invoice you are entering.
The information entered in the Quick Invoices window is stored in the Payables Open Interface tables. Because the system performs limited validation and defaulting of invoice values while you are entering invoices, you can enter invoices more quickly in the Quick Invoices window than you can in the Invoice Workbench.
You can use the Quick Invoices window if you want to use the Open Interface Workflow. You can customize the Open Interface Workflow to process your invoice records before you import them. For example, you can perform custom validation of cost center information before you submit import.
Note: Speed up invoice record entry by customizing Quick Invoices folders. You can resize, rename, move, and hide fields to meet your needs.
5.74
Recurring Invoices
You can enter invoices for periodic expenses for which you may not receive invoices,
such as rent.
To enter recurring invoices:
Define a special calendar Define a recurring invoice template Create invoices based on the template Use the Special Calendar window to define periods that Payables uses for automatic recurring invoices
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Entering Recurring Invoices
Recurring Invoice Template
With a recurring invoice template, you can do the following:
Specify the intervals in which invoices based on the recurring invoice template will be created.
Create up to two special onetime invoice amounts of a nonstandard amount, such as a deposit or balloon payment.
Define recurring invoices to increase or decrease by a fixed percentage from period to period.
When Payables creates recurring invoices, the invoice date is the first date of the period in which the recurring invoice is created. The Terms Date depends on the Terms Date Basis setting at the supplier site, but is calculated differently than for regular invoices:
If the Terms Date Basis is set to System Date, then the Terms Date is the same date that the recurring invoice was created.
Siebel Systems, the Terms Date is the invoice date, which is the first day of Inc.
COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED in which the recurring invoice is created.
Analytics: Serverthe Terms Date Basis Applications (Siebelelse, then If Architect for Analytical is set to anything 7.7)
the period
5.75
You can use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order Use Full Distribution Sets to create distributions with set percentage amounts Use Skeleton Distribution Sets to create distributions with no set distribution amounts
Entering Recurring Invoice

5.76
Self Service Invoices

Payables Launches Workflow
Without PO
Supplier enters invoice in iSupplier Portal
Invoice Request
Account payables department approves request
With PO
Payables User enters invoice in Invoice Actions page Invoice

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Self Service Invoices
Suppliers who have been granted an iSupplier Portal user account, can enter invoices using iSupplier Portal.
Payables integrates with Oracle iSupplier Portal to enable suppliers to create, submit, and view self service invoices. Suppliers with an iSupplier Portal account can create invoices for:
Open, approved, standard, or blanket purchase orders that are not fully billed
Items from multiple purchase orders
Items for which there is no purchase order
Suppliers can also use iSupplier Portal to enter credit memos against a fully billed purchase order. Depending on the supplier setup, suppliers can use iSupplier Portal to view self service invoices, including any retainage and recoupment information for Contract Financing Invoices. In addition, iSupplier Portal also allows suppliers to request advances. Suppliers can only request advances if the advances were pre-approved on the purchase order. Even if you don't implement Oracle iSupplier Portal, you can also allow internal users to enter self service invoices using the Invoice Actions page.
If the supplier submits an invoice that isAND PROPRIETARY INFORMATION the invoice is PROHIBITED COMPANY CONFIDENTIAL matched to a purchase order, DUPLICATION IS entered directly in Payables. It is considered a liability and can be updated and validated in Payables.
5.77
Payment Requests
If requires approval, Payables Launches Workflow Payment Request No approval required Loans Payables applies holds, if necessary Pay Account payables department approves request
submits Receivables
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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 (Siebel 7.7) Analytics: Server Architect for Analytical Applicationsto disburse funds for a loan, and Payables will verify, account, tax, and Siebel Systems, Inc. approve the payment request. You can trackPROPRIETARY INFORMATION DUPLICATION ISthe originating application. Once COMPANY CONFIDENTIAL AND the progress of the payment request in PROHIBITED the payment request is approved, you can report and audit the payment request in Payables.
5.78
Invoice Validation Process

Enter or import invoices Receive invoices electronically or in the mail Validate invoice View invoice Optionally match to PO or receipt
Create subledger accounting AP Pay invoice 100,000 60,000 10,000 30,000
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Invoice Validation Process
Before you can pay or account for an invoice (including prepayments), you must submit Invoice Validation for the invoice in one of three ways:
System. Submit the Invoice Validation program from the Submit Request window.
Batch. Use the Validate button in the Invoice Batches window.
Online. Use the Validate button in Invoice Actions window.
Invoice Validation validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. It checks the supplier site to determine which invoice tolerance template to use. If no invoice tolerance template is specified, tolerance checking is not performed. If an invoice tolerance template is specified, Invoice Validation will check against the specific invoice tolerances template stored in the Invoice Tolerances window to determine if the invoice falls within the defined tolerances and automatically applies holds to exception invoices.
If an invoice has a hold, you can release the hold by correcting the exception and then resubmitting Invoice Validation. Siebel Systems, Inc. Correct exceptions by updating the invoice or the purchase order, or change your Invoice Tolerances. Payables COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED automatically releases the hold when the exception is no longer an issue. You can manually release certain invoice
5.79
Overview of Entering Batches
Receive invoices Prepare a batch control form
Batch invoices
Update the batch control form Review batch control reports Enter a batch of invoices
File invoice

5.80
Approval
The Invoice Approval Workflow Program can be submitted before or after
validation, unless the Require Validation Before Approval Payables option is enabled.
Invoice Approval Levels

You can define the approval rules in Oracle Approvals Management in one of the
following ways:
Line-level rules only Document-level rules only Line-level and document-level rules
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Approval
You might want to enable the Require Validation Before Approval Payables option if your approvers need to review tax details before they approve an invoice.
Invoice Selection Criteria
An invoice must meet all of the following criteria to be processed:
1. If the Require Validation Before Approval Payables option is enabled, or if the invoice was submitted by a Supplier using iSupplier Portal, then the invoice must be validated. The Approval field value in the Invoices window must be: Required, if you submit the workflow program from the Submit Requests window Anything except Initiated or Manually Approved, if you submit the workflow program from the Invoice Actions window The invoice amount must equal the distribution total.
2.
3.
5.81
Invoice Approval Workflow

