Oracle Payables - D49300GC10 R12

Procure to Pay Overview
Copyright 2007, Oracle. All rights reserved.
Objectives
After completing this module you should be able to do the following: Describe the procure to pay process flow Describe the key areas in the procure to pay process Describe how the procure to pay process fits into the Oracle eBusiness suite of applications
Overview of Application Integration

Depreciation/ Asset Transactions Subledger Assets Accounting Assets Payables/ Expenses/ Payments Payables Accruals Suppliers Subledger Entries
General Ledger
Receivables/ Revenue/ Receipts
Receivables
Invoices
Inventory Activity
Customers
Accounting
Requisitions
Items Purchasing/ iProcurement Inventory Internal Requisitions
Order Management
Procure to Pay Lifecycle

Requisitions Catalog Content Management Purchase Orders Ordering
RFQs/ Quotations
Receiving
Sourcing Analysis Invoice/ Payment
Supplier management Supplier Performance
Reporting
Oracle Procure to Pay Process

Demand Source
Purchase requisition
Request for quote (RFQ)
Supplier
Quotation
Order
Receive
Enter
Pay
Purchase order
Receipts
Invoice
RFQs and Quotations
Imported requisitions
Requisition pool Automatically create
PO
Manual
Print/Send RFQ
Copy Supplier lists
RFQ
Quotation
Requisitions
Demand
Inventory
WIP
MRP
Order Mgmt
Other Systems
Import/reschedule requisitions Internal Order Mgmt sales order
Approval
Manually create Requisition Requisition pool
PO
Suppliers
Purchase requisition
Request for quote (RFQ)
Quotation
Supplier
Purchase order
Receipts
Returns
Payment
Purchase Orders
Approve Manually create PO Maintain documents Requisition pool Automatically create
Accept
Revise
Control
Receive against PO
Match invoices in Payables
Receiving
Shipment Supplier Transfer Inventory
Receive
Order Entry
Deliver
Shop floor
Inventory
Internal shipment
Inspect
Expense
Invoicing
Receive invoices If appropriate, match invoice to purchase order or receipt
PO Import/Enter invoice Enter basic information Enter detailed information Maintain invoices
Invoice
File invoices
Payment
Modify payments: Remove/add invoices Modify payment details Format payments: Print checks Load EFT data Validate payments: Confirm checks Update invoice Payment history
Select validated invoice Pay invoice Run Pay run
Record manual payment
Create quick payment outside Oracle

Create computergenerated payment
Create single payments
Summary
You should be able to do the following: Describe the procure to pay process flow Describe the key areas in the procure to pay process Describe how the procure to pay process fits into the Oracle eBusiness suite of applications
Payables Overview

Requisitions Catalog Content Management Purchase Orders Ordering RFQs/ Quotations Sourcing Analysis Receiving Invoice/ Payment
Supplier management
Supplier Performance
Reporting
Objectives
After completing this module you should be able to do the following: Describe the Payables process flow Describe the key areas in the Payables process Identify Payables integration points Identify Payables open interfaces
Overview of Payables Processes
Enter supplier
Import/Enter invoice
Validate invoice
Pay invoice
A/P 100,000 60,000 10,000 30,000
Transfer information to general ledger
Create accounting entries in Subledger Accounting

Supplier Entry
Enter supplier
Import/Enter invoice Validate invoice
Pay invoice
A/P 100,000 60,000 10,000 30,000

Invoice Entry
Enter supplier
Import/Enter invoice
Validate invoice
Optionally match to PO or receipt
Pay invoice
A/P 100,000 60,000 10,000 30,000

Overview of Payment
Modify payments: Remove/add invoices Modify payment details Format payments: Print checks Load EFT data Confirm payments: Confirm checks Update invoice Payment history
Select validated invoice Pay invoice Run Pay run
Record manual payment
Create manual payment outside Payables

Create computergenerated payment
Create single payments
Overview of Payables Integration
Purchasing/ iProcurement Receivables
Loans
Cash Management
Projects
Payables
e-Commerce Gateway
Assets
Payments
iSupplier Portal
Overview of Payables Integration (Cont.)
Human Resources
Subledger Accounting
General Ledger
Workflow
Payables
Alert
Inventory Property Manger
E-Business Tax
iExpense
Payables Integration with Purchasing
Match and Update Qty Billed
Payables
2
POs
Copy Accounting Suppliers
Purchasing/ iProcurement
PCards
Payables Integration with Receivables and Loans
1
Receivables
AR/AP Netting (AR Only)
Payables
2
Loans
Submit Payment Requests
Payables Integration with Cash Management
Cash Flow Data
Payables
2
Bank Codes
Reconcile Payments Banks
Cash Management
Payables Integration with e-Commerce Gateway
820 - Outbound Payments 810 - Inbound Invoices 824 - Outbound Application Advice 857 - Billing Notice (ASBN)
Payables
e-Commerce Gateway
Suppliers
Payables Integration with iSupplier Portal
Invoice Status
Payables
Submit PO-Matched and Unmatched Invoices
iSupplier Portal
Invoice Request
Supplier Info
Payables Integration with Payments
Payment Methods Payables
Payments
Pay Runs
Payment Documents
Payables Integration with Assets
Create Mass Additions
Post Mass Additions
Payables
FA Mass Additions
Assets
2
Suppliers
Prepare Mass Additions
Payables Integration with Projects
Invoice Distributions
Payables
2
Projects
Adjustments and Expense Reports Tasks
Projects
Payables Integration with Human Resources
Payables
Locations
Human Resources
Employees
Locations
Organizations
Payables Integration with Subledger Accounting and General Ledger
Create Accounting
Transfer to General Ledger
Payables
Subledger Accounting
General Ledger
Ledger
Rates
Payables Integration with Alert
Invoices on Price Hold Invoices on Quantity Received Hold Invoices on Quantity Ordered Hold
Payables
Alert
Invoices Invoices
Payables Integration with iExpense
Payables
Expense Reports
iExpense
Employees
Templates
Payables Integration with E-Business Tax
Calculate Tax
View Tax Summary and Details
Payables
E-Business Tax Transaction Tax
Payables Integration with Workflow
Credit Card Expense Report Approvals Open Interface Import Procurement Card Emp. Verification Procurement Card Mgr. Approval Transaction Invoice Approval Workflow
Payables
Workflow
Payables Integration with Property Manager
Payables Open Interface Import
Create Lease Invoices
Payables
Payables Invoice Open Interface Suppliers
Property Manager
Multiple Organization Access Control
If you implement Multiple Organization Access Control, you can:

Enter invoices for multiple operating units without switching responsibilities. Pay invoices for multiple operating units in a single pay run.
BELGIUM Operating Unit
HOLLAND Operating Unit
DENMARK Operating Unit
EMEA Responsibility
Open Interfaces
Use the following open interfaces to import data into Payables from other applications or third-party solutions: Payables Open Interface Payables Expense Report Open Interface Payables PCard Open Interface Payables Credit Card Open Interface Payables Matching Open Interface Payables Supplier Open Interface
Payables Invoice Open Interface
ASBN ERS/pay on receipt EDI 810 Open interface
Invoices from external system
Quick Invoices
PCard Invoice Workflow AP Invoice

Payables Expense Report Open Interface
Employee AP
Open interface Payables Invoice Import
Payment Invoice
Payables PCard Open Interface
AP_Expense_ Feed_Lines_All
Invoice Open Interface
Open interface
Open interface
Payables Open Interface Import Invoice
Payables Credit Card Open Interface
AP_Credit_Card Trxns_All
Invoice Open Interface
Open interface
Open interface
Payables Open Interface Import Invoice
Payables Matching Open Interface
Match and Update Qty Billed
Open interface
Payables
Copy Accounting
PO Data
Payables Supplier Open Interface
Open interface Suppliers, Sites, Contacts
Invoice
Summary
You should now be able to do the following: Describe the Payables process flow Describe the key areas in the Payables process Identify Payables integration points Identify Payables open interfaces
Suppliers

Supplier management
Reporting
Objectives
After completing this module, you should now be able to do the following: Define suppliers and supplier sites Identify key reports Understand setup options Understand additional implementation considerations
How Oracle Products Use Supplier Information
Payables
Assets
Purchasing
Property Manager
iSupplier Portal Trading Community Architecture
MOAC
Overview of Suppliers
Enter supplier Import/Enter invoice Validate invoice
Pay invoice
Match to PO Create PO
Enter requisition

Supplier Controls
Control supplier information using: Security Numbering Duplicate Supplier Entry Setup Options (defaults) Tax Defaults
Flow of Default Values

Procurement Flow Payables Flow
Financials options
Purchasing/Receiving /Payables/Payables System Setup options
Supplier
Supplier site
Item
Invoice Invoice Lines
1
PO Documents
Takes precedence over
Distribution line
Scheduled payment line
Suppliers Page
Search Company Profile

Organization Tax Details Address Book Contact Directory Business Classification Products and Services Banking Details Surveys
Quick Update To Do List Terms and Control

Accounting Tax and Reporting Purchasing Receiving Payment Details Invoice Management
Finding Suppliers
You can find suppliers by using the Search region of the Suppliers page.
Supplier Quick Update
You can use Quick Update for routine maintenance of supplier information.
Entering Basic Supplier Information
Standard supplier
Supplier Type Name Number Stevens and Co 46018
FEIN 52-1234567
Taxpayer ID or Tax Registration Number
Inactive On
01-AUG-2010
Supplier Organization
Parent Supplier Name

Must already be defined to select
Number
Parent supplier number
Parent
Customer Number
Your Company Your Supplier
Child
Child
Cust. #9924
Supplier Tax Details
Rounding Rule Set Invoice Values as Tax Inclusive Allow Withholding Tax Withholding Tax Group Tax Registrations
Supplier Address Book and Contact Directory
Supplier Tokyo Paris New York
Purchasing site RFQ Only site Sue Taylor, Sales Mgr Bill Wilson, Sales Quotes
Purchasing site
Payment site Primary Pay site Aaron Carr, AR Mgr
Liz Miller, Sales Rep
Supplier Business Classification
Name Hals Supplies Adams for Board
Type Office Supplies Donations
Minority-Owned
Woman Owned
Small Business
Suppliers Products and Services
Computer/ Technical
Manufacturing
Financial
Supplier Banking Details
Name Number Primary Currency Start/End Dates

