oracle Fusion payables

Oracle Fusion Payables

Oracle Fusion Payables: oracle fusion payables are used to manage invoice and payment of organization.

Oracle fusion payables roles: the following data roles required to be assigned for user to access and
process transaction in payables.

1. account payable supervisor

2. account payable specialist
3. account payable Manager

Steps

1. Assign Data Role to Ussr

Navigator: Setup- Financial- Initial User – Manage Implementation User
: Setup – Financial – User and Security – Manage data access to User

P2P: Request-source- receive- invoice- payment

Pay Group: pay Group used to group the suppliers for payment processing.

steps:

1. Define Pay Group

Payment Terms

payment Terms: payment terms determine due dates, Discount dates and installment details for
supplier invoice .

there are two types of payment Terms

1. Normal payment Terms

2. Proxima payment terms

Due date : it is a last date to make payment for Invoice

Discount date : it is a last date to get discount for invoice from supplier.

Term Date Basis : it is the base date for payment terms to calculate due date and discount date.

Steps:

1. Create payment Terms

Navigator: Setup- Financials-payables- Manage Payment Terms.
2. Create Proxima Payment Terms
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Options

Options: Options are nothing but a controlling features at business unit level

There are 2 types of options

1. Common Options for payable and Procurement

2. General payable Options.

Common Options for Payables and Procurement

These options will be shared by payable and procurement.

Steps

1. Define Common Options for Payables and Procurement.

Navigator: Setup- Financials-payables-Manage Common Options for payables and Procurement

Default Distribution Region

1.Laibility account
2. prepayment account
3.Conversion rate variance gain
4. conversion rate variance loss
5. discount taken
6. Misc
7. Fright

Automactic offset , None, Primary balancing segment , all segment except Natural account
Currency Conversion,
Realized gain
realized loss account
Conversion rate type:
required conversion rate entry. if enable it then without give exchange rate invoice not
created.
Expenses Accrul:region
Automatic offset:
None: it will be used when we are using intercompany feature.
Balance :in this case, liability a/c balancing segment value will picked from invoice distribution
account and remaining liability account segment value will pick from supplier site.
Account : in this case liability a/c accounting segment value will be picked from supplier site
and remaining liability account segment values will pick from invoice distribution account.
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General Payable options.

General Payable options: these options will be shared by only payables

This task list contain following 3 tasks
1. invoice options
2. payable Options
3. tax reporting and withholding tax options

Invoice Options: Invoice options controls how oracle fusion payables process invoices.

Steps

1. .Manage invoice options.

Navigator: Setup- Financials- Payables- Manage Invoice Options

Invoice Enty Region:

Requiring invoice Grouping : it is used in batch invoice

allow document category Override: it is used in sequential Numbering purpose

allow adjustment to paid invoice:

allow remit to supplier ovride or thiry party payment

hold unmatched invoice:

invoice currency

payment curreny

pay group

payment terms

Matching Region:

allow final matching: if invoice match you cannot cancel the invoice

allow matching distribution override: if distribution you can modify

transfer po Descriptions additional information : if any dff in po transfer it invoice

quantity tolerance

amount tolerance

Discount region, Interest Region, Prepayment region, Payment Request Region,Self-service Invoice
Region.
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Payable option: Payable options controls how oracle fusion payables process Payments.

Steps

1. Define Payable Options

Navigator: Setup- Financial –Payable- Manage Payable Option.

Payment accounting and override Region:

allow payment date before system date : old date payment s you can enter
allow override supplier site bank account
allow document category override
accounting :
when payment issued
when payment clear
when payment issue and clear
Currency Conversion region.
Bank charge region
Open periods in Payables

Steps

1. Open payable periods

Navigator: payables- payment s –task-payable periods – Manage accounting Periods.

