Design AP Process Definition Document 1.2

State Street
Process Definition Document
Oracle Accounts Payables

Implementation US
<Working Draft>
AP Process Design Document
11
Company Confidential - For internal use only
Document Control
Change Record
Date
Author
Version
Change Reference
8-Aug-07
4-Sep-07
Tej Kumar V
Tej Kumar V
1.0
1.1
13-Sep-07
John Phillips Raj
1.2
Original Document
With review comments from
Ellen and Mark
Updated comments from the
PDD Discussion meetings.
Reviewers
Name
Position
Paul Caron
Kim Hellmuth
Vidyadhar Nayak
Geetha Manyam
Kevin Elshaw
Keith Taylor
Jim Brown
P2P Project Manager

State Street Project Lead
Wipro Sr. Project Lead
Wipro Project Lead
International Accounting
Corporate Accounting
Imaging Lead
Name
Position
Ellen Wilson
Daniel Mc Nally
Mark Beggs
Paul Caron
Manager of Accounting Controls

Accounts Payables Manager
Shared Services Manager
P2P Project Manager
Approvers
21
TABLE OF CONTENTS
Document Control......................................................................................................................................2
Introduction..................................................................................................................................................5
Business Processes Overview: Accounts Payables........................................................................7
Accounts Payables Processes................................................................................................................8
A. SUPPLIERS................................................................................................................................................9
AP-SUP 1: Create and Maintain Supplier Headers
AP-SUP 2: Create and Maintain Supplier Site
AP-SUP 3: Create and Maintain Employee as Vendor
10
13
16
B. BANKS.....................................................................................................................................................18
AP-BNK 1: Create and Maintain Banks
AP-BNK 2: Create and Maintain Bank Accounts
19
20
C. INVOICES................................................................................................................................................23
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
AP-INV
1.0: Creation of Invoices

1.1: Creation of Perfect Commerce Invoices
1.2: Creation of Electronic Invoices
1.3: Creation of Quick Invoices
1.4: Expense Report Invoices
1.5: Creation of other Invoices (Summary Invoices)
1.6: Creation of Prepayment Invoices
1.7: Creation of Recurring Invoices
2.0: Adjusting Invoices
2.1: Holds/Releases
3.0: Approving Invoices
4.0: Invoice Inquiry
5.0: Invoice Taxes
6.0: Invoice Approval Business Rules Matrix
7.0: Oracle Standard Invoice Holds& Releases
25
29
30
31
33
33
33
34
35
35
36
36
37
39
40
D. PAYMENTS..............................................................................................................................................46
AP-PMT
AP-PMT
AP-PMT
AP-PMT
AP-PMT
1.0:
2.0:
3.0:
4.0:
5.0:
Payments
Checks
EFT
ACH
Wire
47
51
52
52
53
E. PERIOD CLOSE......................................................................................................................................55
F. ACCOUNTING.........................................................................................................................................58
AP-ACC
AP-ACC
AP-ACC
AP-ACC
1:
2:
3:
4:
Accounting Rules
Accounting Entries (Summary)
Accounting Defaults (For Information Only)
Update Accounting Entries
58
61
65
66
G. REPORTING............................................................................................................................................67
AP-RPT 1.0: Standard Reports
AP-RPT 2.0: Custom Reports
67
67
H. CONVERSIONS.....................................................................................................................................69
AP-CNV
AP-CNV
AP-CNV
AP-CNV
1.0
2.0
3.0
4.0
Supplier Conversion
Employees as vendors Conversion
Banks Conversion
Invoice Conversion
69
69
69
69
31
I. INTERFACES.............................................................................................................................................70
AP-INT 1.0 Inbounds
AP-INT 2.0 Outbounds
70
70
K. SECURITY................................................................................................................................................72
AP-SRT 1.0: Operating Unit/Responsibility/User Security
AP-SRT 2.0: Security Rules
72
72
73
Appendix A Gap Log......................................................................................................................................74

Appendix B Supplier and Supplier Site Fields and Controls.........................................................................75
41
Introduction
This process document provides a snapshot of the processes and sub-processes in
Accounts Payables
The document covers the high level process flow in Accounts Payables and lists the
business requirements for Payables implementation.
The document also identifies and lists Gaps and decision points.
Background
This document provides both a high-level overview and detailed requirement listing for
the Accounts Payables processes. The requirements listed in the document are specific
to the US implementation. The intent is to propagate them to global design, if possible.
These processes are aligned to Oracles Key Business Flows in support of standard 11i
application configuration.
Document Purpose
This process definition document will be used for the following purpose
To capture requirements for Accounts Payables Implementation (US)
Identify and track Gaps
Identify the decision points.
Development of test cases (during QA phase) by mapping the test cases

back to the requirements. This helps in maintaining reverse traceability.
This document will NOT contain the following information:
Any low level applications information this will be contained in the

Application Set-Up documentation.
Any training information this will be available in the related Training

Guide.
Document Users
The intended audience for this document is:
ICS Implementation Team the Process Definition document will be used

during the Design Review stage of the Accounts Payables Solution
implementation.
The document can also be used by the QA team for test case generation.
STATE STREET users Accounts Payables users and Shared Services team are
expected to play a key role in freezing the requirements, both validating and
refining the processes enabling them to be effectively incorporated within
their organization. Changes made post signoff, if any, are expected to be
minor and conform to standard Oracle configuration.
51
Document Scope
This document defines the Business Processes related to the following business areas:
Process
Process Description
A. Suppliers
Discusses the creation, maintenance and audit of suppliers and supplier sites
B. Banks
Discusses the creation and maintenance of Bank branches and bank accounts
C. Invoices
Discusses the various methods of creation of invoices, adjustments, holds and

approval of invoices
D. Payments
Discusses the various methods of Payments and stop/void payments
E. Period Close
Discusses the period close process in Accounts payables
F. Accounting
Discusses the accounting setups and accounting entries in Accounts Payables
G. Reporting
Discusses briefly the reporting requirements
H. Conversions
Discusses briefly the items that will be converted from legacy systems
I. Interfaces
Discusses the inbound and outbound interfaces from Accounts Payables
J. Security
Discusses the security available in Accounts Payables.
61
Business Processes Overview: Accounts Payables
AP processes encompass a large number of activities spanning invoicing, payment,

reporting, financial accounting and period close. The AP processes are illustrated below:
The processes are divided into five sections:
1. Suppliers Creation and Maintenance
2. Invoicing
3. Payments
4. Reporting
5. Period close
Suppliers:
This activity includes the creation of suppliers and maintaining them. Suppliers can
be external or internal suppliers. An example of internal supplier is an employee
who is has submitted an expense report for reimbursement.
Invoicing
This activity refers to the process of receiving invoices, imaging, entering invoices,
matching invoices, invoice validation, routing of invoices for approval. It also
includes accounting for invoices.
Payments
This activity refers to the process of creating, recording and generating payments
through various methods of payments. It includes the creation and maintenance of
Bank branches and bank accounts. It also includes accounting for payments.
Reporting
A number of standard reports are provided by Oracle for the purposes of Master data
maintenance, information tracking, Control and reconciliation
Period Close
This activity refers to the process of transferring accounting entries to General
Ledger, sweeping invoices etc.
71
Accounts Payables Processes
81
A. SUPPLIERS
Process Description
Supplier Header: Creating suppliers is a centralized operation, which will be handled by Boston AP. It
will be an operation that will be supported 24X7, to ensure availability across all the locations.
All operating units which need a supplier to be created will raise a request which will be approved by
the respective authority and will then be forwarded to the Boston AP team. The Boston AP team will
check for the correctness of data and create the supplier. They will then confirm to the requestor that
the supplier is created.
Any modification to the supplier data will also follow a similar process.
Supplier Site: Oracle secures the Supplier site data by Operating unit. For Example, the supplier site
created by US operating unit, would not be visible to Canada operating unit. Creation of supplier site
is a decentralized function.
When the AP user tries to enter an invoice and finds the supplier site missing, he will request approval
from Shared Services for US supplier sites and the local sites for non-US supplier sites and once he
receives approval, will create the site.
Any modification to the supplier site data will also follow a similar process.
Employees as vendors: All the employee details are maintained in Peoplesoft system. An interface is
built from Peoplesoft system to bring employee data into Oracle system. An employees who is already
not setup as vendor, will be automatically created as vendor, when his expense report is imported into
Accounts Payable module.
All modifications to the employee data will be brought in by the Peoplesoft interface and Oracle
Payables automatically updates the employee vendor data based on the employee data.
Bank and Bank accounts will not be part of this interface. Feasibility of developing another interface is
being evaluated.
The process details for this process will be captured as a part of iExpenses project
The naming convention to be followed for the creation of supplier, supplier site and Employee will be
captured as part of the Naming Convention Document.
Process Objectives
To standardise the method by which supplier, supplier site and employee vendors are created and
maintained.
91
Requirements:
AP-SUP 1: Create and Maintain Supplier Headers
Req ID
Requirements
Available
Functionality
Core
/GA
P
AP-SUP
1.1
All vendor header

information should be
centralized in
Accounts Payable &
Oracle Account
Payables will hold the
Supplier Master Data.
Supplier Header data is

common across all
operating units.
Core
AP-SUP
1.2
All Category/Type of
Vendors required for
State Street should be
available in the Oracle
Master data held in
Oracle Finapps.
Oracle provides the

following standard
supplier types:
Core
Decision
Point/Comm
ents/Open
Items
1. Employee,
2. Expat employee
3. Job Agency
4. Public Sector
Company
5. Supplier
101
Req ID
Requirements
Available
Functionality
Core
/GA
P
Decision
Point/Comm
ents/Open
Items
Core
Open.
6. Tax Authority
More types can be
defined in purchasing
lookups. These supplier
types are for reporting
purposes only.
AP-SUP
1.3
Other supplier
Classifications for,
spend analysis, should
be captured for further
classification of
suppliers
Minority Owned, Small

Business, women
owned are the available
classifications.
AP-SUP
1.4
Supplier Number Entry

should be made
automatic
Oracle gives the option

of creating supplier
numbers manually or
automatically. State
Street has selected the
automatic supplier
numbering option while
setting up
Canada/Ireland. The
numbering convention
of supplier applies to all
the operating units. A
supplier can be
selected on the screen,
by using wild cards.
Core
AP-SUP
1.5
Ability to capture
supplier details and
controls at site level
instead of Supplier
Header level.
A number of details and

controls can be
captured at supplier
Header level. They can
also be captured at
supplier site level.
Controls and
information captured at
supplier site level will
override the data and
controls captured at
supplier header level.
Core
We can configure DFF

to capture other
supplier classifications.
(limited to 30
classifications)
(Note: Some data can

be captured only at one
level. Eg: supplier
classification data can
be captured only at
111
Req ID
Requirements
Available
Functionality
Core
/GA
P
Decision
Point/Comm
ents/Open
Items
supplier header level).