Operating Account #432198-77
Suppliers Surveys
Create custom questionnaires that can be used to gather feedback from suppliers' surveys
Supplier Accounting
Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.
Supplier Tax and Reporting
Allow Tax Applicability Set for Self Assessment/Reverse Charge Allow Offset Taxes Tax Classification Code Income Tax Reporting Site
Supplier Purchasing
All New Orders Ship-To Location Bill-To Location Ship Via Pay On Receipt Alternate Pay Site Invoice Summary Level Create Debit Memo from RTS Transaction * Gapless Invoice Numbering Free-on-Board (FOB) Freight Terms Transportation Arranged Poor Quality Country of Origin
Supplier Receiving
Enforce Ship-To Location Receipt Routing Match Approval Level Quantity Received Tolerance Quantity Received Exception Days Early/Late Receipt Allowed Receipt Date Exception Allow Substitute Receipts Allow Unordered Receipts
Supplier Information Payment Details
Payment Method
Check
Electronic Outsourced Check Wire Pay Each Document Alone
1 to 1 Invoice
Check
Supplier Invoice Management
Invoice Details Hold from Payment
Payment Terms
Priority Terms Pay Date Basis Pay Group Always Take Discount Exclude Freight From Discount Create Interest Invoice
Supplier Site Settings

ABC Corp. Sites Payment Terms Pay Date Basis Ship-To Location Tokyo Office
Tokyo
Net 30
Due
Paris
2/10, Net 30
Discount
Headquarters
New York
Net 30
Due
Headquarters
Supplier Level Versus Site Level Entry

Tabbed Region Organization Tax Details Address Book Contact Directory Business Classification Products and Services Bank Details Surveys Accounting Tax and Reporting Purchasing Receiving Payment Details Invoice Management Supplier Level Yes Yes No Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Site Level No Yes Yes No No No Yes No Yes Yes Yes No No Yes
Reviewing Suppliers
You can review suppliers in the Suppliers page.
Maintaining Supplier and Supplier Site Information

Changed values default only to new documents that you subsequently create Where to make the change?
Net 30 Supplier 2/10, Net 30
Existing Site A Net 30
Existing Site B Net 30
New Site C 2/10, Net 30
Adjusting Suppliers: Updating Supplier and Supplier Site Defaults
Remember that when you make changes to values that default to Payables and Purchasing documents, the changed value defaults only to new documents you subsequently enter or create.
Adjusting Suppliers: Updating Supplier Invoice Holds

Holds are controlled at the supplier site. For example, if you have enabled the Hold All Payments option for a supplier and supplier site, and you disable the option for the supplier, but not the supplier site, all unvalidated invoices for the supplier site will remain held for payment. Use the Quick Update or Invoice Management pages to update the hold status.
Adjusting Suppliers: Adding a New Supplier Site

Enter the Supplier Site and address information. The Site Name will not appear on documents you send to the supplier; it is for your reference when you select a supplier site from a list of values during transaction entry.
Adjusting Suppliers: Updating a Suppliers Tax Status

In the Tax Details page, make any changes to the Taxpayer ID or Tax Registration Number. In the Tax and Reporting page, update the tax profile for the supplier and supplier sites.
Approving Supplier Requests
Suppliers with iSupplier Portal accounts can request updates to their supplier information. All supplier requests must be approved before the supplier record is updated.
Avoiding Duplicate Suppliers
Before setting up a new supplier, verify it doesnt already exist. System requires unique supplier names. Relies heavily on strong naming conventions. Benefits of avoiding duplicate supplier entry
Example #1
Example #2
XYZ Inc.
XYZ Inc
The Sun
Sun Inc
Sun Co
Merging Suppliers
Run supplier audit report
ABC Identify duplicate Corporation suppliers
ABC Corp
Merge suppliers
Maintain audit trail
Review merge results

ABC Corporation
Data Example Supplier Merge
Oracle Corporation Target/Correct Supplier Site Names CA-REDWOOD IL-CHICAGO VA-RESTON FL-ORLANDO
Oracle Corp Incorrect Supplier Site Names CA-REDWOOD FL-ORLANDO
merge
copy
Merging Suppliers
After you have merged suppliers, Payables automatically prints the following reports: Purchase Order Header Updates Report Supplier Merge Report
Reports
Suppliers Report Supplier Audit Report Supplier Payment History
Supplier Paid Invoice History

Supplier Mailing Labels Purchase Order Header Updates Report
Supplier Merge Report
Reports
Supplier Customer Netting Report Supplier Open Balance Letter Invalid PO Supplier Notice
Accounts Payable Trial Balance Report Invoice Aging Report

Open Items Revaluation Report
Financials Options
Supplier-Purchasing RFQ Only Site Ship-To Location Bill-To Location Inventory Organization Ship VIA FOB Freight Terms
Financials Options
Human Resources Expense Reimbursement Address
Payables System Setup
Supplier Supplier Number Entry Type Next Automatic Number Control Invoice Match Option Hold Unmatched Invoices Payment Invoice Currency Pay Group Terms Date Basis Pay Date Basis Payment Terms
Always Take Discount

Create Interest Invoices
Lookup Codes
VENDOR TYPE MINORITY GROUP
PAY GROUP
FREIGHT TERMS SHIP_VIA FOB
Profile Options
PO: Secondary E-mail Address PO: In File Path PO: Terms and Conditions File Name
Additional Implementation Considerations Responsibility for Supplier Entry/Maintenance

Assign responsibility for supplier entry/maintenance Number of staff required Consider good internal control and segregation of duties
2 Payables Clerks
Create/adjust suppliers
1 PO Clerk
Add purchasing contacts
Additional Implementation Considerations Supplier Naming Conventions

Benefits
Prevent duplicate invoices and payments Improve system performance and supplier inquiries Provide accurate supplier reporting
Who should develop the naming conventions? Document with sign-off by authorized approver(s)
Purchasing
Payables
Assets
Others
Additional Implementation Considerations Supplier Naming Convention Examples

Examples Exact spelling decided for easily misspelled suppliers Exact spelling for top ten priority suppliers Determine use of case (CAPS, Title Case) List approved abbreviations Determine use of punctuation and special characters Site name structure Address format
Additional Implementation Considerations Supplier Numbering Options

Two choices
Automatic (numbers only) Manual (alphanumeric or numeric)
Switch from manual to automatic

Ensure that Next Automatic Number is larger than the largest number assigned
Automatic 2114 2115 2116 2117 Manual EE103 GV104 ST105 ST106
Additional Implementation Considerations Supplier Open Interface

You can use the Supplier, Supplier Site and Supplier Contacts Open Interfaces to import supplier information into Payables
Additional Implementation Considerations Setup of Fax or E-Mail

Options for Communicating Approved Purchasing Documents to Suppliers
Printed Document
Facsimile
E-Mail
Summary
In this module, you should have learned how to: Define suppliers and supplier sites Identify key reports Understand setup options Understand additional implementation considerations
Invoices

Supplier management
Reporting
Objectives
After completing this module you should be able to do the following: Import/Enter invoices and invoice distributions Match to purchase orders Validate invoices Apply and release holds Understand invoice approval workflow Understand key reports Understand setup options Understand additional implementation considerations
Overview of Invoices
Enter supplier Import/Enter invoice Validate invoice
Pay invoice
Match to PO Create PO
Enter requisition

Flow of Default Values

Procurement Flow Payables Flow
Financials options
Purchasing/Receiving /Payables/Payables System Setup options
Supplier
Supplier site
Item
Invoice Invoice Lines
1
PO Documents
Takes precedence over
Distribution line
Scheduled payment line
Invoice Types
Standard Credit Memo Debit Memo Mixed Prepayment
Expense Report Withholding Tax Interest Retainage Release Transportation Invoices
Entering Invoices Overview
You can manually enter invoices into Payables using: Invoice Workbench Quick Invoices window
Creating Invoices Automatically
Your system can create the following types of invoices: Recurring Invoices RTS Invoices Retroactive Price Adjustment Invoices
Adjustment and PO Price Adjustment Invoices
You can use the Invoice Workbench to view and query by example Adjustment and PO Adjustment invoices. You cannot enter or update these invoices. You cannot match these invoices to receipts and purchase orders.
Invoice Import
You can import invoices or invoice information to create invoices in Payables. Oracle Internet Expenses expense reports Payables expense reports Credit Card invoices EDI invoices XML Invoices Invoices from external systems Oracle Property Manager invoices Oracle Assets lease payments
Assigning a Default GL Date

GL Date Basis Payables Option Invoice date, system date, or invoice received date Determines default Invoice GL date Defaults to
Distribution GL date
Overview of Entering Batches

Receive invoices Batch invoices Prepare a batch control form
Update the batch control form Review batch control reports File invoice Enter a batch of invoices
Creating Batch Control Forms
Batch Name : JS03042007
Date: 03/04/07
Batch Control Form

Control Invoice Count: 20 Control Invoice Total: $2,600.78
Actual Invoice Count: 19

Count Difference: 1
Actual Invoice Total: $2,200.78

Total Difference : $ 400.00
Entered by: John Smith Entry Time (elapsed): 15 minutes Notes: Invoice #300941 for supplier ABC Corporation was a duplicate.
Invoice Structure
Type Supplier Number
Invoice Header
Currency Terms Type Amount Accounting Product Integration Type Amount Charge Acct.
Invoice Lines
Amount Pay Date
Scheduled Payments
Distributions
Invoice Workbench
Invoices Window Invoice Header General Lines Holds View Payments Scheduled Payments View Prepayment Applications
Other Features Actions Calculate Tax Tax Details Corrections Quick Match Match Distributions
Entering Basic Invoices in the Invoice Workbench
Invoice Header
Invoice Lines
Scheduled Payments
Distributions
Entering Invoice Header Information
Invoice Type Trading Partner Supplier Number Supplier Site Invoice Date Invoice Number Amount Description Payment Terms Payment Method
Invoice Header
Invoice Lines
Scheduled Payments
Distributions
Entering Invoice Line Information Line Types

Type
Item Freight Miscellaneous Tax
Invoice Header
Invoice Lines
Amount
Scheduled Payments
Distributions
Entering Invoice Line Information Other Attributes

