Oracle Apps Accounts Payables Functionality

Chapter 5

Payables

Overview Oracle Payables is a high-productivity accounting solution that provides strong financial control, so you can prevent duplicate payments, pay for only the goods and services you order and receive, and maximize supplier discounts. Oracle Payables is part of Oracle Applications,™ an integrated suite of business solutions designed to support continuous process improvement for enterprises competing in time-critical markets.

Enter Supplier

Match to PO

Purchase Order

Enter Invoice

Invoice No Holds

Create PO Approve Invoice

Create Journal Entries Requisition

Pay Invoice Enter Requisition

Reconcile Payments

Oracle Payables

Proactive Supplier Relations Oracle Payables helps resolve business issues quickly by providing immediate and accurate responses to supplier inquiries. Record detailed information about your suppliers, including their purchasing, payment, and invoice processing preferences.

Automated Invoice Approvals Oracle Payables supports two-, three-, and four-way matching of purchase orders, invoices, receipts, and requestor acceptance documents. All the information you need to authorize payments is on-line, eliminating the paper flow of purchase orders, invoices, receipts, and requestor documents. Approve invoices on-line during invoice entry or in batch. 2

Oracle Financials Functional Overview

Effective Payment Controls Oracle Payables provides the information you need to make effective payment decisions. Stay in control of payments to suppliers and employees, and keep your accounting records up-to-date so you always know your cash position. Oracle Payables handles every form of payment, including automatic checks, manual payments, wire transfers, bank drafts, and electronic funds transfers. Oracle Payables integrates with Oracle Cash Management to support automatic or manual reconciliation of your payments with your bank statements.

Cash Requirements Management Oracle Payables saves you money by forecasting your cash requirements and preventing duplicate and unauthorized payments. Analytical reports, as well as system, supplier, invoice, and payment batch options help you determine whether to take available discounts.

Oracle Payables

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Key Features Multiple System Options •

Customize to meet your needs: Accounting Flexfields

Purchase Order Matching •

Descriptive Flexfields • •

Customize your payment calendar Choose from a variety of system options, including: Invoice batching

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Discount accounting Tax options

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Perform two-, three-, and four-way purchase order matching Pay on receipt or advance shipment notice Use QuickMatch to automatically create invoice accounting Automatically record price, quantity, and exchange rate variances Set quantity and price tolerances

Apply advances

Percentage-based

Require purchase order matching

Value-based

Automatic Withholding Sequential Numbering • • •

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Suppliers Quickly enter suppliers with AutoEntry Record multiple addresses, bank accounts and contacts for each supplier Set up tax reporting and withholding Set limits for invoice amounts Access current balances on-line Hold payment to selected suppliers Automatically format addresses based on supplier’s country

Expenses •

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Payments •

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Use Invoice Workbench to design custom views of data for each user or workgroup Record sales, use, and VAT with complete tax reporting Quickly enter invoices with AutoEntry Apply prepayments to invoices and expense reports Match credits to originating invoices Automatically generate recurring invoices Automatically check for duplicate invoices Import and validate invoices with Invoice Import Adjust distributions as needed Cancel invoices on demand Set payment terms:

Checks Wire transfers Bills of Exchange Clearing payments •

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Perform on-line inquiries


Set payment controls by: Pay group Payment priority

Split Multiple discounts

Create a fully EDI compliant outbound payment data file Choose from multiple payment formats including several laser printer compatible formats Create separate checks for selected invoices Stop and void payments Produce single checks on-line

Payment Controls

Proxima

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Use Payment Workbench to design custom views of data for each user or workgroup Choose from a variety of payment methods, including: Electronic payments

Invoices •

Process employee expense reports on-line or over the Web Route expense reports with Oracle Workflow Verify receipts and audit expense reports entered in Oracle Web Employees

Payment method •

Create partial payments

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Place holds on payments:

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By vendor

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By invoice

Accrual basis

User-defined holds

Cash basis

Reconcile payments

Combined basis

Automatically

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Manually

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Prevent check fraud with Positive Pay

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Multicurrency Accounting • • • •

Specify separate closing status Choose from several accounting methods, including:

Enter transactions in any currency Automatically perform currency conversions Record gains and losses

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Post to general ledger anytime Define intercompany payables Perform Encumbrance accounting Set Budgetary Controls Purge invoices, purchase orders, purchase requisitions, & suppliers from your database

Self-Service Access • •

Supplier inquiries on the Web Employee inquires on the Web

Accounting Controls •

Specify multiple open and future periods

Oracle Payables

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Suppliers Oracle Payables provides a variety of flexible and powerful tools for efficient and easy supplier processing. With Oracle Payables, you record complete and accurate supplier information.

Business Needs With Oracle Payables you can: •

Enter supplier information, including payment control features and names and phone numbers of key contacts

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Use your own supplier numbering system or let Oracle Payables automatically number suppliers for you

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Maintain supplier history, keeping a record of supplier sites and other details

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Define additional accounting information to facilitate data entry

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Let selected users review supplier information without being able to make updates

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Review your outstanding balance with a supplier, based on a variety of invoice criteria

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Control supplier payments by defining supplier holds, including a matching required option and an invoice amount limit

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Define a new supplier while entering an invoice

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Control duplicate supplier entry and merge any duplicate suppliers and sites with the correct supplier and site

Major Features AutoEntry Oracle Payables provides many defaults that you can set up and default to each new supplier you enter. Oracle Payables then uses these supplier values as the default for each new supplier site you enter. Of course, you can always choose to override these defaults. When you enter an invoice for a supplier site, Oracle Payables uses the supplier site's default for the invoice. You can override the default for each invoice as well.

Unlimited Supplier Sites and Contacts Oracle Payables lets you record an unlimited number of supplier addresses and contacts. For example, you can buy from and send payments to more than one location for a single supplier and you can keep supplier address and contact history to help you with research.

Validation of Tax Registration Number and Taxpayer ID Oracle Payables provides country specific validation of supplier tax registration identification numbers and Taxpayer ID to protect against data entry errors. 6


Enter as many supplier sites as you require for each supplier

Supplier

Tokyo

Purchasing Site RFQ Only Site

Contacts

San Francisco

Paris

Purchasing Site Pay Site

Pay Site

Contacts

Contacts

Define an unlimited number of supplier sites and contacts

Invoice Amount Limit Define the maximum invoice amount you allow for a supplier. Oracle Payables automatically places a payment hold on invoices entered for this supplier which exceed this amount.

Oracle Payables

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Payment Controls Oracle Payables provides the power to control supplier payments. Use a Pay Group or a Payment Priority to choose a select group of suppliers for payment. Select the matching required option for a supplier or supplier site to place a hold on any invoices for a supplier or supplier site that are not matched to a purchase order. Place a hold on a supplier or supplier site if you do not want Oracle Payables to pay any invoices for this supplier or site.

Supplier Hierarchy Oracle Payables lets you enter the parent company of a supplier to record a relationship between a parent company and its franchises or subsidiaries.

Supplier Inquiry You can review supplier information without being able to change any data. Provide separate access for personnel who do not have supplier update privileges. Oracle Payables gives you maximum control of your supplier data.

Supplier Balance On-line View the current unpaid balance for any supplier or supplier site on-line. Oracle Payables displays the total number and amount of outstanding invoices for the supplier or supplier site you choose. Reconcile any difference with your suppliers by reviewing the specific invoices underlying the balance. Oracle Payables displays the balance based on a variety of criteria including approval status, invoice date range, currency, or discount taken.

Concurrent Supplier Entry Define a new supplier while you are entering an invoice. Without interrupting invoice entry, you can enter a new supplier and return to invoice entry to complete your data input.

SupplierMerge Oracle Payables helps prevent the entry of duplicate suppliers. However, if duplicates exist or one company merges with another, you can merge them into a single supplier or supplier site. Oracle Payables automatically updates the associated purchase orders and invoices for the suppliers so they all refer to the correct supplier. Oracle Payables automatically generates merge reports so you can review the suppliers, sites, invoices, and purchase orders affected by the merge.

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1099 Reporting (U.S. Requirement) Oracle Payables provides the tools to meet your 1099 reporting needs. Create and update 1099 supplier payment information and report your accumulated 1099 payment information to your suppliers, the Internal Revenue Service, and other tax authorities.