Suppliers

Suppliers: Either person or organization who is supplying goods or services to organization is called
supplier.
Suppliers are modeled as a global entity and are not created with in business unit and within any other
organization.
Supplier’s sites are associated with a procurement business unit
The following data roles required to be assigned for user to access and manage suppliers

1. Supplier Administrator
2. Supplier Manager

Supplier record contain 4 level of details

1. Profiel
2. addresss
3. sites
4. contracts

supplier can be create two mays

1. manual
2. Automatic (FBID Process)
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Steps:

1. Create Employs
Navigator:Setup- Financials- Users and security –Manage Users
2. Assign roles to Employee
Navigator: setup –financial-initial users-all task-create implementation users
Supplier Administrator
Supplier Manager
Navigator: Setup- Financial –Users and security – Manage Data access for users.
3. Assign employee to business unit
Navigator: Setup- Financial-Organization Structures- Manage Business Unit.
4. Create Procurement Agent.
Navigator: Setup-Financial- Payables-Manage Procurement Agents
5. Define Suppliers
Navigator: Procurement-Suppler-Create Supplier

business relationship: prospective, spent authorized.

invoice tap , invoice matching option:po/receipt/ invoice
match approval level :2 way/3way /4 way
five taps
1.profile
2.address
3.site
4. contract
5.qulifications

Invoices

Invoices: invoice will be recorded in the payables systems for goods or services purchase.
it contain 3 level of Information
1. Header
2. Lines
3. Distributions

it Contains 6 line types

1. Item
2. Tax
3. Freight
4. Miscellanies
5. Prepayments
6. Withholding Tax
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There are 9 types of invoices in fusion payables

1. standard invoice
2. Debit Memo
3. Credit Memo
4. Prepayment
5. interest Invoice
6. Withholding tax invoice
7. payment request
8. standard invoice Request
9. Credit Memo invoice Request

Invoices can be entered in 4 ways

1. Manual
2. automatic
3. self service
4. Electronic.

Manual:

1. Invoice entry with integrated imaging

2. Spreadsheet
3. Open interface

Automated:

1. Return to supplier
2. ERS
3. Expenses Report
4. Customer Refund
5. Intercompany.

Self service: oracle fusion supplier portal

Elecronic: Business 2 business web service

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Manual Creation:
Standard invoice:
An invoice from a supplier that represents an amount due for goods and service rendered.
step:

1. Enter the invoice

Navigator: Payable- Invoice –task- invoice – Create Invoice
Invoice Header Details
Line Details
2. Check the Journals in GL

Distribution sets:

Distribution sets automatically create distribution for invoice that are not matched to purchase order.
There are two types of distribution sets.
1. Distribution sets with percentages.
2. Distribution sets without Percentage.

Distribution Sets with Percentages : Percentage of amount and accounting information will we
entered at the time of Distribution set Creation.
Distribution set With Out Percentage: Percentage of amount is not known and it will be entered at the
time of invoice entry but accounting information will be entered at the time of distribution set creation.
Steps:

1. Create Distribution sets

Navigator: Setup- Financial-Payable –Manage Distribution Set.

Invoice in spread sheet

Steps

1. Create invoice in spread sheet

Navigator: Payable –invoice –task-invoice –create invoice spread sheet
2. Prepare Data with Spread Sheet.
3. Save and Submit invoice import.
Program: Import payable invoice
Program: import payable invoice report
4. Check Result
Navigator: Payables- Invoices_ task_ Manage Invoices.
invoice details
line
Holds and approval,
Payments
installments
action :
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Spread Sheet – Inv interface-Process- Base Tables

Bank setups

Bank ,Branch & Bank account are Created in Two ways

1. Manual
2. Rapid implementation

Bank account will be defined at legal entity level.

There are 3 types of bank accounts
1. internal
2. supplier
3. Customer

Internal bank account: it is an organization account which is used to make payment and to collection
money.

Steps:

1. Create Bank and Branch.

Navigator: Setup- Financial-Cash Management and Banking- Manage Banks
2. Create Bank Account
Navigator: Navigator: Setup- Financial-Cash Management and Banking-Manage Bank Accounts

account use: Receivables,payrolls,payables

General tap: accounts

Controlling,
Security
Business unit access : Foreign Exchange Gain / Loss account
3. Create Payment Document
Navigator: Navigator: Setup- Financial-Cash Management and Banking-Manage Bank Accounts

Payment Method:

Payment Method: A Disbursement payment method is a mode of payment that companies uses to pay a
supplier, Customer, or employee.

Eg: Electronic, EFT,Wire ,Check etc.

