Payment on Receipt or ERS Functionality _ Oracle Apps Reference

12/1/2014 Payment on Receipt Or ERS Functionality | Oracle Apps Reference

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Payment on Receipt Or ERS Functionality

Posted: July 7, 2013 in Purchasing 1

Payment on Receipt enables the user to automatically create standard, unapproved invoices forpayment of goods based on receipt transactions. Invoices are created using a combination of receipt

and purchase order information, that eliminates duplicate manual data entry.It automatically create

invoices with multiple items and distribution lines, and include sales tax.Payment on Receipt is alsoknown as Evaluated Receipt Settlement (ERS) and Self Billing.

If the Alternate Pay Site is defined for the Supplier Site, then invoice is created for the Alternate PaySite, otherwise for the Supplier Site on the Purchase Order is used.

The amount on the invoice is determined by multiplying the Quantity received by the Purchase

Order Item Unit Price.

The Payment Terms on the invoice default from the purchase order payment terms.The Payment Currency defaults from the supplier site.

Sales Tax is calculated based on the Tax Codes on each Purchase Order Line.

Prerequisites:

1. Navigate to Purchasing Super User Responsibility -> Supply Base -> Suppliers. Query the Supplierand click on Address Book option.Search with Site Name and click on Update icon across it.Ensure Payment and Purchasing check boxes are selected.



(https://govoracleapps.files.wordpress.com/2013/07/7.jpg)

2. Click on Purchasing and then on Self Billing tab. The Pay On and Invoice Summary Level fields areset as follows

Pay On => Receipt

If Pay On is set to Receipt, Invoice Summary Level settings may be one of the following:

Pay Site Triggers one invoice per supplier pay sitePacking Slip Triggers one invoice per packing slipReceipt Triggers one invoice per receipt


If you want to create a Debit Memo for a return, then Create Debit Memo from RTS Transactionshould be also enabled.




3. Navigate to System Administrator->Profile->System, enter the profile option name as PO: ERSInvoice Number Prefix and click on find button to see the value set at site level.

The value set for the profile will be the default prefix for Pay On Receipt invoices.

So here the invoice number will be of the format ERS-- , where

Seq# is a unique system generated number,and X depends on the summary level indicated above inthe Invoice Summary Level Setting:

If summary level = Pay Site, then X = Invoice DateIf summary level = Packing Slip, then X = Packing Slip NumberIf summary level = Receipt, then X = Receipt Number




4. Navigate to Payables Super User->Setup->Options->Payables Options and then click on InvoiceTab.

Under GL Date Basis, there are four options. The accounting date will be based on the option selected

here:

Invoice Date (Invoice date entered on the Invoice in Accounts Payable)

System Date (Current/system date the invoice was entered in Accounts Payable)Goods Received / Invoice Date (Invoice date entered on the receipt in Accounts Receivable)

Goods Received / System Date (Current/system date the receipt was entered in AccountsReceivable)




Demo

1. Navigate to Purchasing Super User->Purchase Orders->Purchase Orders.Enter the Supplier and Site

for which ERS setup is done.Also enter the line & distribution details and save the PO.


2. Click on Terms button and ensure Pay On is set as Receipt.




3. Submit the PO for approval and get it approved.

4. Navigate to Purchasing Super User->Receiving->Receipts.Enter the PO number so that the supplierand site will be defaulted.Then click find.




5. Select the line details,enter the quantity to be received and save.




Then click on Header button to see the receipt number.


6. As soon as you save the receipt transaction, in the background the below programs will be

submitted:-

Receiving Transaction ProcessorADS (Pay On Receipt AutoInvoice)

Payables Open Interface Import




7. View the output of the Payables Open Interface Import. You can notice the creation of an invoice inAP Module as shown below:


8. Query the invoice in the AP Module and view the invoice and its distribution details as shown below:




CommentsAnjaneyulu says:September 10, 2014 at 8:09 pm

Hi,

the setup is very good to learn. please post some more concepts on R12.

Thank you

Reply

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Payment on Receipt or ERS Functionality _ Oracle Apps Reference

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