Oracle Procure to Pay Life Cycle:

Procure to Pay Process flow: -------------------------------------Lets see the steps involved in performing using Oracle Applications

1. Oracle Purchasing: You enter Suppliers of different materials and products you want to purchase to manufacture a finished good that your organization plans to sell. 2. Oracle Purchasing: You prepare a Request for Quotation (RFQ) and send it to different suppliers to get the best and/or economical price for the product. 3. Oracle Purchasing:Suppliers sends their quotations and you upload those quotations in Oracle Purchasing to get the best three quotes and further to get the one best quote. 4. Oracle Purchasing: You prepare a Purchase Order(PO) against the best RFQ to buy the goods from the supplier who quoted the suitable price and sends the PO to that supplier 5. Oracle Purchasing: The supplier receives the confirmation of purchase from PO and ships the ordered goods. You receive the goods enter a Goods Received Note (GRN) in Oracle Purchasing. 6. Oracle Inventory:Its upto you whether you want to receive the goods at your head office or you Inventory directly. In either case you move the received goods to your different Raw Material Inventory from Oracle Purchasing to Oracle Inventory and the Item Count increases. 7. Oracle General Ledger: Once you move the goods to Oracle Inventory, it sends the Material Accounting to Oracle General Ledger. 8. Oracle Payables: After that the supplier sends you the invoice for the purchased goods and you Enter or Match the invoice against the PO from Oracle Purchasing in Oracle Payables.

9. Oracle General Ledger: When you enter the invoice it means that you have created a Liability against that supplier. 10. Oracle Payables: You pay the invoice and settle the Liability 11. Oracle General Ledger: The liability is settled, your expense is recorded. 12. Oracle Process Manufacturing(OPM) / Oracle Discrete Manufacturing(ODM): You start the manufacturing of your final product. Both OPM or ODM requests the different raw materials from you inventory organizations and manufactures a finished good. 13. Oracle Inventory: As the raw materials are issued to OPM and ODM the inventory sends the issuing material accounting to General Ledger and decreases the Item Count from the Raw Material Store. As the finished good is prepared, Oracle Inventory receives the finished good in Finished Good Store and increase the Item Count. Payables Intergration: ------------------------------

Payables Processes: --------------------------

Overview of Suppliers: ----------------------------When you enter a supplier that does business from multiple locations, you enter header information only once, and you enter supplier sites for each location. Most supplier information defaults to supplier sites. However, you can override the values that default if necessary. After you define suppliers, you can use them when you import/enter invoices

and create purchasing documents Define how supplier sites can be used with the following options: Pay - You can import/enter invoices for and make payments to the site. Primary Pay - Default pay site for invoice entry and import. Purchasing - You can create purchase orders for the site. RFQ Only - You can create request for quotations in Purchasing for the site. You cannot create purchase orders for an RFQ Only site. Procurement Card - You can purchase goods or services using a procurement card. Primary Pay - If a supplier has multiple pay sites, one can be designated as the primary. The primary pay site defaults in the Invoices window, helping to speed the invoice entry process. Also, Payables Open Interface Import uses this site when it imports an external invoice with no specified site. Designate a site as an RFQ Only site during the beginning of negotiations with a supplier. If you decide to use the supplier, designate the supplier site as a Purchasing site by deselecting the RFQ Only option and selecting the Purchasing Site option. For each supplier site, you can enter contact information (name, address, telephone) specific to that site. Contact information is for your reference only. Flow of Default Values(P2P): ----------------------------------------

 Defaults set at higher levels flow down to lower levels where you can override them. Defaults reduce data entry by providing default values based on corporate policy. Optional defaults (especially the higher level ones) should be left blank if you frequently override them. Purchase order matched invoices will receive defaults from the purchase order you specify when you match. Note: Changes to default values affect only new records, not existing records. For example, if payment terms in the Payables Options window are reset to Net 15 from Net 30, new suppliers will have a default of Net 15. Existing suppliers will have terms of Net 30. Invoice Entry: --------------------

You can enter invoices through: Manual entry: Manually enter invoices in the Invoice Gateway and Invoices windows. Import: The Payables Open Interface Import program imports invoices from the Payables Open Interfaces table. This table is loaded by many sources including invoices entered online by suppliers in iSupplier Portal, invoices sent by suppliers in EDI or XML formats, and Oracle applications that load invoices into the Open Interfaces Table such as Oracle Property Manager and Oracle Assets. Automatically generated: Oracle Payables automatically generates the following invoice

types: withholding ax invoices to pay tax authorities, interest invoices, and payment on receipt invoices. Recurring invoices: You can set up Oracle Payables to generate regularly scheduled invoices such as rent. Matching: You can match most invoices to purchase orders or receipts. You can group manually entered and imported invoices in invoice batches. Invoice import: --------------------Oracle Internet Expenses expense reports: Expense reports your employees enter using a Web browser. Payables expense reports: Expense reports entered in the Payables Expense reports window by the Payables department. Credit Card invoices: Invoices for employee credit card expenses. The credit card company sends you these invoices as a flat file. Oracle Projects expense reports: Projectrelated expense reports entered in Oracle Projects. EDI invoices: Electronic invoices transferred from Oracle eCommerce Gateway. Invoices from external systems: Invoices, such as invoices from legacy systems, loaded using SQL*Loader. Oracle Property Manager invoices: Lease invoices transferred from Oracle Property Manager. Oracle Assets lease payments: Lease payments transferred from Oracle Assets. Oracle Procure to Pay Accounting: ------------------------------------------As you know procure to pay Business Flow start Purchasing requisition till paying to supplier and most important, in all the case the purchase is made for basic element called Items. There are three types of items: 1. Inventory Asset Item/Inventory item-PO Related 2. Inventory Expense Item/Inventory Expenses - PO Related 3. Expense item/Non-PO Invoice. Inventory Asset Item/Inventory item-PO Related : ----------------------------------------------------

2. Inventory Expense Item/ Expense Item-PO Related:

-------------------------------------------------------------

3. Expenses items/ Non-PO Invoice: --------------------------------------

Ramification of Invoice Match to PO and Invoice Match to Receipt

Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received. If you are billed for an item over the amount and quantity tolerances you define in the Invoice Tolerance window, during Approval, Oracle Payables applies a hold to the invoice, which prevents payment. Oracle Payables supports three levels of matching which verify that purchase order and invoice information match within defined tolerances. Match Approval Level: 2-Way , 3-Way, 4-Way. In 2-way: what ever you have ordered for the PO you will make the payment for the suppliers in 2- way i.e we will compare two documents PO and Invoice. 2-way matching verifies that Purchase order and invoice information match within your tolerances: Quantity billed <= Quantity Ordered Invoice price <= Purchase order price Eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. In 3-Way you will compare 3 documents i.e PO+reciept+Invoice. 3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined: Quantity billed <= Quantity received. Eg:Suppose we have ordered 100 items in PO. But we had received only 75 items ,But we had received invoice for 100 items. so, we will make payment for only 75 items. In 4-Way you will compare 4 documents i.e PO+Receipt+Invoice+Inspection. 4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined: Quantity billed <= Quantity accepted. Eg:Suppose we have 100 items in PO. Suppers send us 75 items We will do inspection on those items what ever we have received, If 15items got damaged. finally, we are going to make payment to the 60 items only.

When you match to a purchase order, Payables automatically checks that the total of PO_DISTRIBUTIONS.QUANTITY_ORDERED = AP_INVOICE_DISTRIBUTIONS.QUANTITY_INVOICED (2-way matching). Payables only checks QUANTITY_RECEIVED (3-way matching) if the RECEIPT_REQUIRED_FLAG is set to Y and only checks QUANTITY_ACCEPTED (4way matching) if the INSPECTION_REQUIRED_FLAG is set to Y. Invoice Match Option: The Invoice Match Option determines whether or not you intend to match invoices for this supplier against purchase orders or receipts. Invoice Match option to PO Match: -------------------------------------------Payables must match the invoice to the purchase order. If the Invoice is matched to a PO rather than to the Receipt when the AP team do a match they have the full PO available to match rather than just the specific lines on the PO that were received. There is a possibility someone in payables matching to the wrong distribution if they use Match to PO. The accrual is valued at the PO exchange rate date. Invoice Match option to PO Match: ---------------------------------------------Payables must match the invoice to the receipt. Receipt Match Option is recommended if you want accounting to use exchange rate information based on the receipt date or if you want to update exchange rate information on the receipt. If you use the match to receipt option AP team can't match until the goods are received. If the receiving doesn't happen there is no way to associate the invoice with the PO. Invoice processing will be on hold till a receipt is entered into the system. Receipt Match option determines the cost with more accuracy i.e. Match to Material item receipt and link other invoice charges to receipt and You can now also associate freight, tax, and miscellaneous charges from invoices to the related receipt. Run the Matching Detail Report from Other -> Request -> Run. This report will show you detail of how an invoice, purchase order, or receipt was matched. This report is especially helpful when an invoice is on hold and you are trying determine why the hold was placed. The Invoice Match Option defaults from the Supplier Sites window. You can change the Invoice Match Option on the shipment until you receive against the shipment. Financial Options - Invoice Match Option: For purchase order shipments, indicate whether you want to match invoices to purchase orders or to purchase order receipts. If the supplier was created automatically during Expense Report Import, the default value is Purchase Order, and you can change it to

Receipts as appropriate. The decision to set the Invoice match option to Receipt or Purchase Order depends on Business Needs. If you are using Multi Currency Functionality for Purchase Order and if like to have the rate based on Receipt date you need to go with Receipt Match at the invoice match option. The main advantage is the Exchange Rate factor i.e. Receipt/Current Date instead of Purchaser Order date. Receipt Match gives much closer control of the matching process,Particularly where you have multiple receipts of large purchase order. If a Business is using Invoice Match option Purhcase Order and like to change from Purchase Order to Receipt Match, then what would be the impact? All Supplier sites need to be updated with Invoice Match option to Receipt. Purchase orders which are already approved with Invoice Match Option of Purchase order should continue with the same existing process. All existing Open PO, which need a change from Purchase Order to Receipt, should be corrected by changing the invoice match option in the purchase order shipment to Receipt. Payables team should match invoices to Receipt for all Purchase Orders created after the cut-off date. Training to AP/PO users. In order for the receipt to use the current exchange rate and not the PO exchange rate, the Invoice Match Option at the system level and on the suppliers should be Receipt, not Purchase Order.