Steps:

1. Create Payment Method

Navigator: Setup –Financial- Payments-Manage Payment Methods
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Payment process profile

payment process profile:Define how oracle Fusion payments Manage the Document
payables,Payment, and payment file Throughout the payment process steps

Steps:
1. Create Payment Process Profile
Navigator: Setup –Financial- Payments-Manage Payment Process Profiles

payment Format:standared check format

process type :Printed/ Electronic
Default Payment Document:
payment file:
Default Printer:

Payments

Payments: Payment types identify how a payment is Recorded is oracle fusion Payables.
There are 4 types of payment types
1. Quick
2. Manual
3. Refund
4. Payment Process Request.
Quick payments: Issuing one Check in one transaction in fusion payables is called a quick payment

Steps:
1. Create Payment
Navigator: Payables- Payments- Task- Payments- Create Payments.

payment Details:bank,payment method, type,payment document

invoices to pay
2. Manage Payments
3. Query The Invoice to Check the result.

Debit Memo:

Debit Memo: A Negative amount invoice which will be created by organization and send to supplier
to record credit for goods or services Purchased. It will reduce the supplier balance.

steps:
1. Enter the Debit Memo
Navigator: Payables- Invoices- Task- Invoices- Create Invoices.
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Credit Memo:

Credit Memo: A Negative amount Invoice which will be created by supplier and send to organization
to record credit for goods or services Purchased. it Will reduce The Supplier Balance.

Steps:
1. Enter the Credit Memo
Navigator: Payables- Invoices- Task- Invoices- Create Invoices.

Invoice Header
business unit:
Supplier
invoice type:
number:
amount
payment terms
Line :
amount :
distribution Combination
if cancel line
Go To Distribution
if Override Accounts
action :validate ,post to ledger.

Prepayment

Prepayment: it is an advance payment made by organization to the supplier. Later it will adjusted
against future invoices
there are 2 types of prepayments
1. Permanent
2. Temporary
permanent Prepayment : it can not adjusted against future debit items.
Temporary prepayment: it can be adjusted against future debit items.

Steps:
1. Enter the permanent prepayment invoice.
Navigator: Payable- Invoices- Task- Invoices- Create invoices.
(General Tab : allow prepayment application dis able then it is Permanent)
Debit: Prepaid expenses
Credit: Liability Account
2. Make payment to Prepayment invoice
3. Convert permanent prepayment into temporary prepayment
Navigator: Payable- Invoices- Task- Invoices- Manage Invoices
4. Create Standard Invoice and apply prepayment
Navigator: Payable- Invoices- Task- Invoices- Create invoices
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Interest Invoice:

Interest Invoice: Interest invoices are invoices which are creates automatically for overdue invoices .
an interest invoices is created and paid while you are paying an overdue invoice.

Steps:
1. Define Interest Invoice Options.
Create interest invoice
interest expenses distributions
minimum interest Invoice
2. Define Interest Rate.
3. Enable allow Interest invoice feature at supplier level.
4. Enter Invoice with Old date.
5. Create Payment
go to paid invoice tab: see the interest invoice Number
6. Query interest invoice to check status

Withholding tax invoice

withholding tax invoice: An invoice which will be created by system automatically to make
withholding tax amount payment to the tax authority.

Steps:
1. Create withholding tax calendar
2. Create tax authority as a supplier
3. Manage Tax Codes and Group
4. Define tax reporting and withholding tax options
5. Enable withholding tax at supplier and assign withholding tax group
6. Enter the invoice and validate it
7. Query The Withholding Tax Invoice and validate it.

Invoice cancellation:

Invoice cancellation: only unpaid invoices can be canceled in fusion payables

if invoice paid ,first payment needs to be canceled then we are able to cancel invoice.

Steps:
1. Query the invoice which you want canceled.

Holds:

Holds: holds are used to prevent futher action on invoice

there are 2 types of holds

1. Manual Holds
2. System Holds
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Manual Holds:Manual holds will be placed on invoices manually when there is a dispute.
later these holds will be released manually once the dispute is settled.
steps:
1. Define Invoice hold and release reason
2. Enter the invoice and place and release hold on invoice

System Holds:

System Holds: system holds are placed on invoices by system automatically when validate invoice. we
can not release system holds manually. system holds will be released by system when we rectify
the error.

Steps:
1. Enter the invoice and place system hold.
2. Release system hold by rectifying Error.