GL Date Account Track as Asset Description Status Accounted Project/Task/ Expenditure
Invoice Header
Invoice Lines
Scheduled Payments
Distributions
Entering Distributions
Manual
Distribution Set
Matching Allocation Invoice Validation
Distribution Sets
Use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. You can create: Full Distribution Sets Skeleton Distribution Sets
Entering Distribution Types
Type:
Item Freight Miscellaneous Tax Withholding Prepayment
Scheduled Payments
Invoice Header
Invoice Lines
Amount
Distributions
Entering Freight Distributions
There are three ways to create freight distributions: Enable the Automatically Create Freight Distribution Payables Option Allocate freight across invoice distributions Manually enter freight distributions
Tax Distributions
Tax distributions are automatically created when you click Calculate Tax or when you validate the invoice. Withholding Tax distributions are automatically created when you validate the invoice.
Allocating Freight and Miscellaneous Distributions
Item
Miscellaneous
Freight
Creating Distributions by Allocation in the Invoice Workbench

You can use the Charge Allocations window to automatically create freight or miscellaneous distributions.
Allocation Restrictions
Cancelled invoices Paid invoices Applied prepayments Items matched to multiple PO distributions Accounted allocations
Scheduled Payments
Scheduled Payment Holds Due Date Gross Amount Priority
Invoice Header
Invoice Lines
Scheduled Payments
Distributions
Entering Purchase Order and Receipt Matched Invoices

Match invoices to: Purchase order Purchase order shipments Purchase order distributions Purchase order receipts and receipt lines
Match Approval Level Options
Invoice Quantity Billed
PO Quantity Ordered PO Line Price Quantity Received Quantity Accepted
2-Way
Unit Price
3-Way 4-Way
Quantity Billed Quantity Billed
Matching to a Purchase Order

Header PO information Detail Item line 1 Supplier information
Shipment line 1
Distribution line 1 Distribution line 2
Shipment line 2
Distribution line 1 Item line 2 Shipment line 1 Distribution line 1
Matching to Purchase Order Shipments
10 Items on Scheduled Shipment, to be shipped to department 110
6 Delivered 6 Items Actually Shipped

110
6 Items Charged
Matching to Purchase Order Distributions
10 Items on Scheduled Shipment 7 to be sent to Dept 110 3 to be sent to Dept 120 0 Delivered
120
0 Items Charged
6 Delivered 6 Items Actually Shipped
110
6 Items Charged
Matching to Receipts and Receipt Lines
10 Items on Scheduled Shipment 10 to be shipped to Dept 110
Search for PO Receipts
Match Details Recorded on PO
Must have Receipt to Match Invoice

PO
Matching to Purchase Orders or Receipts in the Invoice Workbench

To match an invoice to a purchase order or receipt: Use the Match to Purchase Order/Receipts window Enter the PO number in the invoice header Enter the PO Distribution, PO Shipment, or Receipt information in the invoice line Use Quick Match
Corrections
You can enter price, quantity, or amount corrections, depending on the type of purchase order line you are correcting: Goods Services Rate Services
Price Correction Example

1
Match Invoice 5 Units @ $12/Unit PO 5 units @ $10/Unit IPV = $10 Qty Billed = 5
Total QTY Billed = 5 Total IPV = 0
2
Match & Price Correct IPV = -$10Total Qty Billed = 0
Credit Memo 5 Units @ $-2/Unit
PO 5 units @ $-2/Unit
Final Matching
During matching, select the Final Match option to indicate that no more invoices should be matched to the purchase order.
Types of Accounting Flows
Asset account Expense account Accrual account
Matching to Distributions for Assets
1
Match
Invoice PO 01-000-1570-0000-000 Asset Clearing
01-000-1570-0000-000
Asset Clearing
2
Copy Computer-PC Asset
Matching to Distributions for Expenses
1
Match
Invoice PO 01-110-7740-0000-000 Expense
01-110-7740-0000-000
Expense
2
Copy Office Supplies
Matching to Distributions for Inventory
1
Match
Invoice PO 01-000-1410-0000-000 Material
01-000-2215-0000-000
Inventory AP Accrual
2
Copy Inventory
Define Purchase Order Matching Tolerances (Optional)

Quantity ordered % Maximum quantity ordered Quantity received % Maximum quantity received Price % Exchange rate amount Shipment amount Total amount
Define Tax Tolerances (Optional)
Tax % Tax amount range
Quick Invoices
Use the Quick Invoices window to enter a large volume of invoices that do not require extensive online validation or extensive online defaulting of values.
Quick Invoices window
Payables Open Interface Table
Invoice
Quick Invoice Process
Enter invoices in Quick Invoices window
Data is stored in Payables Open Interface Tables
Import Invoice Records
Payables creates invoices with distributions and scheduled payments
Quick Invoice Batches
Assign a batch name to group the invoice records in the Quick Invoices window. Payables assigns the batch name to each invoice record you enter.
Entering Purchase Order Matched Invoice Records in Quick Invoices

When you enter a purchase order matched invoice record, the import process automatically creates invoice distributions for you based on your match.
Finding Invoice Records in Quick Invoices
You can query any invoice record in the Quick Invoices window if you entered it in the Quick Invoices window and you have not yet purged the invoice record from the Payables Open Interface tables.
Modifying Invoice Records in Quick Invoices
In the Quick Invoices window, you can modify any invoice record you entered in the Quick Invoices window but have not successfully imported.
Adding Invoice Records to an Existing Quick Invoices Batch

You can add invoice records to a Quick Invoices Batch at any time. Either query an existing batch and add invoice records to it, or add invoice records to an existing batch by using the same Source and Batch Name when you enter new invoice records.
Creating Invoices From Quick Invoices Invoice Records (Import)

Import invoices records you entered in the Quick Invoices window using the Create Invoices window, or by submitting the Payables Open Interface Import Program. You can view and modify imported invoice records in the Invoice Workbench.
Entering Recurring Invoices
You can enter invoices for periodic expenses for which you may not receive invoices, such as rent. To enter recurring invoices: Define a special calendar Define a recurring invoice template Create invoices based on the template
Self Service Invoices

Payables Launches Workflow
Without PO
Supplier enters invoice in iSupplier Portal
Invoice Request
Account payables department approves request
With PO
Payables User enters invoice in Invoice Actions page
Invoice
Payment Requests
If requires approval, Payables Launches Workflow Payment Request No approval required Loans Payables applies holds, if necessary Account payables department approves request
submits Receivables
Pay
Invoice Validation Process

Enter or import invoices Receive invoices electronically or in the mail Validate invoice Optionally match to PO or receipt
View invoice
Create subledger accounting AP 100,000 60,000 10,000 30,000

Pay invoice
Levels of Invoice Validation
System level validation Batch level validation Invoice level (online) validation
Validate invoice
Approval
The Invoice Approval Workflow Program can be submitted before or after validation, unless the Require Validation Before Approval Payables option is enabled.
Invoice Approval Levels
You can define the approval rules in Oracle Approvals Management in one of the following ways: Line-level rules only Document-level rules only Line-level and document-level rules
Invoice Approval Workflow
The Invoice Approval Workflow automates your invoice approval process. Based on rules you define, the workflow determines if an invoice needs approval, who the approvers are, and in what order approvers should approve payment of the invoice.
System Setup
You can set up your system to request and receive approval through the approvers email, through the approvers Oracle Workflow Notifications Workflow web page, or both.
Invoice Approval Workflow Program
Status of approval:
"Future"
"Pending"
Decision
Notification has been sent, but not acted on during this stage.
Approved
Rejected
Invoice Approval Workflow Program Parameters

Trading Partner
Invoice Number
From/To Invoice Date
Invoice Approval History
You use the Invoice Approval History window to review the approval progress of any invoice that has started or completed the Invoice Approval Workflow process.
Holds and Releases
System holds Manual holds

Supplier hold Invoice hold Scheduled payment hold
Apply Holds to Supplier Sites
San Diego
New York
Hold All Payments Hold Unvalidated Invoices Hold Unmatched Invoices Amount Limit = $15,000
Apply Holds to Invoices
Hold Types Acct Hold Reason Funds Hold Reason Insufficient Information Invoice Hold Reason Matching Hold Reason Period Hold Type PO Req Hold Reason Variance Hold Reason
Predefined
User Definable
Manually Releasable No Sometimes No Yes Sometimes No No Sometimes
Apply Holds to Scheduled Payments
$1000.00
Invoice
Hold
Due Date 04-APR-2007 04-MAY-2007
Gross Amount 900 100
Release Supplier Site Holds
San Diego
New York
Hold All Payments Hold Unvalidated Invoices Hold Unmatched Invoices Amount Limit = $15,000
Release Invoice Holds

Hold Release Types Acct Release Reason Funds Release Reason Sufficient Information Predefined User Definable
Invoice Release Reason

Matching Release Reason Period Release Type Variance Release Reason Hold Quick Release Reason Invoice Quick Release Reason
Release Scheduled Payment Holds
$1000.00
Invoice
Hold
Due Date 04-APR-2007 04-MAY-2007
Gross Amount 900 100
Reports
Batch Control Report by Batch Name Batch Control Report by Entered By Credit Memo Matching Report
Invoice Aging Report

Invoice Audit Listing by Voucher Number Invoice Audit Listing
Reports
Invoice Audit Report Invoice History Report Invoice on Hold Report
Invoice Register
Matching Detail Report Matching Hold Detail Report
Reports
Recurring Invoices Report Matching Hold Agent Notice Print Invoice Notice
Supplier Paid Invoice History

Matching Holds by Buyer
Reports
Receiving Hold Requestor Notice Distribution Set Listing Key Indicators Report
Setup Options
Payables System Setup Options Payables Options Purchasing Options Profile Options
Payables System Setup Options

Payables System
Invoice Match Option

Hold Unmatched Invoices Invoice Currency Pay Group
Terms Date Basis Pay Date Basis Payment Terms Always Take Discount Create Interest Invoices
Payables Options
Invoice Allow Force Approval Require Validation Before Approval
Payables Options (Continued)

Invoice Use Invoice Approval Workflow Allow Online Validation Receipt Acceptance Days

Invoice Confirm Date as Invoice Number Allow Adjustments to Paid Invoices Recalculate Scheduled Payment