How to Restrict Finally Close control Action in Purchase Summary Form using Form Personalization.
AP users are not able to match to PO to a finally closed POs as PO User are Closing the PO with Finally Closed options without the PO being invoiced. When AP users try to match the invoice to the PO they get the following error message. Error: APP-SQLAP-97198: You cannot match to this Purchase order shipment because it is finally closed. To avoid such issues going forward PO and AP supers user have advised IT team to Inactive the finally close option to users. This can be achieved through Form Personalization as given below: 1. Go to Purchase Orders Summary form > query for a PO > after the header of the PO is shown go to Help >Diagnostics > Custom Code > Personalize. the Form Personalization open.

Function Name = PO_POXPOVPO Form Name = POXPOVPO Debug Mode = Off Steps: - Seq = 1 - Description = Stop Final Close from Control Menu - Level = Function - Enable is checked. Condition tab: - Trigger Event = WHEN-VALIDATE-RECORD - Trigger Object = PO_DOCON_CONTROL - Condition =:po_docon_control.action= 'FINALLY CLOSE' - Processing Mode = Both Actions tab: - Seq = 1 - Type = Message - Description= Blank - Lanuage=All - Enabled is checked - Message Type = Show

- Message Text = :You do not have the permission to Finally Close Purchase Order. Finally Closed is a restricted function that should only be performed once A/P has been consulted - Please use another function. - Seq = 2 - Type = Property - Language = All - Enabled is checked - Object Type = Item - Target Object = PO_DOCON_CONTROL.ACTION - Property Name = VALUE - Value = Leave it blank. - Save

In tab Condition in zone Context can chose level= User and select users for which this restriction to be done Context: Level Value ------ ------Responsibility US Purchase Requestor Responsibility US Purchase Manager

2. Logout/login with the user set on the personalize window and try to finallyclose a PO. After press on Finally Close action a message appear as given below: :You do not have the permission to Finally Close Purchase Order. Finally Closed is a restricted function that should only be performed once A/P has been consulted - Please use another function.

click OK and perform other action and exist. Datafix To open the PO from Finally close to Close: =========================================== (Please test in your test instance before you migrate to Prod) Data Fix: ======= --1) Find po_header_id: select po_header_id from po_headers_all where segment1 in ('1920','3116'); --2) Verify status on PO Header select closed_code from po_headers_all where po_header_id in (971,3622); --2a) Update closed_code from FINALLY CLOSED to CLOSED: update po_headers_all set closed_code = 'CLOSED' where po_header_id in (971,3622) and closed_code = 'FINALLY CLOSED'; commit; --3) Verify status on PO Line select closed_code from po_lines_all

where po_header_id in (971,3622); --3a) Update closed_code from FINALLY CLOSED to CLOSED: update po_lines_all set closed_code = 'CLOSED' where po_header_id in (971,3622) and closed_code = 'FINALLY CLOSED'; commit; --4) Verify status on PO Shipment select closed_code from po_line_locations_all where po_header_id in (971,3622); --4a) Update closed_code from FINALLY CLOSED to CLOSED: update po_line_locations_all set closed_code = 'CLOSED' where po_header_id in (971,3622) and closed_code = 'FINALLY CLOSED'; commit; --5) Verify Action History on Finally Closed record select count(*) from po_action_history where object_id in (971,3622) and action_code = 'FINALLY CLOSE'; --5a) Remove Action History on Finally Closed record delete from po_action_history where object_id in (971,3622) and action_code = 'FINALLY CLOSE'; commit; 6) Go to Purchasing Order Entry form. Query the PO. Navigate to Special -> Control. Open the PO. Note:Oracle does't recommend to re-open Finally Closed PO's as this leaves a very poor audit trail and there is a potential for data corruption in related tables. Other solutions for the above issue is: 1. Manual GL journals OR 2. Create manual distributions in AP invoice.

Purchase Order Statuses

Open: You can open at the header, line, and shipment levels. Open for Receiving: You can reopen for receiving at the header, line, and shipment level. Open for Invoicing: You can reopen for invoicing at the header, line,and shipment level. Close: Purchasing automatically closes shipments for receiving and invoicing based on controls that you specify in the Purchasing Options window. Once all shipments for a given line are closed, Purchasing automatically closes the line. When all lines for a given header are closed, Purchasing automatically closes the document. Close for Receiving: The Receipt Close Tolerance lets you specify a quantity percentage within which Purchasing closes a partially received shipment. For example, if your Receipt Close Tolerance is 5% and you receive 96% of an expected shipment, Purchasing automatically closes this shipment for receiving.The Receipt Close Point lets you choose which receiving action (Received, Accepted, or Delivered) you want to use as the point when Purchasing closes a shipment for receiving based on the Receipt Close Tolerance. For example, if you set a Receipt Close Tolerance of 5% and choose Delivered as your Receipt Close Point, Purchasing closes shipments for receiving when you have delivered 95% or more of the ordered quantity. Close for Invoicing: The Invoice Close Tolerance lets you specify a similar quantity percentage within which Purchasing automatically closes partially invoiced shipments for invoicing. Unfreeze: You can unfreeze only at the header and release levels. Delete: Before documents are approved, you can delete them or their components from the document entry window. If you use online requisitions, Purchasing returns all requisitions associated with your delete action to the requisition pool. You can reassign these unfilled requisitions to other purchase orders or releases using the AutoCreate Documents window. Cancel: Purchasing lets you terminate an existing commitment to buy from a supplier by canceling document headers, lines,

shipments, or releases. When you cancel a purchase order entity, you are unable to receive or pay for cancelled items and services, however, you can pay for all previously received orders. You also cannot modify a cancelled entity or its components. Final Close: Prevent modifications to or actions against completed documents, lines, and shipments by final closing them. Final-closed documents are not accessible in the corresponding entry forms, and you cannot perform the following actions against final-closed entities: Receive Transfer, Inspect, Deliver, Correct receipt quantities, Invoice, Return to supplier, or Return to receiving.You can approve documents that include final-closed entities, but you cannot approve documents that are final closed at the header level. You can print final-closed documents. Finally, you can Purge documents that were final closed at the header level before the Last Activity Date that you specify when you submit Purge. Freeze: Freeze your purchase orders and releases to prevent changes or additions while maintaining the ability to receive and match invoices against received shipments. You cannot access frozen documents in the entry forms. Hold: Place documents on hold to un-approve them while preventing printing, receiving, invoicing, and future approval until you remove the hold. Firm: When you firm an order, Master Scheduling/MRP uses the firm date to create a time fence within which it will not suggest new planned purchase orders, cancellations, or reschedulein actions. It continues to suggest rescheduleout actions for orders within the time fence. If several shipments with different promised or needby dates reference the same item, Master Scheduling/MRP sets the time fence at the latest of all scheduled dates.You can firm orders at the document header or shipment level. If you firm at the header level, Purchasing applies this control to every shipment on the document.

Auto Invoice Performance Improvement

Setup Considerations for Performance: =============================== System Options Setup -Log File Message Level-Message Level 0 shows the following in the log file:

Product Name & Version AutoInvoice Start Time, End Time, & Logical Steps AutoInvoice Concurrent Request Arguments Error and Warning Messages

-Message Level 1 shows time stamped function labels plus all of the above. -Message Level 2 shows above entries plus:

Sizes of Allocated Arrays ,Dynamic SQL Statements , Number of Rows Updated, Inserted and Deleted

-Message Level 3 shows above plus Method IV SQL Array Values Scenarios: You have number of transactions in the AR Interface table which are ready to get invoiced for the source order Management, you have run the auto invoice program and the process is taking long time to complete e.g more then 6 hrs for 3000 lines . What do you do and how do you improve the performance of the Auto invoice program. To increase performance during the validation portion of AutoInvoice: NOTE: You may want to back up this table before truncating if you need to review prior errors. Errors will be re-submitted into this table from any unprocessed invoice lines 1. Ensure that all indexes for the transaction flexfield are set up i.e indexes should be created on Transaction Flexfield columns.

