Thursday, April 3, 2008

AP FAQs

FAQs in AP –

  1. How do you set up voucher number in AP?

A: By setting up in the Sequential number in System administration module.

  1. Can I have two sets of voucher numbering for different periods for e.g.one from 1st april to 31st march 99 and another from 1st April 2000 to 31st march 2001.

A: Yes, define different sequences.

  1. What is the profile option for voucher number?

A: Sequential Numbering

  1. Can I have Multiple currency Bank accounts ? If so how do I set it up?

A: Yes, Payable option and define Bank screen.

  1. Explain the procedure for dealing with cash transactions including advance made in cash and return of cash?

A: By Creating a dummy cash bank.

  1. If I do not have a foreign currency Bank account, tell me whether I can raise a foreign currency Purchase order and pay for it in Functional Currency?

A: No.

  1. Can I define Invoice type? Is It a quick code?

A: No.

  1. What is a 4 way match?

Or

Describe the 4 way matching?

A: Quantity billed <= Quantity ordered;

Invoice Price <= Purchase Order price.

Quantity billed <= Quantity received.

Quantity billed <= Quantity accepted.

Or

Quantity billed <= Quantity ordered, received and accepted and

Invoice price <= Purchase Order price.

  1. How do I make payment for a demand draft?

A: Either define a dummy supplier or enable the flexfield in the payment screen and write a alternate check printing program.

  1. Explain the procedure for transferring the asset from AP to FA?

A: Transfer the invoices to GL

and

run the Create Mass Additions Program.

  1. Can I create recurring invoices for prior periods?

A: No.

  1. Can I set approval hierarchy for expense express amounts.

A: Yes.

  1. What is a pooled account and what does it do?

A: A pooled bank account is one that is shared by multiple companies in the balancing

segment.

  1. Where do you define the accounting information for a supplier?

A: At site level.

  1. What types of Distribution Sets can you use for a recurring invoice?

A: Only of the type “Full”

  1. What are the different type of Holds?

A: System Holds,

Manual Holds,

Supplier Site Holds.

  1. For what purposes is the special calendar defined?

A: Recurring Invoices,

Key Indicators Report and

With holding Taxes.

  1. Difference between permanent prepayment and temporary prepayment?

A: Permanent is for long term deposits like telephone deposit, electricity deposit etc.

  1. Can you change permanent prepayment to temporary and vice versa at a latter date.

A: Yes.

  1. Maximum number of discounts that can be given to each payment line?

A: Three, However we can give more times by splitting the amounts in to multiple lines.

***

  1. Can you use Automatic offsets and allow reconciliation?

A: NO.

***

  1. Can you use withholding taxes along with automatic offsets?

A: No.

  1. Can you reuse skipped and spoiled cheks?

A: We can reuse skipped checks. But Not spoiled cheks.

24. Can you account for a payment without accounting for an invoice?

A: You must account for the invoice prior to accounting for the payment. If you try to account for the payment you will receive the following error in the log file: Cannot Account for GENERIC bank account?s check number XXXXXX because the Invoice that it pays, is NOT accounted.

25. What does the Unaccounted Transaction Sweep Report do?

A: The Unaccounted Transaction Sweep Report shows which transactions will be re-dated to the next open period if you run the Unaccounted Transaction Sweep program.

26. Which Tables are updated by the Payables Accounting Process (APACCENG)?

A: The Payables Accounting Process APACCENG writes to the following tables:

AP_ACCOUNTING_EVENTS_ALL
AP_AE_HEADERS_ALL

AP_AE_LINES_ALL

For invoices it updates the ACCOUNTIGNG_EVENT_ID in AP_INVOICE_DISTRIBUTIONS_ALL
For payments it updates the ACCOUNTING_EVENT_ID in AP_INVOICE_PAYMENTS_ALL
For clearing events it updates the ACCOUNTING_EVENT_ID in AP_PAYMENT_HISTORY_ALL

27. Are there accounting entries created for payments and payment cancellation when they have the same accounting date?

A: If the payment is voided before accounting for the payment the system will change the payment and payment cancellation to accounted YES, however, the accounting entries are not viewable. The Payables Create Accounting process does not create entries in AP_AE_LINES_ALL for these transactions. To prevent this you must account for the payment prior to voiding the transaction.


28. What reports should I run before closing the period?

A: Run the following reports:

Invoice On Hold Report - review holds and release any accounting holds

Unaccounted Transactions Report - review the transactions that need to be posted or

swept to the next period before closing

29. Why can’t I enable the Multiple Currency Payment check box?

A: We have not enabled the "Use Multiple Currencies" Payables Option and/or our bank account currency is not in your functional currency.