Refer Appendix B for
detailed supplier and
supplier site fields and
controls
AP-SUP
1.6
Ability to prevent Sites

from updating the
Supplier header
information
Oracle gives the

flexibility to prevent
access to sites from
editing/updating/inserti
ng records into the
Supplier header
Core
AP-SUP
1.7
Ability to capture the

D&B number for
suppliers
Oracle does not give a

standard field to
capture the D&B
number. This can
however be captured
using a DFF
Core
Open
AP-SUP
1.8
Ability to Identify
Duplicate Suppliers
Oracle does not allow

creation of more than
one supplier with the
same name. Two Oracle
reports:
Core
This is a
standard
report which
lists the
suppliers. A
custom report
is being
developed by
the Europe
implementati
on, which will
be leveraged
for US report
creation.
1. Suppliers report
2. Suppliers audit
report can be
run periodically
to identify
supplier
duplicates (with
similar names)
AP-SUP
1.9
Ability to merge
suppliers
Oracle provides the

ability to merge two
suppliers.
Core
AP-SUP
1.10
Creation of new
Suppliers does not
need any approval
Oracle does not give

any workflow on
supplier approvals.
Approval of creation of
new Supplier has to
happen outside the
system
Core
AP-SUP
1.11
Ability to identify
suppliers as 1099
suppliers and assign
It is possible to identify
a supplier as a 1099
supplier and based on
Core
121
Req ID
AP-SUP
1.12
Requirements
Available
Functionality
an Income Tax
reporting site
this classification,
Oracle can generate
reporting required for
these suppliers. It is
also possibly to mark a
Supplier site as the
1099 reporting site and
the address of the site
will be used to print on
the 1099 form
Ability to end
date/inactivate a
supplier
Oracle provides
functionality to end
date/inactivate a
supplier.
Core
/GA
P
Decision
Point/Comm
ents/Open
Items
Core
However a supplier
cannot be deleted
AP-SUP
1.13
Ability to create
supplier holds
Supplier holds can be

created for the
following reasons:
1. Hold all
payments
2. Hold unmatched
invoices
3. Hold unvalidated
invoices
Core
AP-SUP 2: Create and Maintain Supplier Site

Req ID
Requirements
Available
Functionality
Core
/GA
P
AP-SUP
2.1
All vendor site

information must be
decentralized and be
secure by operating
unit.
Supplier site
information is secure
by operating unit
Core
AP-SUP
2.2
Should have the

choice of paying each
invoice for a supplier
site separately or pay
for all invoices
together
Oracle gives you the

option of selecting for
each supplier site, if
the invoices need to
be paid by a single
check or by one check
per invoice
Core
Decision
Point/Comm
ents/Open
Items
The default
option would
be set to pay
all invoices
with one
payment
document
131
Req ID
Requirements
Available
Functionality
Core
/GA
P
AP-SUP
2.3
Matching type can be

set for each supplier
site
Matching type can be

2-way or 3-way.
Core
AP-SUP
2.4
A Supplier Site can be

designated as a
purchase only site
and/or a pay only site.
Oracle provides the

functionality of
designating each
supplier as
RFQ/Primary pay/ Pay
or Purchasing sites. If
a site is not
designated as a pay
site, payments cannot
be made to the site. If
the site is not
designated as a
purchasing site, a PO
cannot be created for
the site.
Core
AP-SUP
2.5
Tax calculation
rounding rule should
be to the nearest
decimal, for all
supplier sites.
Tax calculation
rounding rule can be
set at the supplier site
level, for each
supplier. The available
options are:
Core
Decision
Point/Comm
ents/Open
Items
Oracle provides the

option of setting for
each supplier site,
what the matching
type should be.
Available: Up, Down,

Nearest.
AP-SUP
2.6
Ability to set a
different terms date
for each supplier site.
Terms date refers to

the date from which
Oracle counts the
number of days to
calculate the
due/discount date. We
have the option of
selecting either of the
following as the terms
date:
a)
Core
The terms
date will be
the invoice
date. This
would be
overridden to
invoice
received date
for chronic
late billers
System Dt
b)
Goods received
Dt
c)
Invoice Dt
d) Invoice received
Dt
141
Req ID
Requirements
Available
Functionality
Core
/GA
P
AP-SUP
2.7
Ability to set a
different Pay date
basis for each supplier
site.
Oracle provides two

pay date basis:
Discount or Due. The
pay date basis
determines when the
invoice will be paid. A
pay date basis can be
selected for each
supplier site
independently.
Core
AP-SUP
2.8
Ability to create a host

of pay groups and
assign pay group to
supplier site.
A Pay group is a
logical grouping of
suppliers, eg: rental
vendors, periodic
vendors, internal
vendors etc. Oracle
provides facility to
create different pay
groups. A pay group
can be assigned to a
supplier and to a
supplier site. Pay
groups are extremely
useful in making batch
payments
Core
Decision
Point/Comm
ents/Open
Items
Pay groups
may be
defined as:
EE<Company
Code>
DD<Company
Code>
AP-SUP
2.9
Ability to capture the

Tax Registration
number of each
supplier site.
Oracle has the ability

to capture the tax
registration number
for each supplier site.
Core
AP-SUP
2.10
Withholding tax will

not be used
Oracle provides
elaborate functionality
on withholding tax. We
have the option of not
using withholding tax
Core
AP-SUP
2.11
Ability to set a
different Tax
calculation level for
each supplier site.
Oracle provides the

following tax
calculation levels to
select from:
Core
1. Invoice Header
2. Invoice Line
3. Tax Code
AP-SUP
2.12
Creation of new
Supplier sites does not
need any approval
Oracle does not give

any workflow on
supplier site
Core
151
Req ID
Requirements
Available
Functionality
Core
/GA
P
Decision
Point/Comm
ents/Open
Items
approvals. Approval of
creation of new
Supplier sites has to
happen outside the
system
AP-SUP
2.13
Ability to identify the

person who made the
changes at supplier
header and site level.
Oracle maintains
record history for all
changes made on the
fields. It stores the
user information and
the time of change
information
Core
AP-SUP
2.14
Ability to report on the

person(s) who made
changes to the fields
at supplier header and
site level
Oracle does not

provide any standard
report which will
reflect the changes. A
report will need to be
developed.
Gap
AP-SUP
2.15
Ability to end
date/inactivate a
supplier site
Oracle provides
functionality to end
date/inactivate a
supplier site. However
a supplier site cannot
be deleted.
Core
AP-SUP
2.16
Ability to create
supplier-site holds
Oracle provides the

functionality to create
supplier-site holds.
The options provided
are:
1. Hold all
payments
2. Hold
Unmatched
Invoices
3. Hold
Unvalidated
Invoices
Open
Core
AP-SUP 3: Create and Maintain Employee as Vendor
161
Req ID
Requirements
Available
Functionality
Core
/GA
P
AP-SUP
3.1
Ability to automatically
create employees as
vendors
Oracle provides the

ability to automatically
create employees as
vendors, when their
approved expense
reports are imported
into Payables.
Core
AP-SUP
3.2
Data Security not

disclose the
confidential
information regarding
employees as
Vendors.-name,
address, bank account
AP-SUP
3.3
update the data for
employees who are
created as vendors.
Decision
Point/Comm
ents/Open
Items
Open
Oracle has a standard

program Employee
Updation
Core/
Gap
Open
Program which
updates the Name,
address and the
Inactive date on
Supplier Screen as and
when the data is
updated in the
employee screen.
Oracle does not
automatically update
other fields.
171
B. BANKS
Process Description
Banks: Banks constitute common data and are available across operating units. Creating Banks is a
centralized operation. It will be an operation that needs to be supported 24X7, to ensure availability
across all the locations.
All operating units which need a bank to be created will raise a request which will be approved by the
respective authority and will then be forwarded to the centralized operations team. The team will
check for the correctness of data and create the Bank. They will then confirm to the requestor that the
bank is created.
Any modification to the Bank data will also follow a similar process.
Bank Account: Oracle secures the Bank Account data by Operating unit. For Example, the Bank
account created by US operating unit, would not be visible to Canada operating unit. Creation of Bank
Account is a decentralized function.
Whenever a new bank account is created, AP user takes the approval of the AP manager and then
creates the Bank account
Any modification to the Bank Account data will also follow a similar process.
181
Requirements:
AP-BNK 1: Create and Maintain Banks
Req ID
Requirements
AP-BNK-1.1
Ability to centralize
definition of banks
and bank branches
Oracle Maintains Bank

and Bank Branch
information at a global
level and can be
accessed by all
operating units
Core
AP-BNK-1.2
Ability to define a
clearing house
A clearing house can be

set up in Oracle
Core
AP-BNK-1.3
Ability to capture and

maintain the Bank
address, contact
details for each bank
branch.
Oracle gives
functionality to capture
bank address and
contact details in the
format required
Core
AP-BNK-1.4
Ability to
inactivate/end-date
an existing bank
It is possibly to set-up
an Inactive date in
Oracle for each Bank
after which the bank is
not available for use.
Core
AP-BNK-1.5
Ability to capture
employee /supplier
Bank information
automatically for EFT
payments
It is possible to capture
Supplier bank
information in order to
make EFT payments.
This is however not an
automated process. The
bank information has to
be entered manually.
Gap
Prevent users from

updating the
Internal Bank
accounts
This can be achieved

through personalization
in Oracle.
Core
AP-BNK-1.6
Available
Functionality
Core
/GA
P
Decision
Point/Co
mments/
Open
Items
Open
Users can
continue
using the
existing
process of
getting the
bank
informatio
n directly
from
employees
and
suppliers
191
AP-BNK 2: Create and Maintain Bank Accounts

Req
ID
Requirements
Available
Functionality
Core/Ga
p
Decision
Point/Comments/Open
Items
APBNK2.1
Ability to define
supplier and internal
bank accounts
Internal and external

banks can be defined in
Oracle. Internal banks
refer to State Streets
Bank. External Bank
refers to the suppliers
/Customer banks. Only
internal banks can be
used to make payments.
Core
Internal Bank our bank

from which we will make
the payments(and receive
deposits into).
External Bank refers to
the suppliers bank into
which we will make
EFT/ACH/Wire payments
APBNK2.2
Ability to restrict
updation/deletion/Editin
g bank information at
the site/operating unit
level.
Oracle gives the ability

to restrict access to
update the bank
information at the
individual site level.
Core
APBNK2.3
Ability to define
multiple bank accounts
per bank branch
Oracle supports defining

for one bank. These
bank accounts could be
multiple currency or
single currency bank
accounts. Similarly it
could be an
internal/supplier/custom
er bank account
Core
APBNK2.4
Ability to assign
to supplier sites.
One or more Bank

accounts can be
assigned to a supplier
site. If more than one
bank account is
assigned to a supplier
site, one of them can be
identified as the primary
bank account.
Core
APBNK2.4
Ability to define Multi

Currency bank accounts
Oracle allows creation of

Multi-Currency Bank
accounts. A Multi
currency bank account
will accept payments in
more than one currency
Core
Updation/Insertion/Deletio
n of bank information
would be done by Shared
Services for US and localsites for non-US suppliers
201
Req
ID
Requirements
Available
Functionality
APBNK2.5
Ability to define
multiple payment
documents and
associate with a bank
Account. (Payment
Document refers to the
following: Check, EFT,
ACH and wire)
Oracle allows creation of

payment documents
which can be attached
to a bank account.
Payment documents can
be created for all kinds
of payments Check,
Electronic, Wire etc.
Core
APBNK2.6
Ability to define various

financial account
combinations for each
bank account.
The following accounts

can be defined at the
bank account level for
each bank:
Core
APBNK2.7
Ability to exercise
financial controls like
maximum outflow etc
by bank accounts
1.
Cash a/c
2.
Cash Clearing a/c
3.
Bank Charges a/c
4.
Bank Errors a/c
5.
Future dated pmt

a/c
6.
Realized
gain/loss a/c
Oracle allows to define

the following controls
for each bank account:
Core/Ga
p
Decision
Point/Comments/Open
Items
Core
1. Maximum Outlay
2. Maximum
Payment
3. Minimum
Payment
4. Allow zero pmts
APBNK2.8
Bank Accounts should

be restricted to make
payments only for the
company that they are
created for
This cannot be handled

in Oracle. Canada
currently has a trigger
which alerts users if the
bank account chosen
does not belong to the
company for which
payment is being made.
Similar functionality can
be made available to US
Core/Ga
p
APBNK2.9
Ability to
inactivate/end-date an
existing bank account
It is possibly to set-up
an Inactive date in
Oracle for each Bank
account after which the
Core
Closed
Intercompany
transactions should not
be allowed
211
Req
ID
Requirements
Available
Functionality
Core/Ga
p
Decision
Point/Comments/Open
Items
bank account is not

available for use.
ApBNK2.10
Automatic updation of
Supplier/Employee
Bank information
Currently Oracle allows

