Wednesday, April 19, 2017

PERIOD CLOSING PROCEDURES in Payables

1       Accounts Payables

1.1  Before submitting the Payables Accounting Process

 
1.    Run the following Standard reports.
 
a)   Invoice Register (with Unvalidated Invoices parameter as “YES”).
This report gives the details of invoices entered into the system, but no action is taken i.e. the status of the invoice is Never Validated.

 

b)   Invoice on hold Report.

This report gives details of all the invoices that are on hold in the system. Pass the Parameters as shown in the Screen Shot below, give the period end date in the To Entered Date field.
 
Resolve the Holds in the period end so that no Invoices are carried forward to the next period during the Year End Close. In the Month End Closing you can also choose to Sweep the Invoices in the next period. .
 
2.    Based on the information from above reports, take necessary action on invoices. Approve the Unvalidated Invoices, Account for the Unaccounted Invoices, Release Holds where ever the Invoices are placed on Hold.
 
3.    If payment batches are used, confirm all the Payment Batches.
 
4.    Submit the Payables Accounting Process Program to account for transactions. All the transactions needs to be accounted before transferred to General Ledger.
 
5.    Run and Review the Standard report Unaccounted Transactions Report. Review any unaccounted transactions and correct data as necessary. Then resubmit the Payables Accounting Process to account for transactions corrected.
 
6.    Unposted Payable Journal entries will be found in the GL and it will be posted into the General ledger.
 
7.    This will be queried in the Journal Entry form with source as “Payables” and posting status as “Unposted”. These Journal entries will be reviewed and Posted into the GL. If Autopost is scheduled for Payables Invoices, query for any unposted journals that are remaining after the programe runs. Review and post the remaining entries.
 
8.    After running the “Payables Accounting Process Program” program, run ‘Create Mass Additions’ program from Account Payables responsibility. This program transfers all the account lines that are marked as ‘Track as Asset’ and have corresponding Clearing Account set up in Fixed Assets. (You cannot run this program before Payable Transfer to General Ledger program is run, as it considers all lines to be interfaced to the Fixed Assets must be transferred to the General Ledger).
 
9.    Reconcile with the General Ledger .The following standard reports from payables module can be used for reconciliation.
 
1.   Account Payables Trial Balance.
2.   Posted Invoice Register.
3.    Posted Payment register.
 

1.2  Opening/Closing of AP periods

Module: AP Module.  
Navigation: Accounting > Control Payables Periods.
 
1.    Complete the Transfer to General Ledger from the Payables for the period to be closed.
2.    Select the period to close. Select ‘Closed’ from list of values in the Period Status and save the record. I
3.    If any invoice/s, debit/credit memo, prepayment, expenses reports are not approved, these will be swept into the next or decided open/future period. If sweep is required, future period should be opened before sweeping is done.
4.    Select the Next period to open. Select ‘Open’ from list of values in the period status and save the record.

 

Oracle R12 Account Payable Module Details

We maintain the following things at Accounts Payables Module.
  1. Maintaining purchase invoice
  2. Making payments to Suppliers
  3. Payments reconciliation with bank for cash management

To maintain the purchase invoice the following things are needed.
  1. Name and address of the supplier
  2. Date of purchase
  3. Quantity of purchase
  4. Invoice amount
  5. Payment method
  6. Payment terms

We contact with the suppliers at different levels:
  • Request for Quotation (RFQ)
  • Purchase Order
  • Payments

We create Supplier definition in two levels:
  1. Header
  2. Site

Header information of Supplier can be accessed by global level; it means all other operating unit people can access Supplier Header information.

Whereas Site information is local level; only specific operating unit people can access. One supplier can have multiple sites (Addresses)

Sites are 3 types based on the purpose: RFQ, P.O and Payment site.

If you want to record invoice we should have minimum one pay site.

Payment methods:
We have 4 payment methods in OF.
  1. Check
  2. Electronic (EFT)
  3. Wire
  4. Clearing

At the time of creating invoice we have to opt for payment method and Currency.
Check:                       Payment through the regular bank check

Electronic:                 System will create one instruction file with all the Details of invoice and payment. This file will send to bank for payment.

Wire:                          It is manual process of sending instructions to bank. System will not generate any instruction file.

Clearing:                   In this process we will not make Payment physically. This is used as adjustment for inter company transfers and transfer between the branches.



Payment Terms:
Making payment to supplier (due date) immediate or in how many days referred to Payment terms.
We can set due dates and discount dates through payment terms.

Distribution Set:
Distribution Set is used to automatically enter distributions for an invoice when you are not matching it to a purchase order.