Manual Payment:

Manual Payment: it is used to record payments which are done outside the oracle fusion payments.

Steps:
1. Create Manual Payment

Refund:

Refund : this feature is used to get back amount from the supplier
refund will be created with reference of negative amount invoice either debit or credit memo.

Steps:
1. Create refund payments.
Stop the Payments:

stop the payments: it is used to stop the payments in case funds are not available in the bank or any
other reason
Steps
1. Query the payment document which you want to stop payment.
Release payment:

Release payment: it is used to release payment document from stop initiation.

Steps:
1. Query the payment document which you want to cancel stop.
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Void Payment:

Void Payment: it is nothing but cancelling the payment document.

Steps:
1. Query payment document which you want to void.

Reissue payment

Reissue payment: it is used to cancel the old payment document and to create new payment document
when check got damaged or lost.

Steps:
1. Query the payment document which you want to reissue.

Payment Process Request:

Payment Process Request: This feature is used to group payment document s for payment processing.

Steps:
1. submit payment process Request.
Navigator: Payables – payments-task- payments-submit payment process request.

Name: ppr
selection criteria tap

Pay through date:17/04/17

Pay from date :01/04/17

From payment priority: 1

To payment priority: 99
include zero amount invoices: No
Supplier type
payment Method
supplier or pay
invoice group
pay group
Currency
business unit
legal entity
source
invoice conversion rate type
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payment and processing options tap:

payment attributes
payment date:17/04/18
Disbarsement bank account:
payment process profile:
payment conversion rate type:

processing option

apply credits up to zero amount payments

review installments
review proposed payments
create payment file immediately

Validation failure handiling

Documents (invoices):reject only document

payments :reject only payments

Click on submit

refresh , Programs run

Initiate payment process request.
payables selected installments report

Click on payables selected installments report -out put

2. Review installments and submit payment process request.
Navigator: Payables – payments-task- payments- Manage payment process request.

Query :ppr

stage :install ment selection

status: Pending installment review.

go to action , we can revome and add installments

Click on submit.

come to schedule request region

then refersh
payables selected installments report
build payments
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3. Review payment and build payment process request.

Navigator: Payables – payments-task- payments- Manage payment process request.

query ppr

stage:payment Validation
status: pending proposed payment review.
payment created :1 cheque because of on e supplier

click on resume payment process

Come to schedule Request Region.

build payment s
4. Format payment Process request.
Navigator: Payables – payments-task- payments- Create printed payment fiels

program :format payment files-click on output

10007 chequ no
amount
5. Confirm payment process request.
Navigator: Payables – payments-task- payments- Manage payment process request.

stage : Payment file Processing

status:Foramtted and ready for recording

submit recored th print status

stage:payment file Confirm

stauts :printed
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6. check ppr status

Navigator: Payables – payments-task- payments- Manage payment process request

stage: Completed
stutus: Completed.

Recurring Invoice
Recurring Invoice: invoice repeating each and every accounting period is called recurring Invoice. this
features helps to record regular expense like rent or lease expenses.

Steps:
1. Create recurring invoice calendar
Navigator: Setup_financial- payables- Manage payable periods.
2. Create Distribution Set
Navigator: Setup_financial- payables- Manage Distribution Set.
3. Create Recurring Invoice
Navigator: Payables- Invoices- Task- Invoices- Create Recurring Invoices
4. Check The Result.
Navigator: Payables- Invoices- Task- Invoices- Manage Invoices

Invoice Group:
Invoice Group: This Feature helps us to group invoices based on organization requirement
Eg: if you are importing invoice records from the invoices spreadsheet source, enter the invoices
spreadsheet invoice group name

Steps:
1. Enable invoice grouping at invoice options
2. Create invoices and group them.
3. check the result
Cross Currency Payments
Cross currency Payments: with this feature ,we can pay invoices in any currency, irrespective of the
currency on the invoce.
Steps:
1. Enable Cross currency in payable Options
2. Create ex change rate type
3. create exchange rate
4. setup a default payment currency at supplier level
5. Enter the invoice with Foreign currency and select payment currency.
6. create payment.
supplier Merge: it is used to merge the suppliers when one supplier is acquired another supplier
business
steps:
1. Create new Supplier
2. Run Supplier Merge
3. Check the result.