payables overview
DESCRIPTION
payablesTRANSCRIPT
Payables
Functional Overview
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Topics Covered Benefits Integration with Other Modules Overview Setups Defaulting Hierarchy Suppliers Holds Invoices Overview Invoice Types Recurring Invoices Banks Payments Payment Batch Prepayment Accounting Payables Close Process Steps to transfer data from Payables to GL Accounting
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Oracle Payables
•An expenditure management tool that streamlines your procure-to-pay process while providing strong financial controls and strategic information.
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Benefits of Payables
Reduce procurement cycle times Lowers administrative costs – transaction
processing cost Improves Cash Management Improve Relationships with Suppliers Support Global Fiscal Requirements Based on Best Practices prevailing in industry
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Benefits of Payables…
Correct Booking Of expenses (capital or revenue) In Right Accounts In Right Periods Schedules the payment for the invoice
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Oracle Payables Integrates with …
Oracle Purchasing Oracle General Ledger Oracle Cash Management Oracle Assets Oracle Projects Oracle Property Manager Oracle Lease Management Oracle Internet Expenses Oracle iSupplier Portal
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Oracle Payables Integrates with …Oracle HR Oracle Projects
Oracle EDI
Oracle Payables
Oracle Assets
Oracle General ledger
Oracle Purchasing
Oracle cashmanagement
OracleWorkflow
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ExpenseExpenseReports Reports
BanksBanks
Procurement Procurement TransactionsTransactions PayablesPayables
Projects Projects Asset MgmtAsset Mgmt
(Depreciation, (Depreciation, Maintenance,Maintenance,
Property Mgmt)Property Mgmt)
Cash MgmtCash Mgmt(Forecasts &(Forecasts &
Reconciliation)Reconciliation)
SuppliersSuppliersPayment Advice
Inquiries
Payments
Inquiries
Oracle Payables Integrates with …
Integrate All Payment Transactions
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Q
Which level do you think Payables operates ?How does it operate at that level?
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Enter Supplier Enter invoice Approve invoice
Create PO
Match to PO
Pay invoice
Create journal entries
Enter Requisition
Oracle Payables Overview
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Payables Setup
Lookup CodesSet of Books SelectionPayment Terms/Distribution SetsFinancial OptionsSuppliersBank AccountsPayable OptionsOpen Periods
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Payables Business Process Flow
Setup
Suppliers
Invoices
PaymentsFinancials optionsPayables Options
SupplierSupplier Site
Invoice BatchInvoice HeaderInvoice Lines
Payment BatchPayment Header
Payment line
Supplier / Invoice / Payment Inquiry
Period-End process
General Ledger
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Lookup Codes
Oracle Payables lookup codes allow user-defined data values . These data values are displayed in the List of Values list for selection during data entry.
Common Lookup Codes used in Payables Pay Group Vendor Types FOB Freight Terms
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Payables Period
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Financials
Payables
Suppliers
Supplier’s Site
Invoice
Invoice Distribution Line
Invoice Payment Schedule Line
Flow of Default Values
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Financial Options
• Oracle Payables Financials Options• Set the Accounting
- Defines the Default Accounting flexi field to create GL journal entries
• Supplier - Sets the supplier numbering scheme & match options
- Sets the supplier default payment terms and method
• Encumbrance• Tax• Human resource system parameters
- Defines the Employee numbering scheme and employee address for disbursement
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Payables Options
• Oracle Payables - Payables Options• Accounting Method
- Accrual / Cash basis
• Transfer to GL - JE summarization level to GL (Actg period / Acct Date)
- Journal Import (after payables transfer to GL )
• Invoice - Batch Control / Online Approval
• Expense Report
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Payment Terms
• Payment terms defines when the invoice is due for payment
• With Payment terms you can define % of Invoice due from specific date or on fixed date
• You can define payment terms with Discounts
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Distribution Sets
What is Distribution Sets ?
