AP guide – Fusion

Table of contents
1- Acquire necessary roles
2- Create business units
3- Take access to business unit
4- Manage business unit business functions
5- Create reference data set
6- Manage business unit set assignment
7- Manage procurement agents
8- Manage common options for payables and procurement
9- Manage invoice options
10- Manage payment options
11- Mange payment terms
12- Mange distribution sets
13- Setup special calendars
14- Setup withholding tax
15- Create supplier
16- Create document categories if needed
17- Create and assign document sequencing for payables
18- Create invoice
19- Create credit memos and apply
20- Create bank, branch and bank account (set relative options to payables)
21- Create payment method
22- Manage payment method defaulting rules
23- Create payment format
24- Create PPP
25- Manage disbursement system options
26- Make a payment
27- Make a prepayment and apply it
28- Create PPR template
29- Run PPR
30- Setup invoice approval
31- Setup PPR approval
32- Setup remittance advice
33- Setup positive pay
34- Setup Pay Groups
35- Run payables to GL reconciliation report
36- Payables seeded reporting
37- Bills payable model
38- Payables closing procedures
39- Additional topics
 One Time payments

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  Quick payments Vs manual payments
 Inclusive prepayments Vs Exclusive prepayments
 Zero-amount payment model
 Payment withholding tax
 Interest invoices
 Bank charges
 Override account distribution
 POS tax rules

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 1- Required roles for payable setup;
1. Accounts payables manager
2. Accounts payables specialist
3. Accounts payables supervisor
4. Procurement manager
5. Supplier administrator
6. Supplier manager

2- Create business unit;

3- Take access to operating unit;

In order to do AP setup and activities, you should take access with Ap roles with a security context of
business unit. To do so, navigate to setup and maintenance > financials > organization structure >
manage business unit data access for users > click add

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 5- Reference data sets
1. To create reference data sets navigate from setup and maintenance > financials >
enterprise profile > all tasks > manage reference data sets > add
2. Provide a name , code and a description to the reference date set you created
3. Navigate to setup and maintenance > financials > organization structure, then assign the
RDS as a default set for your business unit using "manage business unit" task or assign it to
business unit setups using "manage business unit set assignment task"

7-

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 6- Manage business unit set assignment;

7- Manage procurement agents

1. To identify your user as a buyer, navigate from setup and maintenance > financials >
payables > manage procurement agents, choose business unit in the scope and enter
2. Click add and search for the procurement BU and also add your employee name (you
should be defined as an employee first)
3. Click save

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 8- Manage common options for payables and procurement;

- Manage system options is based on business units

- In the related distribution section;
 Liability, prepayment & bills payable; Payables uses the distributions defined in the common
options for payables and procurement for the liability prepayment and bills payable account.
And these accounts can be overridden at the supplier site level.
 conversion rate variance gain and convergent rate variance loss; gain or losses from
inventory items or expense items that were accrued on receipt are going to be packed into
these accounts. Variance is calculated between the invoice and either the purchase order or
the receipt, depending on how you match the invoices.
 Discount taken; Then another default account that we provide here is the discount taken
account. This is the discount taken on payment if you allocate discounts to a single
distribution
 Miscellaneous; Then you can also provide an account for miscellaneous charges. Distribution
for invoice lines with the type of miscellaneous uses this account. If you do not specify your
value, miscellaneous charges are prorated across invoice item lines.
 Freight; This is used to account for the freight that you have recorded on an invoice. You can
override this distribution during invoice entry, and if you do not specify your value, freight
charges are prorated across Invoice Item lines.
 Pre-payment tax difference; This is the taxable difference between a pre-payment and the
invoice that the pre-payment is applied to. These differences are usually due to changes in
tax rates between prepayment and invoice creation times. This distribution is used only if
the applied amount handling option on the tax record has been set to recalculate.

- Automatic offsets; this option is used to govern how the credit side will appear in the Invoice
distribution.
Please note that if didn’t use this option the system will use intercompany balancing klines to
balance the journal entry of this invoice.
You will be having three options (none – primary balancing – all segments except natural
account).
Payables automatically allocate amounts for various invoice accounting entries, such as
conversion rate, variance gain or loss, liability, non recoverable tax for invoices matched to
purchase order, non recoverable tax for invoices not matched to a PO, and where no tax expense
account is defined for the tax rate. And also, for withholding tax, if you apply the withheld
amount add invoice validation type. Payables allocates amount to payment accounting entries
related to cash, if you use a pool bank account, cash clearing, if you use a pool bank account and
if you account for payments at clearing time. It also allocates the amount for discounts, variance
gain or loss, bills payable, and withholding tax if you apply the withholding amount at the
payment date.
- The currency conversion options apply only to payables invoices and not to payments. The
options provide settings for converting an invoice entered in a foreign currency to the Functional