for saving and updating
the Supplier/employee
Bank information. Both
Canada and Ireland
users update the Bank
information manually.
Open
221
C. INVOICES
Process Justification
Invoices of the supplier are entered in the oracle payables system
Process explains the steps involved in creation of invoice in Oracle payables. There are 2 ways by
which invoices can be created
Manual
Paper Invoices: The regular invoices received by post/mail by the Accounts Payables Dept.
Import
Electronic Invoices: Few vendors with high volume, low value transactions send the invoices in
an electronic format, which will be interfaced to the Oracle Payables.
E-Mail Invoices: Few vendors send in the invoices by excel sheet. These are verified and
reformatted to upload to Oracle Payables. Note: Our intention is not to propagate email
invoices. Instead these will be come over as electronic invoices
iExpense Invoices: Approved expense reports in the iExpense module, are imported into Oracle
Payables as invoices.
Perfect Commerce Invoices: Few invoices are created within the Perfect Commerce system.
These invoices are imported into Oracle Payables.
Process Description
Enter Invoices In Batches through Invoice Workbench or Quick Invoices
Enter Invoices of types Standard, Prepayment, Debit/Credit Memo/Mixed, PO default/Quick match
Standard: These are the regular invoices. Invoice approval cannot be done at batch level.
Prepayment: These refer to the invoices generated for advance/deposit. These payments can
be later offset against the standard invoices for the same vendor.
Debit/Credit memo: These refer to the invoice generated with a negative amount, goods are
returned etc.
Mixed: A Combination of any of the above described invoices. Example: A mixed invoice can
either be a credit invoice or a standard invoice. Usually this is used for invoices that are fed
from interfaces, where the invoice type may not be known in advance.
PO Default/Quick Match: Invoices which are pre-matched to Purchase Orders.
Select the supplier name, all terms associated with supplier will default to the invoice header
Enter the invoice amount in foreign/functional currency
Exchange rates are defaulting from GL Rates table , for payments to be done in a different
currency
Select the tax code for taxes to be applied to the invoice ,if invoice is taxable
Select the accounting key flex field combination at invoice distribution level. When matching is
done, account combinations default from PO.
Enter the dollar value for the invoice
Invoices can have tax type to be selected during invoice creation , and system calculates and
displays the tax amounts in invoice distribution
Invoices can also be entered manually ,with line amounts and tax amounts
Freight and Tax can be allocated.
Invoices that require approval are approved by sending them through the approval chain.
Invoices are sent along with the purchase order for validating and on verification ,are ready for
payment
All Non-PO matched invoices will be routed to go through workflow approval
Importing invoices, from an external system, an interface will be built, which populates the invoice
into payables system
231
Invoice Validation checks if the data entered in an invoice is correct e.g. if the total of the
line amount equals the header amount
Invoice approval is verification by a business user usually a superior to see if the invoice is
correct in the business sense
Process Objectives
To standardize the invoice creation process of State Street in Oracle Payables.
241
Requirements:
251
AP-INV 1.0: Creation of Invoices
261
Req ID
Requirements
Available Functionality
Core/GA
P
AP-INV
1.0.1
Creation of Invoices in
Invoices Batches and
individual invoices
Oracle provides the

functionality to enter
invoices in batches or as
single invoices (but not
both). Canada and Ireland
currently use AP batches.
US will need to follow that.
Note: If only one invoice
needs to be entered, it can
be entered as a batch with
single invoice.
Core
AP-INV
1.0.2
Invoice can be imported

from external sources as
batches viz., electronic
files sent by vendors,
perfect commerce etc
Oracle provides the

functionality to import
invoices from external
sources through the
payables invoice open
interface table. However an
interface has to be built to
populate the interface
table. Oracle provides
standard APIs which can be
used to build these
interfaces
Core/Gap
Development
is needed to
get the data
into the
interface
tables
AP-INV
1.0.3
Require validations like

account combination
validation, date
validation etc to be done
on the imported invoice
before they are created
as invoices
Invoice open interface

workflow is a standard
workflow provided by oracle
which can perform certain
validations before creating
invoices.
Core /
Gap
Open
AP-INV
1.0.4
Ability to create Debit

Memos/credit memos
and apply them as
payments against
invoices from the
supplier.
Oracle identifies debit

memos and credit memos
as separate types of
invoices and allows
applying them against
other invoices from the
same supplier. This will
reduce the outstanding
balance to the supplier
Core
AP-INV
1.0.5
Ability to create foreign

currency invoices
Oracle provides
functionality to create
invoices and pay invoices in
a currency other than the
functional currency. Note:
An invoice can be paid only
in the currency it is created
Core
Invoices should have
Oracle provides the
Core
AP-INV
Decision
Point/Comme
nts/Open
Items
Open
Workflow has
to be
customized to
perform the
required
validations
Note: For US,
271
AP-INV 1.1: Creation of Perfect Commerce Invoices
Req ID
Requirements
Core/GA
P
AP-INV
1.1.1
Ability to bring in the

perfect commerce
invoices automatically
into Oracle AP on a daily
basis
The perfect commerce

invoices can be brought
into Accounts Payables
through the Invoice open
interface tables.
Gap
Decision
Point/Commen
ts/Open Items
This needs development

effort. For more details
please refer to the Perfect
Commerce Integration
Documentation.
AP-INV
1.1.2
Ability to validate the

perfect commerce data
as invoices
Currently not supported in

Oracle
Core/Gap
Open interface
workflow can be
customized to
create required
validations.
AP-INV
1.1.3
When the required

validations fail at the
invoice open interface
level, a notification
needs to be sent to the
Shared Services about
the validation errors

Oracle
Core/Gap
The Workflow
can be
customized to
this effect.
AP-INV 1.2: Creation of Electronic Invoices
281
Req ID
Requirements
AP-INV
1.2.1
Ability to bring in the

invoices in an electronic
format automatically into
Oracle AP on a daily
basis
The electronic invoices can

be brought into Accounts
Payables through the
Invoice open interface
tables.
Core/GAP
Decision
Point/Commen
ts/Open Items
Core/Gap
Development required to
get the electronic invoice
data
AP-INV
1.2.2
Ability to validate the

electronic invoice data
as invoices
AP Workflows needs to be
modified
When the required

validations fail at the
invoice open interface
level, a notification
needs to be sent to the
Accounts
payables(Boston) about
the validation errors
modified
match invoices, if they
are PO related
modified
AP-INV
1.2.5
Process of
importing/approving the
Electronic invoices
before they come into
payables.
Need to understand the

process of
importing/approving
electronic invoices
AP-INV
1.2.6
Notifications required to
be sent for Electronic
invoices after
completion of import into
payables
AP-INV
1.2.3
AP-INV
1.2.4
Core/Gap
Open interface workflow

can be customized to
create required validations.
Core/Gap
Open
The Workflow can be

customized to this effect.
Core/Gap
Interface can be
customized to
automatically match to the
PO if the Electronic Invoice
has the PO information
Core/Gap
Open
Core/Gap
Open
AP-INV 1.3: Creation of Quick Invoices
291
Req ID
Requirements
Core/G
AP
AP-INV
1.3.1
Ability to enter a group

of invoices with default
data to ease Invoice
entry.
Quick invoices is a oracle

functionality to help
expedite and ease the
manual entry of invoices
Core
AP-INV
1.3.2
Ability to create batches

out of invoices created
using quick entry
method
Oracle provides this

functionality
Core
AP-INV
1.3.3
Ability to match the

quick invoices to PO
header/shipment/distribu
tion level

functionality
Core
AP-INV
1.3.4
Ability to override the

default liability account

functionality
Core
Decision
Point/Commen
ts/Open Items
Closed
301
AP-INV 1.4: Expense Report Invoices
Req ID
Requirements
Core/G
AP
AP-INV
1.4.1
create Invoices out of the
Expense reports
submitted by employees
For more details on

iExpense invoices, refer to
the iExpense process
definition document.
Core
Decision
Point/Commen
ts/Open Items
AP-INV 1.5: Creation of other Invoices (Summary Invoices)
Req ID
Requirements
Core/G
AP
AP-INV
1.5.1
Ability to Auto approve

these invoices after a
particular time interval
(14 days) Ex: SodexHo

Oracle
Core /
Gap
Decision
Point/Commen
ts/Open Items
Open
Need to
understand how
these invoices
get routed for
approval and
also understand
if this is a
candidate for
Electronic
Invoices
AP-INV 1.6: Creation of Prepayment Invoices
311
Req ID
Requirements
Core/G
AP
AP-INV
1.6.1
Ability to record advance

payments to
Employees/Suppliers
Oracle provides
functionality to create a
prepayment invoice. There
are two types of
prepayment invoices that
can be created: Permanent
and temporary. A
temporary prepayment can
be applied to an invoice
while a permanent
prepayment cannot be.
Core
AP-INV
1.6.2
Ability to apply the

prepayment against an
invoice from the supplier
Standard Oracle
Functionality
Core
AP-INV
1.6.3
Ability to be informed
about the prepayments
from a particular vendor,
while creating an invoice
against the vendor.
While manually creating an

invoice against a supplier,
for whom a prepayment
invoice was created, Oracle
shows a message box that
a prepayment is available
to apply to the invoice.
Core
AP-INV
1.6.4
Ability to set prepayment

settlement days for each
supplier site
independently
Prepayment settlement
days can be set at the
supplier site.
Settlement days refers to
the number days that
should lapse before the
prepayment can be applied
Core
Decision
Point/Commen
ts/Open Items
AP-INV 1.7: Creation of Recurring Invoices
Req ID
Requirements
AP-INV
1.7.1
Ability to define the

periodicity of the
recurring invoices
Oracle provides the

functionality to define a
special calendar to define
the frequency/periodicity at
which the recurring invoices
should be created.
Core/G
AP
Decision
Point/Commen
ts/Open Items
Core
321
Req ID
Requirements
AP-INV
1.7.2
Ability to pre-define the

invoice distribution lines
for a recurring invoice
Full /Skeleton Distribution

Sets can be created in
Oracle Payables, to predefine the invoice
distribution line and also to
allocate the invoice amount
to the lines on a fixed
percentage basis.
Core/G
AP
Decision
Point/Commen
ts/Open Items
Core
331
AP-INV 2.0: Adjusting Invoices
Req ID
Requirements
Core/G
AP
AP-INV
2.0.1
Ability to adjust/modify
data even after
approval/accounting.
Oracle Standard
functionality
Core
AP-INV
2.0.2
Ability to require reapproval after

modification of invoice
Oracle Standard
functionality
Core
AP-INV
2.0.3
Ability to make
adjustments to paid
invoices
Oracle provides the option

of making adjustments to
the invoices even after they
are paid.
Core
Decision
Point/Commen
ts/Open Items
Closed
Adjustments will
not be made to
paid Invoices
AP-INV 2.1: Holds/Releases
Req ID
Requirements
AP-INV
2.1.1
Ability to create/use
Invoice Holds to hold
payment of Invoice
There are a number of

holds that can be applied to
invoices to prevent them
from payment. Manual
holds and releases can be
defined. A detailed list of
holds & releases, their
function, and their
constraints are provided at
the end of the Invoice
section.
Core/G
AP
Decision
Point/Commen
ts/Open Items
Core
Refer to the
table "Invoice
Holds/Releases"
for a detailed
listing of
available system
holds/releases
341
AP-INV 3.0: Approving Invoices
Req ID
Requirements
Core/G
AP
Decision
Point/Commen
ts/Open Items
AP-INV
3.0.1
Ability to approve or auto

approve invoices, based
on predefined conditions.
Invoice Approval Workflow

will be used to map the
approval requests
Core/Ga
p
Open
Open
Refer to the table "Invoice

approval flow" for a
detailed description of what
invoices will be approved,
when and how.
AP-INV
3.0.2
Invoices should be
accounted only after
they are approved
Oracle accounts for

invoices once they are
validated, even if they are
not approved. If the invoice
is modified during approval,
the invoice needs revalidation and upon revalidation, the system
automatically generates the
adjustment entries
Gap
AP-INV
3.0.3
Ability to view the

invoice approval history
Oracle gives the option to

review the approval
progress of any invoice that
has started the invoice
approval workflow process.
It shows all the approvers
for an invoice in the order
that the workflow requests
approval. It also displayed
the status, the response
date, invoice amount and
comments
Core
AP-INV 4.0: Invoice Inquiry
Req ID
Requirements
AP-INV
4.0.1
Ability to drilldown from

invoice batch to invoices
to payment details
Standard Oracle
functionality
Core/G
AP
Decision
Point/Commen
ts/Open Items
Core
351
AP-INV 5.0: Invoice Taxes
361
Req ID
Requirements
AP-INV
5.0.1
Ability to record various

types of sales taxes
during Invoice creation.
Oracle provides the

functionality to create the
tax types like sales tax, Use
tax, withholding tax, offset
tax etc.
Core/G
AP
Decision
Point/Commen
ts/Open Items
Core
We can create as many tax

codes as needed under
each of the tax type. A tax
liability account can be
defined for each tax code.
AP-INV
5.0.2
Ability to calculate taxes

automatically during
Invoice creation
Oracle gives the

functionality to
automatically calculate
taxes as and when the
invoice distribution lines are
created. Validation also
triggers the tax calculation.
Core
AP-INV
5.0.3
Ability to override
automatically calculated
taxes
It is possible to both
update/prevent over-riding
the tax automatically
calculated by the system
Core
AP-INV
5.0.4
Offset taxes and

withholding taxes are not
used
Oracle provides the

functionality to use both.
Core
AP-INV
5.0.5
Use Tax should create

tax liability invoice
Oracle does not provide the

functionality of creating an
invoice for use tax. When
Use tax is attached to an
invoice, Oracle records the
amount of use tax against
the supplier and we can run
reports at period end to find
the use tax amount. For
that amount we need to
create a manual invoice on
the tax authority. There is
no automatic creation of
invoice
Gap
AP-INV
5.0.6
Ability to bundle taxes

together
Oracle provides the

functionality of tax groups
to bundle a set of taxes
together
Core
Oracle provides the

functionality to not only
record taxes but also define
the recoverable rules. The
Core
AP-INV
5.0.7
Tax Recovery rules will

not be set-up as there
are no recoverable rules
in US taxation
371
381
AP-INV 6.0: Invoice Approval Business Rules Matrix