Set up 1099 Reporting

Enter 1099 Details for Suppliers

Enter and Pay 1099 Invoices

Submit 1099 Reports 1096 Forms 1099 Forms 1099 Payments 1099 Tape Identify and Resolve 1099 Exceptions

1099 Supplier Exceptions Report 1099 Invoice Exceptions Report

Oracle Payables provides complete 1099 reporting


Maintain 1099 information for 1099 suppliers to comply with all Internal Revenue Service reporting requirements

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Participate in the Combined Filing Program

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Automatically produce letters for suppliers who have not provided a Tax Identification Number

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Identify and fix 1099 supplier and invoice reporting exceptions

Oracle Payables

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Major Features 1099 Suppliers Oracle Payables enables you to comply with all Internal Revenue Service reporting requirements for 1099 suppliers. Define a supplier as federal reportable and record its 1099 type. Oracle Payables assigns the income tax type to each invoice for that supplier. Record a supplier's tax region if you participate in the Combined Filing Program. Payments to 1099 suppliers are accumulated and reported by type.

Combined Filing System Option Oracle Payables allows you to produce combined federal and state 1099 records. If you enable the Combined Filing system option, Oracle Payables produces K records for all tax regions (or states) participating in the Combined Filing Program that have qualifying payments. Oracle Payables also produces a B record for each supplier to summarize qualifying payments made to a supplier for a particular tax region. When you submit your 1099 Tape, the Internal Revenue Service (IRS) forwards these records to the appropriate tax authority for each tax region.

1099 Reporting Oracle Payables provides you with supplier, government, and user reports, so that you can comply with all Internal Revenue Service reporting requirements for 1099 suppliers.

Tax Information Verification Submit a Tax Information Verification letter for your 1099 suppliers requesting that they submit any missing 1099 information and that they verify previously-submitted 1099 information that you have recorded in Oracle Payables.

Review and Update 1099 Supplier and Invoice Details Oracle Payables provides several reports which can help you identify incomplete or inaccurate 1099 suppliers and invoices. With Oracle Payables, quickly and easily update your 1099 suppliers and invoices. Submit the Update Income Tax Details Utility to automatically update invoices missing an income tax type or an income tax region.

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Audit of Suppliers and Invoices Oracle Payables provides the tools you need to ensure maximum control over your suppliers and invoices. Use Oracle Payables auditing tools with other Oracle Payables controls to maintain the integrity of supplier and invoice data.


Identify possible duplicate suppliers

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Combine suppliers the way you want

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Identify possible duplicate invoices and payments

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Resolve duplicate invoices

Major Features Supplier and Invoice Audit Reports Oracle Payables provides audit reports of possible duplicate suppliers and invoices. Use these reports to maintain the integrity of your suppliers and invoices.

Invoice Audit Listings Oracle Payables provides complete invoice listings, sorted the way you want. Oracle Payables makes it easy for you to review invoices.

SupplierMerge Use SupplierMerge to automatically transfer invoices and purchase orders from a supplier and site to another supplier and site, or to a different site of the original supplier. Oracle Payables provides you with audit reports of your SupplierMerge activity.

Oracle Payables

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Invoices Oracle Payables provides the high-productivity tools you need to process invoices efficiently, and puts you in complete control of your invoice payments. With Oracle Payables, you can spend less time entering invoices and more time managing your cash position.

Business Needs With Oracle Payables you can:

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Define invoice entry defaults which simplify and speed invoice processing

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Enter invoices in batches

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Control payment and posting of invoices with payment terms and hold reasons you define

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Automatically prorate tax, freight, and miscellaneous expenses across selected invoice distribution lines

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Create one or more invoice notes which you can send internally or to suppliers

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Attach images, sound, text, and video to invoices; for example, you can scan an invoice and automatically attach it to the related invoice

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Enter foreign currency invoices

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Adjust an invoice, even after payment and posting

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Automatically record voucher numbers on each invoice

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Apply prepayments to invoices during invoice entry

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Match invoices to purchase orders

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View additional purchase order information and purchase order notes while entering an invoice

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Record invoice price and exchange rate variances between an invoice and its matched purchase order

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Match debit and credit invoices to their originating invoice

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Designate an invoice as requiring its own payment document

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Enter employee expense reports quickly and easily

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Automatically create invoices and payments for recurring expenses

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Automatically create invoices based on purchase order information and receipt transactions

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Automatically create invoices based on advance shipment and billing notice information


Major Features Invoice Types Oracle Payables supports your different invoice types, including Standard, Credit Memo, Debit Memo, and Expense Report.

Enter all types of invoices using the powerful Invoice Workbench

AutoEntry Oracle Payables allows you to define financials, system, and supplier site defaults which speed invoice entry. With AutoEntry, you can enter just a supplier name, invoice number and amount to completely process an invoice since Oracle Payables automatically enters the remaining fields using supplier site and system defaults.

Invoice Batches Use invoice batch controls to proactively manage invoice entry. Enter invoice values at the batch level which automatically default to all invoices in the batch. You can override these defaults.

Oracle Payables

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Mail Group a Batch of Invoices Complete a Batch Control Form

File by Batch

Enter Batch of Invoices Update Batch Control Window

Review Batch Control Reports

Use invoice batches to control invoice entry

Invoice Notes Define standard notes to send to your suppliers to inform them of actions you take which affect invoice payment. Use invoice notes internally as well.

Distribution Sets Distribution Sets enable you to automatically create invoice distribution lines during invoice entry. A Distribution Set is a set of predefined accounting distribution lines which you can optionally assign to a supplier or supplier site.

Automatic Voucher Numbers Oracle Payables automatically assigns a unique, sequential voucher to each invoice you enter when you enable the Automatic Voucher Numbers profile option. Review each voucher number on-line or in a report.

Apply Prepayments During invoice entry, Oracle Payables notifies you if there are outstanding prepayments for a supplier. Oracle Payables allows you to apply an approved and paid prepayment to an invoice during invoice entry.

Credit Matching Easily match a credit or debit invoice to its original invoice. If you matched the original invoice to a purchase order shipment, match the credit or debit invoice to the purchase order shipment and Oracle Payables automatically updates the quantity invoiced and the amount on the purchase order shipment.

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Price Corrections Enter price correction invoices that you receive from suppliers, and easily match them to the original invoices. If you matched the original invoice to a purchase order shipment, match the price correction to the same purchase order shipment and Oracle Payables automatically updates the unit price on the purchase order shipment to reflect the price correction.

Tax Distribution Lines Enter sales, use, and offset tax names and tax amounts for invoices. For a sales type tax name, Oracle Payables automatically creates a tax invoice distribution line, using the tax name Accounting Flexfield that you define. Alternatively, you can prorate your tax expense across selected invoice distribution lines. Use offset taxes for suppliers in the European Economic Community (EEC).

Prorate Prorate tax, freight, and miscellaneous expenses across selected invoice distribution lines.

Payment on Receipt Oracle Payables automatically creates standard invoices for payment of goods either based on receipt transactions or advance shipping and billing notices. An invoice which Oracle Payables creates based on a receipt transaction, uses a combination of the receipt and purchase order information to create the invoice. An invoice which Oracle Payables creates based on an advance shipping and billing notice, uses a combination of the notice and the purchase order information to create the invoice. You have the option to choose to create invoices either at the time you receive your ordered goods or when you receive an Advance Shipment and Billing Notice from your trading partner. You can define which suppliers participate in Payment on Receipt.

Invoice Approval Oracle Payables prevents posting and payment of an invoice until you approve the invoice. Approve an invoice on-line during invoice entry or approve invoices in batch using Approval.

Approval Codes Hold payment and posting of invoices with approval codes that Oracle Payables predefines as well as approval codes and tolerances you define. Apply an unlimited number of holds to an invoice to prevent payment and/or posting. Oracle Payables records your hold reasons and provides authorized users the ability to release holds.

Pay Alone Designate an invoice as Pay Alone to have Oracle Payables pay the invoice on its own payment document rather than combining it with other due invoices for the same supplier site.

Invoice Adjustments Make adjustments to an invoice, even if you have paid or posted the invoice. If you have not paid the invoice, you can cancel the invoice. Oracle Payables

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Expense Report Templates Define expense report templates with selected expense items for your employee expense reports. Use to create default accounting information for expense items.

Apply Employee Advances to Expense Reports Enter employee advances and later apply them to expense reports. Oracle Payables notifies you if there are outstanding advances for an employee when you enter an expense report. You can specify if you want Oracle Payables to apply all outstanding advances, one specific advance, or a certain maximum amount of advances to an expense report.

Invoice Import Import invoices from other accounting systems with Invoice Import.

