Account Payables -> Account Payables Flow:
Account Payables -> Account Payables Flow:
PO -> Receipt -> AP -> GL
Invoice -> Payments-> Move Transactions from AP to GLIn AP there are 2 Thumb rules.
• Without supplier there is no invoice.
• Without invoice there is no payment.
Invoice Types:
1. Standard: We will make all the payments based on the standard invoice. It will have the information of Invoice Number, Invoice Date, Invoice Amount, and Currency.
2. Credit Memo: We will create credit memo invoice whenever supplier is giving the discount and it will be adjusted in standard invoice. It is always negative amount.
3. Debit Memo: Sometimes Company will deduct some amount from the invoice amount. This will be adjusted in standard invoice. It is always negative amount.
4. With-Holding TAX: This type of invoice will be created to make the invoice tax to the Govt. on behalf of supplier.
5. Pre-Payment: If we want to make some payments to the supplier in advance then we create the Pre-Payment invoice.
6. PO Default: If we want to make the invoice as per the PO then we create PO default. We will give Po Number. System will pick up the complete PO information.
7. Mixed: Includes both positive and negative amount. We can match this invoice with PO’s and other invoices.
8. Expense Report: This will be applicable for the employees who are working in the Company where payables and internet expense and project account. Expense will be included.
9. Recurring invoice: We can enter invoice for periodic expense for which we may not receive. Invoice from supplier. To create a Recurring invoice first we will take template.
As per that we will create the invoice.Once the invoice is successfully completed, we can go for payments. It is of 3 types.
Manual Payment: Here we will be mentioning the Invoice Number, Bank Account, and Document Number, Payment Date and Currency.
Refund payment: This is used for Employee expenses and for adjusting the Supplier account,
Quick payment: In this payment, system will automatically generate checks. To print Checks there will be a concurrent program for each check format.Once the payment was done, we will move all the transactions to GL.
Suppliers:
Set up suppliers in the Suppliers window to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site. The system uses information you enter for suppliers and supplier sites to enter default values when you later enter transactions for a supplier site. Most information you enter in the Suppliers window is used only to enter defaults in the Supplier Sites window. When the system enters that information in a later transaction, it only uses supplier site information as a default, even if the supplier site value is null and the supplier has a value. If you update information at the supplier level, existing supplier sites are not updated. When you enter a supplier, you can also record information for your own reference, such as names of contacts or the customer number your supplier has assigned to you.
Invoices:
Invoice Type (LOV): The type of invoice. Standard and Credit are the only invoice types you can enter in this window. If you do not enter a value for this field then a value will be assigned during import based on the amount of the invoice.
Standard: A trade invoice you receive from a supplier. The amount of a Standard invoice must be zero or greater.
Credit: Credit Memo. A negative amount invoice you receive from a supplier representing a credit for goods or services purchased. Note that in the Invoice Gateway you can match a credit memo to a purchase order to perform a price correction, but you cannot match a credit memo to an invoice. If you want to match to an invoice, then use the Invoice Workbench.
Debit Memo: Negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are recording. Usually send with a note explaining the debit memo. Purchase Order Matched Invoices: You can match Payables invoices to purchase orders to ensure that you pay only for the goods that you have ordered, or you can match to purchase order receipts to ensure that you pay only for goods that you have received. Purchase order matched invoices are invoices that you match to any of the following:
• Purchase order shipments
• Purchase order receipts
• Purchase order receipt lines
• Purchase order distributions
Foreign Currency Invoices: When you enter an invoice in a currency other than your functional currency, Payables uses an exchange rate to convert the invoice and invoice distributions into your functional currency for creating journal entries. You define your functional currency during setup for your set of books.
Mixed Invoices: Mixed Invoices are invoices or credit/debit memos for which you can perform both positive and negative matching to purchase orders and to other invoices. For example, you can enter an invoice for –$100 with Invoice Type Mixed. You can match to an invoice for $–200, and match to a purchase order for $100.
Prepayments: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. The supplier might send an invoice that references a prepayment. The supplier has reduced the invoice amount by the amount of the prepayment and associated tax. You can use the Prepayment on Invoice feature to enter the invoice.
You can enter two types of prepayments:
Temporary prepayments can be applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.
Permanent prepayments cannot be applied to invoices. For example you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.
2–way matching: The process of verifying that purchase order and invoice information matches within accepted tolerance levels. Payables use the following criteria to verify two–way matching: Invoice price <- Order price Quantity billed <- Quantity ordered
3–way matching: The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Payables use the following criteria to verify three–way matching: Invoice price <- Purchase Order price, Quantity billed <- Quantity ordered, Quantity billed <- Quantity received.
4–way matching: The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Payables use the following criteria to verify four–way matching:
Invoice price <- Order price
Quantity billed <- Quantity ordered
Quantity billed <- Quantity received
Quantity billed <- Quantity accepted
FOB (Free On Board): The point or location where the ownership title of goods is transferred from the seller to the buyer. This indicates that delivery of a shipment will be made on board or into a carrier by the shipper without charge, and is usually followed by a shipping point or destination (e.g. ’FOB Our warehouse in New York’). The FOB code is currently available only for reference purposes. Revenue and cost recognition is not currently determined by the value entered in this field. (Receivables Lookup)
Purge : An Oracle Receivables Process, where you identify a group of records for Receivables to delete from the database. Receivables purge each record and its related records. Receivables maintain summary data for each record it purges.