2. Unique, concatenated indexes should be created on the following tables and columns:

RA_CUSTOMER_TRX_ALL RA_CUSTOMER_TRX_LINES_ALL RA_INTERFACE_LINES_ALL RA_INTERFACE_DISTRIBUTIONS_ALL RA_INTERFACE_SALESCREDITS_ALL OE_ORDER_LINES_ALL

1.Truncate the table RA_INTERFACE_ERRORS_ALL. sql> connect AR/AR sql> truncate table RA_INTERFACE_ERRORS_ALL; 2. If your Line Transaction Flexfield is ORDER ENTRY. You need to create indexes for ALL columns used in the Line Transaction Flexfield. First, drop existing custom indexes if you have any: sql> drop index XXX_RA_CUSTOMER_TRX_LINES_A1; sql> drop index XXX_RA_INTERFACE_LINES_A2; Second, create the following indexes: NOTE:You can use CREATE INDEX instead of CREATE UNIQUEINDEX if necessary.

SQL> CONNECT AR/AR SQL> CREATE UNIQUE INDEX XX_RA_CUST_TRX_U1 ON RA_CUSTOMER_TRX_ALL (INTERFACE_HEADER_CONTEXT, INTERFACE_HEADER_ATTRIBUTE1, INTERFACE_HEADER_ATTRIBUTE2, INTERFACE_HEADER_ATTRIBUTE3, INTERFACE_HEADER_ATTRIBUTE4, INTERFACE_HEADER_ATTRIBUTE5, INTERFACE_HEADER_ATTRIBUTE6, INTERFACE_HEADER_ATTRIBUTE7, INTERFACE_HEADER_ATTRIBUTE8, INTERFACE_HEADER_ATTRIBUTE9, INTERFACE_HEADER_ATTRIBUTE10, INTERFACE_HEADER_ATTRIBUTE11, INTERFACE_HEADER_ATTRIBUTE12, INTERFACE_HEADER_ATTRIBUTE13, INTERFACE_HEADER_ATTRIBUTE14, INTERFACE_HEADER_ATTRIBUTE15); SQL> CREATE UNIQUE INDEX XXX_RA_CUST_TRX_LINES_U1 ON RA_CUSTOMER_TRX_LINES_ALL (INTERFACE_LINE_CONTEXT, INTERFACE_LINE_ATTRIBUTE1, INTERFACE_LINE_ATTRIBUTE2, INTERFACE_LINE_ATTRIBUTE3, INTERFACE_LINE_ATTRIBUTE4, INTERFACE_LINE_ATTRIBUTE5, INTERFACE_LINE_ATTRIBUTE6, INTERFACE_LINE_ATTRIBUTE7, INTERFACE_LINE_ATTRIBUTE8, INTERFACE_LINE_ATTRIBUTE9, INTERFACE_LINE_ATTRIBUTE10, INTERFACE_LINE_ATTRIBUTE11, INTERFACE_LINE_ATTRIBUTE12, INTERFACE_LINE_ATTRIBUTE13, INTERFACE_LINE_ATTRIBUTE14, INTERFACE_LINE_ATTRIBUTE15); SQL> CREATE UNIQUE INDEX XXX_RA_INT_LINES_U1 ON RA_INTERFACE_LINES_ALL (INTERFACE_LINE_CONTEXT, INTERFACE_LINE_ATTRIBUTE1, INTERFACE_LINE_ATTRIBUTE2, INTERFACE_LINE_ATTRIBUTE3, INTERFACE_LINE_ATTRIBUTE4, INTERFACE_LINE_ATTRIBUTE5, INTERFACE_LINE_ATTRIBUTE6, INTERFACE_LINE_ATTRIBUTE7, INTERFACE_LINE_ATTRIBUTE8, INTERFACE_LINE_ATTRIBUTE9, INTERFACE_LINE_ATTRIBUTE10, INTERFACE_LINE_ATTRIBUTE11, INTERFACE_LINE_ATTRIBUTE12, INTERFACE_LINE_ATTRIBUTE13, INTERFACE_LINE_ATTRIBUTE14, INTERFACE_LINE_ATTRIBUTE15); SQL> CREATE UNIQUE INDEX XXX_RA_INT_DIST_U1 ON RA_INTERFACE_DISTRIBUTIONS_ALL (INTERFACE_LINE_CONTEXT, INTERFACE_LINE_ATTRIBUTE1, INTERFACE_LINE_ATTRIBUTE2, INTERFACE_LINE_ATTRIBUTE3, INTERFACE_LINE_ATTRIBUTE4, INTERFACE_LINE_ATTRIBUTE5, INTERFACE_LINE_ATTRIBUTE6, INTERFACE_LINE_ATTRIBUTE7, INTERFACE_LINE_ATTRIBUTE8, INTERFACE_LINE_ATTRIBUTE9, INTERFACE_LINE_ATTRIBUTE10, INTERFACE_LINE_ATTRIBUTE11, INTERFACE_LINE_ATTRIBUTE12, INTERFACE_LINE_ATTRIBUTE13, INTERFACE_LINE_ATTRIBUTE14, INTERFACE_LINE_ATTRIBUTE15); SQL> CREATE UNIQUE INDEX XXX_RA_INT_SALESCREDITS_U1 ON RA_INTERFACE_SALESCREDITS_ALL (INTERFACE_LINE_CONTEXT, INTERFACE_LINE_ATTRIBUTE1, INTERFACE_LINE_ATTRIBUTE2,

INTERFACE_LINE_ATTRIBUTE3, INTERFACE_LINE_ATTRIBUTE4, INTERFACE_LINE_ATTRIBUTE5, INTERFACE_LINE_ATTRIBUTE6, INTERFACE_LINE_ATTRIBUTE7, INTERFACE_LINE_ATTRIBUTE8, INTERFACE_LINE_ATTRIBUTE9, INTERFACE_LINE_ATTRIBUTE10, INTERFACE_LINE_ATTRIBUTE11, INTERFACE_LINE_ATTRIBUTE12, INTERFACE_LINE_ATTRIBUTE13, INTERFACE_LINE_ATTRIBUTE14, INTERFACE_LINE_ATTRIBUTE15); Note: You only need to create the following indexes, if these tables are being populated with interface data. If you are not using sales credits or accounting distributions, then you do not need to create these indexes SQL > create index ONT.OE_ORDER_LINES_A1 on ONT.OE_ORDER_LINES_ALL (to_char(line_id)) tablespace APPS_TS_TX_IDX; 3. Set the Log File Message Level = 1 Navigate to Setup > System > System Options and set this value = 1. 4. Set the Profile option AR:Maximum lines per AutoInvoice worker : 1000 (At Site level). Please set this to a value that approximates an even distribution of invoices lines per worker. For example if each invoice has approximately 800 to 1000+ lines and you process 5 invoices per Autoinvoice run (approximately 5000 invoice lines) you could set the value of this profile to 1000 which should distribute 1 invoice (800 to 1000+ lines) per worker, if you run with 5 workers. If you are unsure of the distribution, do NOT set this profile. Note: 1. AutoInvoice inserts data into the tables, but never changes the data that is fed into the tables. 2. Review the RA_INTERFACE_ERRORS table for details on what is failing during import. Use this information to quickly search for known issues. 3. Review the Invalid Objects and Disabled Trigger Section to confirm correct setup. 4. Run Gather Schema Statistics from the SYSADMIN responsibility 5. If you do NOT see a performance gain after making these changes, Please raise an SR with Oracle Support and upload the log files and execution report from a run of Autoinvoice and the Auto invoice diagnostics script. 6. SQL Query to check the time taken to complete by Autoinvoice import prgram. SELECT request_id, TO_CHAR(request_date,'DD-MON-YYYY') "Date", RPAD(user_concurrent_program_name,60) "Program Name", RPAD(argument_text,20) "Arg", RPAD(TO_CHAR(a.ACTUAL_START_DATE, 'hh24:mi:ss'),10) "Start", RPAD(TO_CHAR(a.ACTUAL_COMPLETION_DATE, 'hh24:mi:ss'),10) "End", RPAD(TO_CHAR( (TRUNC(SYSDATE) + ( a.ACTUAL_COMPLETION_DATE a.ACTUAL_START_DATE)), 'hh24:mi:ss'),10) "Actual", c.user_name, status_code "S"FROM applsys.fnd_concurrent_requests a, applsys.fnd_concurrent_programs_tl b, apps.fnd_user cWHERE b.user_concurrent_program_name like 'Autoinvoice Import

Program' AND a.concurrent_program_id = b.concurrent_program_id AND a.request_date >= 'DD-MON-YYYY' AND a.requested_by = c.user_idORDER BY request_id desc;
Note : 197213.1-Autoinvoice Performance Is Slow. Note:169935.1 - Troubleshooting Oracle ERP Apps Performance Issues. So

Oracle Application Shared Entities:

What are Shared Entities: -------------------------------------Shared entities in the 11i eBusiness Suite allow the one-time definition of an object, and the use of that object across several products. Shared entities are "owned" by a single product for table purposes only. It does not designate the primary user or decision maker. The following information shows where the shared entity is usually first defined and with which applications it is shared. However, ownership of data is at the companys discretion. For example, which business unit will be responsible for the supplier file? Payables or Purchasing? An exception is employee information if Human Resources is installed. Then, employee data can only be recorded in Human Resources.