Recurring Invoices If you have regular payments, such as rent, that you make to a supplier who does not provide an invoice, define a recurring invoice to automatically create invoices and payments. If necessary, you can associate a purchase order with a recurring invoice.

Invoice Reporting Review on-line all the invoice information you need to respond to supplier and internal inquiries. You can calculate a supplier's outstanding balance and review all components of an invoice, including holds and payment information.

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Prepayments Oracle Payables provides the high-productivity tools you need to process prepayments efficiently and gives you complete control over the application of prepayments to invoices. Enter a prepayment if a supplier requires payment before sending you an invoice. For example, a supplier may require a deposit, or an employee may request an advance. Before you send a supplier or employee a check, record that payment in Oracle Payables. When the supplier later sends you an invoice, you want to ensure that you apply the prepayment already sent so that you do not overpay your supplier.

Enter Prepayment

Approve Prepayment

Pay Prepayment

Select Prepayment and Apply to One or More Invoices

Select Invoice and Apply One or More Prepayments Against It

Oracle Payables makes it easy to enter and apply prepayments


Enter prepayments and advances in any currency

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Associate a prepayment with a purchase order and apply the prepayment only to invoices matched to the associated purchase order

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Specify a date before which you cannot apply a specific prepayment or advance

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Record and manage tax information for a prepayment

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Designate a prepayment or advance as requiring its own payment

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Review prepayments or advances for a supplier or an employee on-line Oracle Payables

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Apply or unapply a prepayment or advance to any approved invoice or expense report

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Notify a supplier of the prepayments you applied to an invoice

Major Features Multi-Currency Enter a prepayment in any currency you choose. Oracle Payables automatically calculates realized gains and losses due to fluctuations in your foreign currencies.

Purchase Order Association When you enter a prepayment, you can associate a purchase order with the prepayment. If you do so, Oracle Payables allows you to apply the prepayment only to invoices matched to the associated purchase order.

Tax Name and Calculation Optionally enter sales or use tax names and tax amounts for prepayments. For a sales type tax name, Oracle Payables automatically creates a tax distribution line.

Pay Alone Designate a prepayment as Pay Alone to have Oracle Payables pay the prepayment on its own payment rather than combining it with other invoices for the same supplier site.

On-line Review and Application Review on-line all the outstanding prepayments and advances for a supplier or employee. Apply a prepayment, part of a prepayment, or multiple prepayments to an invoice or expense report.

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Select a prepayment and apply it to one or more invoices

Prepayment Remittance Print a letter, addressed to a supplier, which details all the information about a prepayment that you applied to an invoice.

Oracle Payables

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Recurring Invoices Oracle Payables provides a variety of recurring invoice capabilities to enable you to pay periodic business expenses for which you do not receive invoices. Oracle Payables provides online access to your recurring invoice information, so you always know what your authorized recurring invoice amount is, and how much you have spent against it.


Make recurring invoices at intervals you specify

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Define the item and tax expense distributions you want to use for each invoice you create

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Define recurring invoices which increase or decrease by a fixed percentage from period to period

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Authorize a fixed amount and enter an expiration date for a recurring invoice

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Associate a purchase order with a recurring invoice

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Handle special payments like a deposit or balloon payment

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Generate recurring invoices in foreign currencies

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Create recurring invoices in open or future accounting periods

Oracle Payables lets you define recurring invoices at intervals you specify

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Major Features Invoice Creation Oracle Payables creates invoices automatically from your recurring invoice. Create invoices all at once or one at a time, even if they are in a future accounting period.

Recurring Invoice Periods Define recurring invoice periods of any length and type you want: months, quarters, or other period types.

Special Payments Specify special payments to handle non-standard payment amounts such as deposits or balloon payments as part of your recurring invoice. Define your recurring invoices to increase or decrease by a fixed percentage from period to period over the duration of the recurring invoice.

Invoice Distributions You can define a Distribution Set for Oracle Payables to use when it creates a recurring invoice. Choose an existing 100% Distribution Set or define a new Distribution Set to use with your recurring invoice. Instead, you may choose to associate a purchase order with your recurring invoice.

Purchasing Integration You can associate a purchase order with a recurring invoice. Oracle Payables uses accounting information from the purchase order when creating the invoice distribution lines for the recurring invoice. Instead, you may choose to associate a Distribution Set with your recurring invoice.

Tax Name and Calculation Optionally enter sales or use tax names and tax amounts for prepayments. For a sales type tax name, Oracle Payables automatically creates a tax distribution line.

Oracle Payables

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Automatic Interest Invoices Oracle Payables provides the features you need to automatically pay interest on overdue invoices. You no longer have to calculate payment due dates and interest charges on past due invoices because Oracle Payables does it for you.


Calculate interest charges on overdue invoices at payment time based upon due date and payment date

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Review your interest payments on-line and report on them

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Print your check and remittance advice document separately

Major Features Automatic Interest Payments Oracle Payables automatically calculates interest amounts on overdue invoices when you pay them.

Flexible Interest Rates Oracle Payables calculates interest amounts based on interest rates you provide. Oracle Payables lets you define interest rates and effective date ranges so you can automatically pay interest on overdue invoices.

Reports and Inquiries Use inquiries in Oracle Payables to review how much interest you paid to a supplier. Query all invoices or just interest invoices for a supplier. Review all interest invoices you paid with a particular check. Oracle Payables also provides you with listings of how much interest you paid on an invoice and the associated interest rate.

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Taxes Oracle Payables provides the functions you need to easily record, review, and report on the taxes you pay to your suppliers.


Define the tax names and rates you use in your organization

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Record tax charges on invoices to distinguish between the tax portion of your invoices and the portion representing the goods and services you purchased

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Automatically create invoice distributions for tax charges

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Prorate your tax charges across one or all invoice distribution lines

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Enter multiple taxes for an invoice

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Distinguish between sales tax and use tax charges

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Automatically calculate a tax amount for a tax name you enter on an invoice

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Verify that the tax amount for an invoice is correct according to the tax rates you define and within the tolerances you define

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Use offsetting taxes to record zero-rate taxes on which you need to report

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Automatically withhold taxes for your supplier invoices and employee expense reports

Major Features User-Defined Tax Names Define as many tax names or tax authorities as you require. For each tax name you define, you enter a tax type, tax rate, and default tax expense account number.

Invoice Distribution Line Types Oracle Payables provides four types of invoice distribution lines: Item, Tax, Freight, and Miscellaneous. All item, freight, and miscellaneous distribution lines can be taxable.

Automatic Tax Distribution Lines When you enter a default tax name for an invoice and the tax name has a sales or user-defined tax type, Oracle Payables automatically creates a tax distribution line to record the tax charge.

Oracle Payables

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Invoice Tax Reporting Oracle Payables provides standard reports for reporting on your invoice taxes. These reports include a tax audit trail report, a use tax liability report, the Intra-EU VAT Audit Trail Report, and a listing of your defined tax names.

VAT Taxes You can define an unlimited number of VAT (Value Added Tax) taxes. You define VAT taxes in the same method as any other sales tax. You can assign a VAT tax as a supplier site default. You can easily enter invoices with VAT taxes and Oracle Payables provides complete VAT reporting.

Tax Type Tax Name Tax Rate Define Tax Names

Define EEC Suppliers and Assign Tax Name to Supplier Site

Enter VAT Charges for Invoices

Review VAT Charges Tax Declaration Report Intra EC VAT Audit Trail Oracle Payables makes it easy for you to define and record taxes

Gross Method Taxation When you enable the Automatic Tax Calculation system option and you enter a tax name for the invoice that has a sales or user-defined tax type, you can manually enter the tax amount or you can have Oracle Payables automatically calculate the tax amount.

Tax Exceptions Oracle Payables’ automatic invoice approval (Approval) automatically performs tax variance checking and places tax exception holds on any invoice with a tax amount that does not match the calculated invoice tax amount(s) as determined by the tax rates you define for the tax names 24


on your invoice. You can define percentage and amount tolerances to determine the amount of tax variance you allow on your invoices.

Expense Report Tax Items You can easily record tax charges on your employee expense reports.

Automatic Tax Withholding You can automatically withhold taxes for your supplier invoices and employee expense reports. You have flexibility in defining your withholding tax rate structures using effective date and taxable amount ranges, and single invoice limits or period limits. Using withholding tax groups, you can withhold multiple taxes for an invoice or expense report.

Tax Inclusive or Exclusive Item Amounts You can specify whether supplier invoice items or employee expense report items include tax in their pricing. Oracle Payables performs the appropriate tax calculations, based on the item.