The Invoice Approval Workflow automates your invoice approval process.
Based on rules you define, the workflow determines if an invoice needs approval, who the approvers are, and in what order approvers should approve payment of the invoice.
System Setup
You can set up your system to request and receive approval through the
approvers email, through the approvers Oracle Workflow Notifications Workflow web page, or both.
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Invoice Approval Workflow
The workflow then sequentially asks each approver in the approval list to approve invoices online. For example, you can define a rule so invoices over $100,000 require CFO approval and then CEO approval.
If you use Invoice Approval Workflow, then every invoice that requires approval must be approved before you can pay it. Payables indicates that an invoice requires approval by setting the value in the Approval status field in the Invoices window to Required.
When you use this feature, all invoices require approval, with the following exceptions. Payables sets the Approval status of the following invoices to Not Required:
expense reports imported through the Expense Report Export program (because these expense reports have already been through an approval process)
recurring invoices if the recurring invoice template did not have the Approval Workflow Required option enabled (because recurring invoices are often approved in advance)
invoices that existed before you enabled the feature
invoices that completed the Invoice Approval Workflow process and the Invoice Approval Workflow process COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED determined that according to the rules set up in Oracle Approvals Management that no one needs to approve the
5.82
Apply Holds to Invoices
Hold Types Acct Hold Reason Funds Hold Reason Insufficient Information Invoice Hold Reason Matching Hold Reason Period Hold Type PO Req Hold Reason Variance Hold Reason Sometimes No No Sometimes Yes No Sometimes No
Predefined
User Definable
Manually Releasable
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Apply Holds to Invoices
(N) Setup > Invoice > Hold and Release Names
You can manually apply one or more Invoice Hold Reasons (holds) to an invoice using the Holds tab of the Invoices window. Use any of the default hold reasons or define your own.

5.83
Apply Holds to Scheduled Payments
$1000.00
Invoice
Hold 04-APR-2007 04-MAY-2007 100 900
Due Date
Gross Amount
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Apply Holds to Scheduled Payments
You can hold payment of part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window. For example, to pay 90% of an invoice now and 10% of an invoice at a future date, enter the invoice and create a split payment schedule; one representing 90% of the invoice amount and the other representing 10% of the invoice amount. Enable the Hold check box for the payment schedule representing the 10%.

5.84
Setup Options
Payables System Setup Options Payables Options Purchasing Options Profile Options
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5.85
Payables System Setup Options

Payables System Setup window to define supplier control options and defaults Payables uses as the payment terms start date when Payables calculates the due and discount dates for invoice scheduled payments.
Select the date that Payables uses to select invoices for payment
Select the terms that Payables uses to schedule payments for an invoice
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Payables System Setup Options
(N) Setup > Options > Payables System Setup
Use the following options to define supplier-related invoice and payment default values.
Invoice Match Option. Select Purchase Order or Receipts to indicate how you want to match most invoices. Defaulting is in the following order, but can be overridden at any level: Payables System Setup > supplier > supplier site > purchase order shipment. The value at the purchase order shipment controls which purchasing document type that you can match to an invoice.
Hold Unmatched Invoices. If you enable this option for a supplier site, Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to either a purchase order or receipt. Payables applies the hold during Invoice Validation. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to either a purchase order or receipt, and resubmitting Invoice Validation. You can manually release the hold in the Holds tab of the Invoice Workbench or through Workflow. Payables does not apply a hold if the sum of the invoice distributions by accounting code combination is zero. Payables does not apply this hold to Prepayment or Interest invoices. Analytics: Server Architect for Analytical Applications (Siebel 7.7) Siebel Systems, Inc.
COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS enter. Invoice Currency. Select the currency to use as a default for new suppliers that youPROHIBITED
5.86
Payables Options
Payables to use as the default accounting date for invoices during invoice entry Allow users to update the distributions of a paid invoice
Allow users to select Invoice Validation from the Invoice Actions
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Payables Options
(N) Setup > Options > Payables Options
Allow Force Approval. Enable this option if you use the Invoice Approval Workflow Program and want to allow accounts payable processors to override the workflow and manually approve invoices by using the Force Approval option in the Invoice Actions window. You might want to force approve an invoice if the Invoice Approval Workflow does not complete for an invoice, or if you have authority to pay an invoice without using the workflow process.
Require Validation Before Approval. If you enable this option, then Invoice Approval Workflow does not select any invoice for processing unless the invoice status is Validated. You might want to enable this option if you need the Invoice Validation process to create tax distributions for an invoice before approvers review it.

5.87
Payables Options (Continued)
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Payables Options (Continued)
(N) Setup > Options > Payables Options : (T) Matching
Allow Final Matching. Enable this option to allow final matching of purchase order matched invoices. You can indicate a final match when you match an invoice to a purchase order during invoice entry or when you adjust a matched invoice distribution. You cannot final match when you match invoices to receipts. If you final match to a purchase order, subsequent invoices matched to the purchase order will be placed on hold during Invoice Validation. You cannot manually release a final match hold.
Allow Distribution Level Matching. Enable this option if you want to allow matching to purchase order distributions. If you enable this option, you can match an invoice to one or more purchase order distributions. If you do not enable this option, Payables allows you to match an invoice only to a purchase order shipment.
Allow Matching Account Override. Enable this option if you want to allow overriding of the invoice distribution account created from matching to a purchase order. You can override the account for a matched invoice distribution in the Distributions window of the Invoice Workbench, or on any imported invoices. You cannot override the account for a matched invoice for Analytical Applications (Siebel 7.7) Analytics: Server Architect distribution if you use encumbrance accounting, or perpetual receipt accrual. In addition, you cannot Inc. Siebel Systems, override the account if the purchase order isPROPRIETARY INFORMATION DUPLICATION IS PROHIBITED COMPANY CONFIDENTIAL AND projects related and the item destination for the purchase order distribution is Inventory. If you match to an item you are receiving into inventory, the accrual account is used for the invoice
5.88
Profile Options
PO: ERS Aging Period PO: ERS Invoice Number Prefix AP: Use Invoice Batch Controls AP: Notification Recipient e-Mail
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Profile Options
System Administrator Responsibility
(N) Profile > System
PO: ERS Aging Period. The value in this profile option indicates the number of days between the receipt date and the Payment on Receipt automatic invoice creation date. For example, a value of 2 means that Payment on Receipt creates invoices only for receipts that are 2 or more days old. Any corrections or returns you make against a receipt during that 2-day period are included on the Payment on Receipt invoice.
PO: ERS Invoice Number Prefix. ERS- is the prefix that appears before all invoices that you create automatically using Pay on Receipt (although it is called Pay on Receipt, the Pay on Receipt functionality automates the creation of invoices). This profile option allows you to change this prefix. For example, shortening this prefix allows extra spaces for longer packing slip or receipt numbers.
AP: Use Invoice Batch Controls. Enable this option to enable use of the Invoice Batches window, which you can use to specify batch defaults that help speed and control invoice entry in the Invoice Workbench. Enabling this option also Analytics: Server Architect for an invoice batch name to a group of invoice records when you submit Payables Open Interface Inc. Siebel Systems, allows you to specify Analytical Applications (Siebel 7.7) COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED Import. When this option is enabled, you cannot enter invoices directly in the Invoices window.
5.89
Defining Interest Rates