Set of Books (Owned by General Ledger): -------------------------------------------------------The Set of Books provides Oracle with a means to collect and quantify financial data. There are three primary elements to a Set of Books: Chart of Accounts Calendar Currency Chart of Accounts (COA): --------------------------------- Your chart of accounts is the account structure you define to fit the specific needs of your organization. You can choose the number of account segments as well as the length, name and order of each segment. Chart of Account is one of the building block of SOB. It is an important as well as a mandatory step to setup a SOB. It is important because the structure of COA determines the level or depth of financial reporting. The more detailed the structure is the more reporting detail it has, but than more account codes and long data entry by the end user. There can be multiple COA structure defined in an instance. But only One structure can be attached to a SOB. Each COA structure has to Enabled, Freezed and Compiled. Other options like Cross Validate Segment, Allow Dynamic Inserts and Freeze Rollup Group are not mandatory but useful. Accounting Calendar: ----------------------------An accounting calendar defines the accounting year and the periods it contains, You can define multiple calendars and assign a different calendar to each set of books. Currencies : ---------------- You select the functional currency for your set of books as well as other currencies that you use to transact business and report in. General Ledger converts monetary amounts entered in a foreign currency to functional currency equivalents using supplied rates. The Set of Books represents one of the main entities within the Multiple Organizations Hierarchy. Set of Books information is used by all eBusiness Suite applications. Some products will utilize currency information; others calendar data and still other products, the chart of accounts information. Units of measure (UOM: Owned by Inventory): -----------------------------------------------------------Are used by a variety of functions and transactions to express the quantity of items Units of measure are the way that we quantify items. They are grouped into units of measure with

similar characteristics by Unit of Measure Classes such as quantity, weight, time and volume. They also include the Conversion mechanisms that enable you to perform transactions in units other than the primary unit of the item being transacted. The values defined in the Units of Measure window provide the list of values available in unit of measure fields in other applications windows. Units of measure are not inventory organizationspecific. Items (Owned by Inventory) : ----------------------------------------You can define and control all items in inventory. Once defined, you assign items to organizations Items are parts that we buy, sell, or with which we transact. You choose whether to have centralized or decentralized control of your items through a variety of item attributes (such as description, lead time, unit of measure, lot control, saleable vs. purchasable, and others). Much of the information for an item is optional. You define only the information you need to maintain the item. Suppliers(Owned by Purchasing): -------------------------------------------Suppliers are the individuals or companies from which you procure goods and/or services. Set up suppliers to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. When you enter a supplier that conducts business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site. Customers (Owned by Receivables): --------------------------------------------Buyers of our end products and/or services Customers are stored as part of the Trading Community Architecture (TCA). The two levels within TCA that relate to customers are: The Party level or Party Layer The Customer Account or Account Layer When CRM Application refers to customers they are referring to the party layer. When ERP Application refers to Customers they are referring to the Account layer When you enter a customer that conducts business from multiple locations, you store customer information only once and enter customer sites for each location. For each entered customer site, you can designate the usage of the site as bill-to, ship-to, marketing and other uses. Many fields within the customer record provide defaults to applications

such as Receivables, Order Management and Projects. Sales Force (Owned by Sales): ----------------------------------------Individuals credited with sales revenue, Sales Force is how the Oracle eBusiness applications identifies sales personnel. An employee must be defined as a salesperson within the Human Resources application as well as within the Resource Manager in CRM Application Foundation to have access within certain CRM applications. Salespeople are used within the Oracle eBusiness Suite to capture sales credit information across a number of applications. This sales credit information is in turn used to form the basis for sales compensation calculations and potentially to assign revenue accounting. Sales Force personnel are also used for team analysis, determination of territory alignment, and assignment of sales leads. Employees (Owned by Human Resources : -----------------------------------------------------Individuals employed by the company who perform certain tasks Human Resources establishes employees to track personnel information such as skills, benefits, jobs, and statuses. Once defined in the system, employees can also be used for approval activities, processing expense transactions and the assigning of fixed assets. Note: When you have not licensed the Human Resources application but employees are required for the applications you have licensed, you will have limited access to the employee tables through those applications. Locations (Owned by Human Resources): ----------------------------------------------------Physical addresses that may represent our companys addresses or our customer's addresses. Locations have various usages assigned to then such as: Bill to (where suppliers send invoices) Ship to (where suppliers send product) Office (identifies a business address where employees are located) Locations can be linked to one or many organizations. Organizations(Owned by Human resources) : ---------------------------------------------------------Entity designation used to partition data into logical units. An organization may be a physical site or it can represent a collection of sites sharing certain characteristics. These characteristics are used to define business structure within the Oracle eBusiness environment. Examples of organizations include, but are not restricted to: Legal Entity: the business units where fiscal or tax reports are prepared. Operating Unit: the level at which ERP transaction data is secured. Inventory Organization: a business unit such as a plant, warehouse, division Expenditure/Event Organization: allows you to own events, incur expenditures, and hold budgets for projects. Posted by Srinivasa Rao Asuru at 1:38 AM 0 comments

Labels: EBS Suite

Ramification of Invoice Match to PO and Invoice Match to Receipt

Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. Invoiced or billed items are matched to the original purchase orders to ensure that you pay only for the goods or services you ordered and/or received. If you are billed for an item over the amount and quantity tolerances you define in the Invoice Tolerance window, during Approval, Oracle Payables applies a hold to the invoice, which prevents payment. Oracle Payables supports three levels of matching which verify that purchase order and invoice information match within defined tolerances. Match Approval Level: 2-Way , 3-Way, 4-Way. In 2-way: what ever you have ordered for the PO you will make the payment for the suppliers in 2- way i.e we will compare two documents PO and Invoice. 2-way matching verifies that Purchase order and invoice information match within your tolerances: Quantity billed <= Quantity Ordered Invoice price <= Purchase order price Eg:Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. In 3-Way you will compare 3 documents i.e PO+reciept+Invoice. 3-way matching verifies that the receipt and invoice information match with the quantity tolerances defined: Quantity billed <= Quantity received. Eg:Suppose we have ordered 100 items in PO. But we had received only 75 items ,But we had received invoice for 100 items. so, we will make payment for only 75 items. In 4-Way you will compare 4 documents i.e PO+Receipt+Invoice+Inspection. 4-way matching verifies that acceptance documents and invoice information match within the quantity tolerances defined: Quantity billed <= Quantity accepted. Eg:Suppose we have 100 items in PO. Suppers send us 75 items We will do inspection on those items what ever we have received, If 15items got damaged. finally, we are going to make payment to the 60 items only. When you match to a purchase order, Payables automatically checks that the total of PO_DISTRIBUTIONS.QUANTITY_ORDERED = AP_INVOICE_DISTRIBUTIONS.QUANTITY_INVOICED (2-way matching). Payables only checks QUANTITY_RECEIVED (3-way matching) if the RECEIPT_REQUIRED_FLAG is set to Y and only checks QUANTITY_ACCEPTED (4way matching) if the INSPECTION_REQUIRED_FLAG is set to Y. Invoice Match Option:

The Invoice Match Option determines whether or not you intend to match invoices for this supplier against purchase orders or receipts. Invoice Match option to PO Match: -------------------------------------------Payables must match the invoice to the purchase order. If the Invoice is matched to a PO rather than to the Receipt when the AP team do a match they have the full PO available to match rather than just the specific lines on the PO that were received. There is a possibility someone in payables matching to the wrong distribution if they use Match to PO. The accrual is valued at the PO exchange rate date. Invoice Match option to PO Match: ---------------------------------------------Payables must match the invoice to the receipt. Receipt Match Option is recommended if you want accounting to use exchange rate information based on the receipt date or if you want to update exchange rate information on the receipt. If you use the match to receipt option AP team can't match until the goods are received. If the receiving doesn't happen there is no way to associate the invoice with the PO. Invoice processing will be on hold till a receipt is entered into the system. Receipt Match option determines the cost with more accuracy i.e. Match to Material item receipt and link other invoice charges to receipt and You can now also associate freight, tax, and miscellaneous charges from invoices to the related receipt. Run the Matching Detail Report from Other -> Request -> Run. This report will show you detail of how an invoice, purchase order, or receipt was matched. This report is especially helpful when an invoice is on hold and you are trying determine why the hold was placed. The Invoice Match Option defaults from the Supplier Sites window. You can change the Invoice Match Option on the shipment until you receive against the shipment. Financial Options - Invoice Match Option: For purchase order shipments, indicate whether you want to match invoices to purchase orders or to purchase order receipts. If the supplier was created automatically during Expense Report Import, the default value is Purchase Order, and you can change it to Receipts as appropriate. The decision to set the Invoice match option to Receipt or Purchase Order depends on Business Needs. If you are using Multi Currency Functionality for Purchase Order and if like to have the rate based on Receipt date you need to go with Receipt Match at the invoice match option. The main advantage is the Exchange Rate factor i.e. Receipt/Current Date instead of Purchaser Order date. Receipt Match gives much closer control of the matching process,Particularly where you have multiple receipts of large purchase order.

