oracle accounts payable

ORACLE ACCOUNTS PAYABLE

Release 12 Upgrade Considerations

New features in Release 12 of Oracle Payables

AGENDA

Supplier Related Enhancements Deferred Recoverability Enhanced Asset Tracking Payment Requests Payment Method Controls And Enhanced Payment

Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payables

AGENDA

SUPPLIERS IN THE TRADING COMMUNITY ARCHITECTURE (TCA)

The Trading Community Model: Is a highly flexible architecture Allows you to model real world entities in your

trading community Allows you to accurately represent complex

relationships among entities Is the core data model for trading partners used by

Oracle E-Business Suite applications

TCA SECURITY BY FUNCTIONAL AREAS

Function Security

PayablesAttributes

PurchasingAttributes

ReceivablesAttributes

PAYMENT BANKS, BRANCHES, AND ACCOUNTS

Bank Accounts are: Centrally defined Managed and secured Include the legal ownership and operating unit

access for each bank account

SUPPLIER BANK ACCOUNTS

Enhancements to supplier bank accounts include: Removal of some processing restrictions Greater control and security The bank account is tied directly to the trading partner Notification when trying to inactivate a bank account

that is associated with unpaid invoices or pay runs that are in process

COLLABORATION WITH SUPPLIERS TO RESOLVE DISPUTES

Disputes are communicated and negotiations can be suggested to the Supplier

Suppliers are able to: Accept suggested changes Withdraw their invoice Submit a counter proposal Negotiate online via iSupplier Portal

All changes and comments are tracked in Payables

INVOICE REQUESTS

Invoice Requests are: Invoices entered by Suppliers via iSupplier Portal

where a purchase order has not been obtained Are visible in Oracle Payables Are not paid or accounted until the invoice can be

verified and approved

IMPLEMENTATION CONSIDERATIONS

End user training for new UI Update supplier information with additional information

AGENDA

DEFERRED RECOVERABILITY

Accounting process where tax recovery is reported when the invoice is paid

Accrual (and therefore the settlement and/or reporting) of recoverable taxes is delayed due to special tax rules either enforced by the Tax Authority, or allowed with the agreement of the Tax Authority

DEFERRED RECOVERABILITY FEATURES

Accurate reporting and accounting of pending recoverable tax amounts

Automatic accrual of recoverable tax amounts upon payment

DEFERRED RECOVERABILITY BENEFITS

Global Readiness Adhere to international tax laws

Streamlined Operations, Operational Excellence, and Lower Costs Automatic accrual of recoverable tax amounts obviates

need for manual transfers after payment transactions Propensity for manual error is reduced

Improved Fiscal Discipline Accounts reflect transactions that have occurred Automated accounting reduces auditing time

DEFERRED RECOVERABILITY PROCESS PART 1: SET UP AND INVOICE

Tax Engine

Tax Set Up

Process 1

E-Business Tax

Interim (deferred) Recoverable Tax

Accounts Payable Liability

X.XX X.XX

Non Recoverable Tax

X.XXExpense/Asset X.XX

Invoice details

Tax (Includes Interim Recoverable Tax Distribution Account)

Invoice Header

Invoice Lines

Invoice Distributions

Account

Subledger Accounting

Payables Invoice Entry

DEFERRED RECOVERABILITY PROCESS PART 2: SET UP AND PAYMENT

InvoicesInvoicesTax Set Up

Process 2

Payables Payment E-Business Tax

Recoverable Tax X.XX X.XX

Accounts Payable Liability X.XX

Invoice details

Recoverable Tax Distribution Accounts

Invoices

Account

Payment Invoices with Deferred Recoverability ?

Calculate Recoverable Amounts, Record Distributions

Optional Set Up

Cash Clearing

Interim (deferred) Recoverable Tax

SETUP TAXES WITH DEFERRED RECOVERABILITY

Level Allow Tax Recovery

Default Recovery Settlement

Tax Accounts

Regime Deferred

Tax Deferred •Tax Expense•Recoverable Tax•Interim Tax (used for Accrual Based accounting only)

Tax Status Deferred

Tax Rate Deferred

Common Module Dependency: E-Business Tax

The e-Business Tax engine is responsible for calculating tax amounts applicable to invoices.

E-Business Tax configuration qualifies taxes with attributes to meet tax compliance requirements.

Common Module Interaction: Subledger Accounting: A general tool to configure

accounting entries and provide accounting reports.

AGENDA

Information Self Assessed Tax Oracle Payables for Complex Contract Terms Multi-Org Access Control in Payable

ENHANCED ASSET TRACKING

Enhanced Asset Tracking Item Description Manufacturer Model Serial Number Warranty Number

Enhanced Mass Additions Asset Book Asset Category IPV/ERV distributions

ENHANCED ASSET TRACKING BENEFITS

Increased efficiency and reduced costs Asset information typically entered on a purchase order

can now flow seamlessly into Payables and Assets. Improved accuracy of information

The Create Mass Additions process can now be submitted to select invoice distributions by specific Asset Book.

