Oracle Accounts Payable

ORACLE ACCOUNTS PAYABLE
Release 12 Upgrade Considerations New features in Release 12 of Oracle Payables
AGENDA
y y y y y y y y
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables
AGENDA
y y y y y y y y
SUPPLIERS IN THE TRADING COMMUNITY ARCHITECTURE (TCA)

The Trading Community Model:

Is a highly flexible architecture y Allows you to model real world entities in your trading community y Allows you to accurately represent complex relationships among entities y Is the core data model for trading partners used by Oracle E-Business Suite applications
y
TCA SECURITY BY FUNCTIONAL AREAS
Function Security
Payables Attributes
Purchasing Attributes
Receivables Attributes
PAYMENT BANKS, BRANCHES, AND ACCOUNTS

Bank Accounts are:

Centrally defined y Managed and secured y Include the legal ownership and operating unit access for each bank account
y
SUPPLIER BANK ACCOUNTS

Enhancements to supplier bank accounts include:

Removal of some processing restrictions y Greater control and security y The bank account is tied directly to the trading partner y Notification when trying to inactivate a bank account that is associated with unpaid invoices or pay runs that are in process
y
COLLABORATION WITH SUPPLIERS TO RESOLVE DISPUTES

Disputes are communicated and negotiations can be suggested to the Supplier y Suppliers are able to:
y
Accept suggested changes Withdraw their invoice Submit a counter proposal Negotiate online via iSupplier Portal

All changes and comments are tracked in Payables
INVOICE REQUESTS

Invoice Requests are:

Invoices entered by Suppliers via iSupplier Portal where a purchase order has not been obtained y Are visible in Oracle Payables y Are not paid or accounted until the invoice can be verified and approved
y
IMPLEMENTATION CONSIDERATIONS
End user training for new UI y Update supplier information with additional information
y
AGENDA
y y y y y y y y
DEFERRED RECOVERABILITY
Accounting process where tax recovery is reported when the invoice is paid y Accrual (and therefore the settlement and/or reporting) of recoverable taxes is delayed due to special tax rules either enforced by the Tax Authority, or allowed with the agreement of the Tax Authority
y
DEFERRED RECOVERABILITY FEATURES

Accurate reporting and accounting of pending recoverable tax amounts y Automatic accrual of recoverable tax amounts upon payment
y
DEFERRED RECOVERABILITY BENEFITS

y y
Global Readiness

Adhere to international tax laws
Streamlined Operations, Operational Excellence, and Lower Costs

Automatic accrual of recoverable tax amounts obviates need for manual transfers after payment transactions Propensity for manual error is reduced

Improved Fiscal Discipline

Accounts reflect transactions that have occurred Automated accounting reduces auditing time

DEFERRED RECOVERABILITY PROCESS PART 1: SET UP AND INVOICE

Payables Invoice Entry
Process 1 Tax Set Up Invoice Header Invoice Lines Invoice Distributions Tax (Includes Interim Recoverable Tax Distribution Account) Tax Engine Invoice details
E-Business Tax
Account
Subledger Accounting
Non Recoverable Tax Expense/Asset X.XX X.XX
Interim (deferred) Recoverable Tax X.XX
Accounts Payable Liability X.XX
DEFERRED RECOVERABILITY PROCESS PART 2: SET UP AND PAYMENT

Payables Payment
Process 2 Payment Invoices Invoices
Invoices
E-Business Tax
Invoices with Deferred Recoverability ? Invoice details Recoverable Tax Distribution Accounts
Tax Set Up
Calculate Recoverable Amounts, Record Distributions Account
Accounts Payable Liability X.XX
Recoverable Tax X.XX
Interim (deferred) Recoverable Tax X.XX
Cash Clearing X.XX Optional Set Up
SETUP TAXES WITH DEFERRED RECOVERABILITY

Level Allow Tax Recovery Default Recovery Settlement Deferred Deferred Tax Expense Recoverable Tax Interim Tax (used for Accrual Based accounting only) Tax Accounts
Regime Tax
Tax Status Tax Rate
Deferred Deferred

Common Module Dependency:

y
E-Business Tax
The e-Business Tax engine is responsible for calculating tax amounts applicable to invoices. E-Business Tax configuration qualifies taxes with attributes to meet tax compliance requirements.

Common Module Interaction:

y
Subledger Accounting: A general tool to configure accounting entries and provide accounting reports.
AGENDA
y y y y y y y y
Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payable
ENHANCED ASSET TRACKING

y
Enhanced Asset Tracking

Item Description Manufacturer Model Serial Number Warranty Number

Enhanced Mass Additions

Asset Book Asset Category IPV/ERV distributions

ENHANCED ASSET TRACKING BENEFITS

y
Increased efficiency and reduced costs

Asset information typically entered on a purchase order can now flow seamlessly into Payables and Assets. The Create Mass Additions process can now be submitted to select invoice distributions by specific Asset Book.
Improved accuracy of information

ENHANCED ASSET TRACKING PROCESS

PAYABLES PROCESS
Enter Payables Invoice and match to Purchase Order or Import Purchasing matched invoice Payables retains asset information such as: manufacturer, serial number, asset book and category Optionally update asset information on invoice line or distribution, including asset book and asset category
Automated process
Submit Create Mass Additions process to transfer assets to Oracle Assets
INVOICE LINES

Invoice Lines:
Represent goods or services as lines with distributions tied to each line y Facilitates the capture and transfer of pertinent information from Oracle Projects and Oracle Assets y Enables line level approval and matching between an invoice line and a purchase order shipment pay item
y