For example:
Total invoice amount:         Rs. 100000
Plant cost       :                       Rs.  90000       90%
Tax                  :                       Rs.    5000       5%
Freight           :                       Rs.    5000       5%

If we receive the invoices in future with the same arrangements we can use the distribution set.

You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you enter for that supplier site.

If you do not assign a default Distribution Set to a supplier site, you can always assign a Distribution Set to an invoice when you enter it.

We have 2 types of distribution sets.
  1. Full
  2. Skeleton

We use Full Distribution Sets to create distributions with set percentage amounts.
Skeleton Distribution Sets to create distributions with no set distribution amounts.

We can enter distributions in 2 ways:
  1. Manual
  2. Automatic (by creation of distribution sets)

Types of invoices in Accounts Payables
  1. Standard invoice
  2. Debit Memo
  3. Credit Memo
  4. Mixed invoice
  5. Recurring invoice
  6. Pre payment invoice
  7. Expenses invoice
  8. Interest invoice
  9. Withholding tax invoice
  10. Retain age Release
  11. Transportation

System automatically generated invoices:
1.      Recurring invoice
2.      Expenses invoice
3.      interest invoice
4.      Withholding Tax invoice

Remaining all other invoices we have to create manually.

  1. Standard invoice:
We can enter only Positive amounts thru standard invoice. We can assign “Distribution set” to update the lines automatically by system or we can enter the distributions manually.

  1. Debit Memo
Debit Memo is used by Customers only.
This is used for purchase returns.
To reduce the balance payable to supplier we create Debit Memo.
Only negative amounts can be entered through Debit Memo.

  1. Credit Memo
To reduce the supplier balance Credit Memo will be used.
Credit Memo will rise by Supplier and sent to us.
Generally credit memos used, when we get discount on payables or on any price differences.
We can enter only negative balances through Credit Memos.

  1. Mixed Invoice
We can enter Positive and Negative balances also thru Mixed Invoices.

  1. Recurring Invoice.
We require a calendar to create recurring invoice, called “Special Calendar”.

  1. Pre payment invoice.
Pre payment invoice are used when there is advance payment made to Suppliers against purchases or Employees for Travel expenses (Imperest amount).

Pre payments are two types:          Temporary pre payment & Permanent pre payment.



Temporary pre payments are adjusted against the future purchase invoice.

Where as we cannot adjust Permanent pre payments against future purchases. This payment we can receive when the contract cancelled with the supplier.

We can convert Permanent pre payment into Temporary pre payment. After conversion we can use that to adjust against future invoices.

  1. Expenses invoice
When employees spent the amount and submit the bills for reimbursement, that information we have to maintain as expenditure report in the system.
With the help of this expenses report information we can create “Expenses Invoice”.

  1. Interest invoice
When we make payments after the due date crossed, if interest penalty is applicable, system will create one invoice for only the interest portion amount apart from the standard invoice.

  1. Withholding tax invoice
If customer want to with hold the tax amount charged by supplier in the invoice, and he want to pay the tax amount directly to tax authorities instead of paying to supplier.
System will automatically create a withholding tax invoice.
In this case tax authority would be a supplier.

Batch Invoice:
We can enter invoices individual one by one or through batch invoices at a time many.
By default we can enter individual invoices only.

In GL batch journal only control total is there.
But in AP, batch invoices have 2 controls: 1. Control total    2. Control count.
Control total is grand total of all invoices & Control count is total number of invoices.

In GL if control total does not match system will not allow user to save the journal until we change the control total to match with entered total.

In AP if control total and control count does not match also system allows us to post the invoice and allows for further processing. It shows only variance.

Unlike batch journal, we can enter invoices either individual or batch invoices.
If you want to enter batch journals we have to create profile option. In that case we cannot enter invoices individually.

Types of Bank accounts:
We have 3 types of bank accounts:
  1. Internal Bank Account
  2. Supplier Bank Account
  3. Customer Bank Account.

Internal Bank account is maintained by our company to make payments or receive payments in any mode. (Check, Electronic, Wire and Clearing).

In electronic and wire payments our company has to maintain Supplier bank account and Customer bank account.

Payment types:
When we are making payment to supplier we need to have bank account, Check book.
As per OF we called check leaves as Documents.

We have 3 types of payment:
  1. Manual
  2. Quick
  3. Refund

Manual:         We have to write the check manually and then enter the same details into system and hand over the same check to Supplier.

Quick:            System will print payment details on the check. In OF once you save the payment, automatically check will be printed on pre printed stationary. Then check can be hand over to Supplier.

