2010

Sigma Pharmaceutical Industries

Yasser M. El-Tantawi Oracle Applications Implementer IT Dept.

[PAYABLES TEST SCENARIOS]

Oracle Payables Test Scenarios for All business Needs Issues

TABLE OF CONTENTS PAYABLES ..........................................................................................3

Test Scenarios ..........................................................................................................3 Test Scenario 1: Supplier Invoices................................................................................................5 Prerequisites:..........................................................................................................................5 Entering Supplier Invoice...........................................................................................................7 Matching Invoice with PO Receipt:...........................................................................................12 Invoice Validation:....................................................................................................................13 Create Accounting for the Invoice:...........................................................................................13 Review Accounting:..................................................................................................................14 Using Distribution Form to enter Debit Account.......................................................................16 Debit Memo (or Credit Memo):.................................................................................................18 Supplier Invoice Payment:........................................................................................................20 Test Scenario 2: Custody of Cash...............................................................................................25 Entering Pre-Payment Invoice..................................................................................................25 Prepayment Validation:............................................................................................................26 Prepayment Invoice Payment..................................................................................................28

13............................................ Test Scenario 3: Bills Payables (Future Dated Payments (93............................................

Opening Balance:.................................................................................................................39 Validate Invoice (for Bills Payables).........................................................................................41 Manual Payments (Recommended)..........................................................................................43 Clearing Transactions...............................................................................................................46 Test Scenario 4: Recurring Invoices............................................................................................52 Creating Special Calendar:...................................................................................................52 Create Recurring Invoice..........................................................................................................52 View the Created Invoice ........................................................................................................54 ................................................................................................................................................55 Validate Invoice and Create Accounting...................................................................................55 Test Scenario 5: Standard Invoices to Record the Expenses......................................................56 Create Distribution Sets...........................................................................................................56 Entering the Invoice.................................................................................................................57 Invoice Validating.....................................................................................................................58

Create Expense Report Invoices for Settlement ((

Payables
Test Scenarios
S N Invoice Type
1 Standard Invoices ) 2 Debit Memo ) 3 Credit Memo ) 4 Manual Payments ) 5 Prepayment ) Invoices 6 Expense Report ) 7 Standard Invoices ) 8 Manual Payments ) 9 Standard Invoices ) 1 Manual Payments 0 ) 1 Recurring 1 Invoices )

Invoice use
Supplier Invoices

Explanation

The Company want to deduct from Supplier Account The Supplier Sent a Credit Memo to deduct from his account Supplier Invoices Payments

) ( ) (

Custody of Cash

Custody of Cash Settlements

Bills Payable (Future Dated Payments)

Bills Payable (Future Dated Payments) Payments Expenses

Expenses payments

Electricity, Water, Rent

To enter supplier Invoices there are some prerequisites: 1234Supplier & Supplier Sites Definition. Enter and Maintain Purchase Orders. Approve Purchase Order. Receiving.

Test Scenario 1: Supplier Invoices Prerequisites: 1- Purchase Order Number: 2- Supplier Name: 3- Item Code: 4- Item Name: 5- Quantity Ordered: 6- Unit Price: 7- Need-By Date: 8- Status: L.E. 5 26/10/2010 00:00:00 Approved Test 201010001

010101006001 Ascorbic acid Uncoted (Vit C) 500 KGM

9- Receipt Number: 10- Receipt Date:

1318 26/10/2010 09:49:27

Entering Supplier Invoice 1- Switch to Oracle Payables Responsibility (e.g. AP_SIGMA_SUPERUSER) 2- Navigate to: Invoices EntryInvoices

3- Double Click on Invoices

Type:

Standard

Supplier:

No Changes (Comes automatically if the

Supplier Site: supplier has one site comes blank) Invoice Date: Invoice Number: Invoice Curr: Default)

If there are more than one site it 26/10/2010 Enter the Invoice Number TESTINV10001

No Changes Invoice Currency (In our Case EGP Comes

Invoice Amount: L.E 2500

GL Date:

Enter General Ledger Date within an open accounting period No Changes or type 26/10/2010

Payment Curr.: Payment Rate Date:

No Changes (Comes by Default as Invoice Currency) No Changes

Terms Date: Terms: (Default)

No Changes or type 26/10/2010 (Default) No Changes or choose any other term of List of Value

Payment Method: No Changes Check (Default)

Tax Calculation: Choose None

Save Invoice Note the following:

Invoice Status: From (1 General) Tab Status: Never Validated Accounted: No Summary: 0.00000 in Red Color (Means that the invoice has not been Matched yet or the debit part for the invoice has not been entered yet from Distributions form: to open Distributions form Click on Distributions Button) Amount Paid: 0.00000 (Still no payments for this invoice)

Matching Invoice with PO Receipt: Click Match Button to find receipt (note the matching level is Receipt)

Type Receipt Number 1318 in Receipt Num Field Click Find or Press Enter

Click on Match Flag (Check Box)

Click on Match Button and note that Invoice Amount at the top of the form equals Distribution Total and the two fields are colored Black.(if there the two amounts are different the distribution Total would be colored Red). Now note the Distribution Total in the summary section has been changed to 2500 in Black Color. Invoice Validation: Click Action Button and choose Validate Invoice Radio Button and Press OK Create Accounting for the Invoice: Click Action Button and choose Create Accounting Radio Button and press OK Now Note that : Invoice Status has been changed to Validated Accounted has become Yes

Review Accounting: Tools Menu View Accounting

DR. AP Accrual (2500 ( CR. Liability (2500 ( Also Check Distribution Form:

Close View Accounting form from the (x) Click on Distributions Button

Note: You can reverse the Distribution Line by Pressing Reverse 1 to re-match the receipt if there is mistake while matching or the receipt number was wrong.

Using Distribution Form to enter Debit Account When the supplier supplies the company with service 1- enter the invoice Number TESTINV10002 as before and Save Invoice.(you Can use Shift+F6 to Copy the whole Invoice Header) then Change the Invoice Number to TESTINV10002 Note : the System will reject the new invoice with the same number for the same supplier and that because the invoice number is unique. 2- Click on Distributions Button

3- Type the Amount 4- Change GL Date if necessary 5- Choose an account (Debit Part)

Click on ACCOUNT List of Value to choose an account Click OK You Also can type and description for that transaction in the Description Field.

Then Close the Distribution Form from (x) Action Validate Action Create Accounting

Debit Memo (or Credit Memo): Type: Debit Memo () Supplier: No Changes (Comes automatically if the

Supplier Site: supplier has one site comes blank) Invoice Date: Invoice Number: Invoice Curr: Default) Invoice Amount: L.E memos)

If there are more than one site it 26/10/2010 Enter the Invoice Number TESTDM10001

No Changes Invoice Currency (In our Case EGP Comes -500 (you must enter (-) sign before Amount for debit or credit

Click on the Distributions Button

Fill in the required values as you need and also the amount must be minus with the sign (-) as the invoice header Action Validate Invoice Action Create Accounting Review Accounting: From Tools Menu View Accounting

Note: that the Liability Account is now debit and the credit account is the account you have selected in the distribution window. Supplier Invoice Payment: Navigate to: Payments EntryPayments

Press Enter or Double Click

Type: Bank Account: )

Manual Choose a Bank Account from the list of Value (

Document: Document Num: Payment Date: Curr.:

Check Book number () Check (Cheque) No. 26/10/2010 No Changes (Default EGP)

Enter Supplier Name: Supplier Num: Supplier Site:

No Changes Choose Supplier Site from List of Value

Click Button (Enter / Adjust Invoices) Below

Choose Invoice from List of Value (Invoice Number) Enter payment Amount Note: you can pay also the debit memo with the invoice to pay the net amount of the invoice

Save (Ctrl+S) Exit (x)

Action Create Accounting Review Accounting Tools Menu View Accounting

You can void Payment after processing the payment for any reason by click Action Button Void Then: Choose void Date Choose GL Date Invoice Action: NONE (You can cancel Invoice also from this option)

Test Scenario 2: Custody of Cash Entering Pre-Payment Invoice Before entering prepayment Invoice for an employee to record the petty cash or (Custody of Cash) A. the employee must be defined in the HR Module B. Define Supplier with Employee Name C. Choose Employee Type from Classification List of Value D. Choose the employee name from the list of value E. Define Employee Site with Site name ( )an Prepayment account different from Supplier Prepayment Account () F. Save your Work G. Now you have an employee as a supplier with different account 1- Switch to Oracle Payables Responsibility (e.g. AP_SIGMA_SUPERUSER) 2- Navigate to: Invoices EntryInvoices

3- Double Click on Invoices

Enter Invoice Type: Supplier: Site: Invoice Date: Invoice Number: Invoice Curr.: Invoice Amount:

Prepayment ) ) ) ) 26/10/2010 () TEST_PRE_1001 EGP

Enter the Distribution: you will find that the account is exist you can type the amount Now Note the Status: Status: Accounted: No Unvalidated