Do the enhanced asset tracking features require reevaluation of asset tracking policies?
AGENDA
y y y y y y y y
PAYMENT REQUESTS KEY CONCEPTS

Payment Request
y
A request for payment to Oracle Payables without requiring a supplier, purchase order or standard invoice
Oracle Loans: Loan Funding Disbursement Oracle Receivables: non-credit card Customer Refund Requests

Payee
y y
Designated party to which the payment will be made A payee can be a supplier, borrower, or customer
PAYMENT REQUESTS DESCRIPTION

If requires approval, Payables Launches Workflow Payment Request No approval required Loans Payables applies holds, if necessary Account payables department approves request
submits Receivables
Pay
PAYMENT REQUESTS BENEFITS

y
Benefits for Payables managers

Ensures the Integrity of Supplier Master

Do not complicate Supplier Master with non-supplier payees Provides visibility and control over items for payment processing
Provides Payables transparency

Benefits for other E-Business Suite products

Leverages the Payables product for all payment needs Leaves the required knowledge base in Payables without complicating your business model or employee structure Provides visibility into the current status

PAYMENT REQUESTS PROCESS

E-Business Suite Product
Oracle Receivables Receipts On Account Credit Memos Payment Request Payment Request ID Oracle Loans Loans Report Payment Request Status Payment Verify Account Tax Approve
Payables
Payment Request
ORACLE RECEIVABLES REFUND EXAMPLE

ABC Company
Ship Purchases: 3 Copy Machines Pay
Payment Request for $350,000
Vision Corporation
Vision Corporation Receivables Manages Receivables Transactions for return Initiates Payables Request $5000.00 View Status if needed Payment Request for $5000 Vision Corporation Payables
Return Returns 1 Copy Machine for Refund
Customer Receives Payment $5000.00
Refund
Payment Transacted to Payee
Payment Manager Manages items to be paid
Approve
FUNDS DISBURSEMENT PROCESS - LOANS

Vision Loans Application Processing Risk Management Approvals IGNF Foods Requests a Loan for 350,000 from Vision Loans Fund Payment Request for $350,000
Vision Loans Payables Sends Borrower Payment Loan Funded
Payment Manager Visibility to all Payables Liabilities Manages items to be paid Reports to Upper Management
PAYMENT REQUEST ADDITIONAL PAYABLES ACTIONS

E-Business Suite Product
Oracle Receivables Receipts On Account Credit Memos Oracle Loans Payment Voided Payment Loans Void Payment Request Cancelled Payment Request
Payables
Cancel
PAYMENT REQUESTS: SYNCHRONIZING BETWEEN PRODUCTS

y
Payables provides the ability for requesting EBusiness Suite products to respond to actions taken on the payment request. These actions include:
Canceling the payment request Voiding the payment

To ensure that the Payment Request details remain the in sync between Payables and the requesting EBusiness Suite product, Payables prevents:
Deletion the Payment Request Update to many fields

PAYMENT REQUESTS REPORTING

Report Name Invoice Aging Report Invoice Approval Status Report Invoice Audit Listing By Voucher Number Invoice On Hold Report Open Items Revaluation Report Cash Requirement Report Change Includes Payment Requests in Aging Report Modified to show payment requests in the approval workflow process Expanded to include Payment Requests by sequential voucher number Expanded to include Payment Requests on Hold Modified to include Payment Requests in revaluating balances Includes Payment Requests for forecasting cash needs
PAYMENT REQUESTS OPTIONAL SETUP

Oracle Payments
Payment Method Controls Payment Method Defaulting Rules Payment Instruction and Report Formats Payment Attribute Validations Payment Process Profiles Disbursement Options
Oracle Payments
Payables Options: Enable Invoice Approval Workflow
Approvals Management
Approval Rules AP Invoice Approval
PAYMENT REQUESTS MISCELLANEOUS SET UP

Document Sequencing - Payment Request Category y Payables and Financial Options
y
Interactions with: y Oracle Payables & Payments y Oracle XML Publisher y Oracle Approvals Management / Workflow (Optional) y Oracle Loans; Oracle Receivables
AGENDA
y y y y y y y y
PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT INFORMATION

Enhanced Payment Method Controls y Expanded Payment Attribute Availability and Defaulting y Configurable Payment Attribute Validation y Extensive Format and Reporting Capabilities
y
KEY CONCEPTS y Document Payable: A document to be paid by the

deploying company (Payer) y Payee: The person or organization that is being paid y Payment Process Request: The process of requesting the payment processing for a group of invoices y Payment Instruction: Formatted payment information that is either transmitted to a financial institution for payment or used in-house to print check documents
KEY CONCEPTS
Payment Process Profile: Usage and grouping rules, bank assignments, payment instructions and reporting, and connectivity for electronic filing y Oracle Payments: E-Business Suite module leveraged to group invoices into payments, create instructions, and print or communicate with the bank
y
KEY CONCEPTS
Payment Method: Document payable attribute that indicates how the payer is going to make the payment y The Payment Method, Banking Relationships, and Reporting Requirements drive Payment Method - Based Payment Processing including:
y
Payment attribute validations executed on the invoice to catch errors early Payment attribute validation at payment time based on your processing choices to catch errors before they go out the door Data rich payment instructions and reporting

EVALUATE PAYMENT CHOICES REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS
Vision Operations
Payment Method Choices Banking Relationships Attributes to communicate to bank

Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location Reporting Requirements
Reporting Requirements
Vision Operations
Payment Method Choices Banking Relationships Attributes to communicate to bank

Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location Reporting Requirements Vision Operations Payment Method Choices
Attributes to communicate to bank Banking Relationships Payee Relationship Payee Preferences Payment Reconciliation to Open Debt
Payment Method Policy Payee Payment Attributes Vision Operations Payment Processing Configuration Reporting Information and Styles Invoice Payment
Banking Relationships Payee Relationship
Payment Information
ENHANCED PAYMENT METHOD CONTROLS DESCRIPTION

Users can create new Payment Methods as needed y A Policy can be defined for the Payment Method usage based on:
y
Oracle Application Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location

ENHANCED PAYMENT METHOD CONTROLS BENEFITS

Provide the ability to set up multiple Payment Methods to meet specific business requirements y Controlled availability of Payment Methods
y
ENHANCED PAYMENT METHOD CONTROLS PROCESS ENTER PAYABLES DOCUMENT

Supplier iSupplier Portal Import
Payables Analyst Quick Invoice Invoice Workbench Recurring Invoices
Pay On Receipt Import Payment Requests Expense Reports
Employee: Decentralized Invoice Entry Payables Requests
ENHANCED PAYMENT METHOD CONTROLS PROCESS ENTER PAYABLES DOCUMENT

y y y y y
Payment Method defaults based on your configuration. The attributes on invoices meet requirements to default the payment method via the Defaulting Rules. The Disbursement System Options allow for the Payees default to override. You can define a default payment method for the Supplier Site (for example, Check) If you need to override the default, the List of Values displays the Payment Methods that meet the Usage Rules defined for the Payment Methods.
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING DEFINITION

Payment attributes are items on the document payable that play a role in:
Successful payment processing of a document payable y Reporting requirements y Payee payment and remittance
y
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING DESCRIPTION

Global Descriptive Flexfields (GDFs) for payment and remittance processing are now available as fields on the invoice y Payee Payment Processing Preferences for Defaulting y Bills Payable (Promissory Notes, Future Dated Payments) defined for the Payee
y
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING BENEFITS

Enhance supplier/payee relationships y Minimize data entry y Facilitate payees reconciliation of payments and open debts y Satisfy reporting requirements
y
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING ENTER PAYABLES DOCUMENT

Payables Analyst Quick Invoice Invoice Workbench Recurring Invoices
Pay On Receipt Import Payment Requests Expense Reports
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING PAYMENT ATTRIBUTES DEFAULTING

For Payables users, the Invoice Workbench is accessed through the folder form technology. y The Payment Method, Remit To Bank Account Number and Name, and Remittance Messages are used to default to the Scheduled Payments. y Users can enter the Unique Remittance Identifier and Check Digit per invoice and Remittance Messages per scheduled payment.
y
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - UI

Quick Invoices: The Quick Invoices UI also has the same capabilities as Payment Attributes Defaulting y Payment Attributes for Recurring Invoices default under the Payment Tab. The Payment Tab values are transferred to the subsequent invoices that are created.
y
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION DESCRIPTION

y
Enhanced Invoice Entry Validation

Configure validation on the Payment Method to meet your business needs Analyze and resolve validation issues upfront at invoiceentry time

Enhanced Payment Processing Validation

Configure validation on the Payment Format and Payment Process Profile to meet your business needs Payment Manager can analyze and resolve validation exceptions or Automatically remove the Invoices to resolve issues while keeping payment processing streamlined

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION BENEFITS

Increased Payment Process Efficiency - On time Payments y Reduce Problem/Resolution Costs
y
Reduce Check Stock Waste Catch Errors before send the file to the bank

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: SCHEDULED PAYMENT HOLDS

Find and resolve payment related issues upfront during Invoice entry: Payment Method Validation
General Tab: Scheduled Payment Holds y Scheduled Payments Tab: Hold Details
y
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: INVOICE ON HOLD REPORT

The Invoice on Hold report is a tool to identify and analyze all the invoice holds including scheduled payment holds. y The Invoices on Hold Report lists:
y
Payment schedule holds for payment method validation Invoice entry status Imported invoice status

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES

During the payment process, determine what should happen if validation errors occur. y Separately, determine how you would like payment level validation issues to be handled. y The Payment Template User Interface is used when scheduling Payment Process Requests and can be used when submitting an on demand pay run allowing you to override the template value when you submit.
y

The Payables Payment Manager Home Page displays Payment Process Requests that Require Actions, including validation errors y The Pending Actions area displays payment process requests with validation errors y Based on the Payment Process Request Status, you are directed to the correct UI to manage the action by clicking on the Start Action icon
y

Use
the Payables Payment Process Requests Tab to display rejected or manually removed scheduled payments (invoices.) In addition, you can:
y y y y y
View the last 10 Payment Process Requests, which are automatically displayed Show Request Details to see payment instruction details Search/ See Current Status Navigate directly to the Action Page if Required Cancel Requests
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING - BENEFITS
Reduce Reaction Time to Changing Banking Relationships - Flexible, Adaptable Payment Instruction Formats y Facilitate Payees reconciliation of payments and open debts y Satisfy Reporting Requirements
y
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING
Access the following setup pages from the Payment Administrator page:
XML Publisher Format Templates y Formats y Payment Process Profiles
y
XML Publisher Templates
Formats
Payment Process Profiles
PAYMENT INSTRUCTION FORMATS AND REPORTING XML PUBLISHER TEMPLATES
The Payment Instruction Register Template includes the Unique Remittance Identifier y To create a different report layout or include different data elements, create your new version and register it XML Publisher Templates via this XML Publisher page
y
Formats
PAYMENT INSTRUCTION FORMATS & REPORTING XML PUBLISHER TEMPLATES
Formats
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING

The Formats page ties the XML Publisher Template to the Payment Disbursement Remittance Formats and Reports. y There are many types of formats available:
y
Payment Instructions Payment Instruction Accompanying Letter Positive Pay File Regulatory Reporting Payment Instruction Register Separate Remittance Advice, which can later be assigned to the Payment Process Profile

Formats
FORMATS & REPORTING PAYMENT PROCESS

Specify Usage Rules: Payment Methods ties the Payment Method to Payment Process Profiles y The Payment Process Profile is where you tie in your list of Payment Methods that can use this profile.
y
Formats
FORMATS AND REPORTING PAYMENT PROCESS

Specify Payment Creation Grouping Rules on the Payment Creation tab y Optionally Group by Document Payment Attributes y The payment attributes on your invoices can be used as grouping rules when building or assembling each payment
y

This may be required to meet your banks format needs or for your reports
Formats

Use the Payment Process Profiles screen to specify Payment Instruction Grouping Rules, including by Payment Attributes such as:
Payment Reason y Bills Payable Payment Methods
y
Formats
FORMATS AND REPORTING PAYMENT PROCESS

The Payment Instruction Format is assigned on the Payment Instruction Format tab y You can assign:
y
The Payment Instruction Accompanying Letter format

Formats

Use the Reporting Tab to assign the formats for the:

Payment Instruction Register y Positive Pay File y Separate Remittance Advice
y
Formats
SETUP PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT

y
Configurable Payment Attribute Validation

View available validations Payment methods Payment process format Payment process profile

Expanded Payment Method

Instruction formats and reporting Controls Defaulting

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP

SETUP
Payment Method
View Validations
Payment Method Payment Instruction Format Payment Process Profile

Payment Instruction Format
Payment Process Profile
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP CONSIDERATION

When
y
determining how to configure Payment Attribute Validation, consider the Three Models:
One Method, One Payment Process Profile (one Payment Instruction Format one set of reports) y One Method, Many Payment Process Profiles (each with one Payment Instruction Format one set of reports) y Many Methods, One Payment Process Profile (one Payment Instruction Format one set of reports)
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: VIEW AVAILABLE VALIDATIONS

Validations can be assigned to Payment Methods and Payment Instruction Formats. y Validation Points indicate when the validation can occur and controls the list of values on Payment Methods and Formats. y Validation Points are:
y
Document Payment Payment Instruction

Payment Method
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP PAYMENT METHODS

Direct
y
Deposit Payment Method
In the validations area, assign predefined validations or configure your own. y When configuring your own validations, choose a Field Name from the list of values. y Based on the field name, assign a validation name.

Payment Method
For example, you can specify that the Payees bank account is required and can be only integers and that a Payment Reason is required.
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS FORMAT

Payment Instruction Formats:

Pre-defined Validations for your use y User-defined Validations provide flexibility y Optionally Use User-defined Validations to Supplement Payment Method Pre-defined Validations
y
Payment Format
CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS PROFILE

Payment Process Profiles include:

y y y y y
The type of processing (electronic or in-house printing) Use controls based on a list of payment methods, bank accounts, first party legal entities, and currencies Payment instruction and reporting formats Payment system configuration Payment Method Payment creation rules
Payment Format
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING SETUP
SETUP
Use Out of the Box Payment Instruction Formats and Reports or Configure XML Templates y Assign to your Payment Process Profiles
y
Payment Formats
ENHANCED PAYMENT METHOD CONTROLS SETUP

SETUP
Define Payment Methods y Define Payment Method Defaulting Rules y Specify Payment Method defaulting mechanism y Assign Payment Methods to the Payee
y
Payment Methods
Payment Method Defaulting Rules
Disbursement System Options
Payee Payment Method Assignment
EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - SETUP

Define Delivery Channels, Payment Reasons, and Bank Instruction Codes y Define Payee Payment Attributes y Tailor Invoice Entry UI with Oracle Folder Forms
y
SETUP
Delivery Channels, Payment Reasons, Bank Instruction Codes Payee Payment Attributes
Folders
Oracle Payables & Payments y XML Publisher
y
AGENDA
y y y y y y y y
SELF ASSESSED TAX DESCRIPTION

Self assessed taxes are taxes which need to be reported but are not a liability to the supplier y The purchaser is responsible for calculating and remitting the tax
y
SELF ASSESSED TAX FEATURES

Predefined or manual determination of Self Assessed Tax y Determine recoverable & non-recoverable portions of self assessed tax amounts y Reporting and accounting for Self Assessed Tax amounts y Reporting and accounting for Self Assessed Tax Liabilities
y
SELF ASSESSED TAX BENEFITS

y
Improved Fiscal Discipline

Maintain an audit trail for the tax amounts and the invoices they tie to More granular and accurate accounting

Improved Operational Excellence

Reduced propensity for human error
SELF ASSESSED TAX PREDETERMINED PROCESS

Payables Invoice
Invoice Header Invoice Lines Tax Summary Tax (Self Assessed) Tax Engine Invoice details
E-Business Tax
Configuration
Stored Accounting Information
Non Recoverable tax X.XX Recoverable Tax X.XX Self Assessed Liabilities X.XX
SELF ASSESSED TAX PROCESS 1. PREDETERMINED

Set up
y y y y y
Set up Invoice Tax calculation Accounting Reporting
Invoice Calculate tax Account Report
SELF ASSESSED TAX: PREDETERMINED PROCESS INVOICE ENTRY