In the Payment Interest Rates window, you define interest rates Payables uses to calculate and pay interest on overdue invoices. You can add or change a rate at any time
Enable the Allow Interest Invoices Payables option
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5.90
Defining Aging Periods
Aging Report provides information about invoice payments due during four periods you specify
Enter the Name and Description of the type of aging periods you are defining Enter First and Second lines you want them to appear on your report Aging Report uses only the four lowest numbered periods

5.91
Key Indicators Report
Use Key Indicators Report to review Payables transaction activity, and review the current number of suppliers, invoices, payments and matching holds in your Payables system:
Prerequisites Define key indicator calendars

5.92
Expense Reports and Credit Cards

5.93
Expense Reporting Process

Employee creates expense report Manager approves report Accounts Payables department approves report Approved: Creates payment; notifies employee
Payables Rejected: Workflow notifies employee
Internet Expenses Adjusted: Creates payment; notifies employee
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Expense Reporting Process
You create and submit an expense report using Oracle Payables or Oracle Internet Expenses. The basic expense reporting process is as follows:
1. The Employee submits an expense report.
2. The Expenses Workflow notifies the approving authority for online review.
3. If the report is rejected, the Rejection process notifies the employee by email. You can access and update the rejected expense report from Payables, if you submitted the expense report from Payables, or from Internet Expenses if you submitted the expense report from Internet Expenses.
4. For Payables approvals, the Payables Approval process determines whether a report requires audit. It automatically approves if audit is not needed. The audit rules determine whether audit is required. If required receipts are missing or there are questions about policy compliance, auditors can request more information, shortpay, reject or adjust the expense report. For all cases, notifications are sent to the preparer.
5. After manager and/or accounts payable department approval, the Expense Report Export program converts Siebel Systems, Inc. the expense report into an invoice. In Oracle Payables, the system either creates the payment or it prints the COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED Invoice Export Exceptions Report for expense reports that cannot be imported and have to be resubmitted.
5.94
Expense Report Templates
You use the Expense Report Template window to define templates based on
the expense report forms you regularly use in your enterprise.
Expense reports use E-Business Tax to automatically calculate the applicable
taxes during Expense Report Export.

Foreign currency expense reports are subject to the same system
requirements as foreign currency invoices.

You can only apply advances (prepayments) that have the same currency as
the expense report.
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Expense Report Templates
During Expense Report Export, Payables uses the expense item information to create invoice distributions.
You define expense report templates for types of expense reports you use in your enterprise. For example, a company might define a Salesperson template that salespeople use to enter expense reports. That template would include expense items that are reimbursable, such as meals, airfare, and hotel. However, it would not include a mileage expense item because salespeople have car allowances.
Use the Expense Report Payables Options to define the default information for expense reports, including the default expense report template used in the Expense Reports window.

5.95

5.96
Procurement Card Process

Validate and Verify Procurement Card Transactions Approved: Send for Management Create invoices; ready for Approval validation and payment
Load AP_EXPENSE_FEED_LINE S_ALL
Rejected: Workflow notifies employee
Adjusted: Create invoices; ready for validation and payment
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Procurement Card Process
The flow pictured in the slide above illustrates the procurement card process:
1. Use a SQL*Loader script to load the procurement card transactions into the AP_Expense_Feed_Lines_All
2. Validate the transactions by submitting the Procurement Card Transaction Validation program. This program creates default accounting distributions for procurement card transactions. It also validates imported transactions and identifies exceptions. Exceptions include: Transaction loaded for an employee who is not defined in Oracle Payables; Transaction loaded for a card number that is not defined in Oracle Payables; Duplicate reference numbers of transactions posted by your card issuer (the reference number is the unique number assigned to each transaction by the card issuer).
3. Verify the transactions with the employee by submitting the Procurement Card Transaction Verification program. This program initiates the Employee Verification Workflow program and runs based on the level of notification you define at the card profile level. If verification is required at the profile level, the employee is able to verify transactions directly from the workflow notification (for all or none). Alternatively, the employee can use Oracle Web Employees to verify transactions individually. With Oracle Web Employees, you can also verify transactions using different statuses, update the default cost center, account for a transaction, and split a transaction. If verification is not required at the profile level, Analytics: Server Architect for Analytical Applications (Siebel 7.7) Siebel Systems, Inc. the employee receives a notification that requires no action (unless notification level is set to None).
4. Send the transactions for management approval by submitting the Procurement Card Transactions Approval Process. This
5.97
Setting Up Procurement Cards and Credit Cards

Set up credit card programs to manage your enterprises credit card and
procurement card requirements. Travel = Employees who enter credit card transactions on expense reports. Procurement = Employees who use procurement cards to purchase items directly from suppliers.
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Setting Up Procurement Cards and Credit Cards
Use the Card Programs window and the Credit Cards window to set up your credit cards, which are used for employee expense reports, and your procurement cards, which are used by qualified employees to purchase items directly from suppliers. If you are using Internet Expenses, there are additional setup steps. See: Establishing Corporate Credit Cards, Oracle Internet Expenses Implementation and Administration Guide.

5.98
Setup Steps
You use the Code Sets window to define sets of credit card codes for your procurement
cards.
Card program window to define your credit card programs for each card issuer.

5.99
You use the GL Account Sets window to create a list of values of GL accounts
that your employees can use to correct account information for their procurement card transactions.
You assign a credit card profile to each card that you assign to a card holder.
You use the Credit Cards window to define the credit cards distributed to your
employees. Enter an employee name and credit card number, and assign a card profile.

5.100
Transaction Taxes in Payables
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5.101
Overview of Transaction Taxes in Payables
Payables leverages E-Business tax to setup, calculate, and manage
transaction taxes such as: Sales VAT Excise Customs Duty Environmental Offset Recoverable Tax
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Overview of Transaction Taxes in Payables
Payables leverages E- Business Tax to set up, calculate, and manage transaction taxes, such as Sales, VAT, and Offset taxes.
Withholding taxes and 1099 taxes are set up, calculated, and managed by Payables. For more information on these taxes see the Withholding Tax or the 1099 modules.