Refund:         When we received funds return from the suppliers we record them as refund.

Work Bench:
We maintain Recording invoices and Payments in AP.
We have two work benches in AP:
  1. Invoice work bench
  2. Payment work bench

In invoice work bench we can enter and maintain invoices.
Payment work bench is to maintain 3 types of payments 1. Manual  2. Quick  3. Refund.

Payment Batch:
Payments also can be processed as individual payments or through batch.
Batch payments are automation.
Automation means if we give instruction to system, system will make payment automatically.

There are various stages in payment batch:
  1. Selection
  2. Building
  3. Rebuilding
  4. Formatting
  5. Confirm

Selection:      We have to select the invoices for payment.

Building:       We can view the invoices that selected for payment through building.
We can make modifications also.

Rebuilding:  If we make modifications system will show as   Rebuilding.

Formatting:               Formatting is nothing but for print purpose. If we format only we can get print the payments.

Confirm:        Once we confirm only system considered the payment has been done and the balances will be updated. If we do not confirm system will not allow to create one more payment batch.

** We can cancel the payment batch before confirmation.

OPTIONS:
We have 3 types of options.
  1. Financial Options
  2. Payable Options
  3. Payables System Setup

Payable options are specific to “Accounts payables” module only.
Financial options we can see across AP, PO and FA modules.

These options will work as heart to application. Using these options we can set some CONTROLS & DEFAULTS.

We use these options to manage application functionality. We can set some properties or to set behaviors of the application through these options.

** Invoice Structure is 2 parts: 1. Header information   2. Distribution

Data flow into Application of Accounts Payables:
Financial Options
Payables options
Supplier header
Supplier Sites
Invoice header
Invoice Distribution
     Payment

** In payables also we can enter foreign currency invoices. There is some setup required. The exchange rate we setup in GL is applicable to all modules.

** If we record the invoice in one currency, we cannot make payment other than that invoice currency. Currency should be same in PO, invoice and payment.
Cross currency payment is not possible in AP. But that is possible in AR.

** To cancel the invoice we have to enter Credit memo.

** Zero payments:   If we cancel the invoice, there is no balance to pay, but system will show as zero balance. For elimination of zero balance payments we have to create dummy bank accounts and dummy checks.

Payables Integration:
1.      Purchasing
2.      General Ledger
3.      Cash Management
4.      Accounts Receivables
5.      Web Expenses


Monday, April 17, 2017

Oracle Reimplement vs Upgrade?

Reimplement vs. Upgrade?

The first and ultimate business decision for companies considering an upgrade is the decision whether to upgrade or reimplement. An upgrade would involve taking the current EBS environment and upgrading it and all the data in it to the newer versions. A reimplementation involves installing the new version of EBS and performing setups and data conversions in the new version, leaving the old version to die a natural death. Every major release (10.7 to 11.0 or 11i, 11.0.x to 11i, and now any prior version to R12) has companies wondering which the better option is.

A good starting point is to understand what Oracle’s plans are for your current release as well as for future releases. The current statement is that for 11.5.10, Oracle will provide all support except integration with new non-Oracle products, through November 2012. Accordingly, the more stable, older release, 11.5.10, may be a viable option for your organization when you are upgrading from an older version and the functionality in R12 will not benefit your business processes.

Some key changes in the core modules to R12 may make the more expensive upgrade to R12 worth the extra time and expense. Access to multiple Ledgers in the General Ledger is one of them, and the need to account for transactions in different ways is another. If your business processes are complicated and global enough that two representations are required for government and corporate reporting, this is a strong feature in R12 that is not as comprehensive in 11i.

Another major area for consideration is centralized and decentralized processes. R12 has done a nice job of allowing for both in the same organization and module. Prior to R12, EBS segregated all transactions for subledgers such as Receivables and Payables into separate organizations, requiring users to access each organization separately, making truly centralized processing cumbersome. Now, entries can be done into multiple operating units from the same responsibility without the segregation. Payment process also has a new centralized hub allowing payment processing and bank accounts to be combined for multiple organizations. Once you’ve decided on a version, consider a few significant points that can help make the decision whether to upgrade or reimplement a little clearer.

Friday, April 14, 2017

Oracle Payments Positive Pay Details

Positive Pay Output Files are Missing for Successfully Completed IBY_FD_POS_PAY_FORMAT Requests
That condition can occur if the Output Format setup for the IBY_FD_POS_PAY_FORMAT concurrent program is mistakenly set to 'PDF' instead of to 'Text'.

Using responsibility System Administrator, please navigate Concurrent > Program > Define.
Run an F11 query for program Short Name IBY_FD_POS_PAY_FORMAT.
If the Output Format is indeed set to 'PDF', change it to 'Text', and Save that change. 

Then run additional testing to verify that the IBY_FD_POS_PAY_FORMAT concurrent requests now generate output files that are consistent with the check selection and text output row formatting that is referenced in the associated log files.

Positive Pay File Requirement for Negotiable and Voided Checks (Doc ID 1909147.1)
In R12 (12.0.x, 12.1.x, 12.2.x), there is a single seeded Format for generating Positive Pay File reports: 
Name: Positive Pay File
Code: IBY_PAY_POSITIVE_PAY

That single seeded Format is utilized by two standard concurrent programs:
Name: Positive Pay File 
Code: IBY_FD_POS_PAY_FORMAT
.
Name: Positive Pay File with Additional Parameters
Code: IBY_FD_POS_PAY_FORMAT_2

If a Positive Pay File output is to be generated automatically from the processing of a Payment Instruction, it is the "Positive Pay File" concurrent program that will be executed.

When generating a Positive Pay File output outside of the payment batch process, it is almost always Positive Pay File with Additional Parameters concurrent program that gets submitted.

As implied by the difference in the two program names, the Positive Pay File with Additional Parameters concurrent program offers much more flexibility over submission parameters than is available with the Positive Pay File Concurrent Program. For example, the Positive Pay File with Additional Parameters concurrent program allows the user to specify "Reselect" of checks, and with regard to payment status it offers the choice between Negotiable only, Void only, or Negotiable and Void.

Please run testing related to the descriptions above of standard positive pay file setups and functionality on R12, and determine how you prefer to implement Positive Pay File reporting to meet your specific business requirements.

R12: How To Generate Positive Pay File reports for Quick Payments (Doc ID 465466.1)
By default, the Positive Pay File programs are attached to the Fund Disbursement responsibility (for the Payments Manager module), but they can also be assigned to a Payables responsibility.

Steps:
--------
1. Select the System Administrator responsibility from the Home Page
2. Path: Security > Responsibility > Request
3. Query using the following criteria:
Group = All Reports
Application = Payables
4. Insert a new row for the program Positive Pay File for the Payables application, and another new row for the program Positive Pay File with Additional Parameters for the Payables application.
Save the changes.

After this, the reports will be available to be run using any Payables responsibility that has the "All Reports" Request Group assigned to it.

5. When a Quick Payment is created in the Payments Workbench form, the system generates a concurrent program called Format Payment Instructions.  Check the log file for this process to determine the system-assigned Payment Instruction ID number for the payment.
6. Then submit the Positive Pay program of your choice from the Concurrent Standard Request Submission (SRS) window, using the Payment Instruction ID number as a parameter.

Positive Pay File With Additional Parameters Is Giving XML Output (Doc ID 1683123.1)

Please try the following:

1) Payments Setup Administrator > Formats > Formats
Query code = IBY_PAY_POSITIVE_PAY
- Ensure Data Extract = Oracle Payments Funds Disbursement Positive Pay
- Ensure XML Publisher Template = Positive Pay
If these are already true, go to step 2.

2) Run the program "XML Publisher Template Re-Generator" and pass parameter as ALL. Add this to the Payables request group if it's not available.
System Administrator> Security : Responsibility:Request

3) Check note 1300332.1 and use the same steps, but instead for template IBYPOS_PAY_en.rtf and with a Positive Pay file focus.

How To Generate Positive Pay File reports for Quick Payments

By default, the Positive Pay File programs are attached to the Fund Disbursement responsibility (for the Payments Manager module), but they can also be assigned to a Payables responsibility.

Steps:
--------
1. Select the System Administrator responsibility from the Home Page
2. Path: Security > Responsibility > Request

3. Query using the following criteria:
Group = All Reports
Application = Payables

4. Insert a new row for the program Positive Pay File for the Payables application, and another new row for the program Positive Pay File with Additional Parameters for the Payables application.
Save the changes.

After this, the reports will be available to be run using any Payables responsibility that has the "All Reports" Request Group assigned to it.

5. When a Quick Payment is created in the Payments Workbench form, the system generates a concurrent program called Format Payment Instructions.  Check the log file for this process to determine the system-assigned Payment Instruction ID number for the payment.


6. Then submit the Positive Pay program of your choice from the Concurrent Standard Request Submission (SRS) window, using the Payment Instruction ID number as a parameter.
Best Blogger TipsGet Flower Effect