Types of Distribution Sets 1.Skeleton 2.Full
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QHow many discounts can I enter in payment terms ?What is cutoff date in Payment Terms ?How does you define Skeleton Distribution Set
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Supplier
• Set up new suppliers
• Set up Employees as suppliers
• Respond to Supplier and supplier site inquiries
• Select Supplier reports
• Merge Suppliers
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Supplier Information
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Supplier
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Supplier Site
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Tokyo Paris New York
Purchasing sitepay site
Pay site
Contacts Contacts Contacts
Supplier Site Architecture
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Run supplieraudit report
Identify duplicatesupplier
ABC Corporation
ABC corp
Merge suppliers
ABC Corporation
Review merge results
Maintain audit trail
Merging Suppliers
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Apply hold to the supplier site Invoices Apply hold to the selected Invoices Apply hold to the schedule payment Release Hold
Invoice Holds
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Pay Invoice
Invoice
Supplier
Invoices are part of Payable process
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Batch Invoices Enter invoice Match Invoices to PO
Approve InvoiceView InvoicePost Invoice
File Invoice Pay Invoice
Receive Invoicesin the mail
Invoice - Overview
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Payables - Invoice Types
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Processing Invoices
Navigate Invoices Entry Invoice Batches / Invoices
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Invoice Distribution types
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Batch Invoices Enter invoice Match Invoices to PO
Approve InvoiceView Invoice
Post Invoice
File Invoice Pay Invoice
Invoice matched to PO
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Credit Memo Negative amount Invoice created by a supplier and sent to you to notify you of a credit
Debit Memo Negative amount Invoice created by you and sent to a Supplier to notify the Supplier of a credit you are recording. Usually sent with a Note explaining the Debit memo
Credit Memo / Debit Memo
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• Define Special Calendar names
• Define Recurring Invoices Template
• Enter Recurring Invoice information
• Create Recurring Invoices
• Review Recurring Invoices
Recurring Invoices
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• Specify the interval for which invoices will be created
• Create up to two special one-time invoice amounts of a nonstandard amount, such as a deposit or balloon payment
• Define recurring invoices to increase or decrease by a fixed percentage from period to period
With Recurring Invoice template you can:
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Bank Setup
Create Payment Program Build Payment Format Define Bank and Bank Account Assign Payment Format with Bank Initialise Payment Document and Assign GL Accounts Assign Interest Rate and Bank Charges
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Set up Bank Details Define bank, bank branch information,
addresses and contact details Define Bank type (Bank/ Clearing House)
Set up Bank Account Details Define bank account information Define account type ( Internal/ customer/
supplier ) Define payment document for disburse
account
Bank Setup …. Contd
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Bank Setup
Navigate Setup Payment Banks
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Payments - Overview
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Payables Payment Method
Check-Paper Check to print and send to supplier
Clearing-Payment of Invoices transferred from one entitywithin the company without creating a payment document
Electronic-Electronic funds transferred to the bank of supplier
Wire-A funds transfer initiated by contacting the bankand requesting wire payment to the bank of supplier
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Disbursement Types
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• A Manual payment is a Payment that can create outside of oracle payables
• Handwritten checks
• Wire
• A computer generated Payment that can create and print to pay supplier for one/more Invoices
• Check run
• Electronic fund transfer (EFT)
Payment - Disbursement
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• Select Invoices•Build Payments•Format payments•Prints checks or create electronic payments•Confirm payments
Payment Batch
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Payment Batch – Auto Selection
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Cancel / Reverse Payments
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Prepayment
Enter prepaymentStatus = Unapproved
Approve prepayment Status = Unpaid
Pay PrepaymentStatus = Available
Create/Select invoice and apply to one or More prepayments
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Apply Prepayments to Invoice
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Accounting
Standard InvoicePaymentCredit Memo/Debit MemoPrepaymentFuture Dated Payment
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Payables Close Process
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3 Steps of Transferring Data from Payables to GL
Payables Accounting Process Payables Transfer to General Ledger Journal Import-Can be run from Payables/GL
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Thanks