Flexible Tax Rounding You can control how Oracle Payables rounds tax calculations to meet varying country requirements. Choose the rounding rule Up, Down or Nearest as a system default and optionally change this default at the supplier or supplier site.

Oracle Payables

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Fixed Assets Integration Mass Additions lets you add assets and cost adjustments to assets directly into Oracle Assets from invoices in your Oracle Payables system. The Mass Additions Create process sends valid invoice distribution lines from Oracle Payables to an interface table in Oracle Assets. After sending the invoice lines, you can review them and determine whether to create assets from any of the lines in Oracle Assets.

Business Needs With Oracle Payables and Oracle Assets you can:

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Add items from Oracle Payables directly into Oracle Assets

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Minimize data entry

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Manipulate invoice lines before they become assets in Oracle Assets

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Transfer discount taken information on asset purchases


Purchasing Integration Oracle Payables fully integrates with Oracle Purchasing and other purchasing systems. This allows you to access your purchasing information on-line and automatically match invoices to purchase orders using two-, three-, or four-way matching.


Share supplier information with your purchasing department, so that you do not have to enter the same data twice

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Require matching for selected suppliers to ensure their invoices are matched to purchase orders

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Match invoices to purchase orders and automatically hold those invoices that exceed your matching tolerance, whether you use Oracle Purchasing or another purchasing system

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Define amount-based and percentage-based matching tolerances

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Record a price, quantity, or exchange rate variance between an invoice and its matched purchase order

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Match an invoice at the purchase order shipment line level or the distribution line level

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Review purchase order details and purchase order notes when matching an invoice

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Assign a match as final and have Oracle Payables permanently close the matched purchase order

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Associate a purchase order with a recurring invoice

Major Features Matching to Purchase Orders Oracle Payables allows you to match the invoices you enter to the purchase orders (and related receipts) in your purchasing system. Oracle Payables supports the level of matching (2-way, 3way, and 4-way) that your organization requires for matching invoices to purchase orders and receipts.

Oracle Payables

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Match an invoice to one or more purchase orders

Purchase Order 2 Bikes@ $150.00 ea. Receipt Required Inspection Required

Supplier To Receiving Receipt Invoice

Invoice

To Inspection

Bikes Quantity Price

Quantity Accepted

2 $150.00

4-Way Match

Purchase Order

Receiving

Bikes

Bikes

Quantity Price

2 $150.00

Quantity

Accepted Bikes 2

Use 2, 3, or 4-way matching for optimal control over your purchases

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Quantity

2

Approval An Oracle Payables process you initiate to automatically perform two-, three-, and four-way matching for unapproved invoices. Approval places an invoice on matching hold when the purchase order and invoice information do not match within the tolerances you define.

Manual Matching Hold Release You can manually release an invoice that has a matching hold to pay the invoice.

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Invoice Approval Oracle Payables provides a wide variety of powerful, easy-to-use features to approve invoices. Oracle Payables is fully integrated with Oracle General Ledger, Oracle Purchasing and Oracle Alert to provide a complete solution for your invoice approval needs.


Create your own approval cycle based on your organization's invoice approval process

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Approve invoices in batch, on-line, or both

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Prevent payment and posting of invoices that do not meet your invoice approval criteria

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Access invoice hold and release information on-line

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Notify accounts payable supervisors and purchasing agents automatically when an invoice fails approval for a specific reason

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Selectively approve invoices for posting and payment after reviewing the original reasons for failing approval

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Report on approved invoices, invoices on hold, and invoices released from hold

Major Features Approval Approval validates your invoice information and places holds on invoices that do not meet approval criteria. For example, Approval automatically places a hold on an invoice when a supplier overcharges you or bills you for items you have not received, ordered or accepted. Approval also validates invoices for tax, currency, accounting, matching, and other invoice exceptions.

Approval in Batch and On-line Submit Approval on-line for an invoice during invoice entry or approve invoices in batch. When you approve an invoice on-line, you can immediately review any invoice holds Approval creates due to matching exceptions, incomplete information, or data entry errors.

Daily Approval Resubmission Oracle Payables helps you automate your approval cycle through automatic Approval resubmission. You can enter invoice selection criteria for Approval, then specify the time you want to automatically initiate Approval each day.

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Invoice Holds Oracle Payables lets you define your own holds, based on your invoice approval needs. You can define your holds to only prevent payment of an invoice or you can prevent both payment and posting of an invoice. You can apply an unlimited number of invoice holds to an invoice during invoice entry. Oracle Payables records your hold reasons and allows authorized users to manually release invoice holds from invoices.

Supplier Controls Define a supplier or supplier site control that causes Oracle Payables to place a hold on all invoices you enter for the supplier site from the time you enable the control. Define an invoice amount limit for a supplier site so that Oracle Payables places a hold on invoices for the supplier site that exceed the amount you specify.

Exception Reporting Oracle Alert provides an integrated system of alerts, messages, and message distributions to focus attention on time-sensitive or critical information and streamline the approval process. Exception reporting in Oracle Alert is accomplished using either electronic mail or paper reports.

Invoice Adjustments Authorized users can always correct an invoice, even if the invoice is approved, paid or posted. Approval also creates the necessary adjusting journal entries to keep your accounting records accurate and complete.

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QuickRelease Oracle Payables lets you manually remove all holds that you place on an invoice and most holds that Approval places on an invoice. For those holds that you cannot manually release, you must correct the invoice and resubmit Approval to remove the hold(s).

Easily release one or more holds from selected invoices

Invoice Inquiry Oracle Payables provides on-line access to all the invoice information you need. Review supplier balance and invoice detail information, including hold, distribution, payment, and currency information.

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Invoice Import Oracle Payables integrates with Oracle Projects and other accounting systems by allowing you to import expense reports and invoices so that you can pay them using Oracle Payables. Use Invoice Import to create invoices from expense reports you enter in Oracle Payables, Oracle Projects or Oracle Web Employees.


Import and pay invoices from other accounting systems

•

Create invoices in Oracle Payables to pay expense reports you entered in Oracle Payables, Oracle Projects or Oracle Web Employees

•

Report on the invoices created as well as any exceptions for the imported expense reports and invoices

Major Features Invoice Import An Oracle Payables process you initiate to automatically create invoices from expense reports or invoices from other accounting systems. Invoice Import verifies all your expense report and invoice information to ensure it creates valid, fully-distributed invoices, ready for approval and payment. If the expense report or invoice information fails validation, Invoice Import does not create an invoice from the information and reports the exception so that you can easily fix the problem.

Integration with Oracle Projects and Oracle Web Employees Oracle Payables fully integrates with Oracle Projects and Oracle Web Employees so that you can easily create and pay invoices for expense reports entered in these applications.

Invoice Import Reporting Oracle Payables automatically produces the Invoice Import Report and the Invoice Import Exceptions Report when you submit Invoice Import. Use these reports to review the invoices that Invoice Import successfully created from your expense report and invoice information and to identify the expense reports and invoices that Invoice Import was unable to import.

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Payments Oracle Payables provides a variety of features for fast, controlled payment processing.

Business Needs With Oracle Payables you can:

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•

Disburse funds using multiple payment methods, including computer-generated checks, electronic payments, recorded checks, and wire transfers

•

Ensure that duplicate invoice payments never occur

•

Pay only those invoices which are due and automatically take the maximum discount available

•

Select invoices using a wide variety of criteria and create payments automatically

•

Ensure that you always take the better of the invoice payment terms or the purchase order payment terms when you match an invoice to a purchase order

•

Modify the payment amount or discount taken on a particular invoice before creating the payment

•

Create payment documents in any format you want

•

Reduce expenses by distributing payment discounts you take to the proper accounts

•

Pay an invoice on its own separate payment document

•

If your printer jams, restart your check printing where the printer left off

•

Print a check on-line

•

Laser print checks on blank check stock

•

Automatically create standard invoices for payment of goods either based on receipt transactions or advance shipping and billing notices

•

Record a stop payment

•

Void a payment and cancel or hold all invoices on the void payment

•

Review on-line information regarding the result and status of every payment

•

Reconcile your bank account with Oracle Payables' payment history

•

Automatically clear your payments made with future dated payment documents


Major Features Payment Methods Oracle Payables allows multiple methods of payment, including computer-generated checks and electronic payments, future dated payment documents, and recorded payments. For more information on electronic payments, please see the Electronic Payments section within this document.