ENHANCED ASSET TRACKING PROCESS

Enter Payables Invoice andmatch to Purchase Order orImport Purchasing matched invoice

Optionally update asset informationon invoice line or distribution, includingasset book and asset category

PAYABLES PROCESS

Submit Create Mass Additions process to transfer assets toOracle Assets

Payables retains assetinformation such as: manufacturer, serial number, asset book and category

Automated process

INVOICE LINES

Invoice Lines: Represent goods or services as lines with

distributions tied to each line Facilitates the capture and transfer of pertinent

information from Oracle Projects and Oracle Assets Enables line level approval and matching between an

invoice line and a purchase order shipment pay item

Do the enhanced asset tracking features require re-evaluation of asset tracking policies?

AGENDA

PAYMENT REQUESTS KEY CONCEPTS

Payment Request A request for payment to Oracle Payables without

requiring a supplier, purchase order or standard invoice Oracle Loans: Loan Funding Disbursement Oracle Receivables: non-credit card Customer Refund

Requests

Payee Designated party to which the payment will

be made A payee can be a supplier, borrower, or

customer

PAYMENT REQUESTS DESCRIPTION

Receivables

Payment Request

Account payables department approves request

submits

If requires approval, PayablesLaunches Workflow

Payables applies holds, if necessary Pay

No approval required

PAYMENT REQUESTS BENEFITS

Benefits for Payables managers Ensures the Integrity of Supplier Master

Do not complicate Supplier Master with non-supplier payees

Provides Payables transparency Provides visibility and control over items for payment

processingBenefits for other E-Business Suite products

Leverages the Payables product for all payment needs Leaves the required knowledge base in Payables

without complicating your business model or employee structure

Provides visibility into the current status

PAYMENT REQUESTS PROCESS

Report

Oracle Receivables

E-Business Suite Product

Receipts

On Account Credit Memos

VerifyAccountTaxApprove

Payables

Payment Request

Payment Request IDOracle Loans

Payment Request

PaymentPayment Request Status

Vision CorporationPayables

ApprovePayment Manager

Manages items to be paid

Payment Transacted to Payee

Customer Receives Payment $5000.00

ABC Company

Purchases: 3 Copy Machines

Returns 1 Copy Machine for Refund

Vision Corporation Receivables

Manages Receivables Transactions for return

Initiates Payables Request $5000.00

View Status if needed

Vision Corporation

Return

Refund

Payment Request for $350,000

Payment Request for $5000

ORACLE RECEIVABLES – REFUND EXAMPLE

Payment Manager

Visibility to all Payables’ Liabilities

Manages items to be paid

Reports to Upper Management

FUNDS DISBURSEMENT PROCESS - LOANS

IGNF FoodsRequests a Loan for 350,000 from Vision Loans

Vision Loans

Application Processing

Risk Management

Approvals

Vision Loans Payables

Payment Request

for $350,000

Loan Funded

Sends Borrower Payment

PAYMENT REQUEST – ADDITIONAL PAYABLES ACTIONS

Oracle Receivables

E-Business Suite Product

Receipts

On Account Credit Memos Cancel

Payables

Payment Request Cancelled

Oracle Loans

Payment Request

PaymentPayment Voided

PAYMENT REQUESTS: SYNCHRONIZING BETWEEN PRODUCTS

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

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

PAYMENT REQUESTS REPORTINGReport Name Change

Invoice Aging Report Includes Payment Requests in Aging Report

Invoice Approval Status Report

Modified to show payment requests in the approval workflow process

Invoice Audit Listing By Voucher Number

Expanded to include Payment Requests by sequential voucher number

Invoice On Hold Report Expanded to include Payment Requests on Hold

Open Items Revaluation Report

Modified to include Payment Requests in revaluating balances

Cash Requirement Report

Includes Payment Requests for forecasting cash needs

PAYMENT REQUESTS OPTIONAL SETUP

Oracle Payments Oracle PaymentsApprovals Management

Payment Method ControlsPayment Method Defaulting Rules Payment Instruction and Report FormatsPayment Attribute ValidationsPayment Process ProfilesDisbursement Options

Payables Options:Enable Invoice Approval Workflow

Approval Rules AP Invoice Approval

PAYMENT REQUESTS MISCELLANEOUS SET UP

Document Sequencing - Payment Request Category Payables and Financial Options

Interactions with: Oracle Payables & Payments Oracle XML Publisher Oracle Approvals Management / Workflow (Optional) Oracle Loans; Oracle Receivables

AGENDA

PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT INFORMATION

Enhanced Payment Method Controls Expanded Payment Attribute Availability and Defaulting Configurable Payment Attribute Validation Extensive Format and Reporting Capabilities

KEY CONCEPTS Document Payable: A document to be paid by the deploying company (Payer)

Payee: The person or organization that is being paid Payment Process Request: The process of requesting

the payment processing for a group of invoices Payment Instruction: Formatted payment information

that is either transmitted to a financial institution for payment or used in-house to print check documents

KEY CONCEPTS

Payment Process Profile: Usage and grouping rules, bank assignments, payment instructions and reporting, and connectivity for electronic filing

Oracle Payments: E-Business Suite module leveraged to group invoices into payments, create instructions, and print or communicate with the bank