30. Why are the Receivable Options and More Receivables Options choices not available from the alternate region drop down box?

A: Oracle Receivables is not fully installed. You will not see these choices if Oracle Receivables is

not installed or is a shared install.

31. Why doesn’t "Supplier" show up in the list of values for "Account Use" in the Bank Account Form?

A: You have not enabled the ‘Use Multiple Supplier Banks’ Payables Option in the

Payments alternate region.

32. Why do I get a ‘Choose Valid Combination’ message when I attempt to select an account, and why is the List of Values button disabled for the GL Account fields for my new organization?

A: We need to select a set of books. Make sure you select the correct set of books for the System Profile Options GL:Set of Books Name and GL:Set of Books ID.

And

select the correct set of books in the Payables in the Set of Books screen.

(N) Setup :Set of Books :Choose

33. When creating a payment document, do I need to specify a ‘Last Available’ number?

A: If we intend to only have one payment document, there is no need to specify a ‘Last Available’ number, so we will never reach a maximum. We should specify a "Last Available" number only if you want to create another payment document for that bank account.

***

34. Do Bank Branch Numbers have to be unique?

A: Yes, to allow BACs and funds transfers.

35. Do Bank Account Numbers need to be unique?

A: Within a Bank Branch, Bank Accounts must have a unique number and for the same currency and account use. (i.e., They must also have a unique name for the same currency and account use. )

36. Why can’t I update the Last Available field for the payment document?

A: Most likely, the document is in use by a payment batch or Quickcheck. Cancel any batches that are not confirmed or already canceled or Quickchecks that are not formatted, which are using this payment document.

  1. What formula should I use to balance AP to GL?

A: Use the following as an example of how to balance. In this example, you are closing your accounting period for April and you have just posted your final invoice and payment batches to your general ledger system.

To reconcile your accounts payable activity for April, make the following calculation:

"Accounts Payable Trial Balance" as of March 31
+ "Posted Invoice Register" for the period between April 1 and April 30
- "Posted Payment Register" for the period between April 1 and April 30
= "Accounts Payable Trial Balance" as of April 30

Reconciling AP to GL is accomplished with the use of the following reports.

"Posted Invoice Register"

"Posted Payment Register"

"Accounts Payable Trial Balance" (current and last period)

These reports ensure that your Trial Balance accurately reflects your accounts payable liability by matching the Posted invoices and payments with the AP liability account. You can also compare your AP liability accounts to GL by doing a query of the accounts in GL to identify the account or accounts out of balance. The trial balance total should be the same as your GL liability account.

If not:

Run the GL "Account Analysis" report for the liability account and for the date range in question. Look for transactions with a source other than Payables. This can quickly pinpoint any transactions incorrectly charged to the account. Make sure that you have not made manual journal entries to your liability account in General Ledger.When you identify the accounts you go back to AP and do a query on the account to find the invoices out of balance.

The last step is to create a journal entry in GL to balance the account or accounts that is out of balance.

(Additional Information on Reconciling AP to GL:

Note 160267.1 “How to Reconcile Between Accounts Payable and General Ledger”

Note 175057.1 “AP Does Not Tie to GL- Checking the Interface Tables”)

38. How is the as-of-date used in the "Accounts Payable Trial Balance" report?

A: The as-of-date is used to determine which invoices and payments should be included on the report. Any invoices or payments with an accounting date AFTER the entered as-of-date will not be displayed on this report.


  1. What's the difference between the "Payables Open Interface Import" program and the "Payables Invoice Import" program?

A: The "Payables Invoice Import" is designed to import expense reports. The sources

are:

XpenseXpress
SelfService
Oracle Project Accounting

The "Payables Invoice Import" should be used to import expense report data from the Invoice Import Interface Tables (AP_EXPENSE_REPORT_ HEADERS&LINES).The expense report data is from expense reports you enter in Payables, Self-Service Expenses, or Oracle Projects.

The "Payables Open Interface Import" program was designed to accomplish high volume invoice import complete with all of the features of online invoice entry, including these sources:

INVOICE GATEWAY
EDI GATEWAY
User Defined Source
CREDIT CARD
Oracle Property Manager
ERS
RTS
PA_IC_INVOICES

Note: Effective with Release 11i, all invoices from external sources should be loaded into Payables via the Open Interface. In order to more accurately reflect the program's use, the Payables Invoice Import program has been renamed Expense Report Import since it now imports only expense report information. It is NOT SUPPORTED to use Expense Report Import program to import external expense reports in release 11i.

  1. How does the Payables Open Interface work?

A: The AP Users Guide includes an appendix detailing exact steps required when creating an invoice in the Payables Open Interface Tables. This information is also contained in the On-Line Help accessed through your application. These documents along with other relevant information on setup and usage can be found in the Expense Report and Open Interface Import Setup and Usage Guide available on Metalink.