If a Business is using Invoice Match option Purhcase Order and like to change from Purchase Order to Receipt Match, then what would be the impact? All Supplier sites need to be updated with Invoice Match option to Receipt. Purchase orders which are already approved with Invoice Match Option of Purchase order should continue with the same existing process. All existing Open PO, which need a change from Purchase Order to Receipt, should be corrected by changing the invoice match option in the purchase order shipment to Receipt. Payables team should match invoices to Receipt for all Purchase Orders created after the cut-off date. Training to AP/PO users. In order for the receipt to use the current exchange rate and not the PO exchange rate, the Invoice Match Option at the system level and on the suppliers should be Receipt, not Purchase Order.

R12 Mutli Org and MOAC

What is Multi-Org: -------------------Multi-Org is a server-side (applications and database) enhancement that enables single installation of Oracle Applications. Multi-Org keeps transaction data and some setup data separate and secure by different lines of business. Business needs: ----------------The Multi-Org enhancement provides features that enable you to: Support multiple business units even if they use different ledgers Secure access to data on a single instance by line of business Define different organizational models Sell and ship from different legal entities Procure and receive from different legal entities Produce reports across entities or within a single entity Types of Organizations supported in Multi-Org Model: --------------------------------------------------------Business Group : - HR Leger: - GL, FA GRE/Legal Entity: Operating Unit:

- AR, OM, AP, PO etc Inventory Oranziation: - INV, MFG Ship Naming Considerations: -----------------------Ledger: Ledger_ ; COB_, ROB_, BG_, HR_, LE_, OU_, Inventory Organization: IO_ Organziation: GM_ Mutlti-Org Access Control (MOAC): -----------------------------------------User Access to Multiple operating units is called Multi-Org Access Control. Multi-Org Access Control enables companies that have implemented a shared services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of shared service centers, as users no longer have to switch responsibilities when processing transactions for multiple operating units at a time. Data security and access privileges are still maintained using security profiles that now support a list of operating units. Access one or more operating units using single responsibility. Enhanced reporting capability using: Reporting level parameter Reporting context Benefits: ---------Using MOAC, a user can perform tasks for multiple operating units (OU) without changing their responsibilities. Tasks users can perform using MOAC in multiple OUs: Enter Payables Invoices View Consolidated Requisitions Perform Collections Process Receiving and Drop Shipments Customer Data Management Accounting Setup MOAC Setups and Process: -----------------------------

Setup: 1. Define Operating Unit 2. Create Security Profile 3. Run Security List Maintenance 4. Setup Profile Options. Process: 1. Login and select a responsibility 2. Launch a Form 3. Application Checks Users Access Privileges 4. Process data for Operating Unit. Leveraging Multi-Org Access Control feature: Accounting Setup Manager : Create ledgers and operating units through the Accounting Setup Manager. Payables: Reduce processing time with the ability to enter invoices for multiple operating units without switching responsibilities. Reduce processing cost with the ability to pay invoices for multiple operating units in a single pay run. Receivables: Provide global information for decision making purposes with new cross organization reports Purchasing: Ability to negotiate discounts armed with consolidated requisition demands Collections: Global collections agency with consolidated view of customer accounts and collection tasks for multiple operating units

Responsibility Not Visible to user in the list of responsibilites assigned to User:

Recently came to know that though the system adminstrator is given the responsibility access to users, users are not able to view the responsibilities in the list of responsibilities assigned. 1. Check if the responsibility is not end dated. 2. Run the request " Syn responsibility role data into the WF table". 3. Run the request " Synchronize WF LOCAL tables" enter the paramters - Orig System: ALL - Parallel Process:0 - Logging Mode: LOGGING (Logging Activated) - Temporary Tablespace : Blank

- Riase Errors: Yes 4. Run the request "Workflow Directory Services User/Role Validation" enter the paramters - p_BatchSize:10000 - Fix dangling user/roles : Yes - Add missing user/role assignments : Yes - Update WHO columns in WF tables: Yes 5. Log off and login back and verify that the responsibility appears. That should resolve the issue. If the problem is not resolved still ask the sysadmin to start the following servives Navigation: System Administrator > Workflow > Oracle application manager > Workflow Manager - Workflow Deffered Notification Agent Listner - Workflow Error Agent Listner - Workflow Java Deffered Agent Listner - Workflow Java Error Agent Listner. In case still there is a issue please raise a Service request with Oracle. P2p cycle

Procure to Pay 1. 2. Creating 3. 4. Creating 5. Paying 6. Transfer, Import and Post to GL Overview:

cycle covers Creating Creating Invoice the

the Purchase

following

in

steps Requisition Order Receipt AP Invoice

In this article, we will see the steps involved in Procure to Pay Cycle. Here is the diagrammatic representation:

1) Create Requisition: Requisition is nothing but a formal request to buy something (like Inventory material, office supplies etc) needed for the enterprise. Only an employee can create one. There are two types of requisitions: Internal Requisition: Internal requisitions provide the mechanism for requesting and transferring material from one inventory to other inventory. Purchase requisition: Unlike Internal requisitions, Purchase requisitions are used for requesting material from suppliers. Navigation: Purchasing Vision Operations (USA) > Requisitions > Requisitions Choose the requisition type and enter the Item, quantity, Price details in the Lines tab.

In Source Details tab, specify the Buyer name.

Click the Distributions button. Enter the Charge Account.

Save the work. The status of the requisition will now be Incomplete. And now the Approve button is highlighted. The requisition needs to be approved first before proceeding further by the concerned authority. Submit this requisition for Approval by clicking on the Approve button. The status will now be updated to In Process .The workflow then will send an Approval notification to the concerned person (derived based on hierarchy used Position or Supervisor hierarchy) using which he can Approve or Reject the requisition.

At any time the status of requisition can be checked using the Requisition summary window.

Navigation: Requisitions > Requisition Summary Enter requisition number and click on the find button.

We can also check the Action History of requisition (it will show details about who has submitted, approved and cancelled the requisitions) as below: Navigation: Tools menu > Action History. Underlying Tables: PO_REQUISITION_HEADERS_ALL PO_REQUISITION_LINES_ALL PO_REQ_DISTRIBUTIONS_ALL 2) Create Purchase Order: There are 4 types of Purchase Orders: 1. Standard PO: A Standard PO is created for onetime purchase of various items 2. Planned PO: A Planned PO is a longterm agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.

3. Blanket agreement: A Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not know the detail of your delivery schedules. 4. Contract agreement: Contract purchase agreements are created with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing Navigation for creating a standard PO: Purchase Orders > Purchase Orders Choose type as Standard Purchase Order. Enter the Supplier, Buyer. In the Lines tab, specify the line number, line type, Item, quantity, price etc.

Click Terms to enter terms, conditions, and control information for purchase orders. Click Currency button to enter and change currency information for purchase orders, RFQs, and quotations. Click Shipments button to enter multiple shipments for standard and planned purchase order lines Purchase order shipment specifies the quantity, shipto organization and location, date you want your supplier to deliver the items on a purchase order line, and country of origin for the items. When you save, Purchasing creates distributions depending on the default information available.

To enter more shipment information, select the More tab.

1. Enter the Receipt Close Tolerance percent, Invoice Close Tolerance percent to set the
receiving and invoice close point. 2. Select one of the following options for Match Approval Level: TwoWay: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid. ThreeWay: Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid. FourWay: Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid. 1. Select an Invoice Match Option: Purchase Order: Payables must match the invoice to the purchase order. Receipt: Payables must match the invoice to the receipt. Save the work.

Click the Receiving Controls button to enter receiving control information for purchase orders. - Enter the maximum acceptable number of Days Early and Days Late for receipts. - Enter the Action for receipt date control. - Enter the maximum acceptable overreceipt Tolerance percent (receipts that exceed the quantity received tolerance). - Enter the Action for Overreceipt Quantity. - Select Allow Substitute Receipts to indicate that receivers can receive substitute items in place of ordered items. - Enter the default Receipt Routing that you assign goods: Direct Delivery, Inspection Required, or Standard Receipt. - Enter the Enforce Ship To location option to determine whether the receiving location must be the same as the shipto location. Save the work.

Click Distributions button to enter distributions for the shipments. Select more tab to enter more details and the requisition number (optional). Save the work.

Click on the Approve button to initiate the Approval process.

Underlying Tables: PO_HEADERS_ALL PO_LINES_ALL PO_DISTRIBUTIONS_ALL (REQ_HEADER_REFERENCE_NUM in Distributions table is the Requisition number for this PO) PO_LINE_LOCATIONS_ALL 3) Create Receipt: Create a receipt to receive the items in the Purchase Order. Navigation: ReceivingReceipts Enter the PO Number and select find button.

Go to Lines, check the lines you want to receive in the PO.

Click on Header button and Save which creates the receipt.

Receipt Tables are: RCV_SHIPMENT_HEADERS RCV_SHIPMENT_LINES (Lines Table has PO_HEADER_ID) 4) Create Invoice in Payables: Once the goods are received, its time to pay the vendor for the goods purchased and hence the invoices are created. Navigation: Payables, Vision Operations (USA) > InvoicesEntryInvoices Enter type -- Standard, supplier information and amount.

Click the Match button to match to either Purchase Order or Receipt (depending on the Invoice Match option specified on the PO) and avoid manually entering the invoice. Enter the PO Number you want match to and click Find.