KEY CONCEPTS Payment Method: Document payable attribute that

indicates how the payer is going to make the payment

The Payment Method, Banking Relationships, and Reporting Requirements drive Payment Method - Based Payment Processing including: Payment attribute validations executed on the invoice to

catch errors early Payment attribute validation at payment time based on

your processing choices to catch errors before they go out the door

Data rich payment instructions and reporting

EVALUATE PAYMENT CHOICES – REPORTING AND PAYMENT INSTRUCTION REQUIREMENTS

Banking Relationships

Vision Operations

Payment Method Choices

Attributes to communicate to bank

Vision Operations

Reporting Requirements

Legal EntityOperating UnitTransaction TypeForeign or Domestic CurrencyForeign or Domestic LocationReporting Requirements

Vision Operations

Payee Relationship

Legal EntityOperating UnitTransaction TypeForeign or Domestic CurrencyForeign or Domestic LocationReporting Requirements

Payee PreferencesPayment Reconciliation to Open Debt

Invoice

Payment

Vision Operations

Payment Method Policy

Payee Payment Attributes

Payment Processing Configuration

Reporting Information and Styles

Payee Relationship

Payment Information

ENHANCED PAYMENT METHOD CONTROLS DESCRIPTION

Users can create new Payment Methods as needed A Policy can be defined for the Payment Method

usage based on: Oracle Application Legal Entity Operating Unit Transaction Type Foreign or Domestic Currency Foreign or Domestic Location

ENHANCED PAYMENT METHOD CONTROLS BENEFITS

Provide the ability to set up multiple Payment Methods to meet specific business requirements

Controlled availability of Payment Methods

ENHANCED PAYMENT METHOD CONTROLS PROCESS – ENTER PAYABLES DOCUMENT

• iSupplier Portal• Import

Supplier

Payables Analyst

Employee: Decentralized Invoice Entry• Payables Requests

• Quick Invoice• Invoice Workbench• Recurring Invoices

• Pay On Receipt Import• Payment Requests• Expense Reports

ENHANCED PAYMENT METHOD CONTROLS PROCESS – ENTER PAYABLES DOCUMENT

Payment Method defaults based on your configuration.

The attributes on invoices meet requirements to default the payment method via the Defaulting Rules.

The Disbursement System Options allow for the Payee’s default to override.

You can define a default payment method for the Supplier Site (for example, “Check”)

If you need to override the default, the List of Values displays the Payment Methods that meet the Usage Rules defined for the Payment Methods.

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – DEFINITION

Payment attributes are items on the document payable that play a role in: Successful payment processing of a document payable Reporting requirements Payee payment and remittance

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING DESCRIPTION

Global Descriptive Flexfields (GDFs) for payment and remittance processing are now available as fields on the invoice

Payee Payment Processing Preferences for Defaulting Bills Payable (Promissory Notes, Future Dated

Payments) defined for the Payee

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – BENEFITS

Enhance supplier/payee relationships Minimize data entry Facilitate payee’s reconciliation of payments and

open debts Satisfy reporting requirements

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING – ENTER PAYABLES DOCUMENT

Supplier

Payables Analyst

Employee: Decentralized Invoice Entry

• Payables Requests

• Quick Invoice• Invoice Workbench• Recurring Invoices

• Pay On Receipt Import• Payment Requests• Expense Reports

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - PAYMENT ATTRIBUTES DEFAULTING

For Payables users, the Invoice Workbench is accessed through the folder form technology.

The Payment Method, Remit To Bank Account Number and Name, and Remittance Messages are used to default to the Scheduled Payments.

Users can enter the Unique Remittance Identifier and Check Digit per invoice and Remittance Messages per scheduled payment.

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - UI

Quick Invoices: The Quick Invoices UI also has the same capabilities as Payment Attributes Defaulting

Payment Attributes for Recurring Invoices default under the Payment Tab. The Payment Tab values are transferred to the subsequent invoices that are created.

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION DESCRIPTION

Enhanced Invoice Entry Validation Configure validation on the Payment Method to meet

your business needs Analyze and resolve validation issues upfront at

invoice-entry timeEnhanced Payment Processing Validation

Configure validation on the Payment Format and Payment Process Profile to meet your business needs

Payment Manager can analyze and resolve validation exceptions or Automatically remove the Invoices to resolve issues while keeping payment processing streamlined

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION BENEFITS

Increased Payment Process Efficiency - On time Payments

Reduce Problem/Resolution Costs Reduce Check Stock Waste Catch Errors before send the file to the bank

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: SCHEDULED PAYMENT HOLDS

Find and resolve payment related issues upfront during Invoice entry: Payment Method Validation General Tab: Scheduled Payment Holds Scheduled Payments Tab: Hold Details

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION INVOICE: INVOICE ON HOLD REPORT

The Invoice on Hold report is a tool to identify and analyze all the invoice holds including scheduled payment holds.

The Invoices on Hold Report lists: Payment schedule holds for payment method validation Invoice entry status Imported invoice status

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION PAYMENT: PAYMENT PROCESSING CHOICES

During the payment process, determine what should happen if validation errors occur.

Separately, determine how you would like payment level validation issues to be handled.