  1. Are there any limitations on the number of invoices you can import using the Payables Open Interface Import?

A: There is no program dependent limit on the number of invoices that can be imported using Open Interface Import.

  1. Should data exist in the AP_INTERFACE_CONTROLS table if the import process is not running?

A: Unless the Import program terminated in error, there should be no row in this table. A row is inserted into this table when import is submitted and, upon a successful completion, the row is deleted.

  1. How can I fix Invoices that have been Rejected?

A: You can view or fix the invoices loaded into the Payables interface tables for the Payables Open Interface Import in the Open Interface Invoices form. In 11i Go to Invoices/Entry/Open Interface Invoices.

If the source is Invoice Gateway use the Invoice Gateway form under Invoices/Entry/Invoice Gateway.

  1. How is the GL Date (Accounting Date) on imported invoices assigned?

A: Based on System Defaults

1. Navigate: Setup > Options > Payables
2. Go to the Alternate Region: Invoices
3. Set the Field, GL Date Basis.

*?*?*

  1. How are Freight Lines Calculated and are they excluded from invoice discounts?

A: Appendix G in the 11i Users Guide Provides details on how to populate a freight line when importing your invoices. Note 191736.1 provides detailed instructions for importing a freight line and excluding the line from invoice discounts.

  1. Why can't I import Debit Memo's or Mixed invoice types?

A: The Open Interface Import has always limited the application to invoice types of 'Credit' and 'Standard'. As a result of customer requests for expanded functionality in the Open Interface Import, Enhancement Request (Bug) 2217038 was logged. This enhancement has been approved for a future release and will allow for Mixed invoice types to be imported. No release date has been set for this new feature.

*?*?*

  1. My import process failed. Is there a way to get a more detailed log file so I can identify the cause?

A: Yes ? Please review Note 198799.1 for more information on running Payables programs and reports in debug mode.

  1. Is it possible to import paid invoices (historical invoices) from my legacy system?

A: No, there is currently no supported method for importing paid invoices. Oracle Consulting is available to assist in data-migrations efforts and has significant experience in these types of tasks.

The most commonly used consulting solution is the following:

1. Import invoices into AP invoice interface tables,
2. Run Open Interface Import to import them into AP,
3. Run Approval process to approve them,
4. Run Payment Batch process to pay them.
5. Run the Transfer Process (without importing to GL)
6. Delete the records out of the GL Interface Table.

11. How do I assign a Pay Group to an invoice?

A: The Pay Group (PAY_GROUP_LOOKUP_CODE) value is loaded into the invoice table (AP_INVOICES_ALL) as records are imported via the Payables Open Interface Import program.

The PAY_GROUP_LOOKUP_CODE column is stored in AP_INVOICES_INTERFACE and should be populated when you create your invoice import records in the following tables:
AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE


  1. If the Group ID is not entered, how is this interpreted during the Import Process?

A: If the group ID parameter is left null, this is considered the same as ALL groups for that import source.

  1. Can Sales Tax Be Calculated During Invoice Import?

A: Yes, all line level calculation occurs during Payables Open Interface Import when Import creates distributions based on the invoice lines.

Do not use Header level calculations

(For more information please see: Automatic Tax Calculation Overview in the Oracle Payables User Guide. )

14. There are several columns in the new AP_INVOICE_LINES_INTERFACE table (ex: balancing_segment, cost_center). If more than one is entered which one is used?

A: The hierarchy is described in Detail in the Payables users guide ?Open Interface Import? appendix. You can download this document from the following link: Expense Report and Open Interface Import Setup and Usage Guide.

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15. Document Sequencing: How do I Setup Document Sequencing in Oracle Payables?

A: Please do the following:

Responsibility = System Administrator

1. Create Document Sequence
Application>Document>Define
A sequence can be Manual or Automatic.
If it is Automatic an Oracle Sequence Object will be created starting
at the designated beginning number and that sequence will be used to
generate the document numbers. After a record in this form is
saved, and type = Automatic, a Concurrent Process is submitted to create
the Oracle Sequence.

2. Examine Document Categories
Application>Document>Categories
There are numerous document categories already defined for Oracle Payables.
The default category used in creating Voucher numbers for Payables Invoices
in the Invoice Workbench is STD INV.
If the Payables "Option Allow Document Category Override" in the
Invoice region is checked, the Document Category can be changed to any category
that has a Table Name of AP_INVOICES_ALL.

3. Assign Document Sequence to a Category.
Application>Document>Assign
In the Documents Region, indicate the application, the document category,
the set of books, and the method of entering the sequence number.
The method is Automatic, Manual, or Null.
THIS IS THE MOST COMMON SOURCE OF ERROR.
The method is used to tell the system how the record is being created:
a. Manual means that the record is being created by a form such
as the Invoice Workbench.
b. Automatic means the record is being created by a Concurrent
Process such as Invoice Import.
Setting the assignment as Automatic, will result in an error when
trying to enter an invoice using the Invoice Workbench.

???

  1. Does the Open Interface Process Handle the Import of Prepayments?

A. Enhancement 195601 has been logged to address this issue. This enhancement is currently going thru the review process. (Please follow 195601 for updates.)

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

? * ? * ? Answers are subject to modification.

_

  1. Describe the Payment Terms and Discounts?
    1. The payment Terms which tells us the installments of a purchased goods or services.

The Discount is it will depends upon the Discount dates.

  1. A Vendor must compulsory have what?
    1. Primary Address
  2. Is there any chance to create Vendor only once? If where should you create?
    1. Yes, enable the check box against – One time Supplier in the Vendor Classification screen.
  3. Can you create a Duplicate Vendor, If Give the Details?
    1. No.
  4. Vendor Number Should be Generate Automatic or Manually?
    1. Both, Manual and Automatic.
  5. How many Types of Invoices we can create in Oracle Payables Describe?

Or

What are the types of invoices used in payables?

    1. Standard,

Debit Memo,

Credit Memo,

Pre-Payment,

PO Default,

Quick Match,

Interest Invoices,

Mixed Invoice,

Expense Report,

Withholding Tax.

  1. How many Holds we have? Describe each in one line.
    1. System Holds – Tax, Quantity Match, PO amount with Invoice amount etc.

Manual Holds – Invoice Limit, Hold on Invoice

Supplier Site Holds.

  1. Can you release Manual Holds? If How?
    1. Yes. Holds – Release Holds.

  1. How many ways you can pay the Invoice Amount describe?
    1. Apply in Full,

Schedule Payments,

Installments.

  1. Can you cancel an Invoice? How?
    1. Yes, Action 1 – Cancel Invoice.

???

  1. The Debit Memo and Credit Memo are same ? Describe.

  1. How can you match PO with Invoice? What you should not take in the Invoice?
    1. Match – PO number and Distribution Set.

  1. What you should take care when you match Debit / Credit Memo with an Invoice?
    1. The Invoice should match with PO.
  2. How will you group a similar type of Items?
    1. Items list.

  1. How many Payment Types U have?
    1. Quick and Manual.

  1. How will the system calculate the Discount?
    1. Discount Date.

  1. What is a Distribution Set?
    1. The Compnenst of the invoice like Cost of Goods, Freight and Tax.

  1. What is a Prepayment? Describe? How many we have?
    1. The advance amount. Vendor and Employee.

  1. How will the End-users knows on a Particular Supplier - How many prepayments have Describe?
    1. The Invoice screen after selecting the Vendor Name.

  1. How will you apply the Prepayment?
    1. Actions 1 – Apply / Un-apply Prepayment

  1. Can you pay unapproved Invoice Amount, if How?
    1. No. We have to approve it and then only we can pay.

  1. What is Expense Report and Template?
    1. The Template is the Expense Items on an Employee, the Expense Reports gives the anticipated expenses of an employee in our organization.

  1. What are the 2 important points you should take, when you are raising a Expense Report of Invoice?
    1. One is the Vendor Scren you have to take type is Employee and the second one is in the Prepayment invoice the settlement date you should take care.

  1. Can U allow Zero Payments? If How?
    1. Yes, if we enabled the Allow Zero payments check box in the bank screen of the Payments option.

  1. Can U pay Debit & Credit Memos Amount?
    1. No.

  1. Can U Enter Backdated Recurring Invoices? If how?
    1. No.
  2. What is the Prerequisite for Recurring Invoices?
    1. Special Calendar.

  1. How many sites exist for payment of invoices to employees?
    1. Two. Home and Office.

  1. How will you transfer the payable date to GL? What is the Interface Name?
    1. Payables Transfers to GL, It is Feeder System Interface.
  2. Oracle Payables does not allow entry of invoices if a period status. What is it?
    1. Closed.

Oracle Payables - Multiple Reporting Currencies (MRC) with Oracle Payables

1. Q: General: What is MRC and why do I need to know about it?

A: The Multiple Reporting Currencies (MRC) feature in Oracle Applications allows you to report and maintain accounting records at the transaction level in more than one functional currency. The Multiple Reporting Currencies feature is available in Release 11 of Oracle Applications. You should consider using MRC if you are conducting business in one or more of the following scenarios:

Hyperinflationary Economy: You operate in a country with unstable currency, making it unsuitable for managing your business. As a result, you need to manage your business in a more stable currency and still be able to report your transactions and account balances in the local currency to satisfy local statutory requirements.

Multinational Company: Your company is multinational, and you need to report financial information in other functional currencies, in addition to your primary functional currency, at the transaction level.

European Monetary Union (EMU): You operate in a country that is a member of the EMU, and you want to concurrently report in the EURO currency to ensure a smooth transition to the pan?European currency.

2. Q: General: Is MRC functionality available in Release 10.7?

A: No. MRC was only beta-tested in a few selected Oracle Applications Release 10.7 customer sites.

3. Q: General: Do I need to run the Transactions Upgrade Minipack if this is a fresh install?

A: No, the Transactions Upgrade Minipack is only for those customer who are upgrading.

4. Q: General: I want to install both Multi-Org and MRC. Which order should I do this?

A: Install Multi-Org first, then MRC.

5. Q: General: Is there a script that we can use to compile invalid MRC objects?

A: The Compile APPS schema option from the ADADMIN utility compiles both APPS and APPS_MRC schema objects.

6. Q: Transactions: Is it possible to make changes to my Primary set of books that I do not want to transfer to my Reporting set of books?
Would I just not post the entry in my reporting book?
Can I just enter a manual transaction in my Reporting without affecting my Primary book?

A: Any updates you do in primary will be done in reporting set of books. There is no way to stop this. You cannot update anything directly in reporting set of books.

7. Q: Transactions: Can you make an adjustment to one of your books without affecting others?

A: No.

8. Q: Posting: Can I post to my primary set of books and my reporting set of books at the same time?

A: Yes, there is a new feature called One Step Subledger Processing that is available as of May 2000 the MRC Micropack 1259490 or in any subsequent micropack or new release. Prior to this patch, you would need to run the Payables Transfer to GL in your primary set of books and every reporting set of books manually.

9. Q: Report: We are having problems with the AP Trial Balance report when using MRC and AX (Global Accounting Engine) together.
When starting the ?AP Transfer to GL? process (APPPST) from the primary set of books, the AP_TRIAL_BALANCE table is populated. When starting the same process from a reporting set of books, the AP_MC_TRIAL_BALANCE table is populated, not the AP_TRIAL_BALANCE table. Are there different APPPST-processes used in the primary and reporting set of books?

A: The Payables Transfer to GL program (APPPST) is the same. However, when you run it from primary it is connected to "APPS" schema. When you run it from reporting you are connect to apps_mrc schema, and it is puts data into AP_MC_TRIAL_BALANCE through view AP_TRIAL_BALANCE_MRC_V.

10. Q: How do I determine whether MRC is installed?

A: Please review note 104854.1.

11. Q: How do I use the MRC - Multiple Reporting Currencies Reports?

A: Please review note 186398.1

12. Q: How do I open and close periods using MRC with Payables?

A: If you are using MRC with Payables, you must open and close periods in your Primary set of books ONLY.

MRC automatically opens and closes periods in all associated reporting sets of books.
NOTE : You cannot close a period until you have posted all outstanding transactions to General Ledger in both your primary and associated reporting sets of books.

Refer to Multiple Reporting Currencies Release 11i April 2002 Page 4-28

13. Q: How does MRC handle Subledgers transactions?

A: 1. Subledger transactions are converted into your reporting functional currencies at the time of the
original entry.
2. The primary functional currency amounts and their associated reporting
currency amounts are stored together in your subledgers.

NOTE : Because conversion occurs at the time of original entry, reporting currency amounts are always correlated with their associated primary currency amounts.

Refer to Multiple Reporting Currencies Release 11i April 2002 Page 1-7.

14. Q: How are accounting entries using MRC with Payables?

A:1. Run the Create Accounting process from your primary responsibility.
2. This will create accounting entries in the primary and reporting sets of books.

Refer to Multiple Reporting Currencies Release 11i April 2002 Page 3-17.

15. Q: How do I transfer accounting entries from Payables to General Ledger in an MRC environment?

A: Following methods are available to transfer accounting entries using the Payables Transfer to General Ledger process :

1.TRANSFER AND IMPORT from Primary Set of Books and All associated Reporting Set of Books
This is the preferred method.

2.TRANSFER AND IMPORT from the Primary Set of Books OR Any Reporting Set of Books
separately

3.TRANSFER ONLY from Primary Set of Books and All associated Reporting Set of Books to be followed by separate IMPORT and POSTING within each Primary and Reporting Set of Books

4.TRANSFER ONLY from the Primary Set of Books OR Any Reporting Set of Books separately to be
followed by separate IMPORT and POSTING within each Primary and Reporting Set of Books


From Mr. Praveen

  1. What are the modules that are interfaced with Oracle Payables?

A Purchasing, General Ledger.

  1. How does the information defaults in payables?

A

i. Financial Option

ii. Payables Options

iii. Supplier

iv. Supplier Site

v. Invoice

vi. Distribution

vii. Schedule of Payment

  1. What is a distribution set? What are the types of distribution set?

A Distribution set is to automatically distribute Invoice amount between different GL Account Code Combinations.

2 Types, Full distribution Set and Skeleton Distribution Set

Full Distribution means we know the exact percentage and exact account Code combination. The sum of the distribution percentages must equal 100 or 0.

Whereas in Skeleton Distribution Set, we don’t know the percentage but we know the GL Account Combination. So percentage should not be entered here.

  1. What are the encumbrance options for AP? How are they used?

A Requisition Encumbrance, and PO encumbrance available in Financial Option.

Encumbrance is used to reserve the funds at the time of raising the Requisition or creating of PO.

  1. What are the different types of supplier sites?

A

i. Pay,

ii. Primary Pay,

iii. RFQ,

iv. Purchasing,

v. Procurement Card.

  1. What are the types of accounting methods?

A Accrual and Cash.

  1. What is Automatic Offset Method?

A Payables automatically create balancing accounting entries for your invoice and payment transactions.

Three types of Offset Methods

1. None,

2. Balancing, and

3. Account

  1. What is a pay group?

A Pay Group is to group invoices into supplier category for payments.

  1. How do you create interest invoices?

A In Payable Option under Interest Tab – enable the Check box against Allow Interest Invoices.

Enable this option if you want to allow Payables to calculate interest for overdue invoices and create interest invoices for selected suppliers.

Payables automatically creates interest invoices when you pay overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice using a manual payment, Payables warns you that interest is due on the invoice and you should pay the invoice in a payment batch or with a quick payment.

  1. What is GL Date Basis and Prepayment settlement days?

A The date you want Payables to use as the default accounting date for invoices during invoice entry.

i. Invoice Date : Invoice date you enter during invoice entry.

ii. System Date: Current date for your Payables system. The date you enter the invoice.

iii. Goods Received / Invoice Date : Date that you enter in the Date goods Received Field. If no value is entered, then the invoice date is used.

iv. Goods Received / System Date : Date that you enter in the Date Goods received field. If no value is entered, then the system date is used.

Prepayment Settlement Days: Number of days you want Payables to add to the system date to calculate a default settlement date for a prepayment. Payables prevents you from applying the prepayment to an invoice until on or after the settlement date.

  1. What are levels of tax calculation?

A Level at which the tax has to be calculated.

Levels: Line level,

Header Level and

Tax code level

  1. What is additional Pay Through Days?

A Days specified in this column is added to the system date to select the invoice for payment which has the maturity date falling within these days.

  1. What is Term Date Basis and Pay Date Basis?

A Term Date Basis- Date from which the due date will be calculated base on the payment term.

Pay Date basis – Selection criteria of invoices based on the due date or scheduled discount date.

  1. What is withholding invoice and what are its steps?

A Invoice created on the withheld amount that has to be paid to the tax authority from the supplier.

Types : Manual and Automatic withholding. (Only when allow manual withholding is enabled manual creation of invoice is possible).

Steps : Enable use withhold invoice, Select option when to apply and to create withhold invoice.

  1. What are the types of Payment terms?

A Immediate,

30 Days,

Fixed due date,

Installments,

Proxima.

  1. What are holds in payables? How are they defined?

A Hold means – Restriction on the invoice for further processing.

Types – Manual and system holds.

User can define any types of holds and can be attached to the invoice to stop further processing.

  1. How do you create a foreign currency invoice and a foreign currency payment?

A Any invoice that has been created from other than the functional currency.

Steps: Payables option, in Currency tab – Enable Use Multiple Currencies.

Making foreign currency payment

In the payment format enable multiple currency option and in bank enable multiple currency payments under payable option tab.

  1. What are Expense Report and Expense Report Template?

A Defining default values for expense items, and you can then choose those items from a list of values when you enter expense reports.

  1. What are recurring invoices?

A A feature that lets us create invoices for an expense that occurs regularly and is not usually invoiced.

Monthly rents and lease payments are examples of typical recurring payments.

  1. What are the prerequisites for entering a Standard Invoice?

A

i. Supplier,

ii. Supplier Site,

iii. Payment Term,

iv. Payment Method,

v. Distribution Set (Optional).

  1. What are Tax Recovery Rules?

A Rules defined for the amount of taxes that has to be recovered which is usually a function of the nature (or intended use) of the taxable item.

  1. What are payment formats and payable documents?

A Format in which the stationary has to be builded i.e, where the attributes or the contents has to be placed.

Payment document is the actual negotiable or the legal document presented to the supplier.

  1. What are the types of payment methods?

A

i. Check,

ii. Electronic,

iii. Wire,

iv. Clearing,

v. Future dated (Bill of exchange).

Two places we can assign the payment method –

- Supplier payables Tab, and

- The override option at supplier site level – Payable tab.

  1. What are the different types of payments?

A Manual, Quick and Refund.


  1. What are the different types of taxes used in payables?

A

- Sales,

- Use tax,

- Offset,

- User-defined,

- Withholding Tax.

  1. What are the Withholding taxes? How are they applied on invoices in payables?

A Used for deducting part of amount from supplier invoice towards Tax.

3 Types:

Flat Rate: Flat rate for all invoices.

Period: Amount is specified for that period, beyond which the tax is not withhold with use of special calendar.

Amount: Gross Amount – Invoice and period.

Withheld amount – Invoice and period.

  1. What are Withholding Exceptions and Certificates?

A You define a certificate to specify a rate exception for a Withholding Tax type tax code for all invoices of a supplier site.

Withholding Exceptions:

You define exceptions on the applied withholding tax type tax code rate assigned to a invoice number.

  1. What is Future dated payment method?

A Payment of invoice where the due date (maturity date) falls in the future.

Ex: Bill of exchange.

Steps: Enable future date use in the future dated payments tab at the payables document.

  1. How do you control accounting periods in payables?

A Setup > Accounting > AP Accounting Periods

There is option of toggling between various status.

- Never opened,

- Future

- Open

- Closed

- Permanently Closed.

  1. What are payment programs?

A The following are the Payment Programs which is used in the payment batches.

i. Build Payment Programs

ii. Format Payment Programs

iii. Separate Remittance Programs

Build Payment Programs

It groups the Invoices of the suppliers in the manner in which payment should be made.

Build Payment Programs

This program is used to know the layout of the payment documents and accordingly format the payments.

Separate Remittance Programs

If the Payment Documents does not contains the Remittance advice, then we need to run the Separate Remittance Programs other. This will run along with Payment Documents.

  1. What is the difference between entering invoices in Invoice Gateway and Invoice Workbench window?

A Invoice Workbench used for entering and maintaining more complex invoices for which you require extensive online validation and online defaulting where as Invoice Gateway used for you everyday entry of invoice records. Use this window for rapid, high-volume entry of Standard and Credit Memo invoices that are not complex and do not require extensive online validation or defaulting of values during entry.

When you use the Invoice Gateway, you enter invoice header and line information in the same window, and can view only one record at a time. In the Invoice Workbench, you enter invoice header information in the Invoices window, and the related invoice distributions in the Distributions window. You can view multiple invoices at the same time in the Invoice window.

In the Invoice Workbench, we can enter and apply prepayments. In the Invoice Gateway we cannot enter prepayments, but we can apply existing prepayments to invoices you enter.

  1. What are the tables involved in AP Invoice Interface?

A AP_INVOICES_INTERFACE

AP_INVOICE_LINES_INTERFACE

  1. What is a Proration of Invoice lines?

A When you check the Prorate in the Invoice Lines it will prorate expenses and Tax according to the Proportion of Line amount in the Invoice.

  1. What are offset taxes? Where it is used?

A Offset tax codes are used to record self-assessed taxes on invoices, while reducing or completely offsetting tax liability.

Offset taxes have negative – amount rates, so when you use them, you enter negative – amount invoice tax distributions.

If used in European Union, if you are a member of the European Union (EU), you can report on these zero-rated taxes using the Intra-EU VAT Audit Trail report.

  1. What are the types of holds that are used to prevent payment of an invoice?

A Holds that we can apply manually or that Payables applies, prevent payment and, in some cases, creation of accounting entries for an invoice. We can remove holds that we apply, and we can manually release certain holds that Payables applies during Approval.

Payables provides some generic invoice holds for our use, and we can define our own, based on our invoice approval needs. We can also prevent payment of supplier invoices by placing a hold on the supplier rather than on each individual invoice.

There are two major category of hold

§ Manual Hold

§ System Hold

Manual hold we can create and release manually where as system hold is created by system and normally released by system after due rectification.

There are three types of holds we can use to prevent payment of invoice.

Invoice Hold: We can manually apply one or more Invoice Hold Reason Approvals (“holds’) to an invoice using the Invoice Holds window of the Invoice Workbench.

Scheduled Payment Hold: We can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Work bench.

Supplier Hold: In the Supplier Sites window, we can enable the Hold All Payments, Hold Unapproved Invoices, or Hold Unmatched Invoices options. We also have the option of specifying an Invoice Amount Limit for a supplier site.

  1. What are the hold options at the Supplier Site?

A In the Supplier Sites window, we can enable the Hold All Payments, Hold Unapproved Invoices, or Hold Unmatched Invoices options. We also have the option of specifying an Invoice Amount Limit for a supplier site.

  1. What are the ways in which an invoice can be approved?

A Before you can pay or create accounting entries for an invoice, including prepayments, you must submit Approval for the invoice in one of three ways.

i. Online by using the Invoice Actions window.

ii. Online by using the Approve button in the Invoice Batches

iii. Batch by submitting the Payables Approval program from the Submit Request window.

  1. What are the methods of taking discount in payables?

A There are two ways to take discounts with Payables:

i. Enable the Always Take Discount Supplier option. Payables takes a discount regardless of when you pay the invoice.

ii. Select Discount for the Pay Date Basis for the supplier, and disable the Pay Only When Due Check Box for your payment batch. Payables takes a discount and pays the invoice within the discount period.

  1. What are the matching approval levels?

A If we use Oracle Payables with Oracle Purchasing or another integrated purchasing product, we can perform online matching of invoices and original purchases orders or purchase order receipts. Matching ensures that we only pay for the goods and services we ordered and that our suppliers do not over-billed us. If we are billed for an item over the amount and quantity tolerances we define, the Payables Approval Program applies holds to the invoice and prevents payment until we release the holds.

  1. What are the Payables Open Interface tables?

A The Payables Open Interface tables store invoice information. The Payables Open Interface program builds Payables invoices based on the invoice records in the Payables Open Interface tables.

After the import program builds the invoices, they can be viewed, modified, and approved in the Invoice Workbench.

The invoice data is from e-commerce invoices from your suppliers, invoice records that you entered in the Invoice Gateway window, invoices that you loaded with Oracle SQL*Loader, lease invoices that were transferred from Property Manager, and credit card transaction data.

  1. What is a prepayment invoice? What are the types of prepayments?

A A Prepayment is a type of invoice we enter to make an advance payment to a supplier or employee.

The following are the Two types of Prepayments.

- Temporary – prepayments can be applied to invoices or expense reports you receive.

- Permanent – prepayments cannot be applied to invoices.

  1. What are the Purchase Order Matching Database Tables?

A Payables uses several of Oracle Purchasing tables for matching. To implement matching in Payables, you need to load these tables with the data from your non-Oracle purchasing application.

The following are the list of such tables:

o PO_HEADERS

o PO_LINES

o PO_LINE_LOCATIONS

o PO_DISTRIBUTIONS

o PO_DISTRIBUTIONS_AP_V (view of PO_DISTRIBUTIONS)

o PO_RELEASES (Blanket Purchase Orders)

o PO_LOOKUP_CODES

Auto install automatically installs these and other necessary Oracle Purchasing application tables when you install Payables.

  1. What are the prerequisites for entering a payment?

A

i. The invoice(s) we paid must be approved, un-cancelled, validated, without holds, and must have the same currency as the payment.

ii. The bank account must have at lease one payment document that uses the Recorded or Combined disbursement type.

  1. What are the stages in a Payment Batch?

A

Building: Payables is determining which invoices will be paid by each payment document.

Build: Payables has determined which invoices will be paid with each payment document. You can now review the Preliminary Payment Register, Modify the Payment Batch, or Format the Payment Batch.

Cancelled: You have cancelled the payment batch.

Canceling: Payables is canceling the payment batch.

Confirmed: You have confirmed the payment batch.

Confirming: Payables is either confirming or partially confirming the payment batch based on the action you selected in the Confirm Payment Batch window.

Formatted: payables has completed formatting your payments and has created the output file that you can use to print checks or, if you are making electronic payments, you can deliver the output file to the e-commerce Gateway or your bank for processing.

Formatting: Payables has created the output file that you can use to print checks of, if you are making EFT Payments, you can deliver the output file to your bank for processing.

Modified: Payables has modified the payment batch based on the modifications you made in the Modify Payment Batch window.

Modifying: Payables is modifying the payment batch based on the modifications you made in the Modify Payment Batch window.

Rebuilding: You have modified a payment batch, and Payables is rebuilding the modified payment batch.

Restarting: You have confirmed a partial payment batch and have chosen Restart Payment Batch in the Confirm Payment Batch window. Payables is rebuilding and reformatting the remaining portion of the payment batch.

Selected: Payables has selected invoices that match the payment batch criteria you entered.

Selecting: Payables is selecting invoices the match the payment batch criteria you entered.

Unstarted: The payment batch is unstarted.

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