5.102
Overview of Tax Calculation on Invoices

Recalculate Taxes
Enter Invoice
Click Calculate Tax
View Tax Lines and Distributions
Change Tax Driver
Validate Invoice
Calculates Tax Calculates Tax E-Business Tax
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Overview of Tax Calculation on Invoices
To calculate tax for an invoice:
1. Enter the invoice. If your set up permits, you can manually enter tax lines on the invoice.
2. To calculate taxes on the invoice before validation, click the Calculate Tax button on the Invoices window. E-Business tax uses the tax drivers on the invoice (such as the supplier, place of supply, type of invoice and transaction), along with the tax setup in E-Business tax to determine which taxes are applicable and to calculate and distribute the tax lines appropriately.
3. View the calculated tax lines and distributions in the Tax Lines Summary and Tax Lines Details windows. The tax line summary and detail information is provided to Payables by E-Business Tax.
4. If you change a tax driver on the invoice, you can click Calculate Tax at anytime to recalculate the tax lines and view the impact of the change on the invoice.
5. When you validate an invoice, E-Business Tax automatically recalculates the tax lines, creates the distributions, allocates tax amounts, and places any tax-related holds on the invoice. If you adjust the invoice after validation, when you revalidate the invoice, E-Business Tax will recalculate the tax as necessary.
In general, E-Business Tax automatically calculates all applicable tax amounts for invoices except in the following instances: COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED
If you import invoices into Payables from another source, then the tax can be imported with the invoice.
5.103
Entering Manual Tax Lines

To enter manual tax lines, enable the following options for the configuration
owner or event class: Allow Entry of Manual Tax Lines Allow Manual Tax Only Lines (optional)
To manually enter tax details for Item, Freight, Miscellaneous, or Prepayment lines,
complete the following fields: Tax regime Tax Tax status Tax rate Tax amount Place of supply (supplier site)
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Entering Manual Tax Lines
(N) Invoices > Entry > Invoices
When you enter a manual tax line, enter an amount in the Tax Control Amount field in the invoice header. E-Business Tax uses the Tax Control Amount to prorate automatically calculated tax amounts. For example, if you enter a Tax Control Amount of $10 and E-Business Tax calculates a total tax amount of $12, then E-Business Tax will prorate the calculated tax amounts so the total tax amount matches the Tax Control Amount you entered.

5.104
Updating Tax Lines
To update tax lines, enable the following options for the configuration owner or event
class: Allow Entry of Manual Tax Lines Allow Recalculation for Manual Tax Lines Tax Line Override Impacts Other Tax Lines
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Updating Tax Lines
You cannot enter or change detail tax lines while you have unsaved changes to summary tax lines. E-Business Tax performs a limited evaluation of tax rules on certain updates to a tax line.

5.105
Self-Assessed Taxes
Enable the following option in the Party Tax Profile:
Set for Self Assessment/Reverse Charge option

You can enable this option at the following levels:
Regime Regime, Tax Regime, Tax, Tax Jurisdiction
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Self-Assessed Taxes
Self assessed tax amounts are taxes that you are liable for, but that do not appear on the invoice. Self-assessed taxes are also known as reverse charge or use taxes in certain tax regimes.
You can view self-assessed tax amounts in the Self Assessed Tax Amount field in the Invoice Header. This field is for reference only; it has no impact on the amount due to the supplier.
To use Self Assessed Taxes, enable the Set for Self Assessment/Reverse Charge option when you define the tax registration information in the Party Tax Profile for any First Party Legal Entity, First Party Legal Establishment, or Third Party. If you enable self-assessed taxes for Third Parties, then the taxes will only be assessed for the supplier at the level specified (Regime; Regime, Tax; Regime, Tax, Tax Jurisdiction) and not for other suppliers in that tax regime, tax, or jurisdiction.
The following example illustrates how E-Business Tax applies self-assessed taxes to invoices.
Assume you enter an invoice from a supplier for $1000.00. The supplier did not charge tax on the invoice; however, assume that according to tax rules, as the purchaser you are liable to pay a 5% tax on the item to your tax authority.
When you click Calculate Tax or validate the invoice, E-Business Tax uses the tax drivers on the invoice, such as Ship To, Siebel Systems, Inc. Product Type, Primary Intended User, Business Category and Product Fiscal Classification to calculate taxes and determines COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED if any self-assessed tax should be applied.
5.106
Set Up First Party, Party Tax Profile (eBTax)
Set Tax Registration Details: Check to mark associated tax on all supplier invoices as Self Assessed.

5.107
Process Calculate Tax

Self Assessed Tax Amount
Suppliers Tax is $0 and the amount due to the Supplier is $1,000.00

5.108
Considerations for Taxes on Prepayments
To calculate taxes on Prepayment Invoices, enable the following option for the
Prepayment event class: Allow Tax Applicability Tax calculation is affected by how the Applied Amount Handling option is set up. You can set this option as: Recalculated Prorate
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Considerations for Taxes on Prepayments
To apply taxes to Prepayments, enable the Allow Tax Applicability option for the Prepayment Event Class in E-Business Tax. Taxes can be set up for Prepayments in general, or for specific types of prepayments such as contract financing, advances and automatic and manual prepayment applications.
You can define tax rules to set up specific tax rates for different types of prepayments. For example, to tax Contract Financing prepayments but not Advances, 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. Tax rules also affect how taxes are applied to a prepayment. In particular, the taxes are affected by how you set the Applied Amount Handling option for the tax. You can set this option to either Recalculated or Prorate.
Recalculated Examples
If the Applied Amount Handling option is set to Recalculated, then when a Prepayment is applied to a Standard Invoice the tax is recalculated and, if there is a difference in tax rates no liability remains.
Assume that you enter a Prepayment for $240.00, with a 20% Tax Rate.
After the prepayment is paid, the tax rate changes from 20% to 25%.
Next, assume you enter a Standard Invoice for $250.00, the 25% tax rate is automatically applied to the invoice.
5.109
Tax Tolerances and Tax-Related Holds
To define tax tolerances:
Enable the Allow Override for Calculated Tax Lines option for the configuration owner or event class Tax Tolerances define the limits of user override If an invoice exceeds the Tax Tolerances, then a Tax-Related Hold is applied during Invoice Validation
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Tax Tolerances and Tax-Related Holds
Use the Invoices Payables Options to define the tax tolerances for the entry of tax override values on Payables event class transactions belonging to a configuration owner. Tax tolerances are used to determine whether E-Business Tax places a tax hold on an invoice due to the override of calculated tax lines.
A tax tolerance is the acceptable variance between the calculated tax amount on an invoice and the override tax amount entered by the user. If the variance between these two amounts exceeds the tolerances you specify, then E-Business Tax places the invoice on hold.
To define tax tolerances, you must first set the Allow Override for Calculated Tax Lines option. Setting the Allow Override for Calculated Tax Lines option lets you override automatically calculated tax lines on transactions. You use tax tolerances to define the limits of user override.
If an invoice exceeds these tolerances, E-Business Tax will apply a hold to it during Invoice Validation.