The Payment Template User Interface is used when scheduling Payment Process Requests and can be used when submitting an “on demand” pay run allowing you to override the template value when you submit.

The Payables Payment Manager Home Page displays Payment Process Requests that Require Actions, including validation errors

The Pending Actions area displays payment process requests with validation errors

Based on the Payment Process Request Status, you are directed to the correct UI to manage the action by clicking on the Start Action icon

Use the Payables Payment Process Requests Tab to display rejected or manually removed scheduled payments (invoices.) In addition, you can: View the last 10 Payment Process Requests, which

are automatically displayed Show Request Details to see payment instruction

details Search/ See Current Status Navigate directly to the Action Page if

Required Cancel Requests

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING - BENEFITS

Reduce Reaction Time to Changing Banking Relationships - Flexible, Adaptable Payment Instruction Formats

Facilitate Payee’s reconciliation of payments and open debts

Satisfy Reporting Requirements

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING

Access the following setup pages from the Payment Administrator page: XML Publisher Format Templates Formats Payment Process Profiles

XML PublisherTemplates

Formats

Payment Process Profiles

PAYMENT INSTRUCTION FORMATS AND REPORTING XML PUBLISHER TEMPLATES

The Payment Instruction Register Template includes the Unique Remittance Identifier

To create a different report layout or include different data elements, create your new version and register it via this XML Publisher page

Formats

PAYMENT INSTRUCTION FORMATS & REPORTING XML PUBLISHER TEMPLATES

Formats

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING

The Formats page ties the XML Publisher Template to the Payment Disbursement Remittance Formats and Reports.

There are many types of formats available: Payment Instructions Payment Instruction Accompanying Letter Positive Pay File Regulatory Reporting Payment Instruction Register Separate Remittance Advice, which can

later be assigned to the Payment ProcessProfile

Formats

FORMATS & REPORTING PAYMENT PROCESS

Specify Usage Rules: Payment Methods ties the Payment Method to Payment Process Profiles

The Payment Process Profile is where you tie in your list of Payment Methods that can use this profile.

Formats

FORMATS AND REPORTING PAYMENT PROCESS

Specify Payment Creation Grouping Rules on the Payment Creation tab

Optionally Group by Document Payment Attributes The payment attributes on your invoices can be

used as grouping rules when “building or assembling” each payment This may be required to meet your bank’s

format needs or for your reports

Formats

Use the Payment Process Profiles screen to specify Payment Instruction Grouping Rules, including by Payment Attributes such as: Payment Reason Bills Payable Payment Methods

Formats

FORMATS AND REPORTING PAYMENT PROCESS

The Payment Instruction Format is assigned on the Payment Instruction Format tab

You can assign: The Payment Instruction Accompanying Letter format

Formats

Use the Reporting Tab to assign the formats for the: Payment Instruction Register Positive Pay File Separate Remittance Advice

Formats

SETUP PAYMENT METHOD CONTROLS AND ENHANCED PAYMENT

Configurable Payment Attribute Validation View available validations Payment methods Payment process format Payment process profile

Expanded Payment Method Instruction formats and reporting Controls Defaulting

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP

View Validations Payment Method Payment Instruction Format Payment Process Profile

Payment Method

Payment InstructionFormat

Payment Process Profile

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP CONSIDERATION

When determining how to configure Payment Attribute Validation, consider the Three Models: One Method, One Payment Process Profile (one

Payment Instruction Format – one set of reports) One Method, Many Payment Process Profiles (each

with one Payment Instruction Format – one set of reports)

Many Methods, One Payment Process Profile (one Payment Instruction Format – one set of reports)

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATIONSETUP: VIEW AVAILABLE VALIDATIONS

Validations can be assigned to Payment Methods and Payment Instruction Formats.

Validation Points indicate when the validation can occur and controls the list of values on Payment Methods and Formats.

Validation Points are: Document Payment Payment Instruction

Payment Method

Payment Format

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATIONSETUP – PAYMENT METHODS

Direct Deposit Payment Method In the validations area, assign pre-

defined validations or configure your own.

When configuring your own validations, choose a Field Name from the list of values.

Based on the field name, assign a validation name. For example, you can specify that the

Payee’s bank account is required and can be only integers and that a Payment Reason is required. Payment Process

Profile

Payment Method

Payment Format

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS FORMAT

Payment Instruction Formats: Pre-defined Validations for your use User-defined Validations provide flexibility Optionally Use User-defined Validations to

Supplement Pre-defined Validations

Payment Method

Payment Format

CONFIGURABLE PAYMENT ATTRIBUTE VALIDATION SETUP: PAYMENT PROCESS PROFILE

Payment Process Profiles include: The type of processing (electronic or in-house printing) Use controls based on a list of payment methods, bank

accounts, first party legal entities, and currencies Payment instruction and reporting formats Payment system configuration Payment creation rules

Payment Method

Payment Format

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY PAYMENT INSTRUCTION FORMATS AND REPORTING SETUP

Use “Out of the Box” Payment Instruction Formats and Reports or Configure XML Templates