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 or ledger currency. You must select or enter the options, such as required convergent rate entry.
payables requires a conversion rate whenever an invoice is entered in a currency other than the
ledger currency. You cannot complete or save the transaction until a currency rate is provided. If
a default conversion rate type is also defined on the common options, the rate is automatically
provided based on that date. If daily rates do not exist for the date and rate type, then user must
provide a conversion date. If the conversion rate type is user, then you must always enter a
conversion rate. And if you do not enable this option, after you have entered the invoice, you can
enter conversion rates manually or you can run the applied missing conversion date process.
Payables also provide a default conversion rate type that will be defaulted into the invoice, also it
provides realized exchange rate gain and loss to account ton the conversion rate difference
between the invoice and payment.
- Expense accruals; There are two options available here, at receipt and period end. So what is the
purpose of each one of them? Let's first talk about period end. During period close, the accrual
entry that created for all receipts that do not have invoices if you choose this as the option.
Accrual entries are then reversed when the next period is opened. If you choose at receipt
option, in that case, during the receiving, accrual entries are created. You can override the
setting on the purchase order schedule for expense destination types.
- Self-billed invoices; this section is concerned with the invoice creation from receipt model (pay
on receipt process), Second possibility of self-billed invoices is the debit memos that are
automatically created from a return to supplier transaction in receiving. And then the third
option is the invoices that the create consumption advise process create from the consignment
agreement that enabled a pay on use option. And one more option is available, which is related
to advanced shipment billing notices, which are sent from the supplier for broad shipment.
this section have two options, the first is gapless invoice numbering which is important in
counties that requires gapless voucher numbering. The second option is busing company
identifier which is a prefix for all automatically generated invoice numbering coming from self-
billing
- Then you also have another section here, which is used to provide the legal entity information.
The subletting applications like payables use the legal entity model to identify the legal entity
that owns an invoice. Legal entity information is used for tax calculations, legal reporting, and for
classifications, whether it was between two entity is an intercompany transaction or not. So here
you can specify your VAT Registration member state and VAT Registration number. For business
operations that are carried out in a member state of the European Union, these values are used
in value added tax reporting. And then you can also provide a bill-to location, which is the
default bill-to location for purchase orders if a bill-to location is not already specified on a
supplier site assignment.

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 9- Manage invoice options;

Options that exists in invoice options screen and not supplier site.

- This setup task is made on the Business unit level. some default options can be defined at both
the invoice option level, as well as at the supplier site level.
- invoice grouping. If you enable this option, it requires you to enter a name during invoice entry
to group invoices. It can be used to make payments to all the invoices in a particular invoice
group. Invoice groups are user defined and are created dynamically at the time of entry.
Subsequent invoices can then be added to a newly created group.
- document category override. This option lets you override the document category that is
automatically assigned to an invoice, if the Oracle general ledger sequencing by ledger option is
set to ledger or legal entity. If the sequencing by ledger option is set to no or no sequencing,
then the following applies. No document category is assigned to an invoice. You cannot set this
invoice option. And you cannot enter a document category for an invoice.
- allow adjustments to paid invoices. This lets you cancel or add lines to paid invoices such that
the paid amount remains the same. You can also unmatch an invoice from a purchase order that
is not on final match status. And then re-match the invoice to a different purchase order.
However, you cannot adjust or change the accounting distributions.
- allow remit to supply or override for third party payments. This option lets you override the
remit to supply your name and address on invoice installments for suppliers with third party
relationships
- recalculate invoice installments. If this feature is enabled, it recalculates installment information
during the invoice validation process. And summary calculation uses the most recent applicable
start date and a more favorable payment term. The most recent start dates might be invoice
date, terms date, or goods received date, plus the number of receipt. acceptance days. If the
invoice is matched to a purchase order, a more favorable payment term might be the purchase
order payment term rather than the invoice payment term
- receipt acceptance days. Here, you can specify the number of days to accept the receipt. Receipt
accepted dates are added to the date goods are received when installments are recalculated.
- accounting date basis, this option sets the default accounting date that is on the resulting journal
entry. The available options are goods received or invoice date. If the invoice doesn't have a date
of goods received, then payables uses the invoice date as a default accounting date, if this option
is selected. Another possibility is to set the value as goods received or system date. This means
that if the invoice date doesn't have a date of goods received, then payables uses the system
date as a default accounting date. The other two options are pretty straightforward. You can set
it to invoice date or system date.
- budget date basis. This sets the default budget date when you create an invoice. It is used with
budgetary control to determine when to encumber the budget. The choices are accounting date,
invoice date, and system date.

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Options that exists in invoice options screen and also on supplier site.