Approval Oracle Payables prevents payment or posting of an invoice until you submit it for approval. If Approval places a hold on an invoice, you cannot pay the invoice until you release the hold. Decide how you want to perform invoice approval, either on-line, in batch or both, to match your approval process with your company policy and your computing resources.

Multi-Currency Enter and pay an invoice in any currency you want. Oracle Payables automatically tracks any realized foreign exchange gains or losses on your payments.

Payment Batch Oracle Payables produces payments for invoices you select and records the results so that you have accurate and timely payment information. Initiate a payment batch to create checks or electronic funds transfer files. Oracle Payables produces your payments in several steps to give you optimal control over automatic payments. You first select the invoices for your payment batch. You have the option to modify the selected invoices so you can delete, add, or change the payment amount of invoices selected for payment. You then format the payments for these selected invoices. If the payment batch is for checks, you then print the checks. The last step is to confirm your printed payment documents against your payment records. Alternatively, you can combine invoice selection and payment formatting into a single step if you do not intend to modify any of the invoices selected for payment.

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Invoice

Select Invoices

Initiate Payment Batch Modify Invoice Selection (Optional)

Confirm Payment Batch

Format Payments Create Payments (Checks or EFT’s)

Oracle Payables provides optimal control over your automatic payments

Invoice Selection for Payment Automatically pay invoices using rules you establish for pay-through-date, Pay Group, payment priority, payment amount limits and several other criteria.

Select invoices for payment based on criteria you specify

Pay Alone Oracle Payables provides the ability to control payments to suppliers that require separate payment for an invoice. Optionally designate an invoice as a Pay Alone invoice when you enter the invoice. When you pay a Pay Alone invoice, Oracle Payables ensures that the invoice payment is separate from any other invoice payments for the supplier site.

Quick Payment Use a Quick Payment to create an individual check on demand. Select the invoices you want to pay and Oracle Payables prints your check.

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Payment Schedule Recalculation Ensure that you always take the better of invoice terms or purchase order terms when you match an invoice to a purchase order. Oracle Payables automatically recalculates your payment schedule to reflect the best terms.

Automatic Discount Proration Oracle Payables lets you decide how you want to distribute any discounts you take. Credit a payment discount to a single Discount Taken Accounting Flexfield or prorate your discount amount across your invoice distribution lines.

Payment Document Creation You have several options for ordering payment documents. Choose supplier name, supplier number or postal code to order your payments the way you want. Oracle Payables allows you any number of setup checks for aligning your printer, and automatically records them as nonnegotiable setup checks.

Check Print Restart Easily restart your payment batch if your printer malfunctions. Simply identify the spoiled checks and Oracle Payables does the rest.

Partial Payments You have complete control over the amount you pay and take as discount for invoices on any payment. Partial payments automatically reduce the balance due, and Oracle Payables schedules the remainder for future payment.

Payment Hold In addition to holds that Oracle Payables automatically places during Approval, define your own invoice holds to prevent payment.

Payment Document Control Oracle Payables helps you manage multiple payment documents. Decide the type of payment for which you want to use a payment document. Oracle Payables displays the next available document number when you format payments, and warns you before you run out of payment documents.

Payment on Receipt Oracle Payables automatically creates standard invoices for payment of goods either based on receipt transactions or advance shipping and billing notices. You have the option to choose to create invoices either at the time you receive your ordered goods or when you receive an Advance Shipment and Billing Notice from your trading partner. You can define which suppliers participate in Payment on Receipt.

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Stop Payment Record a stop payment on any payment, then void the payment or release the stop payment. Oracle Payables keeps your stop payment status up-to-date. Oracle Payables also provides a report that you can use to review all current stop payments.

Void Payment Oracle Payables automatically reverses the payment and accounting records after verifying that the payment has not already cleared the bank. You can then repay the invoice on a new payment, place a hold on the invoice, or cancel the invoice.

Positive Pay Work with your bank to prevent check fraud by using Positive Pay. When you create a payment batch or individual payment in Oracle Payables, you can create a list of checks issued to suppliers and employees called a Positive Pay file. Use a third party product of your choice to format and electronically transmit this file to your bank. As checks clear your bank, the bank identifies exceptions which you can choose to process or exclude from payment.

Payment Reconciliation Automatically reconcile your bank account with Oracle Payables payment history using Oracle Cash Management. Load a bank reconciliation file from a tape or diskette and Oracle Cash Management records a cleared date and cleared amount on each payment that matches the bank information. Oracle Cash Management automatically prints a reconciliation report, highlighting exceptions. For more information about Oracle Cash Management, please refer to the Bank Statement Reconciliation with Oracle Cash Management section within this document.

Laser Printed Payment Documents Oracle Payables allows you to laser print checks on blank check stock. With this feature, you can incorporate scanned signatures, MICR encoding, variable fonts, and custom objects into your checks.

Automatic Clearing of Future Dated Payments Oracle Payables automatically clears your payments made with future dated payment documents based on their maturity date and the number of clearing days you specify for the payment document.

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Electronic Payments You can pay your suppliers electronically by using either the Oracle EDI Gateway or by delivering to your bank an electronic funds transfer output file. Oracle Payables fully integrates with Oracle EDI Gateway to produce electronic payments and remittance advice information for suppliers of your choice.


Create Electronic payments quickly and accurately whether you are using Oracle EDI Gateway or Oracle Payable’s standard electronic funds transfer process

•

Transfer payment data through Oracle EDI Gateway to the EDI translator of your choice to create an ASC X.12 820, EDIFACT equivalent or other outbound payment data file

•

Use any of the standardized electronic funds transfer payment formats that Oracle Payables provides to create electronic payments, or create your own custom payment format

•

Keep a complete audit trail of Electronic payments you make

Major Features Automatic Payment Oracle Payables creates electronic payments automatically when you initiate a payment batch using an electronic payment document. Oracle Payables automatically creates electronic payments for all approved invoices with the Electronic Payment Method that are available for payment on or before the pay-through date you specify when you initiate a payment batch.

EDI Payments Oracle Payables fully integrates with Oracle EDI Gateway to produce electronic payments and remittance advice information for suppliers of your choice. Oracle EDI Gateway extracts payment information from Oracle Payables to be processed by the EDI translator of your choice to create an ASC X.12 820, EDIFACT equivalent or other outbound payment data file.

Custom Payment Formats Create your own electronic payment programs and formats to generate electronic funds transfer files that meet the specific format needs of your bank. Customize the electronic payment programs Oracle Payables provides, or create your own.

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Audit Trail As with checks or wire transfers, Oracle Payables maintains a complete audit trail of all EFT payments. The audit trail includes when you make a payment, the supplier and invoices it pays, what discounts you took, any realized gains or losses, and other payment information.

Separate Remittance Advice Print your payment remittance information separately from electronic funds transfer payments. You can define your own remittance advice formats or use a standard format that Oracle Payables provides.

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Future Dated Payments You can optionally pay your suppliers with the Future Dated payment method, sometimes referred to as the Bills of Exchange payment method. Use the Future Dated payment method to control the timing of your payments and therefore maximize your cash flow. Manual Future Dated Payment Request

Enter Invoice

Enter Invoice

Approve Request and Enter Manual Future Dated Payment

Create Future Dated Payment Send Manual Future Dated Payment back to Supplier Send to Supplier

Supplier Submits to Bank

Bank Distributes Funds on Future Date

Create future dated payments, also known as Bills of Exchange


Create a payment batch, Quick payment, or manual payment with the future dated payment method

•

Automatically create two sets of accounting entries for future dated payments, the first when you create a payment, and the second after you record that the bank has cleared the payment

Major Features Future Dated Payment Method A payment method which indicates your agreement with a supplier to transfer funds from your bank account to the supplier's bank account on a specific future date. The agreement calls for payment of one or more invoices on the future date.

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Bank Statement Reconciliation with Oracle Cash Management Oracle Cash Management is a high-powered, flexible, financial management solution for global enterprises. Oracle Cash Management gives you the ability to efficiently reconcile bank statements, create necessary miscellaneous and accounting entries, and effectively manage your cash flow. With Oracle Cash Management you can reconcile your bank statements manually or automatically. The system will automatically verify accuracy, handle exceptions and generate all necessary accounting entries and reports. Oracle Cash Management is integrated with Oracle Receivables, Oracle Payables and Oracle General Ledger, and also provides an open interface for external systems.