Assign to your Payment Process Profiles

XML Publisher Templates

Payment Formats

ENHANCED PAYMENT METHOD CONTROLS SETUP

Define Payment Methods Define Payment Method Defaulting

Rules Specify Payment Method defaulting

mechanism Assign Payment Methods to the

Payee Payment Method Assignment

Payment MethodDefaulting Rules

Payment Methods

Disbursement System Options

EXPANDED PAYMENT ATTRIBUTE AVAILABILITY AND DEFAULTING - SETUP

Define Delivery Channels, Payment Reasons, and Bank Instruction Codes

Define Payee Payment Attributes

Tailor Invoice Entry UI with Oracle Folder Forms

Delivery Channels, Payment Reasons, Bank Instruction Codes

Payee Payment Attributes

Folders

Oracle Payables & Payments XML Publisher

AGENDA

SELF ASSESSED TAX DESCRIPTION

Self assessed taxes are taxes which need to be reported but are not a liability to the supplier

The purchaser is responsible for calculating and remitting the tax

SELF ASSESSED TAX FEATURES

Predefined or manual determination of Self Assessed Tax

Determine recoverable & non-recoverable portions of self assessed tax amounts

Reporting and accounting for Self Assessed Tax amounts

Reporting and accounting for Self Assessed Tax Liabilities

SELF ASSESSED TAX BENEFITS

Improved Fiscal Discipline Maintain an audit trail for the tax amounts and the

invoices they tie to More granular and accurate accounting

Improved Operational Excellence Reduced propensity for human error

SELF ASSESSED TAX PREDETERMINED PROCESS

Payables Invoice E-Business Tax

Invoice Header

Tax Engine

Configuration

Invoice Lines

Non Recoverable tax

Recoverable Tax

Self Assessed Liabilities

X.XX X.XX

Tax SummaryTax (Self Assessed)

Invoice details

Stored Accounting Information

SELF ASSESSED TAX PROCESS – 1. PREDETERMINED

Set up Invoice Tax calculation Accounting Reporting

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX: PREDETERMINED PROCESS – INVOICE ENTRY

Use the Payables’ Invoice Workbench to enter invoice header and lines information

Many tax drivers default onto the transaction, however, Payables users can also update or enter these values

The lines region displays some of the new columns added to help derive tax, including: Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX

To view the calculated tax, click the “Calculate Tax” button on the Lines tab

The E-Business Tax Service engine calculates tax based on it’s configuration, including determining if the tax should be selfassessed

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX EXAMPLE

Report

Set up

Invoice

Calculate tax

Account

Vision InvoiceInvoice Amount = $1000Self Assessed Tax Amount = $50

Suppliers InvoiceSubtotal = $1000Tax = $0Total = $1000

SELF ASSESSED TAX: PREDETERMINED PROCESS – CALCULATE TAX

On the Lines tab, you can click the Tax Details button to view tax details such as: Tax Regime Code Tax Jurisdiction Tax Status Rate Name Rate Tax Amount Whether the tax is self assessed

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX PROCESS – ACCOUNT

After validating and accounting the invoice, view the accounting by choosing Reports – View Accounting from the menu bar

Personalize the View to meet your needs Leverage Subledger Accounting to tailor

journal & journal line descriptions and account derivation rules

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX PROCESS – ACCOUNT

You can customize what is displayed on the Subledger Journal Entry Lines page

You can also configure Subledger Accounting for account derivation and journal & journal line descriptions

Self assessed rows are not shown in the Invoice Workbench Distributions Window because they are not represented on the supplier’s invoice

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX SETUP – REPORTING CHOICES

Subledger Accounting: Provides reports for your accounting activity Reports use XML Publisher, giving you the

flexibility to configure the layout and report type at any time

Reports include: Account Analysis Report Open Account Balance Listing report

Gives you flexibility to configure: XML Publisher Report Layout XML Publisher Report Type

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX SETUP – REPORTING CHOICES

To create a definition for the Open Account Balance Listing report , navigate to the Setup – Subledger Accounting – Open Accounting Balances Listing Definitions You can optionally create a definition for

yourself assessed tax liability account You have the flexibility to configure Open

Account Balances Listing: Report Definition

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX PROCESS – REPORT

Account Analysis Report

Open Account Balance Listing Report

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX MANUAL DETERMINATION PROCESS

Payables Invoice E-Business Tax

Invoice Header

Tax Engine

Configuration

Invoice Lines

Non Recoverable tax

Recoverable Tax

Self Assessed Liabilities

X.XX X.XX

Tax Summary

Invoice details

Stored Accounting Information

Tax (Self Assessed)

Tax (Payable to Supplier)

SELF ASSESSED TAX PROCESS – 2. MANUAL DETERMINATION

Set Up Invoice Tax Calculation Manual Tax Update Accounting and Accrual Reporting

Report

Set up

Invoice

Calculate tax

Account

Manual Update

SELF ASSESSED TAX: MANUAL DETERMINATION SET UP - E-BUSINESS TAX CONTROLS

You can set Configuration Owner Tax Options Tax Managers determine if they would like to allow tax

to be updated or not. The “Allow Override for Calculated Tax Lines” can be set for the configuration owner and application event class or on a particular Tax

Other Controls and Defaults you set include: Allow Override and Entry of Inclusive Tax