Prepayment Validation: Action Validate Action Create Accounting Note the Status Now: Unpaid

To view Accounting Tools Menu View Accounting

Prepayment Invoice Payment Note : we must Pay the prepayment invoice Actionpay in full Choose Manual Payment Choose Bank from List of Value Enter payment Date

Save

ActionCreate Accounting Now the Invoice has been paid

Create Expense Report Invoices for Settlement ()

Action Validate Action Create Accounting Action Apply / Unapply Prepayment

Click On Apply/Unapply Button

Return to the Invoice you have created and note the Invoice Status (Needs Revalidation)

Action Validate

Note the Accounted Status (Partial)

Now Action Create Accounting

To view the Accounting Tools Menu View Accounting

Note: Prepaid Expenses ( )Become Credit and that means that the Prepaid Expenses has been reduced by L.E. 10000

Test Scenario 3: Bills Payables (Future Dated Payments ) Opening Balance: To Upload the Opening Balance you must follow the steps mentioned below: Before Creating Invoices I recommend to use invoice batch to classify your work ( ) Navigate to Invoice Batches

Create a Batch

Save the Batch Click on Invoices Button (Note: all the invoices will be related to this batch name)

1- Create Invoices for the Suppliers (Total for each supplier) as the balance of Bills Payables Its recommended to choose a different type of Invoices such as Mixed Invoices

Validate Invoice (for Bills Payables) Action Validate Invoice Action Create Accounting Create Another Invoice (Bills payables)

Validate Invoice (for Bills Payables) Action Validate Invoice Action Create Accounting 2- Pay all That Invoices You can select more than one invoice (for the same supplier) by holding CTRL while clicking on the invoice and note that the Action Button has changed to (Action 2)

Click on Action Pay in full

Because of selecting two invoices for different suppliers an error message is shown to inform you that you have selected invoices with different suppliers

You Can use: pay in full for each invoice Manual Payments (Recommended) Navigate to Payments payments Enter the payment information (Bank Account, Payment amount, Maturity Date)

Note the Status is Issued

Click on Enter / Adjust Invoices Choose Invoice

Save payment Do the Same for each Maturity Date ()

Note: the Maturity Date is Different for each payment transaction

Now the Invoice has been paid with Varied Maturity Dates and the Supplier balance has not been affected Action Create Accounting Tools Menu View Accounting

When the due date comes you will find the status has changed to allow you to edit Before Clearing the Amount you must change to Status to Negotiable

Then save Clearing Transactions 4- from Cash management Module choose Manual Clearing and choose Payables Navigate to Cash Management Module Responsibility Bank Statement Manual Clearing Clear Transactions

5- choose the bank you will pay from

6- Find

Check or Select the Payment you want to clear Now we want to clear L.E.15000 Only

7- clear selected Click on Clear Transaction Button Navigate Again to AP_SIGMA_SUPERUSER Payment Entry Payments Query the payment you have just cleared Note the Status is Cleared but not Accounted Action Create Accounting 8- return to the Payments form and requery the invoices which took the status (Negotiable) before 9- Note the new status (Cleared) 10- Now you have the Bills Payables Opening Balance

Test Scenario 4: Recurring Invoices Creating Special Calendar: This Kind of Invoices is regularly created every month or every quarter or every year such as Rent, Electricity or Water (Often Public Sectors Companies) 1- Navigate to Responsibility AP_SIGMA_SUPERUSER 2- Create Special Calendar (Setup Calendar Special Calendar) Enter the following as shown below:

Create Recurring Invoice 2- Invoices Entry Recurring Invoices

3- Click on Create Recurring Invoices Button

Press OK View the Created Invoice Now navigate to Invoices Entry Invoices Query the Supplier Name ()

Note the Invoice is Ready and the distribution is automatically entered from The Recurring Invoice also note that you can Edit the Account ( )and change the Amount before validation

You Can also create a distribution set ()

Validate Invoice and Create Accounting Now Action Validate Action Create Accounting

Test Scenario 5: Standard Invoices to Record the Expenses Create Distribution Sets Navigate to Setup Invoices Distribution Sets

Entering the Invoice Enter the invoice as following

Choose the Distribution Set from the List of Value

Save the Invoice and open Distributions Form to view the Accounts

Note : we have entered the same account but for a different Cost Centers when we created the Distribution Set You can Edit the accounts or the amounts Invoice Validating Action Validate Invoice Action Create Accounting