Business Needs With Oracle Cash Management you can: •

Automatically or manually import your bank statement

•

View all transactions, journal entries and batches available for reconciliation

•

Manually create a payment or receipt for any bank statement line

•

Create miscellaneous transactions, such as bank charges, automatically or manually

•

Reconcile foreign currency invoices and account for corresponding exchange loss or gain

•

Use a cash clearing account for timely recognition of cash

•

Reconcile bank statement lines to journal entries, payments, receipts and batches

•

Create all necessary accounting entries

•

View and print your bank statements and all reconciliation reports

Major Features Automatic Reconciliation With Automatic Reconciliation, bank statement details are automatically matched and reconciled with appropriate accounting transactions. You can control the reconciliation process by specifying acceptable tolerance levels for reconciliation, methods to handle foreign exchange fluctuations, bank charge handling, and appropriate GL accounts for accounting entries. Oracle Cash Management. generates all necessary accounting entries during automatic reconciliation.

Manual Reconciliation With Oracle Cash Management, you can manually reconcile your bank statements. This method allows you to match each statement line against the appropriate batch, journal entry, or transaction to ensure accuracy. Any adjustments needed to account for differences between the sum of the transaction and the statement line amount can be generated using Oracle Cash 42


Management. For example, you can use Oracle Cash Management to handle any bank charges or NSF transactions. You can also use manual reconciliation to reconcile any bank statement details which could not be reconciled automatically.

Search For Available Transactions When using manual reconciliation, you reconcile each statement line with available receipts, payments, miscellaneous transactions, batches, journal entries, or external sources. Oracle Cash Management helps you quickly find and review any of these transactions that meet the criteria you specify, with the find available window.

Cash Management Tools With Oracle Cash Management’s manual clearing functionality, you have the flexibility to recognize cash prior to receiving your bank statement to know your cash position at any time during your accounting cycle. Oracle Cash Management’s reconciliation open interface allows you to easily reconcile payments and receipts from external systems. Full reporting and inquiry capabilities of Oracle Cash Management allow you to review and analyze your company’s bank statements, cash position, and transactions available for reconciliation.

For more information, see the Oracle Cash Management Functional Overview.

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High Productivity Oracle Payables offers many features which help you to process invoices and payments efficiently to obtain higher productivity.


Enter data with a few keystrokes

•

Use defaults that you control and enter a supplier or invoice, or create payments with minimal data entry

•

Enter invoices in batches for control and efficiency

•

Attach notes, images or other objects to invoices on-line so you do not need to rely on the original paper invoice to research invoice history

•

Measure productivity

•

Create complex invoice distributions automatically as you enter invoices

•

Approve invoices for payment and posting automatically

•

Automatically select invoices for payment and create payment documents in one step

•

Create and print a check on-line

Major Features List of Values Enter the first several letters of a value for a field such as supplier name, terms, or PayGroup. Oracle Payables fills in the rest of the field for you or displays the field choices in a List of Values pop-up window.

AutoEntry Whether entering invoices, processing automatic payments, or defining suppliers, Oracle Payables fills in most fields for you with the values from defaults you specified. For example, by specifying defaults for suppliers and invoices, you can enter as little as supplier name, invoice amount, and invoice number to create an invoice.

Batch Controls You can use batch controls to increase productivity. Specify the batch size and the control total. Oracle Payables keeps track of the total count and amount, and warns you of imbalances when you exit. Batch Control reports help you analyze productivity and resolve batch imbalances quickly.

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Attachments Link non-structured data such as images, word processing documents, spreadsheets, or video to your invoices.

Key Indicators Key Indicators tell you how many invoices you enter and how accurately you enter them.

Distribution Sets Using Distribution Sets, you can create invoice distribution lines automatically as you enter invoices. Define invoice distribution lines in a Distribution Set and assign the Distribution Set to one or more suppliers or supplier sites. Oracle Payables automatically creates invoice distribution lines from the Distribution Set.

Matching Distributions You can create invoice distribution lines automatically from purchase order distribution lines when you match an invoice to one or more purchase order lines. Oracle Payables requires no further data entry.

Approval Oracle Payables increases your productivity by identifying matching errors for you without slowing up invoice entry. Approval automatically holds invoices for payment when the invoices do not match purchase order and receipt information within tolerances you specify. Approval automatically releases invoices for payment when you correct the errors or adjust the tolerance.

Payment Batch Initiation When you initiate a payment batch, you need only enter your payment batch name to select invoices for payment. The payment initiation uses defaults for other payment batch criteria. You can even select invoices and create payments in one step.

Cash Management Reconcile your bank account with Oracle Payables payment history using Oracle Cash Management. Load a bank reconciliation file from a tape or diskette and automatically verify that your bank information is complete and accurate, and update Oracle Payables payment history.

Complete Descriptions Enter as long a description as you need, up to 240 characters, so you have room for all your comments. Save time by never needing to refer to a paper invoice or a hand-written note.

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Oracle Alert Oracle Alert provides automated exception reporting fully integrated with Oracle Payables, Oracle Purchasing, and Oracle Office. You can increase the effectiveness of your receipt, matching, and payment processes using the powerful message capabilities of Oracle Alert. Oracle Alert automatically notifies you of important and unusual matching events as soon as they occur, reduces your paper flow, increases the quality of your information, and improves your productivity.

Business Needs With Oracle Payables and Oracle Alert you can: •

Set goals for your payables managers and employees and measure their performance against these goals

•

Automatically remind employees of incomplete or upcoming payables tasks

•

Respond immediately to messages with electronic mail

•

Receive messages through both electronic mail and printer facilities

•

Customize Alert, messages, and reports quickly and easily without support from data processing professionals

Major Features Immediate Alerts Oracle Alert immediately notifies you of events as they occur with event-triggered messages. Modify Oracle’s pre-coded conditions or create your own, and send messages when events occur to as many individuals in your organization as you want. For example, Oracle Alert can immediately send a message to a purchasing agent if an item is rejected after receipt from the supplier. With that information your purchasing agent can contact your supplier to prepare replacement items while the item is being returned.

Periodic Alerts Oracle Alert periodically notifies you of key information and events on a schedule you choose. Modify Oracle’s pre-coded conditions or create your own, and send messages for them to as many individuals in your organization as you want. For example, Oracle Alert can help you manage your invoices on receipt hold by sending daily or weekly reminders to the purchasing agents or requestors to verify receipt.

Customizable Messages and Distribution Lists Oracle Alert can send different messages to different people for the same alert condition. Customize messages to reflect specific responsibilities. For example, if a supplier delivery is overdue, Oracle Alert can request the purchasing agent to expedite the order, and can inform the requestor of the delay.

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Summary Reports Oracle Alert lets you use summary reports to receive a single list of exceptions matching an alert, as opposed to receiving many individual mail messages.

Performance Goals Use Oracle Alert to monitor performance against accounts payable performance goals.

Escalated Messages Oracle Alert lets you send escalated messages to remind recipients of uncorrected conditions. For example, increase the severity of an expediting reminder message to a payables agent until receipt of payment is recorded in Oracle Payables.

Duplicate Message Suppression If you do not want Oracle Alert to send repeated or escalated messages, choose to suppress duplicate messages. Then, if Oracle Alert detects an uncorrected condition, it will not send another message.

Electronic Mail Interface Oracle Alert is completely integrated with Oracle Office and, through Oracle Office gateways, with most other electronic mail systems. Use your mail system to further communicate with your organization following a business agent message.

Printing Capability Oracle Alert lets you print messages for those who do not use electronic mail. Everyone can receive Alert information quickly and directly.

Completely Customizable System With Oracle Alert, you can always modify messages, business agent conditions and distribution lists to meet your unique or changing needs.

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Multi-currency Oracle Payables provides powerful and easy-to-use multiple currency features to help you manage your international transactions and operations. With Oracle Payables, meet the increasing demands of international business without the complexity you often associate with multi-currency accounting.


Define multiple currencies to meet your invoice, payment, and reporting needs

•

Enter and maintain daily exchange rates on-line for foreign currency conversion

•

Enter and pay foreign currency invoices

•

Calculate unrealized gains and losses at period-end or after a severe currency movement

•

Calculate realized gains or losses after payment of a foreign currency invoice

•

Match a foreign currency invoice to a purchase order

•

Report on accounts payable activity by currency using standard reports

Major Features Multiple Currency Definitions You can define multiple currencies for financial reporting.

User-Maintained Exchange Rate Types Oracle Payables predefines the following exchange rate types: Corporate, Spot, and User. You can define any additional exchange rate types you require. You specify an exchange rate type when you enter a foreign currency invoice. Oracle Payables uses the daily exchange rate that you define for the exchange rate type to convert the amount of your invoice to your functional currency.