Lines Allow Entry of Manual Tax Lines Allow Mass Creation of Jurisdictions

Report

Set up

Invoice

Calculate tax

Account

Manual Update

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – INVOICE ENTRY

Use the Payables’ Invoice Workbench to enter invoice header and lines information

Many tax drivers default onto the transaction, however, Payables users can also update or enter these values

The lines region displays some of the new columns added to help derive tax, including: Ship To location Product Type Primary Intended Use Business Category Product Fiscal Classification

Report

Set up

Invoice

Calculate tax

Account

Manual Update

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX

To view the calculated tax immediately, click the “Calculate Tax” button on the Lines tab

The E-Business Tax Service engine calculates tax based on it’s configuration

Report

Set up

Invoice

Calculate tax

Account

Manual Update

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX EXAMPLE

Report

Set up

Invoice

Calculate tax

Account

Manual Update

Invoice HeaderInvoice Amount = $1000Tax Amount = $50

Suppliers Invoice

(Line 1) Item Type= $1000

(Line 2) Tax Type = $50

Total Gross = $1050

Total Net = $1050Tax = $0Total = $1000

Supplier’s Tax initially calculated for $50. Invoice lines do not total the Invoice header amount

SELF ASSESSED TAX: MANUAL DETERMINATION PROCESS – CALCULATE TAX EXAMPLE

Report

Set up

Invoice

Calculate tax

Account

Manual Update

Invoice HeaderInvoice Amount = $1000Self Assessed Tax Amount = $50

Suppliers Invoice

(Line 1) Item Type= $1000

Total Gross = $1000

Total Net = $1000

SETUP SELF ASESSED TAX

First party tax Supplier party tax

SELF ASSESSED TAX: PREDETERMINED SET UP FIRST PARTY, PARTY TAX PROFILE

You have the flexibility to configure First Party Establishments for Self Assessed Taxes at the following levels: Registration, Regime Registration, Regime, Tax Registration, Regime, Tax, Tax Jurisdiction

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX: PREDETERMINED SET UP – FIRST PARTY, PARTY TAX PROFILE

Enable Self Assessment on the Party Tax Profiles tab By checking the Set for Self Assessment/Reverse

Charge option at a particular level, E-Business Tax returns applicable taxes for supplier invoices that fall within the level For example, if you enable this option at the

Registration – Regime level, all invoices to be taxed within that regime will be considered Self Assessed tax

Report

Set up

Invoice

Calculate tax

Account

SELF ASSESSED TAX: PREDETERMINED SET UP – SUPPLIER PARTY TAX PROFILE

You can also set up a particular supplier’s Party Tax Profile by doing either of the following: Use the Tax Managers responsibility to query a Third

Party Navigate to the Tax Details page from the

Supplier (Entry) pages from the Payables Responsibility

Report

Set up

Invoice

Calculate tax

Account

Common Module Dependency:E-Business Tax

The e Business Tax engine is responsible for calculating tax amounts applicable to invoices

Also assists in automatically identifying taxes as self assessed and allows setting options for manual determination

Common Module Interaction: Subledger Accounting

Subledger Accounting is not specific to this feature but a general tool to configure accounting entries and to provide accounting reports to meet your needs

AGENDA

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS

An integrated solution to automate acquisition of complex services from Source through Payment.

Complex Service Contracts are characterized by: High dollar value projects Long lead time delivery schedules Progress payments based on work completion Advances and progress based financing options Retainage options

Commodities / Industries of Interest Professional Services Engineering and Construction Aerospace and Defense

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS

Strengthened financial discipline and corporate governance Ensuring billing compliance with the terms

negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within tolerance policies Providing workflow approval processing, history, and

controls Improved visibility into business, financial,

and compliance performance Real-time update of the purchase order,

adherence to budgetary controls, accounting and tax reporting provide transparency

COMPLEX CONTRACT TERMS KEY CONCEPTS

Progress Payment Schedule Represents a schedule of services and work with

associated payments Progress Payments

Payments for progress made on a Progress Payment Schedule

Pay Item Refers to a specific work/service component of the

Progress Payment Schedule, and its associated payment amount

COMPLEX CONTRACT TERMS KEY CONCEPTS

Progress Payment Rate Used on Cost Reimbursement Contract. Represents the

rate at which costs incurred by the Contractor are reimbursed

Contract Financing Typically used in Public Sector Contracts. Contract

financing is paid based on work performed or cost to date. If the contractually specified performance or cost milestones are met, financing is given to aid in the completion of subsequent work

ORACLE PROCUREMENT TO PAYABLES: HIGH LEVEL BUSINESS FLOW

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source

Requests for Services can originate from multiple sources:– Facilities Manager– Project Manager– Field Engineer– Architect

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source

Invite Suppliers to Sourcing EventNegotiate with Suppliers on:– Complex Payment Terms– Progress Payment Schedule– Clauses & Deliverables

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source

– Award Contract to best Supplier– Supplier and Contracting Officer sign off on Contract

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source

– Supplier requests the advance if provided for on the contract– The advance amount is paid to the supplier

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source

– Contractor reports progress– Progress is certified by Facilities Manager, and/or Project Manager