Select the lines required and click on Match button.

Click on Distribute button to navigate to the Match to Purchase Order Distributions window. This creates the invoice and you can see the status of the invoice as Never Validated. it has to be Validated and Accounted before you can pay it. Validating the Invoice: Click on Actions Button and Select Validate. Click on OK button.

Now you can see the status of the invoice as Validated, if there are no issues during validation.

Create Accounting Entries: Click on Actions Button and Select Create Accounting. Click on OK button.

Now we can see the Accounted status as Yes.

You can see the Accounting Entries here: Tools View Accounting

Invoice Tables: AP_INVOICES_ALL AP_INVOICE_DISTRIBUTIONS_ALL Accounting Entries Tables: AP_ACCOUNTING_EVENTS_ALL AP_AE_HEADERS_ALL AP_AE_LINES_ALL 5) Making a Payment: Go to the Invoice window and query the invoice you want to pay. You would see Amount paid as 0.00 before you make a payment.

Click Actions button. Select Pay in full and click OK.

Select the Bank Account and Document. Save the Work.

Now that the payment is made, when you query for the invoice in Invoice window, you will the Amount Paid as $4,000.00. Create Accounting entries for payment. Click Actions and select Create Accounting

Select the void checkbox to cancel the payment. View Accounting Entries: In the Payments window, query for the payment. Tools menu View Accounting

Payment Tables: AP_INVOICE_PAYMENTS_ALL AP_PAYMENT_SCHEDULES_ALL AP_CHECKS_ALL AP_CHECK_FORMATS AP_BANK_ACCOUNTS_ALL AP_BANK_BRANCHES AP_TERMS You can also pay the invoices using Payment Batch screen. Refer to the article Make AP Payments through Payment Batches 6) Transfer to General Ledger: Navigation: Payables Responsibility > View Requests Run the concurrent program Payables Transfer to General Ledger with the required parameters.

Journal Import: Refer to the Article Order to Cash Cycle. Posting: Refer to the Article Order to Cash Cycle.

AP: Recurring Invoices

The concept and use of Recurring Invoice is the same as the Recurring Journal Voucher in Oracle General Ledger. The only difference in Payables is that you have to define a Calendar according to which the recurring invoices will be generated. And this is the part which is a bit tricky until you exactly know how it works. The literal meaning of word Recur is to come again, I think it is short for the word Re Occur, anyways. Recurring Invoice means any liability that occurs with a specific span to time. I have used recurring invoice in following scenarios, you can come up with more :) Recurring Invoice Scenarios: 1. Utility bills 2. Amortization of prepayments Implementing Recurring Invoices:

Lets first take a real life scenario and see how to create a recurring calendar on this scenario Recurring Invoice Calendar Create recurring calendar according to your need. Navigation: AP>Setup>Calendar>Special Calendar 1. 2. 3. 4. On the right side of the form there are radio box options select Recurring Invoice Enter the Name of the calendar. Example TestRecurring08 Enter the Description of the recurring calendar. (Optional) Enter the Number of Period for recurring invoice calendar o If you want Monthly recurrence then enter 12 (Every month for the whole year) o If you want Half Yearly recurrence then enter 2 (Twice a year) o If you want Half Monthly recurrence then enter 24 (Twice a month for the whole year)

Now enter the calendar. Lets take the example of 24 periods recurring. 1. Enter the Period Name like Jan1 (for the first 15 days) 2. Enter the current Fiscal Year 3. The period Sequence will be automatically populated when you press TAB button on the keyboard 4. The From Date will also be automatically generated on pressing the TAB button 5. Enter the To Date as 15-Jan-2008 (The year 2008 is for this scenario) 6. Due Date will be blank, System Name will be automatically generated 7. Enter the Period Name for second period as Jan2 8. To Date will be automatically generated 9. Repeat the steps for the whole calendar Recurring Invoice Navigation: AP>Invoices>Entry>Recurring Invoices 1. On the form, Enter Supplier Name for whom the recurring invoices needs to generated. 2. Supplier Number will populate automatically, 3. Select the Site for which the invoices needs to be generated 4. Select the Recurring Calendar you created for recurrence 5. Enter the Number of Periods, should be same as defined in recurring calendar 6. Select the First Period of the calendar Invoice Definition: 1. Enter the Invoice Number (Alphanumeric) 2. Select WHT if applicable 3. Enter Invoice Description

4. Select the Liability Account Code Combination 5. Leave the GL Date blank because if you enter the date say for example 01-JUL2008, then all the invoices created will have the same GL date but if you keep the field blank then the invoices will have the From Date of the calendar for each period. Line Definition: 1. Either select Distribution Set or PO (Either is mandatory) 2. Give Item Description, Manufacturer and Model Number if applicable Amount: 1. Enter the First Amount invoice should have, for example, Rs.100 2. Enter Change in Percentage (if required). If you enter 1 then the system will calculate the 1% of First Amount and Adds it to the first amount. Following is the sample table First Amount = 100 Change = 1% 100 101 102.01 103.0301 104.060401 105.101005 106.1520151 107.2135352 108.2856706 109.3685273 110.4622125 111.5668347 TOTAL=1268.250301 After all is done you can Generate the invoices. Number of Invoice is the quantity of invoices you want to generate, for example you have created the recurring calendar with 24 periods and you give the Number of Period in the recurring form as 24, and you give 12 as the Number of Invoices. Take the following example of the above scenario Scenario 1 Recurring Calendar Period: 24 (Jan-08 to Dec-08)

Period given in Recurring Invoice Form: 24 Starting Period: Jan1-08 Number of Invoices: 24 24 Invoices will generate from Jul-08 to Jun-09 Scenario 2 Recurring Calendar Period: 24 (Jan-08 to Dec-08) Period given in Recurring Invoice Form: 24 Starting Period: May2-08 Number of Invoices: 8 8 Invoices will generate from May2-08 to Sep1-08 Click on Create Recurring Invoices to generated the invoices in Invoice Workbench The Next on the form means that next invoice will be generated from Sep2-08 till Dec2-08 When you click Create Recurring Invoices a form will open showing the invoice number with the period name and the GL date as given in the recurring invoice form

Key accounts - P2P Cycle

Posted on March 22nd, 2008 by Sanjit Anand | Print This Post | Email This Post

Here are some of the key accounts used in P2P(Procure to Pay) Cycle. RECEIVING INVENTORY ACCOUNT This is one of the clearing account. The account is used for receipt accruals. After receiving transactions are processed and the Transfer Transactions to GL process is run, the Receiving Inventory Account is cleared and the Material account is charged with the cost of the capitalized inventory . You can specify this account when you define Receiving Information for your inventory organizations. INVENTORY AP ACCRUAL

This is the account used by Purchasing to accrue your payable liabilities when you receive items you will capitalize as inventory. This account represents your uninvoiced receipt liability and is usually part of your Accounts Payable Liabilities in the balance sheet. Oracle payables relieves this account when the invoice is matched and validated. So, you have to specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab. AP LIABILITY ACCOUNT This account defaults from the supplier site and is credited when a standard invoice is entered or debited when a credit memo or debit memo is entered. The account is relieved when the invoice is paid. When you are creating an invoice, the liability account will get defaulted based on the hierarchy i.e., it can be from Financial options/Supplier /Supplier site.However you will still have an option to modify the Liability account by replacing the defaulted account. (0r) do you see a different account getting defaulted during Invoice creation EXPENSE AP ACCRUAL This is the account used by Purchasing to accrue your payable liabilities when you receive items you will expense. This account represents your uninvoiced receipt liability when you run the Receipt Accruals - Period End process. When you receive the goods,the accounting entry will be Receiving Inv Dr To Expense Accrual Cr In Payables Expense Accrual Dr To Liability Cr. So the Expense Accrual will knock-off You can specify this account on the Accrual tab when you set up Purchasing Options. MATERIAL ACCOUNT An asset account is used for to tracks material cost . In the average costing, this account holds your inventory and in transit values. Once you perform transactions, you cannot change this account.

You can specify this account when you define Inventory Information for your inventory organizations in the Valuation Accounts region for the Costing Information tab. CHARGE ACCOUNT This is the charge account is the account that will be charged for the purchase on either the balance sheet or income statement.

If the destination type for the distribution is Inventory, this account will be the Material account associated with the subinventory and you cannot override it. This is the balance sheet account that will be charged after inventory is capitalized. If the destination type is expense, you can specify this account (provided it isnt project related) and override any defaults. This account will be either an asset clearing account that will be included on the balance sheet or an expense account that will be included on the income statement. This account is either created or specified when you create a purchase order.