5.110
Offset Taxes
Existing Oracle Payables implementations that use Offset Taxes can setup and
manage Offset Taxes in E-Business Tax. Ensure that the Set as Offset Tax option is enabled for the tax. For new taxes and new implementations, use E-Business Taxs Self Assessed tax feature instead.
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Offset Taxes
When you enter an invoice, if a tax has an associated offset tax and if you enable the Use Offset Taxes check box for the supplier site, Payables creates a default offsetting tax distribution for each tax distribution on an invoice. You can use offset taxes to record the value added tax (VAT) name and amount without paying VAT to the supplier (the tax distribution and the offset tax distribution net to zero). For example, in the Tax Codes window, you can define an offset tax code named Offset 10 that has a negative 10% rate. You can then define a userdefined tax called VAT 10 that has a 10% rate. You can assign the Offset 10 tax to the VAT 10 tax. You can always override the default offset tax distribution on an invoice or manually enter additional offsetting tax distributions.
If you delete the Invoice Tax Code for a supplier, the system deletes the offset tax code from the supplier and supplier site and does not automatically assign any default tax to any new supplier sites you enter. If you use the Multiple Organization Support feature, you can enable this option only at the supplier site level.

5.111
Suppliers Subject to Income Tax Reporting

To define a supplier as subject to income tax reporting requirements:
Enter a Taxpayer ID Enable the Federal option and select an Income Tax Type (1099 MISC Type). Enable the State option, if applicable Enable the Allow Withholding Tax option
If you enter a purchase order for a 1099 supplier, then Oracle Purchasing
retains the Income Tax Type information at the purchase order line level.
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Suppliers Subject to Income Tax Reporting
For more information on 1099 reporting, see the 1099 Reporting module.

5.112
Financials Options
Oracle Payables
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Financials Options
(N) Setup > Options > Financials Options > (T) Tax
Member State
The location of your company or organization. Payables uses this country name to determine if your company or organization is located in a member state of the European Union (EU).
VAT Registration Number
The value added tax (VAT) registration number for your organization. Your organization is assigned a VAT Registration Number if you register to pay VAT. The first two characters of a VAT registration number are the country code for the country or state where the registered company or organization is located. Payables prints this number on the header of the IntraEU VAT Audit Trail Report.

5.113
Payables Options: Payment
Payables subtracts the tax amount from the invoice amount when it calculates the discountable amount for a scheduled payment
create payments with a payment date before the system date
Oracle Payables
113 of 139
Payables Options: Payment
(N) Setup > Options > Payables Options > (T) Payment
Exclude Tax From Discount Calculation. If you enable this option, when you enter an invoice, Payables subtracts the tax amount from the invoice amount when it calculates the discountable amount for a scheduled payment.
If you enable this option, you cannot select Prorate Tax for your Discount Distribution Method Payables option. Note that even if you enable this option, taxes with corresponding offset taxes, such as VAT taxes, will be excluded from discount calculation to the extent not offset.
If you do not enable this option, Payables uses the gross amount (including the tax amount) of an invoice as the invoice amount applicable to discount. When you enter an invoice you can always override the default invoice amount applicable to discount.
However, we recommend that you do not modify that amount to reduce it by the tax amount if your Exclude Tax From Discount Calculation Payables option is enabled.

5.114
Withholding Tax
Oracle Payables
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5.115
Withholding Tax Overview

You may be required to withhold taxes from your employee expense reports
and supplier invoices.

Once you set up Payables to automatically withhold tax, you can withhold tax
either during Invoice Validation or during payment processing. You can control all withholding tax options in the Withholding Tax region of the Payables Options window.
Oracle Payables
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Withholding Tax Overview
To perform automatic withholding, assign a withholding tax group to an invoice or invoice line. Accept the default withholding tax group from the supplier site or select another from a list of values. To withhold tax, Payables creates one or more Withholding Tax type invoice distributions. These distribution amounts are not included in the Distribution Total field. For each invoice, Payables automatically updates the Withheld Amount field, and updates scheduled payments to reflect the withholding. For example, for a Standard type invoice with an amount of 100 and a withholding tax amount of 20, Payables creates Withholding Tax type invoice distributions that total 20. The Distribution Total remains 100, and Payables updates the Withheld Amount field to 20. Payables also updates the scheduled payments.
Review withheld amounts online or submit standard reports. For foreign currency invoices, the withheld amount is calculated based on the functional currency amount of the invoice, and is then converted back into the foreign currency. Therefore, due to rounding, it may be different from the foreign currency invoice amount multiplied by the withholding tax rate.
Payables creates an invoice number for the tax authoritys invoice by concatenating the following: Withholding Tax Siebel Systems, Inc. (the systems internal identifier number of the invoice) (first Withholding Tax distribution included on that invoice), COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED The description of that invoice will be: Withholding Tax (supplier name) (invoice number) / (first Withholding
5.116
Withholding Tax Payables Options Use Withholding Tax

Select the Use Withholding Tax option to enable Automatic Withholding Tax. If you enable this option, you have the option to allow your suppliers and supplier
sites to be subject to withholding tax.
Defining Special Calendar
Oracle Payables
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Withholding Tax Payables Options Use Withholding Tax
In addition to the Use Withholding Tax option, you can specify the following withholding tax options.
Allow Manual Withholding
Enable this option to allow manual creation and adjustments of Withholding Tax type distributions for your invoices.
Tax Group
The name of the withholding tax group that you would like to use as the default withholding tax group for the new suppliers you enter.
Apply Withholding Tax
Select the time at which you would like Payables to apply withholding taxes to your suppliers invoices:
Never
At Invoice Validation Time

At Payment Time Analytics: Server Architect for Analytical Applications (Siebel 7.7)
Note: If Payables COMPANY CONFIDENTIAL ANDValidation, itINFORMATIONwithholding onlyPROHIBITED adjust an invoice after withholds tax at Invoice PROPRIETARY calculates DUPLICATION IS once. If you you submit Invoice Validation, then you need to manually adjust the withholding tax.
5.117
Defining Tax Codes & Groups
When you define a withholding tax code, you indicate first whether you will
have any amount or rate controls by selecting one of the following rate structures: Period Limit Flat Rate Amount Ranges
You use Tax Groups window to define withholding tax groups that include
multiple Withholding Tax type tax codes. You can assign the same tax code to more than one group. When you assign a withholding tax group to an invoice or distribution, Payables calculates invoice withholding tax based on every tax code in the withholding tax group.
Oracle Payables
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Defining Tax Codes for Withholding Taxes
Period Limit
After you pay a certain amount for withholding tax in a period, Payables stops withholding taxes. For example, for each special calendar period, Payables will withhold no more than $10,000.
Flat Rate
The withholding tax has no amount or period limits.
Amount Ranges
The tax rate depends on how much you have already paid during a time period. Base the paid amount on the gross amount of total paid invoice amounts, or on the total amount of tax withheld. The time period can be either per withholding tax calendar period or per invoice. For example, define a tax that for each year will withhold at a rate of 10% until you pay $100,000 in invoices, and then it withholds at a rate of 15% after you pay $100,000.
In addition to these controls, the same withholding tax code can have different rates depending on the effective date. For example, a withholding tax has a rate of 10% 7.7) Analytics: Server Architect for Analytical Applications (Siebel one year and 11% the following year. Siebel Systems, Inc.
5.118

5.119
Withholding Tax Payables Options
Select this option to enable Automatic Withholding Tax

5.120
Withholding Tax Certificates and Exceptions

You use the Withholding Tax Certificates and Exceptions window to define
Withholding Tax type tax code rate exceptions for a supplier site.
Withholding Taxes for Suppliers

You enable withholding taxes for a supplier and supplier sites in the Tax
Details region of the Suppliers page.

Select Allow Withholding Tax option if you want to enable withholding for a
supplier or supplier site, and select a default Withholding Tax Group that Payables will default to all invoices you enter for the supplier or supplier site.
Oracle Payables
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Withholding Tax Certificates and Exceptions
You can define a certificate to specify a rate exception for a Withholding Tax type tax code for all invoices of a supplier site.
You can also define a rate exception for a Withholding Tax type tax code for a single invoice.

5.121
Withholding Tax Reports
Payables provides the following income tax forms and reports:
Withholding Tax By Invoice Report Withholding Tax By Payment Report Withholding Tax By Tax Authority Report Withholding Tax By Supplier Report Withholding Tax Certificate Listing Withholding Tax Letter Withholding Tax Report
Oracle Payables
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5.122
Withholding Tax Certificate Listing

You use the Withholding Tax Certificate Listing to review withholding tax
certificates for a supplier or all suppliers.
Withholding Tax Letter

You use this report to create a withholding tax letter to mail to your suppliers
on a periodic basis. This letter contains a list of withholdings made for a supplier, summarized either by tax type and tax rate or by supplier site.
Oracle Payables
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Withholding Tax Certificate Listing
Payables lists only withholding tax certificates that have been used to calculate tax amounts withheld for invoices. Use the information in this report to satisfy management, supplier and tax authority reporting requirements.

5.123
Withholding Tax Report

You use this report to create a withholding tax report for your companys
internal reporting needs. This report contains a list of withholdings made on behalf of your suppliers, summarized either by tax type and tax rate or by supplier site, and grouped by supplier.
Oracle Payables
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Withholding Tax Report
Creating the Withholding Tax report is a two step process. In the first step, you submit the report from the Submit Request window. This step extracts your withholding tax information and stores the information in the AP_WITHHOLDING_TAX_ITF interface table. You can then publish the report either by choosing Publish RX Reports from the Submit Request window or by using a third party reporting program.
Note: This is an RXi report, which means that you can customize the report format, content, and output file type.

5.124
1099 Reporting
Oracle Payables
124 of 139

5.125
Entering Invoices for Suppliers Subject to Income Tax Reporting Requirements

If you set up a supplier as federally reportable and assign a default income tax
type to the supplier, then that value defaults down to each invoice distribution you enter for that supplier.
Oracle Payables
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Entering Invoices for Suppliers Subject to Income Tax Reporting Requirements
You can override the default Income Tax Type for an invoice line in the Lines tab of the Invoices window. You can also use the Update Income Tax Details utility to make income tax type updates at any time before running your reports.
In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. Within Payables, you can designate suppliers as federally reportable, classify their invoice distributions by 1099 MISC Type, then at the end of the year when you submit your 1099 reports, Payables lists payments of reportable distributions made to 1099 suppliers.
For example, you enter an invoice for a 1099 reportable supplier. The suppliers hourly fees are reportable for U.S. 1099 reporting purposes, but reimbursable expenses, such as travel, are not. In the Lines tab for the fee distribution you assign an Income Tax Type; however for the travel distribution, you clear the Income Tax Type field.

5.126
Suppliers Subject to Income Tax Reporting Requirements

To define a supplier as subject to income tax reporting requirements:
Enter a Taxpayer ID Enable the Federal option and select an Income Tax Type (1099 MISC Type). Enable the State option, if applicable Enable the Allow Withholding Tax option
If you enter a purchase order for a 1099 supplier, then Oracle Purchasing
retains the Income Tax Type information at the purchase order line level.
Oracle Payables
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Suppliers Subject to Income Tax Reporting Requirements
(N) Suppliers > Entry > (L) Tax Details
The purchase order value always defaults to invoices matched to a purchase order, (even if the purchase order value is null and the Supplier has a value).
For unmatched invoices, if you do not use a Distribution Set to create invoice distributions, Payables uses the suppliers income tax type as the default value. If you use a Distributions Set to create invoice distributions, Payables uses the default income tax type from the Distributions Set as the default value.
Also, to set up a federally reportable supplier, select a site to be the income tax reporting site by enabling the Reporting Site option in the Tax Reporting region of the Supplier Sites window.
If you participate in the United States Internal Revenue Service (IRS) Combined Filing Program, you can also define a supplier as state reportable by enabling the State option in the Tax Reporting region of the Suppliers window. Payables uses the state reportable status of a supplier for reporting purposes only. You can create custom reports to satisfy a tax authoritys reporting requirements.
If the tax reporting name is different from the supplier name, enter it in the Reporting Name field in the Tax Reporting COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED Region. Payables uses the Reporting Name to produce documents for the IRS. If you report electronically, select an
5.127
Updating 1099 Information
You can update 1099 information for your suppliers. If you paid a supplier
before you set up the supplier as a 1099 supplier, run the Update Income Tax Details Utility. Or, if you need to update only a few invoices, you can update the 1099 types in the Lines tab
Oracle Payables
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Apdating 1099 Information
The following are suggestions for adjusting transactions for 1099 suppliers. If you need to add an amount to a 1099 supplier, for example if you paid the supplier through another system, you can adjust an invoice paid during the year in the Lines tab of the Invoice workbench. Add a line for the amount you want to add for 1099 purposes, including the Income Tax Type. Also add an offsetting line with a null Income Tax Type.