Request for Service

Advance Payment

TrackProgress

ProcessPayment

Author Contract

Source– Contractor submits Invoice for Progress Payments and Contract Financing– Retainage is applied– Financing is recouped– Payment is released

– Contractor submits Invoice for Progress Payments and Contract Financing– Retainage is applied– Financing is recouped– Payment is released

INTEGRATED PRODUCTS: HIGH LEVEL BUSINESS FLOW

Negotiate

TrackProgress

Invoice /Payments

Budget /Deliverables

Request for Services

RetainageRelease

CostCollection

OracleProjects

Procurement for Complex Services

Control

Advanced Procurement

Oracle Payables

ORACLE E-BUSINESS TAX SETUP: TAX CONFIGURATION

Prepayment Application Tax Handling Prepayment Application Tax Treatment: Select

Recalculate or Prorate option for the Applied Amount Handling field

BUSINESS FLOW: PAYABLES DISTINCTION

Request for Service

TrackProgress ERS

Author Contract

Source

Procurement Process

Advance Payment

ProcessPayment

Payables Process

CONTRACT DELIVERY INVOICING

Request for Service

TrackProgress ERS

Author Contract

Source

Procurement Process

Advance Payment

ProcessPayment

Payables Process

Supplier

Payables Analyst

Employee: Decentralized Invoice Entry

• Payables Requests

• Quick Invoice• Invoice Workbench

Pay on receipt import

INVOICE WORKBENCH: CONTRACT DELIVERY INVOICES

ORACLE PAYABLES: ENSURE BILLING COMPLIANCE

Ensuring billing compliance with the terms negotiated on the contract Automating retainage and financing recoupment Real-time update of the purchase order

Ensuring billing compliance when comparing billed verses planned Holds resolution process to manage issues when they does

not Verifying invoices fall within your tolerance policies

ORACLE PAYABLES: TOLERANCES AND HOLDS

Services Tolerance Template Payables uses the combination of PO Line Type and

Pay Item Line Type to determine which tolerance template to use.

Fixed Price Services: Lump Sum Pay Items = Amount Based Tolerance Checking

Fixed Price Services: Rate Based Pay Items = Quantity Based Tolerance Checking

ORACLE PAYABLES: TOLERANCES AND HOLDS

Milestone Pay Items have Zero Tolerance Quantity Based – Quantity must be a whole quantity

– Price and Amount exact Amount Based – Amount must be exact

ORACLE PAYABLES: HOLDS NOTIFICATION OPTIONS

Holds Resolution Workflow This feature enables you to release any hold that

can be manually released. You can:

Enable Hold Notification per Hold Set Notify and Reminder Days Add instructions to appear on the workflow notification

Includes two options: Release the hold Acknowledge the issue

ORACLE PAYABLES FOR COMPLEX CONTRACT TERMS BENEFITS

Strengthening financial discipline and corporate governance while reducing compliance costs by: Ensuring billing compliance with the terms

negotiated on the contract Automating retainage and financing recoupment Verifying invoices fall within your tolerance policies Providing workflow approval processing, history, and

controls Improved Transparency into your business,

financial, and compliance performance Real-time update of the purchase order,

adherence to budgetary controls, accounting and tax reporting provide transparency

ORACLE PROCUREMENT TO PAYABLES: SETUP OVERVIEW

Approval Rules

Tax Configuration

Set key profile options

Supplier Attributes

Document Style

Payables Options

Invoice Tolerance Templates

Change Order Tolerances

Financial Options

E-Business TaxApprovalsManagement

PayablesSystemAdministrator

Purchasing

ORACLE PROCUREMENT SETUP

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

The Purchase Order Document style defines the basic document rules of the Complex Work Purchase Order

You can setup specific document styles for the purchase of goods and have a separate document style for the purchase of services

PAYABLES SETUP: FINANCIAL OPTIONS

Setting up Retainage Account for the Operating Unit. Responsibility: Payables Navigation: Setup:Options > Financial Options

You can define one retainage account for the Operating Unit

The retainage distribution account on the invoice is used in the seeded accounting setup in Subledger Accounting.

PAYABLES SETUP – PAYABLES OPTIONS

Payables Option settings Responsibility: Payables Navigation: Setup:Options > Payables Options

Payables Option settings are not specific to this feature, however you may want to evaluate the Approval, Invoice, and Account tab options

Use the Payables Options window to enable Payables Invoice Approval

PAYABLES SETUP: INVOICE TOLERANCES

Global Tolerance Policies Set up New “Service” type provides central control over

tolerance policies for both Goods and Services You can define both percentage–based and amount–

based tolerances You can define many tolerance templates for goods

or services and then assign the most appropriate templates to the supplier sites

SHARED SETUP: SUPPLIER TERMS & CONTROLS

Supplier Terms & Control Set Up Tax Details: Tax registrations and options Receiving: Match Approval Level Purchasing: Self Billing Settings Invoice Management: Match Option, Retainage Rate

ORACLE APPROVALS MANAGEMENT SETUPAPPROVAL RULES

Approval Processing Setup Oracle Approvals Management is a common module

that allows you to configure rules which determine approvers for business transactions or activities