Use the Payables Invoice Workbench to enter invoice header and lines information y Many tax drivers default onto the transaction, however, Payables users can also update or enter these values Set up y The lines region displays some of the new columns added to help derive tax, including: Invoice
y
Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification

Calculate tax Account Report
SELF ASSESSED TAX: PREDETERMINED PROCESS CALCULATE TAX

To view the calculated tax, click the Calculate Tax button on the Lines tab y The E-Business Tax Service engine calculates tax based on its configuration, including determining if the tax should be self Set up assessed
y
SELF ASSESSED TAX: PREDETERMINED PROCESS CALCULATE TAX EXAMPLE

Vision Invoice Invoice Amount = $1000 Self Assessed Tax Amount = $50
Set up
Suppliers Invoice Subtotal = $1000 Tax = $0 Total = $1000
SELF ASSESSED TAX: PREDETERMINED PROCESS CALCULATE TAX

On
y y y y y y y y
the Lines tab, you can click the Tax Details button to view tax details such as:
Tax Regime Code Tax Jurisdiction Tax Status Rate Name Rate Tax Amount Whether the tax is self assessed
Set up Invoice Calculate tax Account Report
SELF ASSESSED TAX PROCESS ACCOUNT

After validating and accounting the invoice, view the accounting by choosing Reports View Accounting from the menu bar y Personalize the View to meet your needs y Leverage Subledger Accounting to tailor Set up journal & journal line descriptions and account derivation rules Invoice
y
SELF ASSESSED TAX PROCESS ACCOUNT

You can customize what is displayed on the Subledger Journal Entry Lines page y You can also configure Subledger Accounting for account derivation and journal & journal line descriptions y Self assessed rows are not shown in the Set up Invoice Workbench Distributions Window because they are not represented on the Invoice suppliers invoice
y
SELF ASSESSED TAX SETUP REPORTING CHOICES

Subledger
y
Accounting:
Provides reports for your accounting activity y Reports use XML Publisher, giving you the flexibility to configure the layout and report type at any time y Reports include: Set up
Account Analysis Report Open Account Balance Listing report

Gives you flexibility to configure:

XML Publisher Report Layout XML Publisher Report Type

SELF ASSESSED TAX SETUP REPORTING CHOICES

y
To create a definition for the Open Account Balance Listing report , navigate to the Setup Subledger Accounting Open Accounting Balances Listing Definitions

You can optionally create a definition for yourself assessed tax liability account
You have the flexibility to configure Open Account Balances Listing: Report Definition
SELF ASSESSED TAX PROCESS REPORT
Account Analysis Report

Set up Invoice Calculate tax
Open Account Balance Listing Report
Account Report
SELF ASSESSED TAX MANUAL DETERMINATION PROCESS

Payables Invoice
Invoice Header Invoice Lines Tax Summary Tax (Payable to Supplier) Tax (Self Assessed) Tax Engine Invoice details
E-Business Tax
Configuration
Stored Accounting Information
Non Recoverable tax X.XX Recoverable Tax X.XX Self Assessed Liabilities X.XX
SELF ASSESSED TAX PROCESS 2. MANUAL DETERMINATION

y y y y y y
Set Up Invoice Tax Calculation Manual Tax Update Accounting and Accrual Reporting
Set up Invoice Calculate tax Manual Update Account Report
SELF ASSESSED TAX: MANUAL DETERMINATION SET UP - E-BUSINESS TAX CONTROLS

y y
You can set Configuration Owner Tax Options Tax Managers determine if they would like to allow tax to be updated or not. The Allow Override for Calculated Tax Lines can be set for the Set up configuration owner and application event Invoice class or on a particular Tax Other Controls and Defaults you set include: Calculate
Allow Override and Entry of Inclusive Tax Lines Allow Entry of Manual Tax Lines Allow Mass Creation of Jurisdictions

tax Manual Update Account Report
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS INVOICE ENTRY

Use the Payables Invoice Workbench to enter invoice header and lines information y Many tax drivers default onto the transaction, Set up however, Payables users can also update or Invoice enter these values y The lines region displays some of the new Calculate tax columns added to help derive tax, including:
y
Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification

Manual Update Account Report
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS CALCULATE TAX

To view the calculated tax immediately, click the Calculate Tax button on the Lines tab y The E-Business Tax Service engine calculates tax based on its configuration Set up
y
Invoice Calculate tax Manual Update Account Report
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS CALCULATE TAX EXAMPLE

Invoice Header Invoice Amount = $1000 Tax Amount = $50
Set up
Suppliers Invoice
Suppliers Tax initially calculated for $50. Invoice lines do not total the Invoice header amount
(Line 1) Item Type= $1000 (Line 2) Tax Type = $50 Total Gross = $1050 Total Net = $1050 Tax = $0 Total = $1000
Invoice Calculate tax Manual Update Account Report
SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS CALCULATE TAX EXAMPLE

Invoice Header Invoice Amount = $1000 Self Assessed Tax Amount = $50
Set up
Suppliers Invoice (Line 1) Item Type= $1000 Total Gross = $1000 Total Net = $1000
Manual Update Account Report Invoice Calculate tax
SETUP SELF ASESSED TAX

First party tax y Supplier party tax
y
SELF ASSESSED TAX: PREDETERMINED SET UP FIRST PARTY, PARTY TAX PROFILE