This is a working document.
The table below lists the various conditions in which invoices need to be approved:
<Open>
391
Invoice
Source
Invoice
Type
PO
Base
d
Needs
Approv
al
$
Thresho
ld
Manual
Invoice
Entry
Standard
No
Yes
>$0
Manual
Invoice
Entry
Standard
Yes
No
>$0
Manual
Invoice
Entry
Credit
Memo
No
No
Manual
Invoice
Entry
Debit
Memo
No
Yes
>$0
Manual
Invoice
Entry
Manual
Expense
Report
No
Yes
>$0
Manual
Invoice
Entry
Mixed
No
Yes
>$0
Manual
Invoice
Entry
Prepaymen
t
No
Yes
>$0
Manual
Invoice
Entry
Withholdin
g Tax
No
Yes
>$0
Manual
Invoice
Entry
PO Price
Adjustmen
t
No
Yes
Manual
Invoice
Entry
Adjustmen
t
No
Yes
Invoice
Gateway
Quick
Invoices
No
Yes
No
Yes
Recurring
Standard
Invoice
Good
s
Servic
es
Approval Routing
Appr 1
Appr 2
Appr 3
(Role)
(Role)
(Role)
401
AP-INV 7.0: Oracle Standard Invoice Holds& Releases

Standard Oracle Functionality:
Holds are applied either manually or by the system automatically, and they prevent payments and in
some cases the creation of the accounting entries for an invoice.
Hold
Names
Description
A/c ing
Allowe
d
User
Definabl
e
Manual
Releas
e
Allowe
d
Hold Removal
Acct Hold Reason:

Dist Acct
Invalid
Invoice
Distribution
distributed to
invalid account
No
No
No
Correct the account and

resubmit Invoice Validation
ERV acct
Invalid
Payables created
invalid Exchange
Rate Variance
account for invoice
distribution.
No
No
No
Correct the account and

Hold all
unvalidated
invoices for a
supplier
Yes
No
Yes
Remove the hold in the

Invoice Holds tab, or use the
Actions button.
This hold occurs

when the Hold All
Payments Option
is enabled for the
invoices supplier
site
Yes
Miscellaneous Hold:
Supplier
All
Payments
To disable completely, disable

the hold unvalidated Invoices
option at the supplier site
No
N/A
Disable the Hold All Payments

option in the Supplier Sites
window and Payables allows
to select the supplier sites
invoices for payment if they
are
Validated (and approved, if
the invoice requires invoice
approval)
Create a manual payment for
any of the held invoices
No rate
No exchange rate
for foreign
currency invoice
No
No
No
Enter exchange rate and

Submit AutoRate and
Invoice Hold:
Amount
Invoice amount is
Yes
No
Yes
Adjust invoice amount and

411
Hold
Names
Description
A/c ing
Allowe
d
User
Definabl
e
Manual
Releas
e
Allowe
d
more than the

invoice amount
limit specified for a
supplier site
Hold Removal

Change Invoice Amount Limit
option for supplier site and
Manually release in the
Invoice Holds tab
Invalid PO
This hold is applied

when a supplier
does not provide a
valid purchase
order number for
matching
No
Tax code was

assigned to an
expense or asset
account in the Tax
Options window,
the Enforce Tax
From Account
Payables option
was enabled. The
tax code on the
invoice does not
match the tax
code assigned to
the account.
No
Supplier
The Hold
Unvalidated
Invoices Option
was enabled for a
supplier site in the
Suppliers Sites
window
Yes
Withholdin
g Tax
Not Applicable as Withholding Tax is not used
Natural
Account
Tax
No
Yes

Invoice Holds tab.
(Note: The Invalid PO
supplier Notice can be
submitted to request a valid
PO from the supplier).
No
Yes
Change the tax code on the

invoice to match the tax
Code assigned to the
account.
Disable the Enforce Tax From
Account Payables option
In the Tax Options Window in
General Ledger, change the
tax code association, or
manually release the hold in
the Invoice Holds tab.
No
Yes

Invoice Holds Tab (To prevent
Future Supplier holds, disable
the Hold Unvalidated Invoices
supplier site option)
Matching Hold:
Cant Close
PO
Online receipt
accrual enabled in
Purchasing and
Purchase order
quantity delivered
is not equal to the
quantity received
Yes
No
Yes
Resolve purchase order

delivery information in
Purchasing and resubmit
Invoice Validation Manually
release in the Invoice Holds
tab
Cant Try
Final Close
Invoice (final
matched to
No
No
No
Release hold that caused

invoice to be placed on hold
421
Hold
Names
Description
A/c ing
Allowe
d
User
Definabl
e
Manual
Releas
e
Allowe
d
purchase order)
placed on hold
during Invoice
Validation
Hold Removal
and resubmit Invoice

Validation
Final
Matching
Invoice is matched
to a purchase
order that was
final matched by
another invoice
No
No
No
Reverse the distribution and

resubmit Invoice Validation to
remove the Final Matching
hold
Matching
Required
The Hold
Unmatched
Invoices option
was enabled in the
Supplier Sites
window, and the
invoice is not
matched to
purchase order or
receipt
Yes
No
Yes
Match invoice to purchase

order or receipt and resubmit
Invoice Validation
Quantity billed
more than the sum
of (quantity
ordered plus the
tolerance amount)
Yes
Max Qty
Ord

Invoice Holds tab
No
Yes
Correct PO or invoice and

Adjust tolerance and
Invoice Holds tab
Max qty
Rec
Quantity billed is
more than the sum
of (quantity
received plus the
tolerance amount)
Yes
No
Yes
Correct invoice or receipt and

Invoice Holds tab
Max Rate
Amount
Exchange rate
variance exceeds
amount tolerance
limit
Yes
No
Yes

Invoice Holds tab
Max Ship
Amount
Variance between
invoice and
shipment amount
exceeds amount
tolerance limit
Yes
No
Yes

Invoice Holds tab
431
Hold
Names
Description
A/c ing
Allowe
d
User
Definabl
e
Manual
Releas
e
Allowe
d
Hold Removal
Max Total
Amount
Sum of invoice and

exchange rate
variances exceeds
amount tolerance
limit
Yes
No
Yes

Invoice Holds tab
Price
Qty Ord
Weighted average
price of all
distributions on
the matched
invoice and all
price corrections
related to the
invoice is more
than [purchase
order unit price (1
plus % tolerance)]
Yes
Quantity billed is
more than
[quantity ordered
(1 plus %
tolerance)]
Yes
No
Yes
Correct PO, invoice, or price

corrections and resubmit
Invoice Validation
Invoice Holds tab
No
Yes

Invoice Holds tab
Qty Rec
Quantity billed is
more than
[quantity received
(1 plus %
tolerance)]
Yes
No
Yes
Enter receipt in Purchasing

Validation
Invoice Holds tab
Quality
Quantity billed is
more than
quantity accepted
Yes
No
Yes
Enter acceptance in
Invoice Validation
Invoice Holds tab
Receiving
Exception
Purchase order
receipt Indicates
exception
Yes
No
Yes
Resolve purchase order

receipt exception in
Invoice Validation
Invoice Holds tab
Tax
Difference
Invoice tax code

value is not equal
to the purchase
order tax code
Yes
No
Yes

441
Hold
Names
Description
A/c ing
Allowe
d
User
Definabl
e
Manual
Releas
e
Allowe
d
Invoice tax code

value = purchase
order tax code
value, but taxable
flag set to No for
PO shipments
Hold Removal
Invoice Holds tab
Variance Hold
Dist
Variance
Invoice amount is
not equal to the
sum of invoice
distribution
amounts
No
No
No
Adjust invoice distributions or

invoice amount and resubmit
Invoice Validation
Prepaid
Amount
The prepaid
amount including
tax exceeds the
invoice amount
Yes
No
No
Unapply the prepayment and

apply a lower amount
Tax
Amount
Range
Tax amount is less

than [(tax rate
taxable dist line
total) tolerance
amount]
Yes
No
Yes
Adjust tax rate for tax code

Validation
Change tax code or tax group
on invoice distributions and
or
Tax amount is
more than [(tax
rate taxable dist
line total) +
tolerance amount]
Tax
Variance
Tax amount is less

than [(tax rate
taxable dist line
total) (1 - %
tolerance)]
Adjust tax tolerance and

Invoice Holds tab
Yes
No
Yes
or
Adjust tax rate for tax code

Validation Change tax code
values on invoice
distributions and resubmit
Invoice Validation
Adjust tax tolerance and
Tax amount is
more than [(tax
rate taxable dist
line total) (1 +%
tolerance)]

Invoice Holds tab
451
D. PAYMENTS
Process Justification:
This process explains the steps need to perform in oracle payables for making a payment to vendor
and employees.
Process Description
Disburse Payments using Multiple payment methods, including computer-generated checks, EFT
and Wire Transfers
Pay invoices in foreign Currencies
Select invoices using a pay through date as selection criteria and select invoices automatically
Build a payment batch, and generate a preliminary payment register
Review and modify the batch, by adding/modifying suppliers, partial amounts
Build the batch and format the batch
Confirm the payment batch and print Final payment register
Print the check along with remittance advice
Void Payments /Reissue
Void the payment for which check is issued
Issue the check for the supplier
Review online information regarding the result and status of every payment
Process Objective
To standardise the payment process in State Street
Process Scope:
State Street is using all types for payment method. SS is using third legacy system where file
generated from Oracle payables will be feed as input for check printing.
461
Requirements:
AP-PMT 1.0: Payments
Req ID
Requirements
Available
Functionality
Core/GA
P
AP-PMT
1.1
Ability to make
payments through
Checks, EFT, ACH or
Wire
Oracle provides
the functionality to
make single or
batch payments
through check, EFT
or ACH.
Core
AP-PMT
1.2
Ability to pick up all

invoices with due
date in the next five
days for payment
through the
payment batch
Oracle provides
functionality of
picking up invoices
for payment in a
variety of ways.
Pay through
Days can be used
to identify invoices
with a due date
falling within next
5 calendar days
Core
Decision
Point/Comments/O
pen Items
471
Req ID
Requirements
Available
Functionality
Core/GA
P
AP-PMT
1.3
Ability to assign
voucher numbers to
each payment
Oracle provides
assign Voucher
numbers to the
Payments made.
Core
AP-PMT
1.4
Ability to assign a
particular payment
method for each
invoice
Oracle provides
assign a payment
method for each
supplier site which
defaults to the
invoice. This can
be overwritten if
required - during
invoice creation
Core
AP-PMT
1.5
Ability to define the

required payment
terms and assign
them independently
to each invoice.
Oracle allows
assigning payment
terms at the
supplier site and
the invoice level.
The payment
schedule for
invoice gets
updated based on
these payment
terms
Core
AP-PMT
1.6
Ability to make
single adhoc
payments by check
Oracle provides
functionality to
make single adhoc
payments
Core
AP-PMT
1.7
Ability to send an
email notification as
soon as the
payment is made
Oracle allows for