5.128
Recording a Refund From a OneTime 1099 Supplier
If you get a refund from a onetime 1099 supplier, you need to record the
refund in Payables so that the 1099 reports are accurate.

Enter a credit memo that you match to the original invoice.
Oracle Payables
128 of 139

5.129
1099 Reporting
1096 Form 1099 Forms 1099 Invoice Exceptions Report 1099 Payments Report 1099 Electronic Media 1099 Supplier Exceptions Report Tax Information Verification Letter
Oracle Payables
129 of 139

5.130
Payables Options: Tax Reporting
Oracle Payables
130 of 139
Payables Options: Tax Reporting
(N) Setup > Options > Payables > (T) Tax Reporting
Combined Filing Program. Enable this option if you are using 1099 Combined Filing Program reporting. When you submit the 1099 Electronic Media report, Payables will produce K-records for all tax regions participating in the Combined Filing Program that have qualifying payments.
Note: If you use electronic filing or magnetic media to file your tax information with the Internal Revenue Service and you are not participating in the Combined Filing Program, do not enable this option. The Internal Revenue Service may return your 1099 magnetic tape if the tape contains K records.
Use Pay Site Tax Region. You can enable this option only if you enable the Combined Filing Program Payables option. Enable this option if you want to use a 1099 supplier's tax region as the default tax region. If you enable this option, Payables uses the 1099 supplier site's region as the default tax region for the invoice distributions. You can override this default region for each invoice distribution in Distributions window.
Analytics: Serverdefault tax region youApplications (Siebel 7.7) enter the Architect for Analytical want to use for all invoices in
Do not enable this option if you do not want to use a supplier site's tax region as the default tax region. You must then Siebel Systems, Inc. the next field, the Income Tax Region Name field.
The default you choose here determines how many K records Payables will produce on your 1099 Electronic Media.
5.131
Advances and Progressive Contract Financing
Oracle Payables
131 of 139

5.132
Advances and Contract Financing

iSupplier Portal: Invoice Request is approved; Prepayment Invoice created
Purchase Order/ Contract for Services: $1,000,000 Payables: Prepayment Invoice Entered
Oracle Payables
Supplier requests prepayment: $50,000
Additional approvals ?
Invoice is validated; Payment Issued
132 of 139
Advances and Contract Financing
Suppliers can request an advance or a contract financing prepayment, using iSupplier Portal. Invoice requests submitted through iSupplier Portal must go through an approval process before the Invoice Request becomes a Prepayment Invoice.
An Accounts Payables clerk can also manage the prepayment request by entering a Prepayment Invoice in Payables.
The system ensures that the Prepayment invoice is matched to the Contract Advance, which prevents over billing beyond the negotiated value. The purchase order is then updated with the amount billed.
The invoice can either be paid immediately or you may wish to require that the invoice go through another set of approvals prior to issuing payment. Note that all prepayments must be paid in full before any amounts can be liquidated on subsequent delivery invoices.

5.133
Progress Payments
Approved Advance Resurface Lot Road Work Landscape Final Painting 1,000,000 1,000,000 <100,000> 0 50,000 50,000 < 5,000> 250,000 250,000 <25,000> 500,000 500,000 <50,000> 200,000 200,000 <20,000> <50,000> 50,000
Billed
Retained
Advance/ Recoupment
Oracle Payables
133 of 139
Progress Payments
Once work on the contract begins, the Supplier submits work confirmations for the work that has been completed on the contract. Work confirmations are submitted using iSupplier Portal and, like other invoices submitted through iSupplier Portal, the work confirmation is considered an Invoice Request until it is approved and converted into a Standard Invoice in Payables. The resulting invoice is created using a combination of the work confirmation and purchase order information and is referred to as the Progress Payment.
For projects that use advances and progressive contract financing, the purchase order is set to Pay on Receipt (Self Billing). Once work is confirmed or goods are received, then the invoice can be paid. For example, assume on a $1,000,000 project, that a Supplier submits a work confirmation for resurfacing a parking lot for $200,000. The invoice breakdown is as follows:
Items = $200,000
Retainage = <$20,000>
Recoupment = <$50,000>
Total = $130,000
Retainage is set on the contract. RetainageAND PROPRIETARY INFORMATION DUPLICATION and held as a liability (from an COMPANY CONFIDENTIAL is a portion of the invoice that is retained IS PROHIBITED accounting perspective) until it is released at the end of the project or when agreed events have occurred. In this example the
5.134
Entering Advances and Contract Financing Invoices
An advance prepayment invoice is not matched for an advance, since an advance
is paid once before any work commences and is not based on performance.
A contract financing prepayment invoice is matched to pay items (shipments).
Oracle Payables
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Entering Advances and Contract Financing Invoices
An advance prepayment invoice is matched to a purchase order number, line numbers, and distributions. Pay items are not matched for an advance, since an advance is paid once before any work commences and is not based on performance.
A contract financing prepayment invoice is matched to a purchase order number, line numbers, pay items (shipments), and distributions.
Note: Oracle Payables ensures that the amounts financed and later recovered never exceed the allowable amounts designated by the specific terms captured in the purchase order.
The information in the Payment Type field of the Match to Purchase Orders window indicates whether the service procurement purchase order row is an advance or contract financing. The Shipment Item Description field provides a description of the item ordered on the purchase order for which the Advance was provided. The Shipment Item Description field provides a description of the pay item on the purchase order for contract financing.

5.135
Work Confirmation
A work confirmation confirms that work was delivered by a certain supplier at
a specific price on a specific date as specified by a specific work confirmation number, which is associated with a purchase order number.
Oracle Payables
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Work Confirmation
For contract financing prepayments, you can use 2-way or 3-way matching. Three-way matching verifies that the purchase order, the invoice, and receiving information match within accepted tolerance levels. The work confirmation receipt is the only type of receipt allowed for complex service contracts.
If the amount of work completed is equal to the amount billed on the invoice, then the invoice is eligible for payment. If the amount of work completed is less than the amount of work billed on the invoice, then the invoice is placed on a matching hold.
Advance prepayments can only be 2-way matched, that is, verifying that the purchase order and the invoice match within accepted tolerance levels, since there is no work or deliverable associated with an advance.