Invoice Allow Document Category Override Freight Account GL Date Basis Prepayment Settlement Days
Prepayment Payment Terms

Interest Matching Allow Final Matching Allow Distribution Level Matching Allow Matching Account Override Transfer PO Descriptive Flexfield Information
Allow Interest Invoices
Purchasing Options
Match Approval Level
Profile Options
PO: ERS Aging Period PO: ERS Invoice Number Prefix AP: Use Invoice Batch Controls
AP: Notification Recipient e-Mail
Additional Implementation Considerations
Tips to speed up data entry Use Folder Tools Use Quick Invoices Use Account Aliases Use Keyboard Shortcuts Use Pay on Receipt Use Procurement Cards Use Distribution Sets Use Recurring Invoices Set Up Default Values (System and Supplier Site)
Invoice conversion Data mapping Data cleanup Report mapping Training and cutover
Summary
You should now be able to do the following: Import/Enter invoices and invoice distributions Match to purchase orders Validate invoices Apply and release holds Understand invoice approval workflow Identify key standard reports Understand setup options Understand additional implementation considerations
Payments
Objectives
After completing this module, you should be able to do the following: Describe the payment process Set up banks and bank accounts Enter single payments Process multiple payments Review and adjust payments Set up and create bills payable Create, apply, and release holds on prepayments
Objectives
Reconcile payments with Oracle Cash Management Use key standard reports Understand key setup options Understand additional implementation considerations

Requisitions Catalog Content Management Purchase Orders Ordering
RFQs/ Quotations
Receiving
Sourcing Analysis Invoice/ Payment
Supplier management Supplier Performance
Reporting
Invoice Payment Overview

Enter supplier Enter invoice Validate invoice
Pay invoices
A/P 100,000 60,000 10,000 30,000 Transfer information to General Ledger Create accounting entries
New Payment Terminology in R12

Key Concepts
Document Payable Pay Run/ Payment Process Request Payee
Payment Instruction
Payment Process Profile Payment Process Request Template Payment Format Payment Method
Key Concepts New to Oracle Payables
Using the Invoice Workbench
The Invoice Workbench is used to:
Enter, adjust, review one or more invoices Initiate payment of one or more invoices Initiate payment of one or more scheduled payments
Fully Integrated Invoice Workbench

Using the Payment Workbench
The Payment Workbench, (Payments window) accessible through the Invoice Workbench, is used to generate: - Manual payment - Quick payment - Refund
Using the Payments Manager

Payments Manager
The Payments Manager is used to create and process multiple payments and is comprised of the following components: Payments Dashboard (home) Payment process requests templates Payment process requests Payment instructions Payments
Seeded Payment Methods

Payment Method
Definition
Check
Outsourced Check Electronic Wire
A paper check to print and send to a supplier

Transmission of payment information to an external party, such as your bank, that prints checks on your behalf An EFT, EDI, or XML payment to the bank of a supplier A funds transfer initiated by contacting the bank and requesting wire payment to the bank of a supplier
Bank Account Model

Trading Community Architecture (TCA)
Cash Management
Bank
Payables
Receivables Bank Branch Bank Account Payroll Treasury
Entering Bank and Bank Branch Information

Country Bank Name Address Contact
Bank
Bank Branch
Country & Bank Branch Name Branch Type & Details Address Contact
Entering Bank Account Information
Owner
Bank Account Owner (LE) Account Use
Name
Information
Number
Currency

General Controls
Cash, Cash Clearing
Bank Charges, Bank Errors Foreign Exchange Charges, Agency Location Code
Netting Account
Payables Controls
Multiple Currency Payments, Pooled Account Minimum/Maximum Payment, Allow Zero Payments Maximum Outlay
Access
Account Use Organization Accounts Document Category/ Payment Method
Contact
Contacts
Defining Payment Documents
Payment documents are check stock on which checks and promissory notes can be printed or written. They usually have security features, such as watermarks to prevent fraud. Before you can use a bank account with a processing type of Printed, you must: Create at least one payment document. Assign the payment document to a specific:
bank account name bank account number bank and branch
Manual Payment Overview
Payments made outside of Payables
Handwritten/Typed Checks
Wire Transfers Your Bank Suppliers Bank
Creating Manual Payments

Payments Type Bank Account Payment Document Preprinted Checks Num Payment Amount Trading Partner/Site
Manual 1st National
2107 200.10
ABC Co/Boston
Enter/Adjust Invoices
Select Invoices Invoice Number Payment Amount Discount Amount Unpaid Amount Discount Available
29097
31077
88.10
112.00
0.00
0.00
88.10
112.00
0.00
0.00
Invoice Overview
Creating Quick Payments

Payments Type Bank Account Payment Document Laser Checks Num Payment Amount Trading Partner/Site
Quick
1st National
7240
3510.00
XYZ Inc/Dallas
Enter/Adjust Invoices
Select Invoices Invoice Number Payment Amount Discount Amount Unpaid Amount Discount Available
9097
10038
2850.00
660.00
0.00
0.00
2850.00
660.00
0.00
0.00
Invoice Overview
Processing Stop Payments for Single Payments in the Payment Workbench
Contact Bank Request Stop Payment
Yes
Release stop
Bank Confirms Cleared?

Query Payment Initiate Stop No Proceed with void
Voiding Single Payments in the Payment Workbench
Query Payment Actions Void Invoice Action
Invoice Available for Payment Invoice on Hold Cancel Invoice
Processing Multiple Payments Overview

Payments Manager
The Payments Manager enables you to perform the following payment actions:

Create payment process request templates Use templates to automatically select invoices to pay Schedule pay runs Modify invoice selection and payment amounts Initiate payment instructions View the status of payments Void or record stop payments
Payments Manager Overview

The Payments Managers payment process is as follows: Invoices are grouped into a payment process request. The Build Payments program validates the invoices, groups them into payments, and validates those payments. The Create Payment Instructions program groups the payments into payment instructions. Each payment instruction results in one payment file that contains information on one or more payments. Payments are made by printing checks or electronically transmitting payment instructions to a financial institution or external payment system.
Creating Payment Process Request Templates
Payment process request templates are created in the Templates tab of the Payments Manager to simplify pay run processing.
A template is used to select invoices for a pay run and specifies: header information payment selection criteria payment attributes processing instructions how validation failures will be handled
Specifying Payment Process Request Template Header Information

Template Header Information The first step in creating a payment process request template is to specify template header information. The information in a header uniquely defines the template, making it easy to query. Defines the Template
Specifying Payment Process Request Template Payment Selection Criteria

Invoice Payment Criteria The second step in creating a payment process request template is to specify invoice payment selection criteria. Selection criteria determine which invoices will be selected for payment in the pay run. Defines Invoices for Payment
Specifying Payment Process Request Template Payment Attributes

The third step in creating a payment process request template is to specify payment attributes. For a pay run, you can specify one of the following: a single bank account and a single payment process profile multiple bank accounts using different payment instruments Different Payment Instruments
Single Payment Process Profile
Automating the Payment Process Request Template Process

The fourth step in creating a payment process request template is to specify the degree of pay run automation. The pay run process can specify whether to:
Select Elements of Pay Run Automation
group credit payments for a

supplier together stop for selected invoice review stop for proposed payments review initiate payment instructions after pay run/wait for review
Specifying Validation Failure Criteria for the Payment Process Request Template
The fifth and final step in creating a payment process request template is to specify how the system handles validation failure on the: document level payment level Documents are invoices grouped together to form a payment. A payment contains one or more documents.
A Payment Contains One or More Documents
Submitting the Cash Requirement Report
Cash Requirement Report

Used to forecast your immediate cash needs for invoice payments
Report Can Be Submitted

Before every pay run to determine cash requirements for the pay run For next two or three pay runs to forecast cash requirements and improve cash management
Submitting an Expedited Single Payment
An expedited single payment is a payment process where the following occurs:
Using the Payment Workbench, a single invoice is printed or transmitted in seconds. A single invoice is processed in a payment process request, resulting in one payment/one payment instruction containing the single invoice.
The system does not wait for scheduled payment instruction creation and ignores invoices or payments that may be waiting for further processing.
Submitting a Standard Payment Process Request

Using the Payments Manager, you can manage a large group of documents payable associated with: multiple operating units multiple legal entities multiple currencies and pay groups multiple bank accounts different payment instruments
Scheduling a Payment Process Request

You can schedule a payment process request that selects invoices using a specific payment process request template, which will run:
as soon as possible on a specific date and time periodically or only once
Reviewing or Modifying Selected Invoices
By reviewing and modifying invoices that are selected for a pay run, you can: change the invoice amount or the discount taken remove selected invoices from the payment process request add selected invoices to the payment process request review unselected invoices recalculate interest, payment withholding, or exchange rates
Reviewing the Scheduled Payment Selection Report

The payment process request automatically initiates the Scheduled Payment Selection Report where you can review: invoices selected for a pay run invoice selection criteria immediate cash requirements for the pay run credits missed available prepayments unselected invoices
Reviewing Proposed Payments
After the Build Payments program has created proposed payments -You can review and approve them to confirm that the right payments are being made.
Building Payments
After you submit a payment process request, the Build Payments program groups invoices together to build payments.
The Build Payments Program:

validates invoice information required for payment groups invoices into payments assigns disbursement bank accounts and payment process profiles to the payments validates the payments
Creating Payment Instructions Overview
A payment instruction is a group of payments that is created from one or more payment process requests. This information is formatted and, depending on your setup, is converted to a payment file that is: -- printed onto in-house checks -- transmitted to a financial institution or payment system for further processing and disbursement
Creating and Transmitting Electronic Payment Instructions

Payment instructions are a collection of payments that are created by one of the following ways: created automatically by the Create Payment Instructions program created after manual submission by you
Creating and Printing Printed Payment Instructions

Payment instructions are a collection of payments that are created by one of the following ways: created automatically by the Create Payment Instructions program created after manual submission by you
Printing Payments
Schedule Request: Parameters page
Print Now
Submit Requests Concurrent Program Name: Create Printed Payment Instructions Setup for Printed Payments: Processing Type of Printed in the Create Payment Process Profile page
Reprinting Payment Documents
If you find no problems with the initial print run, you can record the print status of your payment documents. If, after printing has been submitted, you discover printing problems and wish to reprint particular payment documents or even the complete payment instructions, you can reprint: individual payment documents ranges of payment documents the complete payment instruction
Recording Print Status of Prenumbered Payment Documents
Document Number
12014-12016
12017-12018
Status
Printed
Spoiled
Restart Batch
Document Number: 12019
Marking Payments Complete
When printed and electronic payments are complete, source products are notified so they can perform any necessary accounting actions. Printed and electronic payments are considered complete as follows: Printed payments are complete when payment documents are recorded as Printed. Electronic payments are automatically or manually marked complete at points specified during the setup of payment process profiles.
Recording Stop Payment Requests in Payments Manager
Contact Bank Request Stop Payment
Yes Release Stop Payment
Bank Confirms Cleared Void Payment Payment? No and Confirm Record Stop Query Payment Stop Payment Payment Request
Voiding Payments in Payments Manager
Record Voided Payment Query Payment Click Void Icon Confirm Success of Stop Payment
Finding and Reviewing Payments

In the Payment Overview window: query a payment review the status of a payment and its related high-level information
Payment Workbench
Invoice Workbench
The Payment Overview window is helpful for reviewing the status of a payment quickly and is a bridge between the Payment Workbench and the Invoice Workbench.
Updating Payments Using the Payment Window
You can use the Payments window to: adjust selected invoices for Manual payments update Manual payment addresses You cannot perform the following update payment actions: adjust a Manual payment used to pay a prepayment that was applied to an invoice make any changes to cleared or voided payments make adjustments to selected invoices on matured bills payable if accounting exists for the maturity event
Processing Refunds
When a supplier or employee sends you a refund for an invoice payment you have made, you can record the refund. A refund closes an outstanding credit balance, so you are actually making a negative payment for a credit balance. The credit balance can consist of the outstanding balance of any combination of the following documents, as long as the sum is negative and equals the refund amount: Invoices Debit memos Credit memos Expense report
Entering Refunds
The Payments window is used to record a refund payment for one or more outstanding Payables documents. This enables you to close an open credit balance and maintain a full transaction history for the supplier.
Recording Refunds for Invoices When a Credit Balance Exists

You pay debit balance with refunds in the Payments window. If you know the credit or debit memo you want to pay, you can query it in the Invoices window, select the Scheduled Payments tab, and then choose the Pay button.
Refunds for Prepayments
You may receive refunds from suppliers for prepayments you have made to them, such as a refund for a deposit or repayment of a travel advance. If you receive a refund for a prepayment, enter an invoice and apply the prepayment to it. Enter a debit memo for the invoice. You can then pay the debit memo with the refund.
Voiding Refunds
You can void a recorded refund just as you void any other payment. Select the refund in the Payments window, choose the Actions button, and use the Void option in the Payment Actions window. You can then reenter the refund and pay any open invoices or prepayments for the supplier.
Canceling Payment Process Requests in the Payments Manager
In the Payment Process Request: Selected Scheduled Payments page, click the Terminate Request button.
You can cancel a request for invoice selection by taking one of these actions in the Payment Process Requests tab of the Payments Manager.
Bills Payable Overview
Formerly known as a future dated payment, bills payable instruct your bank to disburse funds to your supplier's bank on a specific date, known as the maturity date.
You can use bills payable to: control the timing

of your payments
control cash flow
Setting Up Bills Payable

To use bills payable in Payables, you must perform the following setups:
Funds Disbursement Payment Method Setup
Payment Process Profile Setup
Prepayments Overview
A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee. For example, you need to pay a deposit on a lease, or pay an employee an advance for travel expenses. You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them.
Entering Prepayments
You can enter a Prepayment type invoice only in the Invoices window. You cannot enter a Prepayment type invoice in the Quick Invoices window.
Applying and Releasing Holds on Prepayments
To prevent payment of a prepayment, you can apply one or more holds to the prepayment or you can hold the scheduled payment. You apply these holds as you would for any other invoice. You release holds from a prepayment just as you would for any other invoice.
Applying Prepayments to Invoices and Expense Reports

You can apply the available amount of Item type distributions from a Temporary type prepayment to one or more invoices to offset the amount you pay on the invoices.
Canceling Prepayments
You can cancel prepayments if one of the following is true: they have not been paid they have not been applied to invoices To cancel an applied prepayment, you must: unapply the prepayment void the payment document that paid the prepayment
Reconciling Payments with Cash Management
With Oracle Cash Management, you can reconcile payments created in Payables to your bank statements. When you reconcile payments using Oracle Cash Management, Cash Management updates the status of payments to Reconciled.
Oracle Cash Management

Reconciles payments from Payables. Updates status of reconciled payments.
Clearing Restrictions
Oracle Cash Management cannot clear bills payable that have a payment status of Issued. Oracle Cash Management clears bills payable only if the payment status is Negotiable. On or after the maturity date of the payment, you can update the status to Negotiable.
Reports
Bank Account Listing Cash Requirement Report Discounts Available Report
Discounts Taken and Lost Report

Final Payment Register Payment Audit by Voucher Number
Reports (continued)
Payment Exceptions Report Payment Gain & Loss Report Payment Register
Positive Pay File

Payment Process Request Status Report
Reports (continued)
Separate Remittance Advice Stop Payments Report Supplier Payment History
Unclaimed Property Report

Void Payment Register
Key Payables System Setup Options
The key Payables system setup options include the following in the Payment region of the Supplier tab.
Pay Group Terms Date Basis Pay Date Basis Payment Terms Always Take Discount Create Interest Invoices
Key Payables Setup Options
The key Payables setup options include the following in the Single Payment region of the Payment tab: Allow Pre-Date Allow Void and Reissue Allow Address Change
Payment Terms
Payment terms are defined to: assign them to an invoice to automatically create scheduled payments when you submit Invoice Validation for the invoice create multiple scheduled payment lines and multiple levels of discounts
Key Lookup Codes
DONT PAY REASON
PAY GROUP
Setting Up XML Publisher Formatting Templates
The system uses Oracle XML Publisher formatting templates to format payment instructions. Oracle XML Publisher: provides ready-to-use formatting templates enables you to configure your own formatting templates The purpose of setting up formatting templates is to: enable the system to use the formatting templates to format payment instructions
Setting Up Payment Formats

A payment format is an entity that associates the XML Publisher Template with the payment process. The purpose of setting up payment formats is to: assign validation sets associate each payment format with an XML Publisher formatting template The system provides one payment format for each of the formatting templates in Oracle XML Publisher.
Setting Up Transmission Configurations
A transmission configuration: implements a specific transmission protocol enables the delivery of a transaction to a specific payment system or financial institution This setup is only required for sending: electronic payments to a payment system positive pay files
Setting Up Payment Systems
A payment system is an organization that provides financial settlement services, such as a: bank at which the deploying company has its bank accounts third party processor that connects deploying companies with financial institutions
Setting Up Funds Disbursement Payment Methods

A funds disbursement payment method is a medium by which the deploying company makes a payment to one or more suppliers. Payments supports the following payment methods for funds disbursement:
Payment Methods
Checks Outsourced
Checks
Electronic Funds Transfer
Wire
Setting Up Payment Method Defaulting Rules
Payment method defaulting rules determine how payment methods default onto a document payable, such as an invoice. A payment method defaults onto an invoice when all specified conditions are met.
Payment method rules
Applies to invoice
Setting Up Payment Process Profiles
A payment process profile is a blueprint assigned to documents payable, which specifies: all the rules for creating and disbursing payments how payments are processed instructions for payment formatting and transmission The purpose of setting up payment process profiles is to specify the details of the payment process.
Setting Up Disbursement System Options
Disbursement system options are system-wide payment options that control disbursements made by the deploying company to suppliers. Payables provides two levels of system options: Levels of System Options
Enterprise level Organization level
Additional implementation considerations include: Managing Cash Requirements Internal Controls for Payment Processing Integration Partners
Managing Cash Requirements
Run Cash Requirement Report Narrow Selection of Invoices in Pay Run
Payment Selection Criteria Name Pay Through Date (current date Feb-5) Payment Priorities High/Low Include Only Due
Original Payment Selection Criteria Feb-25 None No Max Outlay $5M Max Pmt $500K
Revised Payment Selection Criteria Feb-15 1-5 Yes Max Outlay $2.5M Max Pmt $300K
Payment Limits
Internal Controls for Payment Processing
Proper Segregation of Duties
Enter Suppliers Approve POs
Import/ Enter Invoices
Sign Checks Process Payments Mail Payments
Reconcile Cash Account
Credentials of Payment Processing Staff
Physical Security
Summary
In this lesson, you should have learned how to: Describe the payment process Set up banks and bank accounts Enter single payments Process multiple payments Review and adjust payments Set up and create bills payable Create, apply, and release holds on prepayments
Summary
Reconcile payments with Oracle Cash Management Use key standard reports Understand key setup options Understand additional implementation considerations
Expense Reports and Credit Cards
Objectives
After completing this module, you should be able to do the following: Describe the expense report process Enter expense report templates Enter expense reports Apply advances Identify key expense related reports Set up credit card programs
Expense Reports
An Expense Report is an invoice representing an amount due to an employee for business-related expenses.
Internet Expenses Overview

Oracle Internet Expenses is a self-service application for employees to manage expense reports online
Internet Expenses Overview

Oracle Internet Expenses is a tool that helps meet top management goals.
Controls cost and errors
Streamlines expense reporting
Improves employee productivity
Accessible anywhere
Enforces policies/ statutory regulations compliance
Advantages of Using Oracle Internet Expenses

Expense Reporting Process

Employee creates expense report Approved: Accounts Creates payment; Payables Manager notifies employee department approves report approves report
Payables
Internet Expenses Rejected: Adjusted: Workflow notifies Creates payment; employee notifies employee
Entering Expense Reports

You can enter expense reports in these products:
Oracle Payables
Oracle Internet Expenses
Expense Reports Window
Invoices Window
Web
Spreadsheet
Entering Project-Related Expense Reports
Enter Project-Related Expense Reports in the Invoices Window
Expense Report Export Program
Converts expense reports created in the following applications into Payables invoices:

Payables Internet Expenses
Expense Report Export Program

Expense Report Templates
You use the Expense Report Template window to define templates based on the expense report forms you regularly use in your enterprise. You can define default values for expense items, and you can then choose those items from a list of values when you enter expense reports.
Expense Report Templates for Internet Expenses

If Internet Expenses is implemented, employees can enter expense reports using a standard Web browser. Only templates that have the Enable for Internet Expenses option enabled are available for use with Internet Expenses.
Taxes on Expense Reports
Expense reports use E-Business Tax to automatically calculate the applicable taxes during Expense Report Export.
Entering Foreign Currency Expense Reports

Foreign currency expense reports are subject to the same system requirements as foreign currency invoices. You can only apply advances (prepayments) that have the same currency as the expense report.
Applying Holds to Expense Reports
At any time before you submit Expense Report Export for an expense report, you can apply a single User defined hold to an expense report. This prevents payment of the invoice Payables creates from the expense report. Subledger accounting entries are not created if you select a hold that prevents accounting.
Applying Advances Against Expense Reports

You can pay an employee an advance (prepayment) and later apply the advance against an expense report to reduce the amount you pay for an expense report.
Expense Report $1500 $500 Travel Advance

$1000 Unpaid Balance
Modifying and Reviewing Existing Expense Reports

You can review and modify Payables expense reports in the Expense Reports window or the Invoices window. If you have successfully exported an expense report using Expense Report Export, then you can view it but you cannot modify it. Use the Audit module in Internet Expenses to review Internet Expenses expense reports
Paying Expense Reports
Payables will pay invoices only. Submit the Expense Report Export program to have Payables create invoices from expense reports. You can then create payments for the invoices.
Procurement Cards
Procurement cards allow qualified employees to purchase items directly from suppliers. You can use procurement cards to streamline your Procure-to-Pay process, reduce transaction costs, and eliminate low-amount invoices.
Procurement Card Process

Validate and Verify Procurement Card Transactions Send for Management Approval Approved: Create invoices; ready for validation and payment
Load AP_EXPENSE_FEED _LINES_ALL Rejected: Workflow notifies employee
Adjusted: Create invoices; ready for validation and payment
Setting Up Procurement Cards and Credit Cards

Set up credit card programs to manage your enterprises credit card and procurement card requirements. Travel = Employees who enter credit card transactions on expense reports. Procurement = Employees who use procurement cards to purchase items directly from suppliers.
Code Sets Window
You use the Code Sets window to define sets of credit card codes for your procurement cards. Payables uses these codes to create default accounting distributions for transactions that you import from your credit card issuer.
Card Programs Window
You use this window to define your credit card programs for each card issuer. You define the supplier and supplier site for your card program. You also specify which transaction statuses to exclude when you automatically create an invoice for your card issuer.
GL Account Sets Window
You use the GL Account Sets window to create a list of values of GL accounts that your employees can use to correct account information for their procurement card transactions, if you allow your procurement card holders to update transaction accounts.
Profiles Window
You use this window to define profiles for the various types and levels of spending you allow for procurement card holders. You assign a credit card profile to each card that you assign to a card holder.
Credit Cards Window
You use the Credit Cards window to define the credit cards distributed to your employees. Enter an employee name and credit card number, and assign a card profile.
Summary
In this module, you should have learned how to: Describe the expense report process Enter expense report templates Enter expense reports Apply advances Identify key expense related reports Set up credit card programs
Period Close
Objectives
After completing this module you should be able to do the following: Describe the period closing process in Payables and Purchasing Reconcile accounts payable transactions for the period Identify key programs and reports Understand setup options Understand additional implementation considerations
Key Processes
Create Accounting Final Subledger Accounting
Transfer to GL GL Interface Import to GL Post in GL
Payables Create Accounting Draft
Distributions
Accounting Details
Review/Correct Accounting
Oracle Assets, Projects, Procurement, Inventory

General Ledger
Overview of the Period Close
Prepare for period close
Run Validation/ Review and resolve holds
Create accounting Transfer & review unaccounted transactions
Close the GL period
Reconcile AP activity for the period
Post journal entries in GL
Close the period
Prepare for Period Close
Complete all receipt processing Confirm or cancel all pending pay runs Update matured bills payable Import invoices Export and process expense reports Interface adjustments to supplier invoices and expense reports Reconcile bank statements
Run Validation/Review and Resolve Holds
Run the Invoice Validation Process
Resolve Invoice Holds
Rerun Validation if Necessary
Create Subledger Accounting
Enter an Invoice
Make a Payment
Create Accounting
View Accounting
Create Accounting Program
The Create Accounting program processes eligible accounting events to create subledger journal entries. The program applies the application accounting definitions that are created in the Accounting Methods Builder (AMB). The following report is generated by this program: Oracle Subledger Accounting Program Report
Transfer and Review
Run Transfer Journals to General Ledger
Review Transfer Results
Review Account Analysis Report
Transfer Journal Entries to GL Program
The Transfer Journal Entries to GL program enables you to transfer any eligible journal entries to General Ledger, including those from previous batch runs that have not yet been transferred to General Ledger. The following report is generated by this program: Transfer to Journal Entries to GL Report
Post Journal Entries in GL
Post Journals in GL
Create Remaining Mass Additions
Reconcile AP to GL
March Accounts Payable Trial Balance + April Payables Posted Invoice Register - April Payables Posted Payment Register - April Accounts Payable Trial Balance =0
Close the AP Period
Period Close Exceptions
Close the AP Period
Close the PO Period
Close the purchasing period
Write off accrued transactions as necessary
Review the Uninvoiced Receipts report
Process remaining inventory transactions
Process period-end accruals
Run the Accrual reports
Key Accounts
Receiving Inventory Account Inventory AP Accrual AP Liability Expense AP Accrual Material Charge Account Purchase Price Variance Invoice Price Variance
Accrual Accounting Perpetual Accrual (On Receipt)

Receiving Inventory Acct Inventory AP Accrual Material AP Liability Expense/ Clearing
01-000-1412 01-000-2221 01-000-1410 01-000-2210 01-000-1570
100 100
100 100
1 2 3 4
100
100
5
-0-
-0-
-0-
100
100
Accrual Accounting Periodic Accrual (Period End)

Receiving Inventory Acct Expense AP Accrual Material AP Liability Expense/ Clearing
01-000-1412 01-000-2221 01-000-1410 01-000-2210 01-000-1570
1 2 3
200 200 200 200 200 200
5
6
-0-
-0-
-0-
200
200
Accounting for Mass Additions Periodic Accrual (Period End)

Expense AP Accrual
01-000-2221
Asset Cost
AP Liability
Expense/ Clearing 01-000-1570
01-000-1560
01-000-2210
1 2
200 200 200 200 200 200 200 200
3 4
5
6
-0-
-0-
200
200
Accounting for Payments with Cash in Transit (Cash Clearing)

Cash Cash in Transit 01-000-1150 AP Liability Expense/ Clearing/ Accrual 01-000-1570
01-000-1110
01-000-2210
400 400 400 400 400
400
1 2 3
400
-0-
-0-
400
Accounting for Payments without Cash in Transit (Cash Clearing)

Cash Cash in Transit 01-000-1150 AP Liability Expense/ Clearing/ Accrual 01-000-1570
01-000-1110
01-000-2210
400 400 400
400
1 2
400
-0-
400
Reports
Accounts Payable Trial Balance Accrual Rebuild Reconciliation Report
Accrual Write-Off Report

Matched and Modified Receipts Report Account Analysis Report
Reports
Payables Posted Invoice Register
Payables Posted Payment Register

Receipt Accruals - Period End Receiving Account Distribution Report
Reports
Unaccounted Transactions Report Uninvoiced Receipts Report
Financials Options
Accounting Future Periods Liability Prepayment Future Dated Discount Taken PO Rate Variance Gain/Loss Expenses Clearing Miscellaneous Retainage
Payables Options
Accounting Account for Payment Account for Gain/Loss Automatic Offset Method
Interest
Prepayment Account
Discount Method
Future Dated Payment Account Source
Payables Options: Currency

Currency Use Multiple Currencies Require Exchange Rate Entry Calculate User Exchange Rate Exchange Rate Type GL Accounts: Realized Gain Realized Loss Rounding
Purchasing Options
Receipt Accounting Accrue Expense Items
Accrue Inventory Items Expense AP Accrual Account
Automatic Offset Method
Running the Invoice Validation process Running the Create Accounting process Level of detail for Create Accounting process Running the Transfer Journal Entries to GL process Determine number of clearing accounts to use for projects, assets, and cash management
Summary
You should now be able to do the following: Describe the period closing process in Payables and Purchasing Reconcile accounts payable transactions for the period Identify key programs and reports Understand setup options Understand additional implementation considerations
Withholding Tax
Objectives
After completing this module, you should be able to do the following: Identify the withholding tax process Use withholding tax options Process manual withholding tax invoices Create withholding tax invoices Process automatic withholding tax invoices Identify standard key reports
Withholding Tax Overview
You may be required to withhold taxes from your employee expense reports and supplier invoices. Once you set up Payables to automatically withhold tax, you can withhold tax either during Invoice Validation or during payment processing. You can control all withholding tax options in the Withholding Tax region of the Payables Options window.
Setting Up Withholding Tax (Optional)
You may want to customize Automatic Withholding Tax (AWT) to perform special behavior based on your local requirements.
Withholding Tax Payables Options Use Withholding Tax

Select the Use Withholding Tax option to enable Automatic Withholding Tax. If you enable this option, you have the option to allow your suppliers and supplier sites to be subject to withholding tax.
Defining Tax Codes for Withholding Taxes
Payables provides flexibility in defining withholding tax rates with specific controls. When you define a withholding tax code, you indicate first whether you will have any amount or rate controls by selecting one of the following rate structures: Period Limit Flat Rate Amount Ranges
Withholding Tax Groups
You use this window to define withholding tax groups that include multiple Withholding Tax type tax codes. You can assign the same tax code to more than one group. When you assign a withholding tax group to an invoice or distribution, Payables calculates invoice withholding tax based on every tax code in the withholding tax group.
Withholding Tax Certificates and Exceptions
You use the Withholding Tax Certificates and Exceptions window to define Withholding Tax type tax code rate exceptions for a supplier site.
Withholding Taxes for Suppliers
You enable withholding taxes for a supplier and supplier sites in the Tax Details region of the Suppliers page. Select Allow Withholding Tax option if you want to enable withholding for a supplier or supplier site, and select a default Withholding Tax Group that Payables will default to all invoices you enter for the supplier or supplier site.
Tax Details for Suppliers and Supplier Sites
You use the Tax Details region to enter withholding tax information for a supplier and supplier site. If your Use Withholding Tax Payables option is not enabled, you will not be able to enable the Allow Withholding option. The options you select for a supplier default to the new supplier sites you enter, then default to invoices you enter for that site.
Withholding Taxes from Recurring Invoices
To withhold taxes from a recurring invoice: When you define a recurring invoice template, enter the Withholding Tax Group. This group will be applied to all invoices you create for that template.
Withholding Tax When Applying Prepayments
If you use automatic withholding tax, Payables creates the correct withholding tax lines and distributions. If your Withholding Tax Payables option is set to Apply Withholding Tax at Invoice Validation Time, then you might want to time the entry of the prepayment application before the invoice is validated.
Creating Withholding Tax Invoices
After you apply withholding tax to an invoice, you can optionally create invoices to remit withheld tax to the tax authority.
Projected Withholding Tax
You use the Projected Withholding Tax window to review projected withholding tax invoice distributions for an invoice. Payables creates one Withholding Tax type invoice distribution for each Withholding Tax type tax code per withholding tax group assigned to an invoice distribution. Information in this window is display only.
View PeriodToDate Withheld Amounts
You use this window to review periodtodate withheld amounts for a Withholding Tax type tax code for a supplier. You can review the amount subject to withholding and the periodtodate withheld amount. This window shows automatically withheld amounts, and does not show amounts that you withhold manually.
Withholding Tax Reports
Payables provides the following income tax forms and reports:

Withholding Tax By Invoice Report Withholding Tax By Payment Report Withholding Tax By Tax Authority Report Withholding Tax By Supplier Report Withholding Tax Certificate Listing Withholding Tax Letter Withholding Tax Report
Withholding Tax By Invoice Report
You use the Withholding Tax By Invoice Report to review detailed invoice withholding tax information for a supplier, including invoice number, amount subject to withholding, and tax amounts withheld.
Withholding Tax By Payment Report
You use the Withholding Tax By Payment Report to review detailed invoice withholding tax information for a supplier, including invoice number, amount subject to withholding, and tax amounts withheld.
Withholding Tax By Tax Authority Report
You use the Withholding Tax By Tax Authority Report to review detailed withholding tax information for Withholding Tax type tax codes assigned to a Tax Authority type supplier.
Withholding Tax By Supplier Report
You use the Withholding Tax By Supplier Report to review detailed invoice withholding tax information for a supplier, including invoice number, amount subject to withholding, and tax amounts withheld.
Withholding Tax Certificate Listing
You use the Withholding Tax Certificate Listing to review withholding tax certificates for a supplier or all suppliers.
Withholding Tax Letter
You use this report to create a withholding tax letter to mail to your suppliers on a periodic basis. This letter contains a list of withholdings made for a supplier, summarized either by tax type and tax rate or by supplier site.
Withholding Tax Report
You use this report to create a withholding tax report for your companys internal reporting needs. This report contains a list of withholdings made on behalf of your suppliers, summarized either by tax type and tax rate or by supplier site, and grouped by supplier.
Summary
In this module, you should have learned how to: Identify the withholding tax process Use withholding tax options Process manual withholding tax invoices Create withholding tax invoices Process automatic withholding tax invoices Identify standard key reports
R12 Oracle Payables Management Fundamentals
Practices
Advances and Progressive Contract Financing
Objectives
After completing this module, you should be able to: Describe the purpose of complex service contracts Identify advances, contract financing and progress payment invoices Calculate retainage Recoup prepaided amounts for complex service contract
Advances and Progressive Contract Financing

Oracle Projects
Cost Collection
Budget / Deliverables Request for Services Procurement for Complex Services
Retainage Release
Oracle Payables
Negotiate
Invoice / Payments Track Progress
Control
Advanced Procurement
Advances and Contract Financing

iSupplier Portal: Invoice Request is approved; Prepayment Invoice created
Purchase Order/ Contract for Services: $1,000,000
Supplier requests prepayment: $50,000
Additional approvals ?
Invoice is validated; Payment Issued
Payables: Prepayment Invoice Entered

Progress Payments
Approved
Advance Resurface Lot Road Work Landscape Final Painting 200,000 500,000 250,000 50,000 1,000,000
Billed
Advance/ Retained Recoupment 50,000
200,000 500,000 250,000 50,000 1,000,000
<20,000> <50,000> <25,000> < 5,000> <100,000>
<50,000>
Entering Advances and Contract Financing Invoices

An advance prepayment invoice is not matched for an advance, since an advance is paid once before any work commences and is not based on performance. A contract financing prepayment invoice is matched to pay items (shipments).
Tolerances and Holds on Advances and Contract Financing

During validation, invoices are checked for: Quantity-based tolerances for goods procurement Amount-based tolerances for services procurement Milestone holds Matching holds
Work Confirmation
A work confirmation confirms that work was delivered by a certain supplier at a specific price on a specific date as specified by a specific work confirmation number, which is associated with a purchase order number.
Funds Checking and Encumbrance for Advances and Contract Financing

If Budgetary Control is enabled, the system verifies that sufficient funds are available to pay an invoice. If Encumbrances is also enabled, Purchasing and Payables create encumbrances and encumbrance reversals against the budgets defined in Oracle General Ledger.
Taxes for Complex Service Contract Invoices

Invoice Type
Prepayments
Invoice Purpose
Advance
Tax Calculation Based On

Invoice Amount, based on Tax Rules for Advances Invoice Amount, based on Tax Rules for Contract Financing Invoice Amount, Net of Retainage Invoice Amount Retained Amount, based on Tax Drivers on Original Invoice
Contract Financing (Progress Payment) Standard Progress Payment Final Delivery Retainage Release Release Retained Amounts
Retainage Amount for Complex Service Contracts
Retainage is the act of withholding a portion of a payment until a substantial portion or all of the work is completed.
Retainage Lines for Complex Service Contracts
The retainage information for each pay item is stored in the Retained Amount field for the matched invoice line. The system creates negative retainage distributions prorated to the item distributions.
Retainage Release for Complex Service Contracts
Once the release criteria are met, suppliers request a release of the retained amount .
Recouping Advances and Contract Financing Payments

Recoupment is the automatic process of recovering prepaid amounts when invoicing for progress or for the final delivery of goods or services, based on specific terms specified in the services procurement contract.
Recoupment Amounts
Recoupment amounts are automatically calculated for every progress payment invoice line that is matched to a service procurement purchase order delivery pay item or shipment. Recoupment amounts are based on the total available amount of the financed pay items or shipments for the contract line item.
Summary
In this module, you should have learned how to: Describe the purpose of complex service contracts Identify advances, contract financing and progress payment invoices Calculate retainage Recoup prepaided amounts for complex service contract
Transaction Taxes in Payables
Objectives
After completing this module, you should be able to: Describe how transaction taxes are calculated for invoices Insert manual tax lines and update transaction tax lines View tax summary and details Identify key reports Understand set up options
Overview of Transaction Taxes in Payables
Payables leverages E-Business tax to setup, calculate, and manage transaction taxes such as: Sales VAT Excise Customs Duty Environmental Offset Recoverable Tax
Overview of Tax Calculation on Invoices

Recalculate Taxes
Enter Invoice
Click Calculate Tax
View Tax Change Tax Lines and Driver Distributions
Validate Invoice
Calculates Tax Calculates Tax E-Business Tax
Viewing Tax Amounts on Invoices
Invoice Header
Total Tax Self Assessed Tax
Invoice Lines
Exclusive Tax Inclusive Tax
Working with Transaction Taxes in Payables
Enter manual tax lines
Update tax lines
Employ taxes with deferred recoverability
Exclude tax from discounts
Self-assess taxes
Entering Manual Tax Lines
To enter manual tax lines, enable the following options for the configuration owner or event class: Allow Entry of Manual Tax Lines Allow Manual Tax Only Lines (optional)
Entering Manual Tax Lines
To manually enter tax details for Item, Freight, Miscellaneous, or Prepayment lines, complete the following fields: Tax regime Tax Tax status Tax rate Tax amount Place of supply (supplier site)
Entering Tax Only Lines
If you are entering a Tax Only line on an invoice: Ensure that line Type = Tax Enter the tax amount in the Amount field, not the Tax Amount field Complete all of the fields required for manual tax lines, plus these additional fields:
GL date Tax jurisdiction
Updating Tax Lines
To update tax lines, enable the following options for the configuration owner or event class: Allow Entry of Manual Tax Lines Allow Recalculation for Manual Tax Lines Tax Line Override Impacts Other Tax Lines
Updating Tax Lines
You can update the following fields for calculated tax lines: Tax Status Tax Jurisdiction Tax Rate Tax Amount Percentage Rate or Quantity Rate Self Assessed option Inclusive option
Exclude Tax from Discounts
To exclude tax from discounts, enable the Exclude Tax From Discount Calculation Payables Option
Invoice Amount
-Total Tax Amount
Discountable Invoice Amount
Self-Assessed Taxes
Enable the following option in the Party Tax Profile: Set for Self Assessment/Reverse Charge option You can enable this option at the following levels: Regime Regime, Tax Regime, Tax, Tax Jurisdiction
Taxes with Deferred Recoverability
Level
Allow Tax Recovery
Default Recovery Settlement Deferred Deferred
Tax Accounts
Regime Tax
Tax Expense Recoverable Tax Interim Tax (used for Accrual Based accounting only)
Tax Status Tax Rate
Deferred Deferred
Taxes with Deferred Recoverability
Item Expense Liability Recoverable Tax Non-Recoverable Tax
DR 1000.00 55.00 45.00
CR 1100.00
Once the invoice is paid, the deferred recoverable tax amount, 55.00, is credited and debited to the Deferred Recoverable Tax account.
Considerations for Taxes on Prepayments
To calculate taxes on Prepayment Invoices, enable the following option for the Prepayment event class: Allow Tax Applicability Tax calculation is affected by how the Applied Amount Handling option is set up. You can set this option as: Recalculated Prorate
Tax Variances
Tax Exchange Rate Variance (TERV) Tax Invoice Price Tax Rate Variance (TIPV) Tax Rate Variance (TRV) Tax Quantity Variance (TQV)
Tax Tolerances and Tax-Related Holds
To define tax tolerances: Enable the Allow Override for Calculated Tax Lines option for the configuration owner or event class Tax Tolerances define the limits of user override If an invoice exceeds the Tax Tolerances, then a TaxRelated Hold is applied during Invoice Validation
Tax Lines Summary and Tax Details