email notifications
to be set-up in the
system.
Core
AP-PMT
1.8
Exchange rate
gain/loss on Forex
Payments should be
identified and
charged to a
designated
exchange rate
gain/loss account.
Standard Oracle
functionality
Core
AP-PMT
1.9
Ability to inactivate
a payment
document
Standard Oracle
Functionality
Core
Decision
Point/Comments/O
pen Items
481
Req ID
Requirements
Available
Functionality
Core/GA
P
AP-PMT
1.10
Ability to restrict a
payment document
to make payments
in a single currency
Standard Oracle
Functionality. It is
possibly to restrict
payments to a
single currency.
Core
AP-PMT
1.11
Ability to create
back-dated
payments
Oracle provides
the ability to
backdate the
payments except
for manual
payments. Manual
payments should
necessarily be
created on or after
the system date
Core
AP-PMT
1.12
Future-dated
payments will not be
created
Oracle supports
creation of futuredated payments.
Core
AP-PMT
1.13
Ability to pay an
invoice in the
currency the invoice
was created
Oracle supports
payment ONLY in
the currency the
invoice was
created. It is not
possible to create
payment in a
currency different
from invoice
currency
Core
AP-PMT
1.14
AP can override the

payment address
with defaults from
supplier site
Oracle allows to
override the
payment address
(which defaults
from supplier site)
at the time of
creating the
payments
Core
AP-PMT
1.15
AP can override the

supplier site primary bank
Account
Oracle provides
change the
primary bank
account, to
another bank
account while
making payments
Core
AP-PMT
Payments can be
Standard Oracle
Core
Decision
Point/Comments/O
pen Items
Closed
Back dated
payments will not be
done
491
Req ID
Requirements
Available
Functionality
Core/GA
P
1.16
voided & re issued
Functionality
AP-PMT
1.17
Payments can be
stopped and reissued
Standard Oracle
Functionality
Core
AP-PMT
1.18
The same bank

accounts can be
assigned to more
than one supplier
Oracle provides for

this functionality
(Allow multiple
assignments). This
is helpful with
employees from a
same family who
use the same bank
account etc.
Core
AP-PMT
1.19
A single bank
account can be used
for payments for
invoices against
multiple companies
Oracle provides for

this functionality.
Core
AP-PMT
1.20
Ability to make
partial payments to
vendors
Standard oracle
functionality
Core
AP-PMT
1.21
Foreign currency
payments to use the
Spot rate for the day
from General Ledger
This is a standard
oracle functionality
Core
AP-PMT
1.22
Foreign Currency
payments to have
the capability of
using a user defined
rate
Oracle provides for

this facility.
Core
AP-PMT
1.23
Ability to make Zero

Dollar payments
Oracle provides for

this functionality
Core
AP-PMT
1.24
Ability to Escheat
Payments
There is no direct
one click way to do
this. But, with a
series of steps this
can be achieved.
Core
Decision
Point/Comments/O
pen Items
501
AP-PMT 2.0: Checks
Req ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
AP-PMT
2.1
Ability to print
checks in the
required format
Oracle gives
format program
which can be
customized to
meet the needs
Core/Gap
Open
AP-PMT
2.2
Ability to schedule
payment batches for
check run to be
initiated and
processed
automatically
Oracle provides
schedule the
Payment batches
and payment
batch sets.
Core/Gap
Open
The check run for

payment batch
should send the
check data to
Paybase system for
check printing
The payment data

will be sent to Pay
base in the
standard Oracle
format
Core/Gap
AP-PMT
2.4
To Email Remittance
advise to suppliers
for payment made
through Check
Oracle allows
creation of the
Remittance advice
which can be sent
along with the
payment.
Core/Gap
AP-PMT
2.5
Ability to
define/assign check
numbers for each
bank account.
Oracle allows
defining check
numbers for each
payment
document defined
within a bank
account. Oracle
also ensures there
is no duplication in
the check numbers
defined for each
bank account and
Payment method
Core
AP-PMT
2.3
Some customization
will be required to
meet the exact
requirements on
scheduling
Closed
Development work
required on the
Paybase side
The transfer of the
checks data should
be through a
secured drive in the
form of an
unalterable file
Closed
E-mail remittance
will not be generated
for checks
511
AP-PMT 3.0: EFT
Req ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
AP-PMT
3.1
Ability to send an
electronic file to the
bank in order to
send payments
made in a payment
batch
Oracle gives
format program
which can be
customized to
create a file to
send electronically
to the bank
Core/Gap
Open
AP-PMT
3.2
Ability to schedule
EFT Payment
batches to run
automatically
Oracle provides
schedule the
Payment batches
and payment
batch sets. Some
customization may
be required to
meet the exact
requirements on
scheduling
Core/Gap
Open
AP-PMT
3.3
Ability to make
single adhoc
payments by EFT on
request
Oracle provides
functionality to
make single adhoc
payments
Core
AP-PMT
3.4
To Email Remittance
advise to suppliers
for payment made
through EFT
Oracle allows
creation of the
Remittance advice
which can be sent
along with the
payment.
Core/Gap
Open
AP-PMT 4.0: ACH

Req ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
AP-PMT
4.1
Ability to send files

to the clearing
Oracle gives
format program
Core/Gap
Open
521
Req ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
house for payments

made in the
payment batch
which can be
customized to
create a file to
send to the
clearing house
AP-PMT
4.2
Ability to schedule
ACH Payment
batches to run
automatically
Oracle provides
schedule the
Payment batches
and payment
batch sets. Some
customization may
be required to
meet the exact
requirements on
scheduling
Core/Gap
Open
AP-PMT
4.3
Ability to make
single adhoc
payments by ACH on
request
Oracle provides
functionality to
make single adhoc
payments
Core
AP-PMT
4.4
To Email Remittance
advise to suppliers
for payment made
through ACH
Oracle allows
creation of the
Remittance advice
which can be sent
along with the
payment.
Core/Gap
Open
AP-PMT 5.0: Wire

Req ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
AP-PMT
5.1
Ability to schedule
Wire Payment
batches to run
automatically
Oracle provides
schedule the
Payment batches
and payment
batch sets. Some
customization may
be required to
meet the exact
requirements on
scheduling
Core/Gap
Open
531
Req ID
Requirements
Available
Functionality
Core/GA
P
AP-PMT
5.2
Ability to make
single adhoc
payments by Wire
on request
Oracle provides
functionality to
make single adhoc
payments
Core
AP-PMT
5.3
To Email Remittance
advise to suppliers
for payment made
through Wire
Oracle allows
creation of the
Remittance advice
which can be sent
along with the
payment.
Core/Gap
Decision
Point/Comments/O
pen Items
Open
541
E. PERIOD CLOSE
Process Justification
This process explains the steps those need to be followed at time of period closing in oracle payables.
Process Description
There are six major steps to be performed at month-end:
Make sure all files imported from external source systems have been processed by reviewing the
Open Interface Invoices.
Run the Payables Accounting Process which creates the accounting entries and transfers invoice
and payment entries from payables to general ledger. Alternatively, Payables transfer to General
Ledger can be scheduled separately
Verify there are no outstanding transactions that have not been transferred to the GL due to errors
in processing by reviewing the accounting lines. Correct the errors and transfer the entries to
general ledger
Verify all transactions have been accounted for by running the Unaccounted Transactions Report.
Close the current Payables period after completing invoice and payment entry for the month
Open the next month.
Process Objective
To standardise the open and close of payable accounting period process in State Street
Process Scope
This process talk about the period end process in oracle payables. In current system there is no such
separate process for payables.
551
Requirements:
AP-PC 1.0: Period Close
Req ID
Requirements
Available
Functionality
AP-PC
1.1
Ability to prevent data

entry into Future
periods/closed
periods
Oracle payables
track periods, each
of which can have
either of the
following statuses:
Never Opened,
Open, Closed,
Permanently
Closed. Only One
future period is
allowed.
Core
AP-PC
1.2
Ability to schedule the

creation of accounting
entries
Creation of
accounting entries
can be scheduled.
All invoices that
have been
validated will be
accounted
Core
AP-PC
1.3

validation of invoices
Validation of
invoices can be
scheduled. All
invoices that have
been created and
are in unvalidated
status will be
validated
Core
AP-PC
1.4
Ability to create
accounting for one-off
invoices/payments on
an adhoc basis
Accounting can be
done on a adhoc
basis
Core
AP-PC
1.5

transfer of journal
entries to General
Ledger
Transfer of Journal
Entries can be
scheduled.
Core/Gap
AP-PC
1.6
Ability to transfer
journal entries to
General Ledger on an
adhoc basis
Journal entries can

be transferred on
an adhoc basis
Core
Core/GAP
Decision
Point/Comments/O
pen Items
561
Req ID
Requirements
Available
Functionality
AP-PC
1.7
Ability to summarize
the journal entries by
accounting date
Oracle provides for

summarize the
accounting entries
by accounting date
for transfer to
general ledger
Core
AP-PC
1.8
Ability to sweep all

invoices that are
unaccounted to the
next period
Oracle provides the

functionality to
transfer
unaccounted
invoices to the next
period. Sweep
means that the
accounting date on
the invoices will be
changed to the first
date of the next
period.
Core
AP-PC
1.9
Ability to close a
period to disallow any
new accounting to be
charged to the period.
Oracle allows a
period to be closed
after current
data is accounted
and transferred to
General Ledger.
There are checks to
ensure
unaccounted lines,
incomplete data
(For ex: Payment
batch in
unconfirmed status
etc.) do not remain
in the closed
period.
Core
AP-PC
1.10
Ability to transfer
assets related invoice
data to Oracle Fixed
Assets module
Oracle identifies
fixed assets related
invoices by the
account
combinations used
on the Invoice
distributions and
tracks them for
transfer to Fixed
Assets module.
Core
Core/GAP
Decision
Point/Comments/O
pen Items
571
Req ID
Requirements
Available
Functionality
AP-PC
1.11
Ability to reconcile the

Accounting data with
General Ledger
Oracle provides a
host of reports like
AP Trial Balance etc
to help reconcile
accounting data
between Payables
and General Ledger
Core/GAP
Decision
Point/Comments/O
pen Items
Core
581
F. ACCOUNTING
AP-ACC 1: Accounting Rules
Req
ID
Requirements
Available
Functionality
Core/GA
P
APACC
1.1
Accrual based accounting

will be used
Oracle allows
accrual and cash
basis accounting
Core
APACC
1.2
MRC will not be enabled

at Sub Ledger (AP)level
Thin MRC is
enabled for State
Street
Core
APACC
1.3
Accounting for Payment

happens during issue
Oracle gives
flexibility to
account payments
during issue or
during clearing or
both
Core
APACC
1.4
Automatic Offsets need to

be created at the
balancing segment level
In Oracle Automatic
Offsets can be
enabled at either of
Core
Decision
Point/Comments/O
pen Items
1. None
2. Balancing:
Balancing
Segment is
replaced
3. Natural
Account: All
segments
except
natural
account is
replaced
APACC
1.5
Ability to create, inquire

and update accounting at
the sub-ledger level
Oracle creates
accounting in subledger. The
accounting is then
transferred to
General ledger.
Core
APACC
1.6
Ability to maintain
summarized accounting
data in General Ledger
It is possible to
transfer accounting
entries to General
ledger in
Core
Global design is to
transfer data
summarized by
accounting date
591
Req
ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
Summary/Detail
mode. Summary
mode will
summarize lines by
code combination
for each transfer
APACC
1.7
Ability to view accounting

lines generated for
Invoices/payments
Regulatory requirements
on Accounting
Oracle provides
functionality to
view accounting
lines online (using
the menu) or
through a separate
form where you can
give a criteria and
pull all transactions
for which you wish
to view accounting.
Core
APACC
1.8
Ability to update errored

accounting lines
Oracle allows
updating
accounting entries
for accounting lines
which have an
error status. This
is helpful when the
accounting errors
out due to invalid
code combinations
Core
APACC
1.9
Ability to prevent
accounting entries from
going over to General
ledger in
closed/unopened periods
Oracle maintains
separate period
statuses for AP and
GL. Accounting can
be created in AP
only if the period is
open in AP and can
be transferred to
General Ledger
only when the
period is open in
General Ledger
Core
APACC
1.10
Ability to prevent
accounting entries from
going over to General
ledger in
closed/unopened periods
Oracle maintains
separate period
statuses for AP and
GL. Accounting can
be created in AP
only if the period is
open in AP and can
be transferred to
General Ledger
Core
Open
601
Req
ID
Requirements
Available
Functionality
Core/GA
P
Decision
Point/Comments/O
pen Items
only when the

period is open in
General Ledger
611
AP-ACC 2: Accounting Entries (Summary)