You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels:
Registration, Regime y Registration, Regime, Tax y Registration, Regime, Tax, Tax Jurisdiction
y
SELF ASSESSED TAX: PREDETERMINED SET UP FIRST PARTY, PARTY TAX PROFILE
Enable Self Assessment on the Party Tax Profiles tab y By checking the Set for Self Assessment/Reverse Charge option at a particular level, E-Business Tax returns applicable taxes for supplier invoices that fall within the level
y

For example, if you enable this option at the Registration Regime level, all invoices to be taxed within that regime will be considered Self Assessed tax
Set up
SELF ASSESSED TAX: PREDETERMINED SET UP SUPPLIER PARTY TAX PROFILE

You can also set up a particular suppliers Party Tax Profile by doing either of the following:
Use the Tax Managers responsibility to query a Third Party Set up y Navigate to the Tax Details page from the Supplier (Entry) pages from the Payables Responsibility
y
Common
y

Module Dependency:
E-Business Tax
The e Business Tax engine is responsible for calculating tax amounts applicable to invoices Also assists in automatically identifying taxes as self assessed and allows setting options for manual determination
Common
y

Module Interaction:
Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs
AGENDA
y y y y y y y y
ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS

An integrated solution to automate acquisition of complex services from Source through Payment. y Complex Service Contracts are characterized by:
y
High dollar value projects Long lead time delivery schedules Progress payments based on work completion Advances and progress based financing options Retainage options

Commodities / Industries of Interest

Professional Services Engineering and Construction Aerospace and Defense

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS

y
Strengthened financial discipline and corporate governance

Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within tolerance policies Providing workflow approval processing, history, and controls

Improved visibility into business, financial, and compliance performance

Real-time update of the purchase order, adherence to budgetary controls, accounting and tax reporting provide transparency
COMPLEX CONTRACT TERMS KEY CONCEPTS

y
Progress Payment Schedule

Represents a schedule of services and work with associated payments Payments for progress made on a Progress Payment Schedule Refers to a specific work/service component of the Progress Payment Schedule, and its associated payment amount
y y
Progress Payments

Pay Item

COMPLEX CONTRACT TERMS KEY CONCEPTS

y
Progress Payment Rate

Used on Cost Reimbursement Contract. Represents the rate at which costs incurred by the Contractor are reimbursed Typically used in Public Sector Contracts. Contract financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met, financing is given to aid in the completion of subsequent work
Contract Financing

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW
Request for Service
Source
Requests for Services can originate from multiple sources: Facilities Manager Project Manager Field Engineer Architect
Author Contract
Advance Payment
Track Progress
Process Payment
Request for Service
Source
Author Contract
Invite Suppliers to Sourcing Event Negotiate with Suppliers on: Complex Payment Terms Progress Payment Schedule Clauses & Deliverables
Advance Payment
Track Progress
Process Payment
Request for Service
Source
Author Contract
Award Contract to best Supplier Supplier and Contracting Officer sign off on Contract
Advance Payment
Track Progress
Process Payment
Request for Service
Source
Author Contract
Supplier requests the advance if provided for on the contract The advance amount is paid to the supplier
Advance Payment
Track Progress
Process Payment
Request for Service

Contractor reports progress Progress is certified by Facilities Manager, and/or Project Manager
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Request for Service
Contractor submits Invoice for Progress Payments and Contract Financing Retainage is applied Financing is recouped Payment is released
Source
Author Contract
Advance Payment
Track Progress
Process Payment
INTEGRATED PRODUCTS: HIGH LEVEL BUSINESS FLOW

Oracle Projects Cost Collection Budget / Deliverables Advanced Procurement
Request for Services Retainage Release
Procurement for Complex Services
Negotiate
Invoice / Payments
Oracle Payables
Track Progress
Control
ORACLE E-BUSINESS TAX SETUP: TAX CONFIGURATION

Prepayment Application Tax Handling

y
Prepayment Application Tax Treatment: Select Recalculate or Prorate option for the Applied Amount Handling field
BUSINESS FLOW: PAYABLES DISTINCTION

Procurement Process Payables Process
Request for Service
Author Contract
Advance Payment
Source
Track Progress ERS
Process Payment
CONTRACT DELIVERY INVOICING

Procurement Process Payables Process
Request for Service
Author Advance Contract Payment
Payables Analyst Quick Invoice Invoice Workbench
Pay on receipt import
Source
TrackProcess Payment Progress ERS
INVOICE WORKBENCH: CONTRACT DELIVERY INVOICES
ORACLE PAYABLES: ENSURE BILLING COMPLIANCE

y
Ensuring billing compliance with the terms negotiated on the contract

Automating retainage and financing recoupment Real-time update of the purchase order

Ensuring billing compliance when comparing billed verses planned

Holds resolution process to manage issues when they does not Verifying invoices fall within your tolerance policies

ORACLE PAYABLES: TOLERANCES AND HOLDS

Services Tolerance Template

Payables uses the combination of PO Line Type and Pay Item Line Type to determine which tolerance template to use. y Fixed Price Services: Lump Sum Pay Items = Amount Based Tolerance Checking y Fixed Price Services: Rate Based Pay Items = Quantity Based Tolerance Checking
y
ORACLE PAYABLES: TOLERANCES AND HOLDS

Milestone Pay Items have Zero Tolerance

Quantity Based Quantity must be a whole quantity Price and Amount exact y Amount Based Amount must be exact
y
ORACLE PAYABLES: HOLDS NOTIFICATION OPTIONS

Holds Resolution Workflow

This feature enables you to release any hold that can be manually released. y You can:
y
Enable Hold Notification per Hold Set Notify and Reminder Days Add instructions to appear on the workflow notification