User-Maintained Daily Exchange Rates You can maintain any type of daily exchange rate you require, including spot rates. With Oracle Payables, you maintain daily exchange rates for foreign currency conversion. And, Oracle Payables automatically performs conversion using the daily exchange rates you specify.

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General Ledger Integration Oracle Payables fully integrates with Oracle General Ledger and other general ledger systems so you can easily update your general ledger with accounts payable activity. Oracle Payables lets you validate your expense, liability, cash, and other accounts against your chart of accounts, resulting in fewer data entry errors. You can use standard Oracle Payables reports to reconcile your posted invoices and payments to your Accounts Payable Trial Balance. You can use your Accounts Payable Trial Balance to reconcile to the accounts payable liability in your general ledger system.

Enter Invoices and Payments for the Period Submit Expense Detail Report

Open Accounts Payable Period

Submit Posting Holds Report and Resolve Posting Holds

Submit Posted Invoices, Posted Payments and Trial Balance Reports

Close Accounts Payable Period Create Journal Entries

Oracle Payables fully integrates with Oracle General Ledger and other general ledger systems


Define your set of books and create journal entries for that set of books

•

Open and close your accounts payable period independently of your general ledger

•

Validate your accounts payable accounts directly against your general ledger chart of accounts

•

Record statistical quantity information for invoice distribution line items which you can transfer to your general ledger Oracle Payables

49

•

Transfer journal entry records of payment and invoice activity to your general ledger

•

Maintain detail or summary invoice and payment audit information in your general ledger

•

Create journal entries using the accrual, cash, or combined basis of accounting

•

Create journal entries for multi-currency invoices and payments

•

Automatically balance your intercompany journal entries to keep each company in proper balance

•

Reconcile your invoice and payment activity to your Accounts Payable Trial Balance and to your general ledger system

Major Features Flexible Accounting Structure Define your accounting structure according to the way you do business. Oracle Payables provides you with pop-up windows that make entering accounting information quick and easy.

Full Integration Oracle Payables fully integrates with your general ledger system. If you have Oracle General Ledger, everything is ready for you to access your accounting data. If you are using your own general ledger system, a few simple steps allow you to fully integrate with Oracle Payables.

Multiple Sets of Books Your set of books defines the account structure, accounting calendar, and functional currency that your organization uses to record transactions in Oracle Payables.

Multiple Accounting Methods When you install Oracle Payables, choose whether you wish to record journal entries and report on an accrual basis, cash basis, or combined basis of accounting.

Intercompany Accounting When you post Oracle Payables journal entries, Oracle General Ledger automatically creates intercompany journal entries to balance your accounts.

Audit Information Optionally choose to maintain detailed audit information for the invoice and payment information you transfer to your general ledger.

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Invoice Distribution Statistics If you use Oracle General Ledger, define the units of measure you use to record statistics on invoice distribution lines. In Oracle General Ledger, you can define a different unit of measure for each account. Oracle Payables then lets you enter a statistical quantity for each invoice distribution line that has an account defined with a unit of measure.

Posting Reports Oracle Payables provides several standard reports that you can use to review your unposted and posted invoice and payment information. Submit a report to review invoices that Oracle Payables does not allow you to post because they have posting holds or have not been approved. Submit reports that let you review all your posted invoices and payments, as well as the trial balance for your unpaid, posted accounts payable liabilities.

Accounting Period Statuses Open and close accounting periods in Oracle Payables independently of your general ledger. The period statuses available in Oracle Payables are Never Opened, Future, Open, Closed, and Permanently Closed. Oracle Payables allows invoice entry, payment entry, and payment voiding in an open accounting period. You can enter invoices in a Future accounting period but you cannot pay or post any invoices in a Future period until you open the period.

Never Open Future (Optional)

Permanantly Closed (Optional)

Open

Closed

Oracle Payables lets you control the status of your accounting periods

Oracle Payables

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Combined Basis Accounting In addition to the accrual basis and cash basis accounting methods, Oracle Payables also supports a combination of both methods called Combined Basis Accounting. With Combined Basis Accounting, Oracle Payables creates journal entries for both sets of books simultaneously.


Define two sets of books, for cash and accrual accounting methods

•

Use one set of books to manage your business and use the other set of books for reporting purposes

•

Choose your accounting method each time you transfer accounting entries from Oracle Payables to your general ledger

Major Features Multiple Accounting Methods Choose primary and secondary accounting methods for creating accounting entries in Oracle Payables. For each accounting method, cash or accrual, choose a set of books. Each time you transfer accounting entries from Oracle Payables to your general ledger, you choose to transfer activity for your primary, secondary, or both sets of books. Oracle Payables creates accounting entries for both sets of books so that you can report under each accounting method.

Journal Entry Audit Options Within each set of books you can choose to maintain various levels of audit detail for your invoice and payment transactions. You can override these defaults each time you initiate the Payables Transfer to General Ledger program. Payables automatically maintains audit information for all expense and cash transactions, however you can optionally choose to store full or partial audit information on your liability distributions and audit information for your discount, gain/loss and cash clearing distributions.

Create Summary or Detail Journal Entries If you use Oracle General Ledger, you can choose to create either summary or detail journal entries based on the invoice and payment transactions you transfer from Oracle Payables. You can create summarized journal entries even if you want to maintain detailed audit information for drilldown purposes.

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Automatic Offsets Oracle Financials provides a number of flexible accounting capabilities to control your expenses. With Oracle Financials you can support a complete set of accounts for each balancing segment. Oracle Financials also lets you record balance sheet effects across multiple balancing segments.


Specify system options and defaults which reflect your business practices; for example, you can specify that you want to automatically create balancing entries (both liability and cash accounts)

•

Create multiple liability accounts automatically for an invoice. For example, you can enter an invoice and distribute it to Balancing Segment A, Balancing Segment B, and Balancing Segment C. You can automatically record liability entries for Balancing Segment A, Balancing Segment B, and Balancing Segment C

•

Create multiple accounts payable liability accounts and selectively assign them as supplier defaults

•

Specify a bank account as a pooled account or as a non-pooled account

•

Create multiple cash entries automatically when paying an invoice from a pooled bank account

•

Create all necessary balancing entries when you use a non-pooled account to pay an invoice

•

Prorate discounts across invoice distributions, or use one discount taken account

Major Features System Options and Defaults Oracle Financials gives you multiple system options and defaults which increase your control and make data entry easier. For example, your cash and liability accounts all default from your system defaults, so you do not have to enter them every time you create a supplier or enter an invoice. Of course, you can always override a default. System options, such as whether to create balancing entries automatically, give you the accounting controls you need. Oracle Financials provide the flexibility for the way your company does business.

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Multiple Liability Accounts Oracle Payables gives you the flexibility to record multiple liability accounts for your invoices. If you specify Automatic Offsets as a system option, Oracle Payables automatically allocates your liability amounts across multiple balancing segments, according to your invoice distributions. If you do not specify Automatic Offsets as a system option, Oracle Payables credits your liability to one account.

Multiple Discount Accounts Choose how Oracle Payables distributes the discounts you take when making payments. Prorate any discounts across your invoice distribution lines or credit all discounts to one Discount Taken account.

Intercompany Balancing Entries Oracle General Ledger enables you to create intercompany balancing entries quickly and easily. You can create balancing entries manually, or let Oracle General Ledger create them for you automatically when you post a payment transaction which does not balance by balancing segment.

Multiple Cash Accounts When you define a bank account, specify whether you centrally pool cash or not. Use a pooled account to pay invoices for multiple balancing segments. Use a non-pooled bank account to pay a single balancing segment's invoices.

Multiple Receipt Accrual Accounts Oracle Purchasing makes it easy for you to record accruals for your unbilled receipts. Automatically accrue receipts as often as you need. Accrue receipts to the next period, or a current period. Set up Oracle Purchasing to automatically accrue receipts to the correct balancing segment when you run your receipt accrual process.

Posting Options Oracle General Ledger gives you the option of ensuring that your entries balance by balancing segment. Oracle General Ledger automatically creates intercompany entries for your journal entries that are not balanced by balancing segment.

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Intercompany Accounting Manage your accounts payable information within any company structure you define. Maintain multiple companies and create expense distributions and payments on behalf of any combination of those companies.