Type
Invoice
Creatio
n/
Adjustm
ents/Ca
ncellati
on
Liability
Liability
Expense
Expens
e
Prepayment
Asset
Future dated
payment
Asset
Prepayme
nt
creation/a
djustment
/cancellati
on
Prepayme
nt
application
/unapplicat
ion
Payment/
adjustme
nt/voidin
g
PO rate
variance
gain(will not be
used)
Revenu
e
PO rate
variance
loss(will not be
used)
Expens
e
Discount
Expens
e
Realized gain
Revenu
e
Realized loss
Expens
e
Rounding
Expens
e
Freight(will be
allocated
across the
expense lines)
Expens
e
621
Type
Invoice
Creatio
n/
Adjustm
ents/Ca
ncellati
on
Interest invoice
expense
Expens
e
Interest invoice
liability
Liability
Cash clearing
Asset
Cash
Asset
Bank charges
Expens
e
Bank errors
Expens
e
Tax(will be
allocated
across the
expense lines)
Expens
e
Prepayme
nt
creation/a
djustment
/cancellati
on
Prepayme
nt
application
/unapplicat
ion
Payment/
adjustme
nt/voidin
g
Invoice
Accounting entry
Debit
Expense
Tax
Freight
Liability
Credit
PO rate variance gain/ loss*
(X)
(X)
Invoice Price variance*
(X)
(X)
631
These accounting entries can only be created when an invoice is matched to a purchase
order.
Prepayment
Accounting entry
Prepayment
Debit
Credit
Liability
641
Prepayment Application
Accounting entry
Debit
Prepayment
Liability
Credit
X
When applying an invoice to a prepayment, the prepayment has to be paid. Only then the prepayment
is available.
Payment
Accounting entry
Liability
Debit
Credit
Cash clearing
Discount
Realized gain/ loss
(X)
(X)
1.
Automatic offset only affects the accounts that are marked with *. Other accounts can only be
balanced by manual entries in Oracle General Ledger.
2. Automatic offset does not support Interest invoicing.
651
AP-ACC 3: Accounting Defaults (For Information Only)

Financ
ials
option
s
Liability *
Payabl
e
options
Suppli
er
/Site
Bank
accou
nt
Payable
s
docume
nts
Tax
Invoi
ce
Expense
Prepayment
Future dated
payment *
PO Rate variance
gain
PO Rate variance
loss
Discount *
Realized gain *
Realized loss *
Rounding */***
Freight
Interest invoice
expense
Interest invoice
liability
Cash clearing *
Cash *
Bank charges *
Bank errors *
661
Financ
ials
option
s
Payabl
e
options
Suppli
er
/Site
Bank
accou
nt
Tax
Payable
s
docume
nts
Tax
Invoi
ce
1. *These are the accounts for which automatic offsets are created.
2. ***The rounding account will be used when:
3. Multiple currencies are used and the payment currency does not round within the payment
currency precision.
4. The functional currency amounts of payments do not equal the amount recorded as the liability.
5. Automatic offsets are enabled and the cash account is pooled, and there are rounding errors.
AP-ACC 4: Update Accounting Entries

1. Invalid accounting combinations can be updated in the AP Update Accounting entries screen.
671
G. REPORTING
AP-RPT 1.0: Standard Reports
A number of reports are given as part of the Oracle Payables module. Some of the important reports
which can be used for analysis and audit include the following:
1.
2.
3.
4.
5.
6.
Accounts Payables Trial Balance report

Payables aging analysis report
Supplier Open balance letter
Invoice register
Payments register
Payables accounting entries report
ICS plans to extensively use discoverer for reporting requirements. Discoverer is already being used
by the Canada and Ireland operating units.
The list and format of the reports that are available as a part of standard Oracle Accounts Payables
module are attached below:
AP- Reports.doc
AP-RPT 2.0: Custom Report

The following are the reports required from the AP System
Report
Frequency
Purpose
Payment Register By Bank

Account
Daily
Daily Balancing
Matching Exception Detail

Analysis
Daily
To clear items in matching exception

status
3
&
4
Daily Asset Informtion From

SmartStream
Daily
For identifying fixed asset transactions
Accounts Payable Payment

Canceled
Daily
Daily Balancing
Accounts Payable Prenote
Daily
Prenote of direct deposit setup
Accounts Payable Special

Handling
Daily
To identify items that need alternate

routing
Accounts Payable General Ledger

Voucher Transaction B
Daily
Daily Balancing
681
Report
Frequency
Purpose
Accounts Payable General Ledger

Voucher Transaction C
Daily
Daily Balancing
1
0
AP Vendor Modifications
Daily
To summarize all vendor changes
1
1
AP Vendor Add Report
Daily
To capture all new vendors added to the

system
1
2
AP Daily Statistics
Daily
For daily monitoring of work
1
3
AP Daily Statistics Summary
Daily
Summary of the prior days work
1
4
AP Daily Conflict of Processers

and Approvers
Daily
For conflict between input and approval
1
5
AP Outstanding Employee
Expense Advances Sorted By
Dollar Amount
Monthly
For monthly distribution to controllers
1
6
AP Outstanding Employee
Expense Advances Sorted By
Expense Advance
Monthly
For monthly distribution to controllers
1
7
AP Incomplete Invoices
Daily
To clear items in incomplete status
1
8
AP Pending Invoices
Daily
For expense report monitoring
1
9
Payables Trial Balance by Ledger

Distribution
Daily
Daily Balancing
691
H. CONVERSIONS
AP-CNV 1.0 Supplier Conversion
The appropriate vendors to be converted will be selected based on some predefined rules/logic (ex. Suppliers who had activity within past 18 months). No
vendors will be inactivated on Smart Stream because the entire system will be
shut down a few weeks following conversion.
A separate Conversion specifications document will be circulated at a later time
AP-CNV 2.0 Employees as vendors Conversion

An interface will be developed for bringing in all the employee data from
Peoplesoft to Oracle. Employees are created as vendors automatically upon
importing their approved expense reports into Payables.
A detailed specification document for this interface will be created by the
iExpenses team.
AP-CNV 3.0 Banks Conversion

Supplier Banks: will be manually setup.
Employee Banks: <OPEN>
AP-CNV 4.0 Invoice Conversion

No open invoices will be converted from Smart Stream to Oracle Payables.
Smart Stream will, however, stay live for several weeks following the conversion
to 'pay' the open invoices, but no new invoices will be keyed into Smart Stream
once the conversion date is passed.
Recurring payments will need to be manually canceled on Smart Stream and
added on Oracle.
1099 information will be required to be converted
701
I. INTERFACES
AP-INT 1.0 Inbounds
AP-INT 1.1: Expense Reports
iExpense is tightly integrated with Oracle Payables. Expense reports will be imported as invoices into
Accounts Payables.
AP-INT 1.2: Bank information of employees
<OPEN>
AP-INT 1.3: Electronic Invoices
Vendors will be asked to transfer the electronic invoices in a pre-specified format (with account
combinations) to a specific location on State Street network. These invoices will be transferred to
Payables open interface tables and will be validated for any defined validations before being imported
as invoices. If any validations fail, notification will be sent to concerned person for rectification. Once
the invoices are created, they will be approved like any other invoices.
A detailed functional design will be developed for capturing all the requirements related to electronic
invoices.
AP-INT 1.4: Perfect Commerce (Invoice Manager) Invoices
Invoices created in perfect commerce will be imported into Oracle accounts payable.
For detailed specifications, refer to the Perfect Commerce Integration functional specification
document.
AP-INT 2.0 Outbounds

AP-INT 2.1: Interface/Extract to Spend Analysis Database
Spend database is the database used by Strategic Sourcing to perform analysis of spend information
based on suppliers etc. An interface has to be developed to send the payables information for Oracle
Payables to the Spend database.
A functional specifications document, will be created to capture the detailed specifications for
the interface
AP-INT 2.2: Interface/Extract to Viper
Viper is the standard reporting system. Smart Stream sends data to Viper, from where various reports
can be run.
There are a host of reports available in Oracle Payables. If a decision is taken that Payables system
should still feed Viper, an interface will be developed for sending data from Payables to Viper.
<OPEN>
711
AP-INT 2.3: Interface to Paybase

Paybase is the system used for printing checks. Smart stream sends payments data to Paybase from
where the checks are printed.
An interface must be built to send the Check payment data from Oracle Payables to Paybase for
printing checks.
A design and specifications document will be prepared to capture the detailed requirement.
AP-INT 2.4: Interface/Extract for Wire Room
Wire payment is a manual payment and has to be recorded manually in Oracle Payables. However, we
can use format payments program to create a wire request file in the required template and send it
to wire room for processing wire payments. Once wire room confirms wire payments, the payment
batch can be confirmed.
A more detailed analysis of the requirements will be done in a separate document to understand the
feasibility and functionality of this interface
<Pending Bank Decision>
AP-INT 2.5: Program/Extract for EFT
For making EFT payments, the electronic file that needs to be sent to bank must be created in the
format required by the bank. The Format payments program might have to be customized to this
effect.
A specifications document will be created to capture the detailed requirements for the
program/extract.
AP-INT 2.6: Program/Extract for ACH
For making ACH payments, the electronic file that needs to be sent to bank must be created in the
format required by the bank. The Format payments program might have to be customized to this
effect.
A specifications document will be created to capture the detailed requirements for the
program/extract.
AP-INT 2.7: Positive Pay
It is a program designed to send the list of issued checks to the bank and to download a list of
exceptions.
Detailed requirements will be captured in a separate document to understand the functionality
expected from this program
721
731
K. SECURITY
AP-SRT 1.0: Operating Unit/Responsibility/User Security
A high level summary of the functions available to responsibilities is detailed below:
<OPEN>
AP Supervisor/Manager
AP Payment
Authorizer
AP Supplier and
Bank Entry
AP Specialist
AP Inquiry
Invoice Entry
Yes
No
No
Yes
No
Invoice Enquiry
Yes
Yes
No
Yes
Yes
Payment Entry
Yes
Yes
No
Yes
No
Payment Inquiry
Yes
Yes
No
Yes
Yes
Reports
Yes
No
No
Yes
Accounting: View
& Update
Yes
No
No
Yes
View Only
Accounting:
Control Payables
Periods
Yes
No
No
No
No
Suppliers Entry &

Inquiry
Yes
No
Yes
Yes
Inquiry
Suppliers: Banks
Yes
No
Yes
Yes
No
Setup Menu
Yes
No
No
No
No
Other Request: Run
Yes
Yes
Yes
Yes
Yes
741

<OPEN>
Detailed requirements will be captured at a later stage
751
761
Appendix A Gap Log

Req Id
Page No
Description
Priority
Resolution/Workaroun
d
771
Appendix B Supplier and Supplier Site Fields and Controls

Main
Information
Heading
S.N
o
Header Field
Site Field
Supplier Name
Enter a unique Supplier Name. One can update a supplier name

at any time and can always use the supplier number as a unique
identifier for a supplier.
Supplier Number
If the Supplier Number Entry option in the Financials Options

window, is enabled Payables automatically enters a Supplier
Number for you. If you did not enable this option, enter a unique
Supplier Number.
Alternate Name
Taxpayer ID
One can enter an alternate name for your supplier .Alternate

names are not used unless you enable the Sort by Alternate
Fields Payables option.
Supplier's Tax Identification Number (TIN). If a supplier is an
individual, the TIN is the supplier's social security number. If a
supplier is a corporation or a partnership, the TIN is also known
as a Federal Identification Number.
Tax Registration
Number
Enter a tax registration number for a supplier if it is required to

pay or report on Value-Added Taxes (VAT).
Inactive On
Date on which a supplier will no longer appear on a supplier list

of values
Enter the Unique supplier site name that distinguishes the site
from a supplier's other sites.This name is for your reference
when selecting sites from a list of values during purchase order
or invoice entry, and will not appear on any correspondence with
the supplier.
Enter an alternate name for your supplier .Alternate names are
not used unless you enable the Sort by Alternate Fields Payables
option.
Enter the country in which the Site is located
Enter the address of the Site like Plot number, Road number, and
street name.
Enter an alternate address for your supplier site.This field is for
reference only and is not used by Payables.
Site Name
Alternate Name
9
10
Country
Address
11
Alternate Address
12
City
Description
Enter the name of the City in which the address located.