Look at the Material Account on the destination inventory organization, or (if specified), destination subinventory. Under Inventory: Setup/Organizations/Parameters or Sub inventories PURCHASE PRICE VARIANCE This account is used to record differences between purchase order line price and standard cost. The Purchase Price Variance is calculated when items delivered to inventory are costed. You should note, this account is not used with the average cost method. For example, assume the purchase order line price for an item was set at $100 per item but standard cost was set to $120 per item and you purchased 10 items. The Purchase Price Variance would be $200. You can specify the Purchase Price Variance account when you define Inventory Information for your inventory organizations in the Other Accounts tab. INVOICE PRICE VARIANCE The variance account used to record differences between purchase order price and invoice price. This account is used by Payables to record the invoice price variance for inventory items. For expense items, the account generator uses the charge account to record any invoice price variance. You can understand with this set of example, how its works;

1). Create a purchase order with expense type item having the above Navigation: Purchasing->Purchase Orders->Purchase Orders 2). Receive the goods for this PO. Navigation: Purchasing->Receiving->Receipts 3). Login as Payables manager, create an invoice and match it to the PO created in step 1. Navigation:Payables->Invoices->Entry-Invoices for example PO Quantity=100 PO Price = 5 Now you match an invoice to the PO and Invoice(match) details are as follows: Matched Quantity=100 Price on Invoice= 1 in this case, probably you have set the Invoice price variance account in define Organization Parameters form( alternate region: other accounts) same as the expense account on the PO Invoice Price Variance= (PO Price - Invoice Price) x Qty. Invoiced You can specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab.

AP: Entering DR and CR Memos

Before getting into the transactions, lets see what are Debit Memos and Credit Memos. In Oracle both of them are used to reduce the invoice amount. This reduction can be of any reason and from either side i.e. the organization using Oracle Payables (Payer) or the Supplier (Payee) it is going to pay. There is a concept that if an invoice amount needs to be increased then a CR memo is entered and if it needs to be decreased then DR memo is entered. However this concept doesnt apply in Oracle Payables. Here in Payables the difference between CR and DR memo is of initiation i.e. a Credit Memo is given by the supplier if it finds any discrepancy the amount invoiced and debit memo is given by the customer if they identify any discrepancy. Debit Memo: A negative change in invoiced amount identified by customer and sent to supplier. Credit Memo: A negative change in invoiced amount identified by supplier and sent to customer Moving on,

There are two possible scenarios in Payables for entering a CR or DR memo 1. The invoice is paid 2. The invoice is not paid In first scenario where invoice was overcharged and has been paid to the supplier; a CR/DR memo will create a Refund i.e. receiving amount in the bank. In second scenario where the invoice is overcharged but open or not paid; a CR/DR memo will reduce the payment amount. Here are the steps for entering the invoice for Scenario 1 1. Create an invoice if you want to test this scenario, lets say invoice number INV001 with amount 15000/2. Create CR/DR memo for same supplier in INV-001 3. Give it a number say INV-001DR1 with amount -3000/4. Scroll the invoice header section to the Match Action column and select Invoice from the drop down. 5. Dont give the Invoice Line or Distribution amount. 6. Click on Corrections button. 7. Enter invoice number to be corrected i.e. INV-001 and click Find. 8. Click on Select and enter the amount to be corrected say -2000 or the total amount -3000. 9. Click Correct. 10. With this, the Invoice Line and Distributions will be copied to CR/DR memo with the respective correction in Distribution lines. 11. Now perform the validation. 12. Create Accounting is optional. 13. Now pay the CR/DR memo; you can use the Pay in Full option or the Payment window. 14. Select the bank account in which you are receiving the refund from customer. 15. Enter the check number, which is used by supplier to pay the refund amount. 16. Save the Transaction. 17. The accounting in this case will debit your bank account and Credit the Liability. Accounting Entry for Refund: CR/DR Memo Liability Expense DR CR

CR/DR Memo payment Bank Liability DR CR

Here are the steps for entering the transaction in Scenario 2 1. 2. 3. 4. 5. 6. The Invoice for this scenario will also be created already. Enter the CR/DR memo with the reduction amount. Go to payment window. Select the Supplier and every other detail. Select the bank account and document number you are paying from. Click Enter/Adjust Invoice and select the Standard Invoice for which the amount should be reduced in the first line and the CD/DR memo in the next line. You will that the Total will be reduced which will your payment amount. 7. Save the transaction.

Understanding Retainage from Techies Mind

Posted on October 30th, 2008 by Sanjit Anand | Print This Post | Email This Post

This kind of business normally you will find in Project intensive companies, where retainage refers to a portion of the payment that is withheld until the completion of a project. In that case the client doesn't pay the contractor/party the retainage until all work on the project is complete. Retainage is negotiated upfront and is stated as a percentage or amount of the overall cost of the project. There is no limit for retainage. Example Example 1 For example, a lets you company may hire a IT contractor for a $100,000 project. The contract stipulates 10% retainage. Over the course of the project, the client pays the contractor $90,000 for the work. But 10% of the total cost, $10,000, is withheld until the completion of the project. Once the project is completed, all the final details have been wrapped up, and the client is satisfied with the results, the client will pay the contractor the retainage amount. Example 2 There may be other case you can have this way , the contract can specify that you will retain 20 percent from all payments until 25 percent of work is complete. Therefore, whenever the contractor sends you an invoice, you retain 20 percent of each payment until the overall progress reaches 25 percent. Accounting Treatment Retainage is recorded on the balance sheet.

When the voucher is processed, the following accounting transaction is generated: DR) Expenditure(Expense) CR) Voucher payable (Liability) CR) Retainage payable (Retainage) When the voucher is released by audit for payment, the following transaction is generated: DR) Vouchers payable(Liability) CR) Cash To release the retainage after successful completion of the contract the following transaction is generated: DR) Retainage payable (Retainage) CR) Cash Payables retainage @Oracle R12 These are two mandatory set up required in R12 to get retainage Function. 1)Retainage Account Setup You need to first define the retainage account for the operating unit in the GL Accounts region on the Accounting tab of the Financials Options. Setup > Options > Financials Options> Accounting tab Oracle Payables uses this account to record the distribution on progress invoices and subsequent retainage release invoices for funds withheld from suppliers. 2)Supplier Terms and Controls Setup You need to do Set up for your supplier's terms and control defaults using the Suppliers page. .

R12 Supplier Bank - Techno Functional Guide

Posted on October 20th, 2008 by Sanjit Anand | Three banks you can manage in EBS

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House Bank or internal bank External bank for supplier and Customer o Supplier (or External) bank accounts are created in Payables, in the Supplier Entry forms. Navigate to Suppliers -> Entry. Query or create your supplier. Click on Banking Details and then choose Create. After you have created the bank account, you can assign the bank account to the supplier site. Intermediary bank for SEPA payment : An intermediary bank is a financial institution that as a relationship with the destination bank (in this case the supplier bank account you are setting up) which is not a direct correspondent of the source

bank (the disbursement bank in AP/Payments), which facilities the funds transfer to the destination bank. You can enter intermediary bank accounts on Suppliers->Entry->Banking Details->Bank Account Details This is important when paying a foreign supplier from a domestic disbursement account, there may be an intermediary bank used, and it would be set up on the supplier bank account. Although the intermediary bank UI is owned by Payments, the implementation is as embeddable UI components in pages owned by i-supplier Portal (suppliers) and AR/Collections (customers). Some information 1. The supplier bank account information is in the table: IBY_EXT_BANK_ACCOUNTS, the bank and bank branches information is in the table HZ_PARTIES. 2. Creating a supplier in AP now creates a record in HZ_PARTIES. In the create Supplier screen, you will notice that that Registry_id is the party_number in HZ_Parties. 3. The table hz_party_usg_assignments table stores the party_usage_code SUPPLIER, and also contains the given party_id for that supplier. Running this query will return if customer was a SUPPLIER or CUSTOMER 4. Payment related details of supplier are also inserted in iby_external_payees_all as well as iby_ext_party_pmt_mthds 5. IBY_EXT_BANK_ACCOUNTS, the bank and bank branches information is in the table: HZ_PARTIES. 6. The master record that replaces PO_VENDORS is now AP_SUPPLIERS. PO_VENDORS is a view that joins AP_SUPPLIERS and HZ_PARTIES. 7. The table that hold mappings between AP_SUPPLIERS.VENDOR_ID and HZ_PARTIES.PARTY_ID is PO_SUPPLIER_MAPPINGS. Query by party_id. 8. The bank branch number can be found in the table: HZ_ORGANIZATION_PROFILES .The HZ_ORGANIZATION_PROFILES table stores a variety of information about a party. This table gets populated when a party of the Organization type is created. ER Diagram(Bank Model)

Oracle Table Involved

IBY_EXTERNAL_PAYEES_ALL : This stores supplier information and customer information IBY_EXT_BANK_ACCOUNTS : This storage for bank accounts IBY_EXT_PARTY_PMT_MTHDS : This storage for payment method usage rules. IBY_CREDITCARD : stores the credit card information for a customer IBY_EXT_BANK_ACCOUNTS :This Stores external bank accounts . These records have bank_account_type = Supplier IBY_ACCOUNT_OWNERS :stores the joint account owners of a bank account IBY_PMT_INSTR_USES_ALL : This stores data from AP_BANK_ACCOUNT_USES_ALL for payment instruments assignments .This information is stored in the following iPayment (IBY) tables:

R12 : AP Trail Balance

Posted on April 20th, 2008 by Sanjit Anand | Background Once the entries have been made and before any report are extracted from the accounts, a trail balance is drawn up.This is standard accounting practice. This is just what it says it is a try at balancing the figure before the profit is worked out and the balance sheet drawn up. By rule of thumb,If the double entry is correct, ie all debit entry for every credit entry and viceversa, then the total of debit balance and total of the credit balances equal . In release 12: o 11i Trial Balance is known as the Open Account Balances Listing report in R12 o It runs based on the Open Account Balances Listing Definition that you define. o You can define the Listing Definition at a Ledger or Ledger Set level It runs based on the Open Account Balances Listing Definition that you define then select as a parameter when you submit the Open Account Balances Listing report. Print This Post | Email This Post

As a prerequisite, you must run the Open Account Balances Data Manager and select the Open Account Balances Listing Definition in the parameter labeled "Trial Balance Definition".