Includes two options:

Release the hold Acknowledge the issue

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS

y
Strengthening financial discipline and corporate governance while reducing compliance costs by:
Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within your tolerance policies Providing workflow approval processing, history, and controls

Improved Transparency into your business, financial, and compliance performance

Real-time update of the purchase order, adherence to budgetary controls, accounting and tax reporting provide transparency
ORACLE PROCUREMENT TO PAYABLES: SETUP OVERVIEW

System Administrator
Set key profile options
Purchasing
Payables
Approvals Management
Approval Rules
E-Business Tax
Tax Configuration
Financial Options
Document Style Change Order Tolerances
Payables Options Invoice Tolerance Templates
Supplier Attributes
ORACLE PROCUREMENT SETUP

y
Profile Option: POR: Amount Based Services Line Type = Fixed Price Services
Responsibility: Purchasing Navigation: Setup:Purchasing > Document Styles

The Purchase Order Document style defines the basic document rules of the Complex Work Purchase Order y You can setup specific document styles for the purchase of goods and have a separate document style for the purchase of services
y
PAYABLES SETUP: FINANCIAL OPTIONS

y
Setting up Retainage Account for the Operating Unit.

Responsibility: Payables Navigation: Setup:Options > Financial Options

You can define one retainage account for the Operating Unit y The retainage distribution account on the invoice is used in the seeded accounting setup in Subledger Accounting.
y
PAYABLES SETUP PAYABLES OPTIONS

y
Payables Option settings

Responsibility: Payables Navigation: Setup:Options > Payables Options

Payables Option settings are not specific to this feature, however you may want to evaluate the Approval, Invoice, and Account tab options y Use the Payables Options window to enable Payables Invoice Approval
y
PAYABLES SETUP: INVOICE TOLERANCES

Global Tolerance Policies Set up y New Service type provides central control over tolerance policies for both Goods and Services y You can define both percentagebased and amount based tolerances y You can define many tolerance templates for goods or services and then assign the most appropriate templates to the supplier sites
y
SHARED SETUP: SUPPLIER TERMS & CONTROLS

Supplier Terms & Control Set Up

Tax Details: Tax registrations and options y Receiving: Match Approval Level y Purchasing: Self Billing Settings y Invoice Management: Match Option, Retainage Rate
y
ORACLE APPROVALS MANAGEMENT SETUP APPROVAL RULES

Approval Processing Setup

Oracle Approvals Management is a common module that allows you to configure rules which determine approvers for business transactions or activities y New Transaction Types in Release 12:
y
Work Confirmation transaction type Payables Holds Resolution transaction type Payables Invoice Approval transaction type

ORACLE EBUSINESS TAX SETUP: TAX CONFIGURATION

y
Standard Invoices:
Tax on Progress To-Date (Net of retainage) Tax on Final Delivery

Prepayments
Tax on Advance (Yes or No) Tax on Progress Treated as Financing (Yes or No) Prepayment Application Tax Treatment

y y
Retainage Release:

Tax on retained amounts ready to be released
First Party and Third Party Tax Profiles and Registrations
PREPAYMENTS: TAX CONFIGURATION EXAMPLE

1. Pick your Tax Regime & Tax 2. Create a Tax Rule for All Transactions 3. Add a Line Class condition: P2P Advance; P2P Contract Financing 4. Assign a Tax Rate for when the condition is True

Required y Payables y Purchasing y Services Procurement y Supporting Modules: Workflow and Approvals Management
Optional Products y Oracle Sourcing y Oracle Procurement Contracts y Oracle iSupplier Portal y Oracle iProcurement y Oracle Projects
AGENDA
y y y y y y y y
MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION

y
y y y y
Multi-Org Access Control (MOAC) enables cross organizational processing and reporting on Operating Units in subledgers. For example, you can select invoices across operating units for payment processing within a single pay run. A security profile determines a users set of accessible Operating Units. Enhanced Multi-Org Reporting Run several Payables reports at ledger or ledger set level
MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION

MOAC allows users of a single responsibility to perform task in multiple operating units without having to switch responsibilities. y Possible tasks include:
y
Invoice Processing Payment Processing Run Reports, such as Posted Invoice and Payment Registers, Open Account Balance Listing Run Concurrent Programs, such as Validation and Invoice Import Close Periods

MULTI-ORG ACCESS CONTROL IN PAYABLES BENEFITS

y
Increase Efficiency

Shared Service Center employees can be more efficient because they can process transactions for multiple Operating Units. Reporting costs are reduced since users can submit standard reports for multiple OUs as well as submit certain reports that gather data from multiple OUs. MOAC adds to the timeliness and accuracy of information by providing a consolidated view of data across Operating Units, eliminating the need for manual aggregation.
Reduce Costs

Improve Timeliness and Accuracy of Information

MULTI-ORG ACCESS CONTROL PROCESS

PAYABLES PROCESS
Open Payables setup form or Payables transaction form Application checks access privilege
Enter data for operating unit and proceed to next task
Submit Concurrent Program Or Standard Report Automated process
MULTI-ORG ACCESS CONTROL PROCESS, INVOICE ENTRY

There is now an OU field on the Invoice Workbench y Select an Operating Unit, or enter another field, such as PO or Supplier Site, from which the system will default the OU y The application automatically provides the operating unit of new (uncommitted) invoices during entry.
y
MULTI-ORG ACCESS CONTROL PROCESS, PAYMENT TEMPLATES