Create accounting entries for invoice and payment transactions that reflect activity across multiple companies, including having one company pay for the expenses of another company

•

Perform intercompany accounting to automatically balance your intercompany transactions

Major Features Multiple Sets of Books Oracle Payables allows you to define different sets of books for companies with different currencies, accounting calendars, and chart of account structures. Use one set of books for each installation of Oracle Payables, or use the Oracle Applications Multiple Organization Support feature to use multiple sets of books within one Payables installation. With the Multiple Organization Support feature, you can assign a unique set of books (with its unique calendar, chart of accounts, and functional currency) to each organization you define. When you assign responsibilities using function security you can limit a user to one organization's set of books. With the Multiple Organization Support feature you can segregate transactions by operating unit but you can still choose to share certain information, such as supplier information, between organizations so the information needs to be entered only once.

Multiple Companies Within each set of books, set up as many companies as you need. Add new companies whenever you want, without any complicated restructuring.

Intercompany Journal Entries Oracle Payables is completely integrated with Oracle General Ledger. When you transfer journal entries for invoices and payments, Oracle General Ledger automatically creates intercompany journal entries to balance your accounts. Specify the intercompany balancing account you want to use for each company. Define additional intercompany accounts for Oracle General Ledger to use for balancing different types of journal entries.

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Budgetary Control Oracle Financials provide a variety of powerful, flexible, easy-to-use budgetary control capabilities to control your expenses and prevent you from spending beyond your budgets. Oracle Payables, Oracle General Ledger, Oracle Purchasing and Oracle Inventory are fully integrated to give you a complete solution to your budgetary control needs.

Business Needs With Oracle Financials you can:

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•

Ensure that your actual and planned expenditures do not exceed your available funds

•

Check funds on-line for all transactions which affect available funds, at any level of a transaction

•

Update your funds available balances immediately when you reserve funds for a requisition, purchase order, invoice, or journal entry

•

Choose the degree of budgetary control you want over your expenditures

•

Choose the degree of budgetary control you want by type of document

•

Check funds and reserve funds at multiple levels within your organization

•

Control your expenses based on the period you want

•

Control your expenditures regardless of your accounting method or currency

•

Specify the budget you want to use for budgetary control

•

Choose the detail accounts for which you want to enforce budgetary control

•

Perform budgetary control by journal entry source, category, and responsibility; for example, you may want to perform budgetary control on Payroll journal entries, but not Accrual-type journal entries

•

Specify tolerances for budgetary control; for example, you may want to allow transactions for which there are insufficient funds available if the transactions exceed available funds by $1000 or less

•

Override transactions selectively for which there are insufficient funds available

•

Reserve funds for your journal entries

•

Import journal entries from other non-Oracle applications and check funds for these imported journal entries

•

Reserve funds for invoices by approving them on-line or in batch

•

Liquidate excess encumbrances easily

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Record cancellations of encumbrances differently from reversals


Major Features Many government, educational, and not-for-profit agencies use budgetary control, as well as many corporations. Each of these organizations may use different terminology for budgetary control. We use the term requisition encumbrance to refer to the journal entry Oracle Financials creates when you reserve funds for a requisition. We use the term purchase order encumbrance to refer to the journal entry Oracle Financials creates when you approve a purchase order. You may define an unlimited number of encumbrance types in Oracle General Ledger, so you can call these journal entries commitment and obligation, pre-commitment and commitment, or pre-lien and lien.

On-line Funds Checking You can check funds on-line independently of reserving funds for your transaction. Oracle Financials notifies you on-line whether you have enough funds available for a transaction. You can check funds at any level of a journal entry, requisition, purchase order, or invoice.

Immediate Update of Funds Available Oracle Financials automatically updates your funds available balances when you successfully reserve funds for a transaction. Your funds available balances are always up-to-date.

Absolute or Advisory Budgetary Control With Oracle Financials, you decide whether to allow transactions which exceed your available funds. If you use absolute budgetary control, Oracle Financials does not allow you to reserve funds for a transaction unless you have funds available. If you use advisory budgetary control, Oracle Financials provides you with on-line notification that you do not have available funds, but reserves funds for your transaction anyway.

Multiple Levels of Funds Checking and Funds Reservation You can define unlimited funds checking levels for budgetary control. You may choose to have Oracle Financials check your funds at the detail level of an Accounting Flexfield or at a summary level of a group of Accounting Flexfields. You can also decide to check funds at both a summary and detail level.

Multiple Interval Types Specify the interval for which you want Oracle Financials to exercise budgetary control. Choose whether your boundaries are hard (you do not have access to available funds over the boundary) or soft (you automatically have access to funds available past period boundaries).

Multi-Currency Encumbrances Oracle Financials perform funds checking based on the functional currency equivalents of your multi-currency purchase order distributions or invoice distributions. And, Oracle Financials automatically create encumbrances in your functional currency.

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Funds Reservation Options Oracle Financials provide the flexibility you need to control your expenses the way you want. You can define budgetary control options by journal entry source, category, and responsibility. You can define the range or ranges of accounts for which you want to perform budgetary control.

Tolerances For each journal entry source and category for which you perform budgetary control, specify a tolerance amount and a tolerance percent. The tolerance percent is the percent by which you can exceed your budget per transaction that fails budgetary control. The tolerance amount is the amount per transaction in functional currency by which you can exceed your budget.

Funds Check Override For each journal entry source and category for which you perform budgetary control, you can allow manual override of transactions that have insufficient funds. And, you can specify an override amount (in functional currency) by which you want to limit manual overrides.

Invoice Budgetary Control Oracle Payables provides budgetary control on invoices and prepayments. Oracle Payables automatically creates an encumbrance entry in Oracle General Ledger when you successfully approve an invoice or prepayment which you do not match to a purchase order. Oracle Payables also creates encumbrances when you successfully approve an invoice having a quantity or price variance with the purchase order to which you matched it. Oracle Payables creates a detailed journal entry of invoice activity for posting to the general ledger. If you match an invoice to a purchase order, Oracle Payables automatically creates an entry in Oracle General Ledger to reverse the purchase order encumbrance. Oracle Payables also creates an encumbrance reversal for an unmatched invoice which it previously encumbered.

Document Controls Oracle Financials provide complete control over your purchase and accounts payable documents. You can record a final invoice, which liquidates excess encumbrances associated with purchase orders matched to the invoice. Oracle Financials make it easy for you to liquidate excess encumbrances and increase your funds available.

Cancellations and Reversals Oracle Financials treat cancellations of encumbrances different from reversals, so you can easily report on gross encumbrances-to-date (gross obligations-to-date or gross commitments-to-date) as well as net encumbrances (net obligations or net commitments).

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Purge Oracle Payables provides a powerful and easy-to-use purge feature to help control your accounts payable and purchasing data. With Oracle Payables, you can easily purge invoices, purchase orders, purchase requisitions, and suppliers that you no longer need to review on-line so you can maintain better access to your current transactions.

Oracle Payables Database

Back Up Oracles Payables Database

Review Purge Candidates Submit Purge

Preliminary Purge Candidates Invoice Listing Abort a Purge

or

Confirm Purge

Submit Purge

Submit Purge Export and Import the Database Tables and Indexes Review Purge Results Contact the DBA Final Purge Register Listing Rejected Invoices Listing Final Purge Statistics Report Oracle Payables lets you purge suppliers, invoices, and payments from your database

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Purge invoices and related records from your database

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Purge purchase orders, requisitions and related records from your database

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Purge unused and inactive suppliers from your database

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Specify criteria by which to purge data and review purge data before and after you purge

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Abort or restart a purge during any stage of the purge process

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Maintain summary information for records you purge

Major Features Purge Submission An Oracle Payables feature you use to initiate a purge. Specify a purge name, a purge category, and a last activity date, and Oracle Payables automatically selects all records and their related records which match your criteria to purge from the database. Oracle Payables only selects records which you have not updated since the last activity date you specify and which do not have any dependencies with other records you are not purging. You can abort or restart a purge at any stage of the purge process, except during the actual deletion of records. Oracle Payables provides information on the status of a purge during each stage of the process.

Preliminary Purge Reports Oracle Payables automatically prints the Preliminary Purged Listings which let you review all requisition, purchase order, receipt, invoice, payment, and supplier records that Oracle Payables selects to purge. Oracle Payables selects records to purge based on criteria you specify.

Final Purge Reports Oracle Payables automatically prints several audit reports when it completes a purge, including the invoice, payment, purchase order, requisition, receipt, and supplier records which you purged and summary statistics on the number of records you purged from each table.

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Oracle Apps Accounts Payables Functionality

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