Now , you can define the Listing Definition at a Ledger or Ledger Set level such that when you run the report, you can view open liability balances for operating units belonging to a given ledger or ledgers within a ledger set as shown below:

Accrual Accounting (Periodic Accrual)

Posted on March 20th, 2008 by Sanjit Anand | Print This Post | Email This Post

Some time back one of my reader asked to provide accounting details information that take place in accrual accounting, so here to go: Lets try to understand the accounting details with these entry:

PO Cost SGD 200 Invoice Price SGD 200 Payment Rate SGD 200

Enter purchase order When you enter a purchase order, accounts are created and stored with the purchase order distribution. The accounts will eventually be used as a basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself generates no accounting that is sent to the general ledger. Receive When you process a receipt, no accounting is created for period end accruals. Receipts that are accrued at period end will always be for a destination type of expense. Deliver and cost When you deliver a receipt to its final destination, no accounting is created. The expense will be recorded after matching to the purchase order, running the Payables Accounting process and subsequently running the Payables Transfer to General Ledger process. Period end accrual If an invoice is not entered by period end, the Receipt Accruals - Period End process will generate accruals and transfer the accounting for them to the GL Interface. Use the Journal Import program to create unposted journals. This journal is created with a reversal date in a subsequent period. The journal must be reversed so your receipt liability is not overstated. Reverse accrual in the general ledger

In the subsequent period, reverse the prior period accrual. Invoice and match Entering an invoice and matching creates a debit to the Inventory AP Accrual account to clear the liability for the uninvoiced receipt (you now have an invoice). The entire credit is to the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice Price Variance account. For items with destination type of Expense, the Invoice Price Variance account will be the same as the charge account. The AP Liability account is cleared when a payment is processed.

Procure to Pay (P2P) - Accounting Entries

Posted on March 21st, 2008 by Sanjit Anand | Print This Post | Email This Post

In response of my last post ,yet another reader asked for "Asset ,Purchasing & Inventory Purchasing and there corresponding accounting entry within P2P cycle. Therefore this post highlights some of key accounting entry in each steps with respect to th As you know "procure to pay" Business Flow start Purchasing requisition till paying to vendors and most important, in all the case the purchase is made for basic element called Items. As you know there are three types of items:

Inventory Expense Item Inventory Asset Item Expense item

Definition of above Items used in Purchasing can be best understood as:

Asset flag means means it is an asset and the items value will show in your inventory valuation. Inventory Item

Expense Item These are one which is used for consumable items purchase for your organization. More importantly , for creating an expense item you have to perform following setup doing in the Master Item form.Go to same path in oracle inventory Oracle Inventory -> Items -> Master Items When master items form open Go to Inventory Menu you need to tick followings 1. 2. 3. 4. Inventory item Stock able Transactble Resolvable

And you can also setup in Costing and purchasing menu account code as per your requirement.

Asset Item As discussed above , the following attributes need to be enabled for such an item.

Inventory item Stock able transact able Costing flag

Inventory asset value

For entering on purchase orders It should have purchased and purchasable flags enabled and you have to make sure you are assigning this item to the Purchasing org which you have defined at Oracle Purchasing > Setup > Organizations > Financial Options > 'Supplier-Purchasing' alternate region 'Inventory Organization' field. The accounting can be best described for such kind of items is;

Is there any effect on Step 5 in all three cases, that mean do matching have different accounting entry? The answer is no; as per my understanding purpose of setting the PO to a 2way, 3 way or 4 way match is to ensure that the corresponding hold is generated on the invoice. The holds are basically designed for control purposes, they do not have any accounting effects.

R12 : Setting up for AP/AR Netting

Posted on January 21st, 2008 by Sanjit Anand | Print This Post | Email This Post

AP/AR Netting automatically compares Payables to Receivables and creates the appropriate transaction in each system to net supplier invoices and customer invoices. With this functionality, A receivables user can

View netted receipt details directly from the receipt Create Netting Agreements and Netting Batches

With this functionality, there is significant increase in user productivity and effectiveness because of tight integration and automation. You can access the process via:

Navigation: Receipts > Netting > Netting Batch Navigation: Receipts > Netting > Netting Agreement Receipts > Receipts > Action Menu : AP/AR Netting After Querying a netted receipt, the user can see more details about the batch by selecting AP/AR Netting from the Action menu. This launches the AP/AR Netting batch window. Netted Receipts are created automatically by the AP/AR Netting process and cannot be updated by the user from the Receipts Workbench

As we have seen Contra charging has been replaced by AP/AR Netting, lets take a setup walk though to use this functionality. 1.Define netting control account Setup>Financials>Flex field>key>values 2.Create bank Setup>payment>Bank and Bank Branches You should note ,Payment document is not required for netting bank account. 3.Go to receivables responsibility, receipt class definition form Setup>Receipts>Receipt class Query the 'AP/AR Netting' receipt class which is a seeded one.

4. Attach your bank account in this receipt class. 5.Go to system options, transaction and customer tabbed region, there enable 'Allow payment of Unrelated Transactions'check box

6. Create netting agreement Receipts>Netting>Netting Agreement

7. Enter an Invoice in Payables, validate and run create accounting. 8. Enter a transaction in receivables. 9. Create Netting Batch

Receipts >Netting >Netting Batch

10. Query your netting batch and see the status as Complete. also click on view report icon on right side.click on run push button, you can see the final netting report. 11.Go to view>request>find You can see 3 concurrent request programs

Create Netting batch Settle netting batch Netting Data Extract

12.Now go to receipts and query the AP/AR netting receipt. 13.Now Go to Tools >view Accounting, you can see Netting control account (defined in first step a) debited and receivable account credited. 14. Now go to payables and query your invoice number and click the tab view payments. You can see the payment details and copy the document number. 15.Query your copied payment document number.What you can see the payment type as Netting . 16.Click actions button and enable the check box create accounting . 17.Go to tools>view accounting .You can see the accounting entry Posted in Oracle Payable, Oracle Receivable, R12, Release12 | 9 Comments

Credit Card functionality within i-expense

Posted on December 26th, 2007 by Sanjit Anand | Print This Post | Email This Post

Is your company is in process of enabling credit card functionality within Oracle Internet Expense? If answer is yes It means, once the credit card functionality is enabled in i-Expense, then its allows users to select open credit card transactions and include them in their expense report. The only prerequisite for your organization would make an agreement with the credit card company to import an electronic file of credit card transactions that summarizes employees' expenses for a period. Once the electronic file is imported and validated, employees would be able to see their credit card transactions and then select them for expensing on their expense report. AMEX (American Express) Corporate card is most popular one normally companies providing there employee who have requirement to frequent travel or other similar requirement. American Express Corporate Service does provide these services to there corporate customer: 1. 2. 3. 4. 5. 6. 7. 8. 9. KR/KP-1205 Cardmember Listing Report KR-1600 Corporate Express Cash Billed Data KR/KP-1300 Monthly (Cyclic) Aging Analysis KR/KP-1301 Interim Aging Analysis KR/KP-1100 Industry Summary KR-1022 Monthly (Cyclic) Billed Reconciliation Data KR-1025 Daily Unbilled Reconciliation Data KR-1072 Line Item Detail KR-1075 Line Item Detail-Daily Unbilled

Once your company is decided, to go for AMEX Corporate Card, then Finnace IT/ERP team tries to find out the way to do integration within Oracle.From the above mentions list Oracle does only provide the direct integration for Items #7, which is KR-1025 Daily unbilled Reconciliation Data. Item #8, 9 are treated as level 3 data, and important to know these kinds of data is not currently supported in Oracle. Level 3 transaction data refers to the detailed transactions that constitute a single transaction line on the credit card statement. For example, a single hotel transaction can contain the detailed transactions of room charge, meals, and room service. Not only Amexm there are few more for which Oracle does support credit card transactions data file formats in EBS:

American Express KR-1025 format (file name is Card Daily Data Feed) Diner's Club Standard Data File format (file name is TRANS.DAT) Master Card Common Data Format, version 2.0 Master Card Common Data Format, version 3.0 Visa VCF4 format

US Bank Visa format Bank of America Visa TS2 format

What is offered as a feature in EBS Suite: 1. Import Credit Card Transactions :As discussed above, if employees in your company use corporate credit cards, you can set up Internet Expenses to enable users to automatically import credit card charges from the card issuer into an expense report. Employees can also categorize each charge as either Business or Personal and, depending on your implementation, place items in dispute. 2. Flexible Credit Card Payment and Reimbursement Setup: Internet Expenses supports several different scenarios for paying the credit card company and reimbursing employees for corporate credit card charges. You can set up your system to indicate how payment must be remitted to the card issuer. Your choices are:

from your organization from the employee from both your organization and the employee

Next will share some setup activity to enable this functionality.