Payables Overview

Payables

Functional Overview

Topics Covered Benefits Integration with Other Modules Overview Setups Defaulting Hierarchy Suppliers Holds Invoices Overview Invoice Types Recurring Invoices Banks Payments Payment Batch Prepayment Accounting Payables Close Process Steps to transfer data from Payables to GL Accounting

Oracle Payables

•An expenditure management tool that streamlines your procure-to-pay process while providing strong financial controls and strategic information.

Benefits of Payables

Reduce procurement cycle times Lowers administrative costs – transaction

processing cost Improves Cash Management Improve Relationships with Suppliers Support Global Fiscal Requirements Based on Best Practices prevailing in industry

Benefits of Payables…

Correct Booking Of expenses (capital or revenue) In Right Accounts In Right Periods Schedules the payment for the invoice

Oracle Payables Integrates with …

Oracle Purchasing Oracle General Ledger Oracle Cash Management Oracle Assets Oracle Projects Oracle Property Manager Oracle Lease Management Oracle Internet Expenses Oracle iSupplier Portal

Oracle Payables Integrates with …Oracle HR Oracle Projects

Oracle EDI

Oracle Payables

Oracle Assets

Oracle General ledger

Oracle Purchasing

Oracle cashmanagement

OracleWorkflow

ExpenseExpenseReports Reports

BanksBanks

Procurement Procurement TransactionsTransactions PayablesPayables

Projects Projects Asset MgmtAsset Mgmt

(Depreciation, (Depreciation, Maintenance,Maintenance,

Property Mgmt)Property Mgmt)

Cash MgmtCash Mgmt(Forecasts &(Forecasts &

Reconciliation)Reconciliation)

SuppliersSuppliersPayment Advice

Inquiries

Payments

Inquiries

Oracle Payables Integrates with …

Integrate All Payment Transactions

Which level do you think Payables operates ?How does it operate at that level?

Enter Supplier Enter invoice Approve invoice

Create PO

Match to PO

Pay invoice

Create journal entries

Enter Requisition

Oracle Payables Overview

Payables Setup

Lookup CodesSet of Books SelectionPayment Terms/Distribution SetsFinancial OptionsSuppliersBank AccountsPayable OptionsOpen Periods

Payables Business Process Flow

Suppliers

Invoices

PaymentsFinancials optionsPayables Options

SupplierSupplier Site

Invoice BatchInvoice HeaderInvoice Lines

Payment BatchPayment Header

Payment line

Supplier / Invoice / Payment Inquiry

Period-End process

General Ledger

Lookup Codes

Oracle Payables lookup codes allow user-defined data values . These data values are displayed in the List of Values list for selection during data entry.

Common Lookup Codes used in Payables Pay Group Vendor Types FOB Freight Terms

Payables Period

Financials

Payables

Suppliers

Supplier’s Site

Invoice

Invoice Distribution Line

Invoice Payment Schedule Line

Flow of Default Values

Financial Options

• Oracle Payables Financials Options• Set the Accounting

- Defines the Default Accounting flexi field to create GL journal entries

• Supplier - Sets the supplier numbering scheme & match options

- Sets the supplier default payment terms and method

• Encumbrance• Tax• Human resource system parameters

- Defines the Employee numbering scheme and employee address for disbursement

Payables Options

• Oracle Payables - Payables Options• Accounting Method

- Accrual / Cash basis

• Transfer to GL - JE summarization level to GL (Actg period / Acct Date)

- Journal Import (after payables transfer to GL )

• Invoice - Batch Control / Online Approval

• Expense Report

Payment Terms

• Payment terms defines when the invoice is due for payment

• With Payment terms you can define % of Invoice due from specific date or on fixed date

• You can define payment terms with Discounts

Distribution Sets

What is Distribution Sets ?

Types of Distribution Sets 1.Skeleton 2.Full

QHow many discounts can I enter in payment terms ?What is cutoff date in Payment Terms ?How does you define Skeleton Distribution Set

Supplier

• Set up new suppliers

• Set up Employees as suppliers

• Respond to Supplier and supplier site inquiries

• Select Supplier reports

• Merge Suppliers

Supplier Information

Supplier

Supplier Site

Tokyo Paris New York

Purchasing sitepay site

Pay site

Contacts Contacts Contacts

Supplier Site Architecture

Run supplieraudit report

Identify duplicatesupplier

ABC Corporation

ABC corp

Merge suppliers

ABC Corporation

Review merge results

Maintain audit trail

Merging Suppliers

Apply hold to the supplier site Invoices Apply hold to the selected Invoices Apply hold to the schedule payment Release Hold

Invoice Holds

Pay Invoice

Invoice

Supplier

Invoices are part of Payable process

Batch Invoices Enter invoice Match Invoices to PO

Approve InvoiceView InvoicePost Invoice

File Invoice Pay Invoice

Receive Invoicesin the mail

Invoice - Overview

Payables - Invoice Types

Processing Invoices

Navigate Invoices Entry Invoice Batches / Invoices

Invoice Distribution types

Batch Invoices Enter invoice Match Invoices to PO

Approve InvoiceView Invoice

Post Invoice

File Invoice Pay Invoice

Invoice matched to PO

Credit Memo Negative amount Invoice created by a supplier and sent to you to notify you of a credit

Debit Memo Negative amount Invoice created by you and sent to a Supplier to notify the Supplier of a credit you are recording. Usually sent with a Note explaining the Debit memo

Credit Memo / Debit Memo

• Define Special Calendar names

• Define Recurring Invoices Template

• Enter Recurring Invoice information

• Create Recurring Invoices

• Review Recurring Invoices

Recurring Invoices

• Specify the interval for which invoices will be created

• Create up to two special one-time invoice amounts of a nonstandard amount, such as a deposit or balloon payment

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

With Recurring Invoice template you can:

Bank Setup

Create Payment Program Build Payment Format Define Bank and Bank Account Assign Payment Format with Bank Initialise Payment Document and Assign GL Accounts Assign Interest Rate and Bank Charges

Set up Bank Details Define bank, bank branch information,

addresses and contact details Define Bank type (Bank/ Clearing House)

Set up Bank Account Details Define bank account information Define account type ( Internal/ customer/

supplier ) Define payment document for disburse

account

Bank Setup …. Contd

Bank Setup

Navigate Setup Payment Banks

Payments - Overview

Payables Payment Method

Check-Paper Check to print and send to supplier

Clearing-Payment of Invoices transferred from one entitywithin the company without creating a payment document

Electronic-Electronic funds transferred to the bank of supplier

Wire-A funds transfer initiated by contacting the bankand requesting wire payment to the bank of supplier

Disbursement Types

• A Manual payment is a Payment that can create outside of oracle payables

• Handwritten checks

• Wire

• A computer generated Payment that can create and print to pay supplier for one/more Invoices

• Check run

• Electronic fund transfer (EFT)

Payment - Disbursement

• Select Invoices•Build Payments•Format payments•Prints checks or create electronic payments•Confirm payments

Payment Batch

Payment Batch – Auto Selection

Cancel / Reverse Payments

Prepayment

Enter prepaymentStatus = Unapproved

Approve prepayment Status = Unpaid

Pay PrepaymentStatus = Available

Create/Select invoice and apply to one or More prepayments

Apply Prepayments to Invoice

Accounting

Standard InvoicePaymentCredit Memo/Debit MemoPrepaymentFuture Dated Payment

Payables Close Process

3 Steps of Transferring Data from Payables to GL

Payables Accounting Process Payables Transfer to General Ledger Journal Import-Can be run from Payables/GL

Thanks

Payables Overview

Documents

Transcript of Payables Overview

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