There is a new Payment Process Request Template y Use to submit a Payment Batch y Select invoices for payment regardless of their OU by selecting the All option in the Operating Units region. y You also have the ability to specify a list of OUs.
y

As in the invoice workbench, the list of OUs you can specify is determined by your security profile.
MULTI-ORG ACCESS CONTROL PROCESS, CONTROLLING PAYABLES PERIODS

On the Control Payables Periods form, with Multi-Org Access Control you can close periods for all Operating Units in a given Ledger. y Each Payables accounting calendar is associated with one ledger and its accounting calendar, defined in GL. y You can now access the Control Payables Periods window for all ledgers that correspond to the operating units that you have access to, as determined by your security profile.
y
MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING CONCURRENT REQUEST

There is a new OU parameter that you will when you submit a concurrent request in R12 y When submitting the Invoice Validation routine, if you leave the OU parameter null, the routine will process data for multiple operating units in a single run. y Oracle Payables will process data for your set of accessible Operating Units, as determined by you MultiOrg Security Profile, defined in Oracle HRMS.
y
MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING STANDARD REPORT

Submit the Payables Posted Invoice Register or Payables Posted Payments Register for a Ledger or Ledger Set. y Oracle Payables includes data for all Operating Units that you have access to, as determined by your Multi-Org Security Profile, belonging to that Ledger/Ledger Set. y All other Payables Standard Reports now have an OU parameter that is mandatory and will set the context for that run of the report.
y
MULTI-ORG ACCESS CONTROL PROCESS, OPEN ACCOUNT BALANCES LISTING REPORT

Trial Balance is known as the Open Account Balances Listing report y It runs based on the Open Account Balances Listing Definition that you define y You can define the Listing Definition at a Ledger or Ledger Set level
y
MULTI-ORG ACCESS CONTROL SETUP

GENERAL MOAC SETUP
Define security profile & assign operating units
Run Security List Maintenance Assign security profile to responsibility or user
Automated process
MULTI-ORG ACCESS CONTROL PAYABLES SETUP

Use the Payables Options form to set up:

Payables Options y Financials Options y Supplier Sites
y
Payment Details Invoice Management Accounting Options Etc.

Withholding y Tax Codes and Details

y

Integration with Procurement products may require setup and use.
SUMMARY

In this topic, you should have learned how to:

Describe and use the new features in Release 12 of Oracle Payables. y Set up the new features in Release 12 of Oracle Payables.
y

Oracle Accounts Payable

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ORACLE ACCOUNTS PAYABLE

Release 12 Upgrade Considerations New features in Release 12 of Oracle Payables

SUPPLIERS IN THE TRADING COMMUNITY ARCHITECTURE (TCA)

The Trading Community Model:

TCA SECURITY BY FUNCTIONAL AREAS

PAYMENT BANKS, BRANCHES, AND ACCOUNTS

Bank Accounts are:

SUPPLIER BANK ACCOUNTS

Enhancements to supplier bank accounts include:

COLLABORATION WITH SUPPLIERS TO RESOLVE DISPUTES

All changes and comments are tracked in Payables

Invoice Requests are:

DEFERRED RECOVERABILITY FEATURES

DEFERRED RECOVERABILITY BENEFITS

Adhere to international tax laws

Streamlined Operations, Operational Excellence, and Lower Costs

Improved Fiscal Discipline

DEFERRED RECOVERABILITY PROCESS PART 1: SET UP AND INVOICE

Non Recoverable Tax Expense/Asset X.XX X.XX

Interim (deferred) Recoverable Tax X.XX

Accounts Payable Liability X.XX

DEFERRED RECOVERABILITY PROCESS PART 2: SET UP AND PAYMENT

Calculate Recoverable Amounts, Record Distributions Account

Accounts Payable Liability X.XX

Recoverable Tax X.XX

Interim (deferred) Recoverable Tax X.XX

Cash Clearing X.XX Optional Set Up

SETUP TAXES WITH DEFERRED RECOVERABILITY

Tax Status Tax Rate

Common Module Dependency:

Common Module Interaction:

ENHANCED ASSET TRACKING

Enhanced Asset Tracking

Enhanced Mass Additions

ENHANCED ASSET TRACKING BENEFITS

Increased efficiency and reduced costs

Improved accuracy of information

ENHANCED ASSET TRACKING PROCESS

Submit Create Mass Additions process to transfer assets to Oracle Assets

PAYMENT REQUESTS KEY CONCEPTS

PAYMENT REQUESTS DESCRIPTION

PAYMENT REQUESTS BENEFITS

Benefits for Payables managers

Ensures the Integrity of Supplier Master

Provides Payables transparency

Benefits for other E-Business Suite products

PAYMENT REQUESTS PROCESS

ORACLE RECEIVABLES REFUND EXAMPLE

Payment Request for $350,000

Return Returns 1 Copy Machine for Refund

Customer Receives Payment $5000.00

Payment Transacted to Payee

Payment Manager Manages items to be paid

FUNDS DISBURSEMENT PROCESS - LOANS

Vision Loans Payables Sends Borrower Payment Loan Funded

PAYMENT REQUEST ADDITIONAL PAYABLES ACTIONS

PAYMENT REQUESTS: SYNCHRONIZING BETWEEN PRODUCTS

PAYMENT REQUESTS REPORTING

PAYMENT REQUESTS OPTIONAL SETUP

PAYMENT REQUESTS MISCELLANEOUS SET UP

PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT INFORMATION

KEY CONCEPTS y Document Payable: A document to be paid by the

EVALUATE PAYMENT CHOICES REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS