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Oracle Accounts Payables

Agenda

 Overview of Oracle Payables


 Payment Terms
 Distribution Sets
 Bank Setup
 Suppliers
 Invoices
 Payments
 Payables Accounting
 AP Standard Reports
 AP Integration

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Objectives

After completing this module, you should be able to:


 Describe how to set up suppliers
 Explain the supplier merge process
 Describe the supplier invoicing process
 Enter Standard invoices for a supplier
 Describe the accounting cycle and accounting features in
Payables
 Describe the standard Payable reports
 Understand the Integration of Payables with other modules

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Overview of Oracle Payables

 Oracle Payables is a high-productivity accounting


solution that helps you maintain strong financial
controls. You can:
– Automate Payment process
– Prevent duplicate payments
– Pay for only the goods and services that you order and receive
 Oracle Payables also helps you resolve business
issues quickly by providing accurate responses to
your inquiries.

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Oracle Payables Processes

Setup Enter supplier Enter invoice Approve invoice

Pay invoice

A/P

100,000
60,000
10,000
30,000

Transfer information Create accounting


to general ledger entries

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Payment Terms

 A Payment Term is a rule used to determine the due date and


discount date for payment of a transaction based upon the
invoice date

 It is assigned to an Invoice to automatically create scheduled


payment when you submit Payables Invoice Validation for the
invoice

 You can create an unlimited number of payment terms

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Payment Terms

Setup Invoice Payment terms

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Payment Terms

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Invoice Payment Schedule

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Distributions Sets

 A Distribution Set is used to automatically enter


distributions for an invoice when you are not matching
with the purchase order
 You can assign a default Distribution Set to a supplier site
so Payables will use it for every invoice you enter for that
supplier site
 If you do not assign a Distribution Set to a supplier site
than you need to assign it during invoice creation

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Distributions Sets

Setup Invoice Distribution Sets

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Distributions Sets

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Distributions Sets Tables

AP_DISTRIBUTION_SETS (HEADER)

AP_DISTRIBUTION_SET_LINES (LINES)

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Invoice with distributions Sets

 Associate the Distribution Set with the Invoice so that distributions


would be created automatically

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Distribution Account

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Distributions Account

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Lookups

Any predefined value that was not defined in a setup


window .
A lookup category is called as lookup types and the
allowable values for a lookup types are called lookup
codes.
You cannot change or delete codes once you have
defined ,but you can change the code description .
Ex-Standard,Prepayment,Debit Memo are lookup names
for the lookup type of Invoice Type.
AP_LOOKUP_CODES is a table which stores Payables
lookup details.

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Lookups

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Lookups

Lookup for Vendor Type

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Lookups

Lookup for Pay Date basis

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Lookup Types

System :No changes to the lookup codes are


allowed.

Extensible : New lookup codes can be added.


However, you cannot modify seeded lookup codes.

User :You can change any lookup code.

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Lookup :System

Predefine
d values
cannot be
changed

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Lookup :Extensible

New
lookup
values
can be
added

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Lookup :User

New
lookup
value can
be added

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Setup

Setup Options window is used to define the options


and defaults that you use for your Oracle Financial
Application(s).

Values you enter in this window are shared by Oracle


Payables, Oracle Purchasing, and Oracle Assets.

Financial Options

Payables Options

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Setup

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Setup-Financial Options

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Financial Option Table

FINANCIALS_SYSTEM_PARAMS_ALL
PAYMENT_METHOD_LOOKUP_CODE

ACCTS_PAY_CODE_COMBINATION_ID

PREPAY_CODE_COMBINATION_ID

FUTURE_DATED_PAYMENT_CCID

MATCH_OPTION

SHIP_TO_LOCATION_ID

BILL_TO_LOCATION_ID

USER_DEFINED_VENDOR_NUM_CODE
ORG_ID

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Setup-Payables Options

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Payables Option Table

AP_SYSTEM_PARAMETERS_ALL
TERMS_DATE_BASIS
PAY_DATE_BASIS_LOOKUP_CODE
INVOICE_CURRENCY_CODE

PAYMENT_CURRENCY_CODE
UPDATE_PAY_SITE_FLAG
CREATE_EMPLOYEE_VENDOR_FLAG
SET_OF_BOOKS_ID
GL_TRANSFER_SUBMIT_JOURNAL_IMP
USE_BANK_CHARGE_CODE
VENDOR_PAY_GROUP_LOOKUP_CODE

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Bank Setup

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Bank Setup

Bank Branch Setup

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Bank Setup

AP_BANK_BRANCHES
BANK_BRANCH_ID

BANK_NAME

BANK_BRANCH_NAME

COUNTRY

INSTITUION_TYPE

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Bank Setup

Bank Account Setup

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Bank Setup

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Bank Setup

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Bank Setup

AP_BANK_ACCOUNTS_ALL
BANK_BRANCH_ID
BANK_ACCOUNT_ID
BANK_ACCOUNT_NAME
BANK_ACCOUNT_NUM
SET_OF_BOOKS_ID
CURRENCY_CODE
ACCOUNT_TYPE

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Bank Table Relations

AP_BANK_BRANCHES

AP_BANK_ACCOUNTS_ALL

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Supplier Master

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Supplier Master

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Supplier Master

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Supplier Master

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Supplier Master

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Supplier Master

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Supplier Table

PO_VENDORS
VENDOR_ID
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
VENDOR_NAME
VENDOR_TYPE_LOOKUP_CODE
SET_OF_BOOKS_ID
TERMS_ID
PAY_DATE_BASIS
PAYMENT_CURRENCY_CODE

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Supplier and Supplier Site Settings

Supplier

Tokyo Paris New York

Purchasing site Purchasing site Pay site


RFQ Only site Pay site

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Supplier and Supplier Site Settings

•For every supplier, you can create an unlimited number


of supplier sites with different addresses and contacts.
For example, for a single supplier, you can buy from
several different sites and send the payments to only one
site.
•You can perform the following functions for a supplier
site when you assign the following types to the site.
–Pay: You can enter invoices for the site.
–Purchasing: You can create purchase orders for the
site.

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Supplier and Supplier Site Settings

–RFQ Only: You can create request for quotations in


Oracle Purchasing for the site. You cannot create
purchase orders in an RFQ Only site.
–Procurement Card: Supplier site that accepts the
credit card brands of your procurement cards.
•For every supplier site, you can enter contact
information (name, address, and telephone number)
specific to that site. Contact information is for your
reference only. It is not used by the system for reporting
purposes.

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Supplier Site

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Supplier Site Table

PO_VENDOR_SITES_ALL
VENDOR_SITE_ID
VENDOR_ID
VENDOR_SITE_CODE
PURCHASING_SITE_FLAG
RFQ_ONLY_SITE_FLAG
PAY_SITE_FLAG
ADDRESS_LINE1
STATE
CITY
STATE
COUNTRY

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Supplier Contacts

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Supplier Contacts Table

PO_VENDOR_CONTACTS
VENDOR_CONTACT_ID
VENDOR_SITE_ID
FIRST_NAME
MIDDLE_NAME
LAST_NAME
TITLE
MAIL_STOP
AREA_CODE
PHONE

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Supplier Tables Relations

PO_VENDORS

PO_VENDOR_SITES_ALL

PO_VENDOR_CONTACTS

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Merging Supplier

Identify duplicate ABC ABC


suppliers Corporation Corp

Merge suppliers

Review merge ABC


results Corporation
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Merging Supplier Sites

Run supplier Identify duplicate CoE_Test CoE_User


audit report suppliers CoE_HyD CoE_Ban

Merge suppliers
CoE_Test.CoE_HyD
To CoE_User

CoE_Test CoE_User
Maintain audit Review merge CoE_HyD CoE_Ban
trail results CoE_HyD
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Merging Supplier

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Merging Supplier

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Merging Supplier

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Merging Supplier

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Merge Supplier Invoices

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Invoice Creation

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Invoice Creation

Invoice Header Information

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Invoice Creation

Invoice Line Information

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Invoice Creation

Invoice Distributions Information

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Invoice Creation

Invoices contain the following information:

HEADER

Supplier information

Default information

DETAIL
Invoice distribution information

Scheduled payment information

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Invoice Tables

AP_BATCHES_ALL
AP_INVOICES_ALL
AP_INVOICE_DISTRIBUTIONS_ALL
AP_PAYMENT_SCHEDULES_ALL

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Invoice Tables

AP_BATCHES_ALL
BATCH_ID 172327

BATCH_NAME CoE_Batch

BATCH_DATE 5/20/2005

CONTROL_INVOICE_COUNT 2

CONTROL_INVOICE_TOTAL 10000

INVOICE_TYPE_LOOKUP_CODE STANDARD

ORG_ID 130

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Invoice Tables

AP_INVOICES_ALL
BATCH_ID 172327
INVOICE_ID 827452
VENDOR_ID 50848
INVOICE_NUM Invoice_1
SET_OF_BOOKS_ID 91
INVOICE_CURRENCY_CODE USD
PAYMENT_CURRENCY_CODE USD
INVOICE_AMOUNT 10000
VENDOR_SITE_ID 57778
INVOICE_TYPE_LOOKUP_CODE STANDARD
TERMS_ID 10041
PAYMENT_METHOD_LOOKUP_CODE CHECK
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Invoice Tables

AP_INVOICES_ALL

SOURCE Manual Invoice Entry


PAY_GROUP_LOOKUP_CODE SUPPLIERS
TERMS_DATE 5/20/2005
ACCTS_PAY_CODE_COMBINATION_ID 158401 After
Payment
APPROVED_AMOUNT 7000
it turns
ATTRIBUTE_CATEGORY DIMS ‘Y’
PAYMENT_STATUS_FLAG N

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Invoice Tables

AP_INVOICE_DISTRIBUTIONS_ALL
BATCH_ID 172327 172327
INVOICE_ID 827452 827452
ACCOUNTING_DATE 5/20/2005 5/20/2005
DISTRIBUTIONS_LINE_NUMBER 1 2
DIST_CODE_COMBINATION_ID 158532 158532
LINE_TYPE_LOOKUP_CODE ITEM ITEM
PERIOD_NAME MAY-05 MAY-05 After
SET_OF_BOOKS_ID 91 91 Payment
it turns
AMOUNT 7000 3000 ‘Y’
DESCRIPTION Item 1 received Item 2 received
POSTED_FLAG N N
ORG_ID 130 130

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Invoice Tables
AP_PAYMENT_SCHEDULES_ALL

BATCH_ID 172327
INVOICE_ID 827452
AMOUNT_REMAINING 10000
DUE_DATE 7/19/2005 After
GROSS_AMOUNT 10000 Payment
it turns
HOLD_FLAG N
‘Y’
PAYMENT_METHOD_LOOKUP_CODE CHECK
PAYMENT_STATUS_FLAG N
PAYMENT_PRIORITY 99
EXTERNAL_BANK_ACCOUNT_ID 110613
INV_CURR_GROSS_AMOUNT 10000
ORG_ID 130

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Invoice Tables Relations

AP_BATCHES_ALL

AP_INVOICES_ALL

AP_INVOICE_DISTRIBUTIONS_ALL

AP_PAYMENT_SCHEDULES_ALL

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Payment Features

Oracle Payables provides a variety of features for


fast, controlled payment processing. With Oracle
Payables, you can:
 Ensure that duplicate invoice payments never occur
 Pay only invoices that are due, and automatically take the maximum
discount available
 Automatically create groups of payments for invoices that meet the
criteria you select

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Payment : Overview of the Steps

Format
payments

Print checks or
create electronic
payments

Create
Accounting

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Payment

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Payment

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Payment

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Payment Tables

AP_INVOICE_PAYMENTS_ALL
AP_CHECKS_ALL
AP_INV_SELECTION_CRITERIA_ALL

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Payment Tables

AP_INVOICE_PAYMENTS_ALL After
Payment
ACCOUNTING_EVENT_ID 114445
it turns
‘Y’
AMOUNT 10000

CASH_POSTED_FLAG N

CHECK_ID 466673

INVOICE_ID 827452

INVOICE_PAYMENT_ID 872898
After
PAYMENT_NUM 1
Payment
PERIOD_NAME MAY-05 it turns
‘Y’
POSTED_FLAG N

SET_OF_BOOKS_ID 91

BANK_ACCOUNT_NUM 001

ORG_ID 130

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Payment Tables

AP_CHECKS_ALL
AMOUNT 10000
BANK_ACCOUNT_ID 110613
BANK_ACCOUNT_NAME BANK_1
CHECK_DATE 5/23/2005
CHECK_ID 466673
CHECK_NUMBER 2
CURRENCY_CODE USD
PAYMENT_METHOD_LOOKUP_CODE Check
PAYMENT_TYPE_FLAG Q
CHECK_VOUCHER_NUM 1000
BANK_ACCOUNT_NUM 001
VENDOR_NAME CoE_User

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Payment Tables

AP_INV_SELECTION_CRITERIA_ALL
CHECK_RUN_NAME Quick Payment ID=466673

CHECK_DATE 5/23/2005

BANK_ACCOUNT_NAME BANK_1

PERIOD_NAME Dummy

CURRENCY_CODE USD

BANK_ACCOUNT_ID 110613

ORG_ID 130

CHECKRUN_ID 46590

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Payment Actions

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Accounting Entries

 In previous releases, the Payables Transfer to General Ledger


process created the accounting entries and put the information
in the GL interface table. The Journal Import process moved
the information from the interface table to the permanent GL
tables.
 In release 11.5(11i) the Payables Accounting process generates
the accounting entries. The Payables Transfer to General Ledger
no longer creates the entries, but simply moves them from
Payables to the GL interface table. The Journal Import process
still moves the information from the interface table to the
permanent GL tables.