You can use the Tax Lines Summary and Tax Details windows to view, enter, and change the tax lines and distributions for an invoice.
Tax Distributions and Allocations
Use the Tax Distributions window to review and update tax distributions. You can review tax distributions and, if applicable, update the tax recovery rate on a tax distribution.
Use the Allocate Summary Tax Lines page to review and allocate your manual summary tax lines to specific transaction lines.
Tax Amount Verification During Invoice Validation
During Invoice Validation, E-Business Tax automatically verifies that you have correctly entered all tax drivers on an invoice. If tax exceptions exist, one or more tax holds are placed on the invoice.
Setting Up Taxes in E-Business Tax
Tax Authority
Tax Regime
Tax
Tax Jurisdiction
Tax Status OU Tax Accounts
Tax Rate
Recovery Rate
US Sales Tax Example
Tax Regime CA Sales Tax
Tax
Tax Jurisdiction
Tax Status
Tax Rate
Operating Unit Tax Account
State California Sales Tax State Sales Tax
Standard 7.25% 01.005.004.033
County San Mateo Sales Tax County Sales Tax

City Belmont City Sales Tax Sales Tax
Standard 1.0%
01.005.004.033
Standard 0.0%
01.005.004.033
UK VAT Example
Tax Regime UK VAT
Tax UK VAT
Tax Tax Status Tax Rate Jurisdiction UK VAT Standard Inter-EU 17.5% 15%
Recovery Rate 100% 100%
Reduced
5.0%
100%
Zero Rated 0.0% Exempt 0.0%
Offset Taxes
Existing Oracle Payables implementations that use Offset Taxes can setup and manage Offset Taxes in E-Business Tax. Ensure that the Set as Offset Tax option is enabled for the tax. For new taxes and new implementations, use E-Business Taxs Self Assessed tax feature instead.
Setting Up Tax for Suppliers
Party Tax Profile

Main Information Tax Registrations Classifications
Third Party Suppliers
Tax Reporting Codes Account Tax Details (migrated data only)
Suppliers Subject to Income Tax Reporting

To define a supplier as subject to income tax reporting requirements: Enter a Taxpayer ID Enable the Federal option and select an Income Tax Type (1099 MISC Type). Enable the State option, if applicable Enable the Allow Withholding Tax option
If you enter a purchase order for a 1099 supplier, then Oracle Purchasing retains the Income Tax Type information at the purchase order line level.
Financials Options
Tax Member State VAT Registration Number
Payables Options: Payment

Payment Exclude Tax from Discount
Summary
In this module, you should have learned how to: Describe how transaction taxes are calculated for invoices Insert manual tax lines and update transaction tax lines View tax summary and details Identify key reports Understand set up options
1099 Reporting
Objectives
After completing this module, you should be able to: Describe how to enable 1099 suppliers Enter invoices for 1099 suppliers Update 1099 information Understand 1099 reporting Understand 1099 set up options Understand additional implementation considerations
Entering Invoices for Suppliers Subject to Income Tax Reporting Requirements

If you set up a supplier as federally reportable and assign a default income tax type to the supplier, then that value defaults down to each invoice distribution you enter for that supplier.
Suppliers Subject to Income Tax Reporting Requirements

To define a supplier as subject to income tax reporting requirements: Enter a Taxpayer ID Enable the Federal option and select an Income Tax Type (1099 MISC Type). Enable the State option, if applicable Enable the Allow Withholding Tax option
If you enter a purchase order for a 1099 supplier, then Oracle Purchasing retains the Income Tax Type information at the purchase order line level.
Federal Region
Reportable to the United States Internal Revenue Service for 1099 purposes. In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers.
Income Tax Type Region
Income tax type for a United States 1099 reportable supplier. You choose from a list of 1099 Miscellaneous Tax types. Purchasing retains the Income Tax Type at the purchase order line level for a suppliers purchase orders.
State Region
You enable this option if you participate in the United States Internal Revenue Service Combined Filing Program and the supplier is reportable to a state taxing authority. Payables uses this status for reporting purposes only.
Reporting Name Region

Tax reporting name for a supplier subject to United States Internal Revenue Service (IRS) income tax reporting requirements. Required only if the tax reporting name for the supplier is different from the supplier name. In accordance with IRS requirements, Payables prints this name, instead of the supplier name, on all 1099 reports for the supplier.
Reporting Site Region
This reporting supplier sites address is printed on the 1099 form and included in the 1099 Electronic Media report. Payables displays the income tax reporting site for the supplier if you have already defined a supplier site as the tax reporting site in the Tax Reporting region in the Supplier Sites window.
Updating 1099 Information
You can update 1099 information for your suppliers. If you paid a supplier before you set up the supplier as a 1099 supplier, run the Update Income Tax Details Utility. Or, if you need to update only a few invoices, you can update the 1099 types in the Lines tab
Recording a Refund From a OneTime 1099 Supplier

If you get a refund from a onetime 1099 supplier, you need to record the refund in Payables so that the 1099 reports are accurate. Enter a credit memo that you match to the original invoice.
1099 Reporting
1096 Form 1099 Forms 1099 Invoice Exceptions Report 1099 Payments Report 1099 Electronic Media
1099 Supplier Exceptions Report

Tax Information Verification Letter
1096 Form
The United States Internal Revenue Service requires that you send a 1096 form as a summary of each 1099 form type you transmit on paper. Payables generates the report on a preformatted form from the Internal Revenue Service.
1099 Reporting Overview
In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. In the supplier window, you can designate suppliers as federally reportable.
1099 Forms
1099 forms report on the total 1099 MISC payments for a particular 1099 supplier. You generate 1099 forms for each tax reporting entity in your organization. You can use either of the 1099 Forms reports in Payables: 1099 Forms report 1099 FormsComma Delimited Format report
1099 Invoice Exceptions Report
You use the 1099 Invoice Exceptions Report to review paid invoice distributions with inaccurate or missing 1099 income tax information.
1099 Payments Report
You use this report to review payments made to your 1099 reportable suppliers. You can use this report to reconcile to your 1099 Forms, or to prepare additional reporting.
1099 Electronic Media
You submit the 1099 Electronic Media report to generate your summarized 1099 information in electronic format as required by the Internal Revenue Service. You can create this file in a format to either send electronically or store on a diskette or magnetic tape to send to the Internal Revenue Service.
1099 Supplier Exceptions Report
You use the 1099 Supplier Exceptions Report to review suppliers with inaccurate or incomplete 1099 income tax information. You can run the 1099 Supplier Exceptions Report before you submit your 1099 reports to identify suppliers that Payables will treat as exceptions in your 1099 reports.
Tax Information Verification Letter
This report generates the Tax Information Verification Letter, which requests a supplier to furnish or confirm tax information. Payables generates this standard letter for each supplier that meets the criteria you select. Payables does not generate this letter for suppliers with the Type set to Employee in the Suppliers window.
Tax Allocation During Invoice Validation
E-Business Tax automatically creates the appropriate distributions and allocations for Tax lines when you validate the invoice.
Tax Amount Verification During Invoice Validation
During Invoice Validation, E-Business Tax automatically verifies that you have correctly entered all tax drivers on an invoice. If tax exceptions exist, one or more tax holds are placed on the invoice.
Payables Options: Tax Reporting

Tax Reporting Combined Filing Program Use Pay Site Tax Region
Income Tax Region
Summary
In this module, you should have learned how to: Describe how to enable 1099 suppliers Enter invoices for 1099 suppliers Update 1099 information Understand 1099 reporting Understand 1099 set up options Understand additional implementation considerations

Oracle Payables - D49300GC10 R12

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Procure to Pay Overview

Copyright 2007, Oracle. All rights reserved.

Copyright 2007, Oracle. All rights reserved.

Overview of Application Integration

Receivables/ Revenue/ Receipts

Procure to Pay Lifecycle

Supplier management Supplier Performance

Copyright 2007, Oracle. All rights reserved.

Oracle Procure to Pay Process

Request for quote (RFQ)

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RFQs and Quotations

Requisition pool Automatically create

Import/reschedule requisitions Internal Order Mgmt sales order

Request for quote (RFQ)

Copyright 2007, Oracle. All rights reserved.

Match invoices in Payables

Copyright 2007, Oracle. All rights reserved.

Shipment Supplier Transfer Inventory

Copyright 2007, Oracle. All rights reserved.

Receive invoices If appropriate, match invoice to purchase order or receipt

Copyright 2007, Oracle. All rights reserved.

Select validated invoice Pay invoice Run Pay run

Record manual payment

Create quick payment outside Oracle

Create single payments

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Copyright 2007, Oracle. All rights reserved.

Copyright 2007, Oracle. All rights reserved.

Procure to Pay Lifecycle

Copyright 2007, Oracle. All rights reserved.

Copyright 2007, Oracle. All rights reserved.

Overview of Payables Processes

A/P 100,000 60,000 10,000 30,000

Transfer information to general ledger

Create accounting entries in Subledger Accounting

Transfer information to general ledger

Create accounting entries in Subledger Accounting

Optionally match to PO or receipt

Transfer information to general ledger

Create accounting entries in Subledger Accounting

Select validated invoice Pay invoice Run Pay run

Record manual payment

Create manual payment outside Payables

Create single payments

Copyright 2007, Oracle. All rights reserved.

Overview of Payables Integration

Purchasing/ iProcurement Receivables

Copyright 2007, Oracle. All rights reserved.

Overview of Payables Integration (Cont.)

Inventory Property Manger

Copyright 2007, Oracle. All rights reserved.

Payables Integration with Purchasing

Match and Update Qty Billed

Copy Accounting Suppliers

Copyright 2007, Oracle. All rights reserved.

Payables Integration with Receivables and Loans

AR/AP Netting (AR Only)

Submit Payment Requests

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Payables Integration with Cash Management

Cash Flow Data