5.136
Taxes for Complex Service Contract Invoices

Invoice Type Invoice Purpose Tax Calculation Based On
Prepayments
Advance
Invoice Amount, based on Tax Rules for Advances Invoice Amount, based on Tax Rules for Contract Financing Invoice Amount, Net of Retainage Invoice Amount Retained Amount, based on Tax Drivers on Original Invoice
Contract Financing (Progress Payment) Standard Final Delivery Retainage Release Release Retained Amounts Progress Payment
Oracle Payables
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Taxes for Complex Service Contract Invoices
Payables integrates with E-Business Tax to provide tax services for your invoices. The table in the slide above indicates what amount and tax set up is used to calculate tax for your complex service contract-related invoices.
Prepayment Invoices
If you enter a prepayment invoice for an advance or contract financing, then the taxes on those invoices are calculated based on the prepayment invoice amount, using the tax rules defined for Advances or Contract Financing respectively. Tax rules are defined in E-Business Tax. Note that if you recoup your prepayment, then the tax is reversed on the prepayment recoupment either by recalculating the prepaid tax based on today's rates or by prorating the prepaid tax based on the recoupment amount.
Standard Invoices
If you enter a standard invoice for progress payment, then the taxes are calculated based on the invoice amount, net of retainage.
If you enter a standard invoice which is for a final delivery, then tax is calculated base on the invoice amount.
If your invoice contains retainage, then taxANDcalculated onINFORMATION DUPLICATION ISretainage. For example if the progress COMPANY CONFIDENTIAL is PROPRIETARY the invoice amount net of PROHIBITED payment invoice is $100.00 and the retainage is 15%, the invoice amount will be $85.00 plus tax at 10% of ($8.50). The total
5.137
Retainage Amount for Complex Service Contracts
Retainage is the act of withholding a portion of a payment until a substantial
portion or all of the work is completed.
Oracle Payables
137 of 139
Retainage Amount for Complex Service Contracts
The retained amount on progress payment invoices is based on the contractual terms defined in the service procurement contract or purchase order line. The percentage withheld is negotiated, defined in the contract, and is based on the risk factors involved. These risk factors include the performance and reliability of the supplier.
A contract line can be associated with one or more progress payments. After performing a portion of the contractual work, the supplier sends a progress payment invoice to the buying organization, requesting payment against the service procurement contract line or purchase order. The progress payment invoices submitted by a supplier are recorded as Standard Invoices in Payables. Oracle Payables withholds a portion of the invoice during matching to these payment lines (2-way matching) or to the receipts of these payment lines (3-way matching). The retained amount is represented as negative distribution amounts of type Retainage to the matched invoice line.
Note: You cannot override calculated retained amounts and you cannot enter retained amount manually.
Oracle Payables supports progress invoices with the following invoice amounts:
Analytics: Server Architect for Analytical Applications (Siebel 7.7) ($85.00) is compared to the invoice amount entered
Net of Retainage. If the Net of Retainage check box is enabled, during validation, the invoice amount net of retainage in the invoice header region to determine if the Siebel Systems, Inc. invoice should be COMPANY CONFIDENTIAL AND PROPRIETARY INFORMATION DUPLICATION IS PROHIBITED placed on a line variance hold.
5.138
Recouping Advances and Contract Financing Payments

Recoupment is the automatic process of recovering prepaid amounts when
invoicing for progress or for the final delivery of goods or services, based on specific terms specified in the services procurement contract.
Oracle Payables
138 of 139
Recouping Advances and Contract Financing Payments
When the supplier or contractor submits invoices for the project, any prepayments are recouped from the previous advances or contract financing. Recoupment rules present in the service procurement contract enable Payables to automatically draw against the prepayments and reduce the amount due on the delivery invoice.
Automatic recoupment occurs as part of the matching process at the following event points in Oracle Payables:
header-level matching,
line-level matching,
open interface import.
Advances and contract financing prepayments are automatically deducted from the standard invoice delivery payments for the contract line. The advanced or financed prepayment items are matched to a specific contract line in a service procurement purchase order. They are applied to, or recouped from, the same contract line with the delivery of the item, up to the unpaid invoice amount.
Recoupment amounts are automatically calculated for every standard Analytics: Server Architect for Analytical Applications (Siebel 7.7)
invoice item line that is matched to a Siebel Systems, Inc. service procurement purchase order delivery pay item PROPRIETARY INFORMATION onDUPLICATION IS PROHIBITED of financed pay items or or shipment. It is based the total available amount COMPANY CONFIDENTIAL AND shipments for that same contract line. Recoupment treats advances and contract financing prepayments differently.
5.139
Thank You


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5.

R12: Oracle Financials

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

The Changing Face of Oracle Accounts Payable in Release 12

Originally presented at OOW 2006 by

Jayanta Bhowmik, Director, Application Development

Start with a few ice breaker type questions:

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

R12 Payables New Features

New Features in Oracle Payables

Invoicing for Service Procurement Complex Terms

Suppliers Represented in TCA

New or Improved Workflows

Line Level and Invoice Level Approval

Approver entry of unmatched accounting and project information

Holds Notifications and streamlined resolution

Invoice Lines and Enhanced Asset Tracking

Reproting at Operating Unit Level

New Banking Model

Enhanced Payment Processing

MOAC-Multi-Org Access Control

Multiple Accounting Representations

Oracle Payables 3 of 139

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12, Suppliers join the Trading Community Architecture

R12 Suppliers & TCA Concepts

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers: New Tables & Views

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers & TCA: Supplier

Parties (HZ_PARTIES) Parent of Party Usages (HZ_PARTY_USAGE _ASSIGNMENTS) (Supplier Usage)

Oracle Payables 6 of 139

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers & TCA: Trading Partner Information

TCA Party Information Sample

Oracle Payables 7 of 139

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers & TCA: Supplier Location

AP_SUPPLIER_SITES_ALL Location Profile (HZ_LOCATION_PROFILES)

Combination of Party, Location & Duns Number

Party Sites (HZ_PARTY_SITES)

Party Sites Uses (HZ_PARTY_SITE_USES)

APPS. PO_VENDOR_SITES_ALL APPS. PO_VENDOR_SITES_ALL

Oracle Payables 8 of 139

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers & TCA: Trading Partners Site Address Location

4480 Morning Star, Dallas, TX

TCA Party Site Sample

Oracle Payables 9 of 139

Analytics: Server Architect for Analytical Applications (Siebel 7.7)

Siebel Systems, Inc.

R12 Suppliers & TCA: Trading Partner Contacts

HZ_PARTIES (Person Party )

HZ_RELATIONSHIPS (Contact Of)

HZ_PARTIES (Relationship Party )

APPS. PO_VENDOR_CONTACTS APPS. PO_VENDOR_CONTACTS