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Accounting Entries

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Accounting Entries

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Accounting Entries

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Accounting Entries

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AP Accounting Tables

AP_ACCOUNTING_EVENTS_ALL
AP_AE_HEADERS_ALL
AP_AE_LINES_ALL

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AP Accounting Tables

AP_ACCOUNTING_EVENTS_ALL

ACCOUNT_EVENT_ID 1144456

ACCOUNTING_DATE 5/23/2005

EVENT_TYPE_CODE PAYMENT

EVENT_NUMBER 1

EVENT_STATUS_CODE ACCOUNTED

SOURCE_TABLE AP_CHECKS

ORG_ID 130

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AP Accounting Tables

AP_AE_HEADERS_ALL
AE_HEADER_ID 880162

ACCOUNTING_EVENT_ID 1144456

AE_CATEGORY PAYMENTS

SET_OF_BOOKS_ID 4

CROSS_CURRENCY_FLAG N

PERIOD_NAME MAY-05

ACCOUNTING_DATE 5/23/2005

GL_TRANSFER_FLAG Y
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AP Accounting Tables

AP_AE_LINES_ALL
AE_LINE_ID 3524385 3524386
AE_HEADER_ID 880162 880162
AE_LINE_NUMBER 1 2
AE_LINE_TYPE_CODE LIABILITY CASH
CODE_COMBINATION_ID 158401 158532
CURRENCY_CODE USD USD
ENTERED_DR 10000
ENTERED_CR 10000
ACCOUNTED_DR 10000
ACCOUNTED_CR 10000
SOURCE_TABLE AP_INVOICE_PAYMENTS AP_CHECKS

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Accounting Tables Relations

AP_ACCOUNTING_EVENTS_ALL

AP_AE_HEADERS_ALL

AP_AE_LINES_ALL
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AP Standard Reports

Oracle Payables Supplier Reports


Report Name Description
Suppliers Report Review supplier, supplier site, and
supplier site contacts information
Supplier Audit Report Review supplier names that
are similar, to help identify potential
duplicate suppliers
New Supplier/New Review new supplier sites
Supplier Site Listing
Supplier Payment Review the payment history,
History including void payments, for a
supplier or a group of suppliers
Supplier Paid Review the payment history,
Invoice History including discount and partial
payment information, for a supplier
or group of suppliers
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Accounting and Reconciliation Reports

Payables provides the following accounting and


reconciliation reports:
•Accounts Payable Trial Balance Report
•Payables Account Analysis Report
•Payables Accounting Entries Report
•Payables Accounting Process Report
•Posted Invoice Register
•Posted Payment Register
•Unaccounted Transactions Report

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Payables Accounting Entries Report

•Use the Payables Accounting Entries Report to review


and analyze accounting entries in the Payables
subledger.
•The report also lists transactions that have been
accounted with error and all entries that could not be
transferred to the general ledger interface.

Transactions Entries not


with errors transferred
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Unaccounted Transactions Report

Use the Unaccounted Transactions Report to identify


and review all unaccounted invoice and payment
transactions and see the reason that Payables cannot
account for a transaction.

Invoice transactions Payment transactions

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Product Integration

Oracle Human Oracle Projects Oracle Cash


Resources Management
Oracle
e-Commerce
Oracle Gateway
Workflow
Oracle Payables

Oracle Oracle
Property iExpenses
Manager
Oracle Oracle Oracle
Purchasing Assets General Ledger
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Oracle Payables Integration

•Oracle Human Resources shares locations and


employees with Oracle Payables.
•Oracle Projects imports invoice information from Oracle
Payables to track project costs, and exports expense
report information to Oracle Payables.
•Oracle Cash Management reconciles payments created in
Oracle Payables with your bank statements.
•Oracle e-Commerce Gateway transfers electronic invoices
to Oracle Payables and electronic data interchange (EDI)
payments out of Oracle Payables.
•Oracle Purchasing and other purchasing systems share
purchase orders and supplier information with Oracle
Payables.

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Oracle Payables Integration

•Oracle Property Manager exports lease payment


information to Oracle Payables where you can pay lease
invoices.
•Oracle iExpenses lets employees enter their own
expense reports.
•Oracle Workflow can be set up to process invoice
records before you import them from the Payables Open
Interface.
•Oracle General Ledger and other general ledger systems
receive invoice and payment accounting entries from
Oracle Payables.
•Oracle Assets and other fixed-asset systems record
Oracle Payables invoice distributions for asset
purchases.
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Thank You