New Transaction Types in Release 12: Work Confirmation transaction type Payables Holds Resolution transaction type Payables Invoice Approval transaction type

ORACLE EBUSINESS TAX SETUP: TAX CONFIGURATION

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

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

Retainage Release: Tax on retained amounts ready to be released

First Party and Third Party Tax Profiles and Registrations

PREPAYMENTS: TAX CONFIGURATION EXAMPLE

1.Pick your Tax Regime & Tax2.Create a Tax Rule for All Transactions3.Add a Line Class condition: P2P Advance; P2P

Contract Financing4.Assign a Tax Rate for when the condition is True

Required Payables Purchasing Services Procurement Supporting Modules:

Workflow and Approvals Management

Optional Products Oracle Sourcing Oracle Procurement

Contracts Oracle iSupplier Portal Oracle iProcurement Oracle Projects

AGENDA

MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION

Multi-Org Access Control (MOAC) enables cross organizational processing and reporting on Operating Units in subledgers.

For example, you can select invoices across operating units for payment processing within a single pay run.

A security profile determines a user’s set of accessible Operating Units.

Enhanced Multi-Org Reporting Run several Payables reports at

ledger or ledger set level

MULTI-ORG ACCESS CONTROL IN PAYABLES DESCRIPTION

MOAC allows users of a single responsibility to perform task in multiple operating units without having to switch responsibilities.

Possible tasks include: Invoice Processing Payment Processing Run Reports, such as Posted Invoice and Payment

Registers, Open Account Balance Listing Run Concurrent Programs, such as Validation and Invoice

Import Close Periods

MULTI-ORG ACCESS CONTROL IN PAYABLES BENEFITS

Increase Efficiency Shared Service Center employees can be more

efficient because they can process transactions for multiple Operating Units.

Reduce Costs Reporting costs are reduced since users can submit

standard reports for multiple OUs as well as submit certain reports that gather data from multiple OUs.

Improve Timeliness and Accuracy of Information MOAC adds to the timeliness and accuracy of

information by providing a consolidated view of data across Operating Units, eliminating the need for manual aggregation.

MULTI-ORG ACCESS CONTROL PROCESS

OpenPayables setup formorPayables transaction form

Enter data foroperating unit and proceed to next task

PAYABLES PROCESS

Submit Concurrent Program OrStandard Report

Applicationchecksaccess privilege

Automated process

MULTI-ORG ACCESS CONTROL PROCESS, INVOICE ENTRY

There is now an OU field on the Invoice Workbench Select an Operating Unit, or enter another field,

such as PO or Supplier Site, from which the system will default the OU

The application automatically provides the operating unit of new (uncommitted) invoices during entry.

MULTI-ORG ACCESS CONTROL PROCESS, PAYMENT TEMPLATES

There is a new Payment Process Request Template Use to submit a “Payment Batch” Select invoices for payment regardless of their OU by

selecting the All option in the Operating Units region. You also have the ability to specify a list of OUs.

As in the invoice workbench, the list of OUs you can specify is determined by your security profile.

MULTI-ORG ACCESS CONTROL PROCESS, CONTROLLING PAYABLES PERIODS

On the Control Payables Periods form, with Multi-Org Access Control you can close periods for all Operating Units in a given Ledger.

Each Payables accounting calendar is associated with one ledger and its accounting calendar, defined in GL.

You can now access the Control Payables Periods window for all ledgers that correspond to the operating units that you have access to, as determined by your security profile.

MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING CONCURRENT REQUEST

There is a new OU parameter that you will when you submit a concurrent request in R12

When submitting the Invoice Validation routine, if you leave the OU parameter null, the routine will process data for multiple operating units in a single run.

Oracle Payables will process data for your set of accessible Operating Units, as determined by you Multi-Org Security Profile, defined in Oracle HRMS.

MULTI-ORG ACCESS CONTROL PROCESS, SUBMITTING STANDARD REPORT

Submit the Payables Posted Invoice Register or Payables Posted Payments Register for a Ledger or Ledger Set.

Oracle Payables includes data for all Operating Units that you have access to, as determined by your Multi-Org Security Profile, belonging to that Ledger/Ledger Set.

All other Payables Standard Reports now have an OU parameter that is mandatory and will set the context for that run of the report.

MULTI-ORG ACCESS CONTROL PROCESS, OPEN ACCOUNT BALANCES LISTING REPORT

Trial Balance is known as the Open Account Balances Listing report

It runs based on the Open Account Balances Listing Definition that you define

You can define the Listing Definition at a Ledger or Ledger Set level

MULTI-ORG ACCESS CONTROL SETUP

Define security profile &assign operating units

Run Security List Maintenance

Assign security profile to responsibility or user

GENERAL MOAC SETUP

Automated process

MULTI-ORG ACCESS CONTROL PAYABLES SETUP

Use the Payables Options form to set up: Payables Options Financials Options Supplier Sites

Payment Details Invoice Management Accounting Options Etc.

Withholding Tax Codes and Details

Integration with Procurement products may require setup and use.

SUMMARY

In this topic, you should have learned how to: Describe and use the new features in Release 12 of

Oracle Payables. Set up the new features in Release 12 of Oracle

Payables.

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