781
Main
Information
Heading
Added
Information On
Tabs
General Tab
S.N
o
Header Field
Site Field
13
14
15
16
State
Postal Code
Province
County
17
Language
18
Inactive On
Description
Enter the name of the State in which the above city located.
Enter the postal code of this site
Enter the Province to which this Site belongs
Enter the county which is attached to State and city. This
combination is used for calculating sales tax according to the
locations
Enter the Language spoken at the site.The language in which
Payables prints the Invalid PO Supplier Notice, Prepayment
Remittance Notice, and Print Invoice Notice.
Enter the Date on which a supplier site will no longer appear on a
supplier list of values
19
21
Parent Supplier Name
22
23
Number
Customer Number
Name of supplier's parent enterprise if supplier is a franchise or

subsidiary. The parent enterprise must also be defined as a
supplier in the system.
Parent supplier number
The number supplier uses to identify your enterprise. This
number appears on the Oracle Purchasing standard purchase
order.
Customer Number
24
Site Uses Pay
25
Site Uses Purchasing
26
Site Uses Primary Pay
The number supplier uses to identify your enterprise. This

number appears on the Oracle Purchasing Printed Purchasing
Order Report.
Enable it for the Supplier site to which you send payment of an
invoice. You cannot enter an invoice for a supplier site that is not
defined as a pay site.
Enable it for the Supplier site from which you order goods or
services. You must enter at least one purchasing site before
Oracle Purchasing allows you to enter a purchase order.
If you enable it, this site becomes Default pay site. This pay site
defaults as the pay site value in the Invoices window. Payables
Open Interface Import uses the primary pay site when it creates
an invoice if no supplier site is specified on the invoice record. If
your suppliers use the Create Invoices feature of Internet
Supplier Portal, then the primary pay site provides the default
remittance information when your supplier enters invoices
791
Main
Information
Heading
S.N
o
Header Field
Site Field
Description
online.
Classification
Tab
27
Site Uses RFQ only
Enable to not allow entering purchase orders for a supplier site.

An RFQ Only site is a site from which you receive quotations.
28
Site Uses
Procurement Card
Enable it for the Supplier site that accepts the credit card brands
of your procurement cards
29
Shipping Network
Location
Enter the Physical location of the supplier site. The location that
is entered in this field appears on the list of values for the Ship To
Location field in Oracle Purchasing's Purchase Order window.
30
Supplier Notification
Method
Primary way of sending the purchase orders to the supplier. One

can choose E-mail or Printed Document or Fax
31
32
33
Communication Voice
Communication Fax
Communication Telex
Enter the voice number along with area code

Enter the Fax number along with area code
Enter the Telex information to which you send notification of
approved purchase orders
34
Communication EMail
E-mail. The e-mail address to which you send notification of

approved purchase orders.
35
Type
Enter the Type of supplier. Use Type to group suppliers for

reporting purposes. Define supplier types in the Oracle Payables
Lookups window If you are entering an employee as a supplier,
you must select Employee in this field. Select Tax Authority for
suppliers to whom you remit withholding taxes.
Select the name of an active employee to link an employee to
the supplier. One cannot select an employee name unless you
enter Employee as the supplier Type in this region.
36
Employee Name
37
Number
38
One Time
Employee number of the employee associated with the supplier

record
Enable to designate a supplier with whom you do not expect to
do repeat business. You can find all one-time suppliers by using
the Suppliers Find window
39
SIC
Standard Industry Code
801
Main
Information
Heading
Contacts Tab
Accounting Tab
S.N
o
Header Field
Site Field
Description
40
Minority Owned
The minority group if the supplier is a minority-owned business.

You enter minority group codes for this list of values in the Oracle
Purchasing Lookups window.
41
Small Business
One can use this designation for tracking business with small
enterprises.
43
Name Last
44
45
Name First
Prefix
Enter the last name of the Person to contact. This Contact

information is for your reference only and is not used by the
system.
Enter the First name of the person to contact
Enter the appropriate prefix for your contact (Mr., Ms., Dr., etc.).
46
Title
Enter the appropriate Title for your contact if any.
47
49
Department
Inactive On
Enter the Department of the contact person to which he belongs.

Enter the Date on which this contact will no longer appear on the
contact list for this supplier site
50
Telephone
51
Alternate Telephone
Enter the Telephone number to Contact a person Who represents

this site.
Enter the Alternate Telephone number to Contact a person Who
represents this site.
52
Fax
Enter the Fax number to which you send notification of approved

purchase orders.
53
E-mail
Enter The e-mail address to which you send notification of

approved purchase orders.
54
55
URL
Alternate Contact
Name
Enter the URL related to the corresponding supplier site.

You can enter an alternate name for your supplier site contact.
This field is for your reference only and is not used by the
system.
Distribution Set
Enter the Distribution set you want to Default Distribution Set for
all invoices entered for the supplier site.
56
Distribution Set
811
Main
Information
Heading
S.N
o
Header Field
Site Field
57
GL Accounts Liability
GL Accounts Liability
Enter The Liability Account and description for a supplier site's

invoices. /alternatively use the default defined in the financial
options. One can override the liability account at supplier site
level or at the invoice level
58
GL Accounts
Prepayment
GL Accounts
Prepayment
The supplier default for this field is the Financials option for the
Prepayment account.
Payables uses the supplier site's prepayment account as the
default GL account for all prepayment Item distributions, unless
the Build Prepayment Accounts When Matching Payables option
is enabled.
59
GL Accounts Future
Dated Payment
GL Accounts Future
Dated Payment
If you use future dated payments, enter the future dated

payment account you want to use. The Financials option value
defaults to new suppliers, and the supplier value defaults to new
supplier sites. You can override these defaults.
When Payables creates a future dated payment, it uses the
future dated payment account from either the supplier site or the
payment document, depending on which option you select in the
Payment Accounting region of the Payables Options window.
If you relieve liability for future dated payments when the
payment is issued, then use an asset account. If you relieve
liability at clearing time, then use a liability account.
Description
821
Main
Information
Heading
Control Tab
Payment Tab
S.N
o
Header Field
Site Field
60
Invoice Tolerance
61
62
Invoice Amount Limit

Invoice Match Option
Invoice Amount Limit

Invoice Match Option
63
Hold All Payments
Hold All Payments
64
Hold unmatched
Invoices
Hold unmatched
Invoices
65
Hold unvalidated
Invoices
Hold unvalidated
Invoices
66
67
Payment Hold Reason

Terms
Payment Hold Reason

Terms
68
Pay Group
Pay Group
69
Payment Priority
Payment Priority
Description
Enter the Invoice Tolerance Template .Use the Invoice Tolerances
window to define the Invoice Tolerance Template Where you
define the matching and tax tolerances you want to allow for
variances between invoice, purchase order, receipt, and tax
information. You can define both percentage-based and amountbased tolerances as templates
maximum amount for an invoice entry for this Supplier
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
The most restrictive supplier site hold. By selecting Hold All
Payments for a supplier site, you prevent any invoices for the
supplier site from being selected for payment during a payment
batch or for a Quick payment.
If you enable this option for a site, then Payables applies a
Matching Required hold to an invoice if it has Item type
distributions that are not matched to either a purchase order or
receipt. Payables applies the hold to the invoice during Invoice
Validation. One cannot pay the invoice until you release the hold.
If enabled, Payables automatically applies a Supplier hold to all
unvalidated invoices entered for that site, including any invoices
you import. Payables applies this hold when you submit Invoice
Validation. You can still pay invoices that were entered for the
supplier site.
The reason you are applying an invoice hold to an invoice.
Payment terms used to schedule payments for an invoice. The
system uses payment terms to automatically calculate due
dates, discount dates, and discount amounts for each invoice
you enter.
Pay Group assigned to a supplier. The default for this field is the
Payables option you define for Pay Group. You can override this
default during supplier site entry or invoice entry.
A number, between 1 (high) and 99 (low), which represents the
priority of payment. The system uses the Supplier Site value to
automatically assign a Payment Priority to an invoice's scheduled
payment(s) during invoice entry.
831
Main
Information
Heading
S.N
o
Header Field
Site Field
70
Remittance E-mail
Description
The destination e-mail address for remittance information.
Populating this field activates the E-mail Remittance Advice
feature.
Enter the Functional Currency or the currency you use often to
enter invoices. The supplier invoice currency is used as a default
for new supplier sites you enter
The default for Payment Currency in the Suppliers window is the
value you enter for supplier Invoice Currency.
71
Invoice Currency
Invoice Currency
72
Payment Currency
Payment Currency
73
Terms Date Basis
Terms Date Basis
Date from which Payables calculates a scheduled payment for a

supplier. The default is one of the following Payables option you
defined for Terms Date Basis. Choose System or Goods Received
or Invoice or Invoice Received
74
Pay Date Basis
Pay Date Basis
The Pay Date Basis for a supplier determines the pay date for a
supplier's invoices. Choose Due or discount
75
Payment Method
Payment Method
76
Always Take Discount
Always Take Discount
The method you use most frequently to pay this supplier's

invoices: Choose Check or Electronic(E-Commerce Gateway) or
Wire or Clearing
Enable this option to have Payables always take an available
discount for a supplier, regardless of when you pay the invoice.
77
Exclude Freight from

Discount
Exclude Freight from

Discount
78
Allow Interest
Invoices
79
Pay Alone
Pay Alone
If this option is enabled for an invoice, Payables automatically

subtracts the freight amount entered on the invoice header from
the invoice amount when calculating the invoice amount subject
to discount.
If this option is enabled, Payables calculates interest for the
supplier's overdue invoices and creates corresponding interest
invoices when you pay the overdue invoices. Payables calculates
interest only for invoices that are overdue 365 days or less. If
you enable this option, it is automatically enforced for all of a
supplier's sites.
If this option is enabled for an invoice, Payables creates a
separate payment for each invoice. If the option is not enabled
for an invoice, the invoice is paid with other invoices for the
same supplier site on a single payment.
841
Main
Information
Heading
S.N
o
Header Field
Site Field
80
Bank Accounts
tab
EDI Tab
Description
Attention AR
Enable to have "Attention Accounts Receivable" printed on your

checks immediately below the supplier site name and before the
address if your payment formatting program allows it. Payables
also prints this legend on your supplier mailing labels.
81
Number
Number
Bank account number of the supplier's remittance account
82
83
Curr
Primary
Curr
Primary
Payables displays the currency you defined for the bank account
Enable this check box to have Payables use this bank account as
a default when you pay this supplier electronically.
84
Effective Dates From
Effective Dates From
85
Effective Dates To
Effective Dates To
86
Bank Name
Bank Name
Enter the date from when you want to use this bank account as
the primary bank account for receiving electronic payments in
the bank account currency.
Enter the date till when you want to use this bank account as the
primary bank account for receiving electronic payments in the
bank account currency.
Name of the bank that this supplier or supplier site uses to which
the above bank account Belongs
87
Bank Number
Bank Number
Number of the bank that this supplier or supplier site uses to

which the above bank account Belongs
88
Branch Name
Branch Name
Name of the branch of the bank that this supplier or supplier site
uses to which the above bank account Belongs
89
Branch Number
Branch Number
Number of the branch of the bank that this supplier or supplier

site uses to which the above bank account Belongs
90
EDI Location
91
Electronic Data Interchange (EDI) location code for this supplier

site.
This field is used only by Oracle Energy, if you have installed it
92
EDI Gateway Payment

Method
EDI Gateway EDI ID

Number
EDI Gateway
Payment Method
93
EDI Gateway Payment

Format
EDI Gateway
Payment Format
Method with which the electronic payment will be made. Choose

ACH(Automated Clearing House) or BACS(Bankers Automated
clearing system) or BOP(Financial Institution option) or CWP(Wire
transfer via CHIPS) or FEW(Wire transfer using FED wire method
1) or FWT(Wire transfer using FED wire method 2) or SWT( Wire
transfer using SWIFT network) or ZZZ(other Method)
Indicates type of information being transmitted with the funds if
the Payment Method is ACH.
This field is enterable only if you select ACH in the Payment
851
Main
Information
Heading
S.N
o
Header Field
Site Field
Description
Method field.
94
EDI Gateway
Remittance Method
EDI Gateway
Remittance Method
Party responsible for sending the remittance advice to the payee.

Choose EDI to Payer's Bank or EDI to Payee's bank or EDI to
Payee or EDI to Third Party or Do Not Route.
95
EDI Gateway
Remittance
Instruction
EDI Gateway
Transaction Handling
EDI Gateway
Remittance
Instruction
EDI Gateway
Transaction Handling
Text of specific wire or other electronic payment instructions for

an intermediary or recipient financial institution
97
Invoice Tax Code
Invoice Tax Code
Tax code that represents the tax charges you generally receive
on invoices from a supplier.
98
Use Offset Taxes
Use Offset Taxes
You can use offset taxes to record taxes on invoices while

offsetting the tax liability. You can associate offset taxes with
sales or user-defined taxes in the Tax Codes window
99
Automatic Calculation
Level
Level
Select the level at which you want Payables to automatically

calculate tax for this supplier or supplier site. Choose Header or
Tax Code or Line or None
100
Allow Calculation
level Override
Allow Calculation
level Override
you can adjust the default Calculation Level in the Supplier,

Supplier Sites, and Invoices windows only if the Allow Calculation
Level Override option is enabled in the previous window.
101
Rounding Rule
Rounding Rule
If you use automatic tax calculation, select the method for the
system to use to round the automatically-calculated tax amount.
Choose Up to round up or Down to round down or Nearest to
round to the nearest number.
96
Invoice Tax Tab
Standard EDI transaction code (ANSI ASC X12) designating the

action to be taken by all parties. Choose any of the following:
C. Payment Accompanies Remittance Advice.
D. Make Payment Only.
I. Remittance Information Only.
U. Split Payment and Remittance.
Z. Other Handling.
861
Main
Information
Heading
Withholding
Tax Tab
Tax Reporting
S.N
o
Header Field
Site Field
102
Distribution Amounts
Include Tax
Distribution Amounts
Include Tax
Enable this option if you use automatic tax calculation at the Tax
Code or Line level, and you want Payables to subtract the
calculated tax from distributions when Payables automatically
creates tax distributions. You cannot enable this option if you
select Header or None as the Calculation Level.
103
Allow Withholding Tax
Allow Withholding Tax
Enable to allow withholding taxes for the supplier and supplier

site. If you disable at the supplier site, you will not be able to
allow withholding taxes for any invoices entered for this supplier
site.
104
Withholding Tax
Group
Withholding Tax
Group
A default withholding tax group to assign to all invoices for the

supplier site.
105
Reportable Federal(G)
Reportable to the United States Internal Revenue Service for

1099 purposes. In the United States, you must report to the
Internal Revenue Service certain types of payments you make to
1099 reportable suppliers.
106
Reportable Income
Tax Type
Income tax type for a United States 1099 reportable supplier.

Choose from a list of 1099 Miscellaneous Tax types.
107
Reportable State(J)
108
Reporting Site
Enable this option if you participate in the United States Internal

Revenue Service Combined Filing Program and the supplier is
reportable to a state taxing authority. Payables uses this status
for reporting purposes only
This reporting supplier site's address is printed on the 1099 form
and included in the 1099 Electronic Media report.
109
Reporting Name
110
Name Control
Description
Tax reporting name for a supplier subject to United States

Internal Revenue Service (IRS) income tax reporting
requirements. Required only if the tax reporting name for the
supplier is different from the supplier name.
The first four characters of the last name of your 1099 supplier is
entered. Payables displays the four characters Name Control you
enter here when you create your 1099 Electronic Media Report
for federally reportable suppliers. If you do not enter any values
in the Name Control field, Payables does not print in the four
positions designated for the Name Control information in this
supplier's B record when you create your 1099 Electronic Media
Report
871
Main
Information
Heading
Purchasing Tab
S.N
o
Header Field
Site Field
111
Verification Date
Date you received tax verification from the supplier. In Payables

you can submit Tax Information Verification Letters for your
suppliers. Payables prevents the generation of any further letters
to a supplier after the Verification Date.
112
Organization type
Type of enterprise for this supplier. The United States Internal

Revenue Service (IRS) requires this information if you use
magnetic media to file your 1099 tax information. Choose
Corporation or Government Agency or Individual or Partnership
or Foreign Corporation or Foreign Government Agency or Foreign
Individual
Tax registration number, for example, a supplier's value-added
tax (VAT) registration number.
Description
113
Tax Registration
Number
114
Income Tax Reporting

Site(B)
Enable check box to select a site as the reporting site for a

supplier. This reporting supplier site's address is printed on the
1099 form, and included in the 1099 Electronic Media Payables
requires exactly one tax reporting site for each 1099 supplier for
income tax reporting purposes.
115
Ship To Location
Ship To Location
Location where a supplier sends shipments for goods/services.

The default for this field is the Financials option you define for
Ship-To Location, and the supplier site default is the supplier
option you enter.
116
Bill To Location
Bill To Location
117
Ship Via
Ship Via
Location to which a supplier sends the invoice for goods or

services. The default for this field is the Financials option you
define for Bill-To Location, and the supplier site default is the
supplier option you enter
Freight carrier you use with a supplier. The default is the
Financials option you define for Ship Via, and the supplier site
default is the supplier option you define. The value you enter is
the value in the Description field of the Freight Carriers window in
Purchasing.
If the supplier was created automatically during Expense Report
Import, the default value is Purchase Order and you can update
it.
118
FOB
FOB
Free-on-Board (FOB) code for a supplier. The default is the

Financials option you define for FOB, and the supplier site default
is the supplier option you enter.
881
Main
Information
Heading
S.N
o
Header Field
Site Field
119
Freight Terms
Freight Terms
You negotiate freight terms with a supplier to determine whether

you or the supplier pays for freight charges on goods you order
from a supplier. The supplier default is the Financials option you
define for Freight Terms, and the supplier site default is the
supplier option you enter.
120
Transportation
Arranged
Choose Buying Organization or Supplier depending upon the

Freight Terms
121
Country of Origin
Country in which a product was manufactured. This value

defaults to purchase orders and releases
122
Self-Billing Pay On
You can enter a value for the Pay On field only if the supplier site
is a purchasing site. You can choose Receipt or leave it blank.
Receipt: If you want to use the Pay on Receipt Auto Invoice
Program to automatically create invoices based on receipts you
enter for this supplier site, enter Receipt.
Blank: If you do not want to use the Pay on Receipt Auto Invoice
Program, leave this field blank.
123
Self-Billing Alternate
Pay Site
124
Self-Billing Invoice
Summary Level
Pay site to be used as the supplier site when the system creates
self-billing invoices for this supplier. This list of values is limited
to active pay sites for the supplier.
If this supplier site record is a pay site: If you want Payables to
create invoices for a different pay site, then enter the site name
(Optional). If you want to use this supplier site as the pay site,
then leave the field blank.
If this supplier site record is not a pay site: Enter the supplier site
to use for payment of invoices for this supplier site's receipts
(Required).
If an Alternate Pay Site uses Gapless Invoice Numbering and has
a Selling Company Identifier value, then this value is used when
creating a Self Billing Invoice
Enter the level at which you want to consolidate invoices for this
supplier site when you submit the Pay on Receipt Auto Invoice
Program:
Description
Pay Site. Create one invoice for this supplier pay site for
transactions that have the same date.
Packing Slip. Create one invoice per packing slip for this supplier
pay site for transactions that have the same date.
Receipt. Create one invoice per receipt for this supplier pay site
891
Main
Information
Heading
Receiving Tab
S.N
o
Header Field
Site Field
125
Create Debit Memo

for RTS transaction(K)
Self-Billing Create
Debit Memo for RTS
transaction(K)
Enable this option if you want the system to automatically create

a debit memo in Payables when you enter a Return To Supplier
(RTS) in Purchasing. The value for supplier defaults from the
Purchasing Options window.
126
Self-Billing Gapless
Invoice Numbering
If you enable Gapless Invoice Numbering, then you must also

enter a Selling Company Identifier.
If you disable Gapless Invoice Numbering, this will result in a
possible incomplete setup and a gap in the invoice sequence.
127
Self-Billing Selling
Company Identifier
This is the identifier for the supplier site. You can enter the same
value for all of suppliers sites, but you cannot enter the same
value for sites under different suppliers. The value you enter in
this field is used to construct the invoice number for all selfbilling invoices.
If Gapless Invoice Numbering is also enabled in the Purchasing
Options window, then you should enter a value here so that selfbilling invoices can be created.
Description
128
Purchase Order Hold
If you enable this option for a supplier, and you also enable the
Enforce Supplier Hold option in the Control region of the
Purchasing Options window, then you can create a purchase
order for the supplier, but you cannot approve the purchase
order. To release this hold, deselect Purchase Order Hold here.
129
Purchasing Hold
Reason
130
Enforce Ship To
Location
Reason you are preventing approval of purchase orders for a

supplier. You enter a value in this field only if you enable the
Purchase Order Hold field. The system does not use this
information; it is for your reference only.
The value you enter in this field determines whether the
receiving location must be the same as the ship-to location: You
can choose one of the following:
None. The receiving location may differ from the ship-to location.
Reject. Purchasing does not permit receipts when receiving
location differs from the ship-to location.
Warning. Purchasing displays a warning message but permits
receipt when receiving location differs from the ship-to location.
901
Main
Information
Heading
S.N
o
Header Field
Site Field
131
Receipt Routing
Default receipt routing that you assign goods: Direct Delivery,

Inspection Required, or Standard Receipt.
132
Match Approval Level
If you use Oracle Payables with Oracle Purchasing or another

integrated purchasing product, you can perform online matching
of invoices and original purchase orders or purchase order
receipts. Matching ensures that you only pay for the goods and
services you ordered and that your suppliers do not over-bill. You
Can perform matching in 2-Way or 3-Way or 4-Way
133
Qty Received
Tolerance
Maximum over-receipt tolerance percentage. During receiving,

Oracle Purchasing uses the over-receipt tolerance percentage
and the over-receipt control action to determine how to handle
receipts that exceed the over-receipt tolerance.
134
Qty Received
Exception
How Purchasing handles receipts that exceed the Quantity

Received Tolerance: Choose one of the following
None. Receipts may exceed the selected tolerance.
Reject. Purchasing does not permit receipts in excess of the
selected tolerance.
receipts in excess of the selected tolerance
135
Days Early Receipt

Allowed
Maximum acceptable number of days early for receipts
136
Allow Substitute
Receipts(Q)
Receivers can receive substitute items in place of ordered items.

You must have previously defined acceptable substitute items for
the ordered item in the Purchasing Item Relationships window.
137
Days Late Receipt

Allowed
Maximum acceptable number of days late for receipts
138
Allow Unordered
Receipts(Z)
Receivers can receive unordered items. You can override this

option for specific items. If you enable this option you can later
match the unordered receipts to a purchase order.
Description
911
Main
Information
Heading
S.N
o
Header Field
139
Receipt Date
Exception
Site Field
Description
How Purchasing handles receipts that are earlier or later than the
allowed number of days selected
None. Receipts may exceed the allowed days early or late.
Reject. Purchasing does not permit receipts outside the selected
number of days early or late.
receipts outside the selected number of days early or late.
921
931

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State Street

Process Definition Document

Oracle Accounts Payables

AP Process Design Document

John Phillips Raj

P2P Project Manager

Manager of Accounting Controls

AP Process Design Document

1.0: Creation of Invoices

AP Process Design Document

Company Confidential - For internal use only

Appendix A Gap Log......................................................................................................................................74

AP Process Design Document

To capture requirements for Accounts Payables Implementation (US)

Identify and track Gaps

Identify the decision points.

Development of test cases (during QA phase) by mapping the test cases

This document will NOT contain the following information:

Any low level applications information this will be contained in the

Any training information this will be available in the related Training

ICS Implementation Team the Process Definition document will be used

AP Process Design Document

Discusses the various methods of creation of invoices, adjustments, holds and

Discusses the various methods of Payments and stop/void payments

Discusses the period close process in Accounts payables

Discusses the accounting setups and accounting entries in Accounts Payables

Discusses briefly the reporting requirements

Discusses the inbound and outbound interfaces from Accounts Payables

Discusses the security available in Accounts Payables.

AP Process Design Document

Business Processes Overview: Accounts Payables

AP processes encompass a large number of activities spanning invoicing, payment,

AP Process Design Document

Accounts Payables Processes

AP Process Design Document

AP Process Design Document

All vendor header

Supplier Header data is

Oracle provides the

AP Process Design Document

Minority Owned, Small

Supplier Number Entry

Oracle gives the option

A number of details and

We can configure DFF

(Note: Some data can

supplier header level).

Ability to prevent Sites

Oracle gives the

Ability to capture the

Oracle does not give a

Oracle does not allow

Oracle provides the

Oracle does not give

AP Process Design Document

Supplier holds can be

AP-SUP 2: Create and Maintain Supplier Site

All vendor site

Should have the

Oracle gives you the

AP Process Design Document

Matching type can be

Matching type can be

A Supplier Site can be