- hold unmatched invoices. If this option is enabled, the system applies the matching required
hold during invoice validation to invoices that are not matched to a purchase order or a receipt.
This option can be set on a supplier site to yes, no, or default from payables options.
- invoice currency. This should be said to the functional currency of the associated business unit
and ledger. But it can be set to a non-functional currency. An invoice can be entered using a
different currency and can be converted to the functional currency of the associated ledger by
the system.
- payment currency. This should be said to the functional currency of the associated business unit
and ledger as well. And same as the invoice currency, it can be set to a non-functional currency.
You can pay invoices in any currency irrespective of the invoice currency.
- pay group. Pay groups are defined in the manage payables lookups. And they are used by Oracle
Payments.
- payment priority. Here, you can set a value from 1 to 99. You can use this to prioritize which
suppliers get paid first. For example, if you have 100 suppliers in the standard pay group, but you
only need to pay 50 of them on a weekly basis, you can set those 50 suppliers with a priority as
one and the rest as priority two.
- term date basis. Payables uses this date, the payment term, and the pay date basis to calculate
when the installment is due for payment. The available options are goods receive date, invoice
date, invoice receive date, and system date.
- pay date basis. Available options on this field are discount date and due date. This sets the basis
for determining whether an installment is scheduled for payment using the actual due date or
the discount date.
- Enable invoice account coding workflow. So if you have a policy where the account code
distributions are provided by the payables team at a later stage, and you can push the invoices to
those payables users who are responsible for providing the distribution account
- prevent deletion of invoice attachments.

- duplicate invoice checking. You can enable it as an additional feature to find potential duplicate
invoices on the combination of supplier, invoice type, invoice amount, invoice currency, and
invoice date attributes. During the invoice creation, the user gets an alert for a potential
duplicate invoice being entered. This feature only checks for standard and pre-payment type
invoices. It does not check the invoice number as an attribute to identify potential duplicate
invoice and does not perform a check on auto-generated invoices, such as pay on receipt, pay on
use, inter-company, and debit memo services. The following lookups need to be created and
enabled to use this feature.

First is standard lookup type. It is in all caps, ADD_DUPLICATE_INV_CHECK.

The second lookup code, still in all caps, is DUPLICATE_INVOICE_CHECK.

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Matching section

These options can only be set on Manage Invoice Options page. And they cannot be overridden at the
supplier site level

- allow final matching. This option lets you perform a final match when matching to a purchase
order or when you are adjusting a matched invoice distribution. Final matching permanently
closes a purchase order. And you cannot perform any further matching to the purchase order. If
any subsequent matching is tried, the invoices are placed on a final matching hold.
- allow matching distribution override. It lets you override invoice distribution that was created
from matching an invoice to a purchase order.
- transfer PO distribution additional information. This option lets you transfer the descriptive
flexfield information from a purchase order distribution to an invoice distribution when you
match an invoice to a purchase order.
- Quantity tolerances and amount tolerances. You can specify default values for these two options
on both Manage Invoice Options and the supplier site If the supplier site does not have a value,
then the invoice option setting is used. The invoices must first be defined in the Manage Invoice
Tolerances page and are detailed later to get an understanding how they are used. If the invoice
exceeds either of the tolerances, it is placed on hold. It's not showcased here. But you also have
a functionality called match in full. You can use the matching full functionality when the supplier
sends an invoice for the full amount of the purchase order match in full supplements the existing
functionality of matching invoice lines to the purchase order. Keep in mind, you cannot use
match and full in certain cases. You cannot use this functionality when the invoice match option
is receipt. When the supplier or purchase order is set for self billing, and also, when the purchase
order is already partially matched to one invoice.

Discount section

- You can set the options on a supplier site to yes, no, or default from payable options
- exclude tax from calculation. This indicates that you can exclude the tax from an invoice when
the discount double amount for an installment is calculated.
- exclude freight from calculation. With this option, the system excludes the freight from an
invoice when the discount double amount for an installment is calculated.
- discount allocation method. Specifies how to distribute the discounts, whether you want to have
it apply on all invoice lines, by tax lines and single distribution, or by a single distribution.
- always take discount. So if you enable this option, it considers that you want to take the available
discounts regardless of when the invoice is paid.
- Oracle Payables Cloud now integrates with adaptive intelligent and supports sophisticated data
science that drives the early payment discount offers. So with this feature, you can pay invoices
early in return for real-time discounts. Early payments offer discounts on a real-time basis each

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 day of the payment cycle. The earlier the payment, the greater the discount. Eligible discounts
decrease on a sliding scale based on the supplier's discretion and variable annual percentage
rate with the dates accelerated is used to determine the discount amount and the payment
amount. For example, that this can amount is calculated by using a formula that incorporates the
days paid early and the variable APR. This is different from the traditional static payment terms
that uses pre-negotiated discount terms. The payment of an invoice of $10,000, when
accelerated 15 days early using the APR of 36%, will have a discount amount of $150. You need
to ensure that you opt in “Early payments for standing offers and dynamic” to utilize this feature.
keep in mind that the license for adaptive intelligence is required to use this feature.

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Prepayments section

- payment terms. So here, you can provide a payment term to set the default payment term for a
prepayment. For example, it is recommended that you use the immediate payment term for all
prepayments.
- settlement days. This is a free-form field where you can specify the number of days to act
through the system date to calculate the default settlement date. You can only apply a
prepayment to an invoice on or after the settlement date. Note that this option can also be set
at the supplier level
- use distribution from purchase order. This option builds the invoice distribution by taking the
purchase order distribution and overwriting the natural account segment with a natural account
segment from the supplier side prepayment distribution. Or if not defined, from the common
options prepayment distribution.
- show available prepayments during invoice entry. This displays the number and amount of
available prepayments when you enter an invoice.

approval

 Payables provides configurable predefined invoice approval rules and the ability to add rules
using approval management extensions of the oracle SOA Suite and Oracle Human Workflow.
- The invoice approval process determines whether an invoice requires approval. And if so,
automatically routes the invoice to the applicable approvers, who then approve or reject the
invoice. And invoices cannot be paid until they are approved. If you enable the approval option
- Allow force approval-- this enables the approving managers to override the workflow. And they
can manually approve the invoices.
- require validation before approval, the system sends invoices through the approval workflow
only after the invoices are checked for holds and completeness by the validation process
- You can specify the accounting preferences. The available options are account regardless of
approval status, require accounting before approval, and then require approval before
accounting.

Interest invoices

 An interest invoice is created and paid while you are paying an overdue invoice.
- create interest invoices. Enabling this option calculates interest on overdue invoices and creates
interest invoices
- To use automatic interest rate calculation, you must also define interest rates. You can also set
this option on a supplier site to yes, no, or default from payables options.
- minimum interest amount. So here, you will enter the minimum amount of calculated interest
below which an interest invoice is not created
- interest allocation method. The two options are single distribution, which uses the interest
expense distribution. And the other is all invoice lines. This one uses a natural account segment
from the interest expense distribution.
- interest expense distribution, which is a default account that you can provide here. So here, you
will enter the discount combination for the interest expense if the option interest allocation
method is set to single distribution

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payment requests

 payment requests. These types of invoice are generated as a result of the refund that has been
initiated for a customer, or is a result of an expense report that has been imported from the
expense management system. Oracle receivables and Oracle expenses can submit requests to
payables to disburse funds to a payee who is not defined as a supplier. When receivables process
a customer non-credit card refund, and when expenses processes an expense report, an invoice
is created in payables with an invoice type of payment request. You can disburse the funds and
manage the payment process using the functionality that is available in payments.
- The options that will default to a payment request from the invoice options are payment terms,
pay group, and payment priority. You can set the values for these three fields, which will be used
when issuing payments. An example of payment requests is one-time payments. This feature
allows transactions to be imported into payables from external systems as payment request
using a pre-defined file-based data import template known as FBDI template.

- The payee's and any bank account information for electronic payments are created automatically
when the transactions are imported into payables. These payment requests are created with
distributions and validated as part of the import process. This eliminates the need for manual
intervention when importing payment requests from their external systems. Payment requests
can be approved and updated. And attachments can also be added.
- Separate payment runs can be processed for these transactions from regular payments to
suppliers. The steps to process the one-times payments are as follows. First, you need to
download the FBDI template design specifically for one-time payments. Next, you prepare the
data using the FBDI template. Then you generate the CSV file along with a zip file. And next, you
upload the zip file via the scheduled process called Load interface file for import.
- Once the file has been uploaded, you need to input the data into payables using the scheduled
process called import payables payment request. After that, you can make any necessary
adjustments to the payment request in the invoices work area.
- And finally, you can schedule or run the payment process request for one-times payments to
complete the payments.

Self-service invoices

 Using the supplier portal, a supplier can create invoices, they can view existing invoices to check
the invoice status, and view payments. If a supplier creates an invoice that is not matched to a
purchase order, the invoice is initially recorded in payables as an invoice request. Once it is
approved by the requester, then the invoice request becomes an invoice. Payables must validate
the invoice before the payment can be processed.
- Limit invoice to single purchase order. If you enable this option, it limits an invoice to the
schedules belonging to a single purchase order. If not enabled, a supplier can create one invoice
for multiple purchase orders.
- allow invoice backdating. This lets suppliers enter invoices with a date in the past

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 - allow unit price change for quantity-based matches. This option lets a supplier enter a unit price
on an invoice that is different from the unit price on the purchase order. You can select from the
available options, such as no, which won't allow unit price changes for quantity-based matches.
You can select price decrease only, price increase only, or both price increase or decrease.

- require attachment, which will require suppliers to include an attachment every time they
submit a self-service invoice.

10- Manage payment options;

Payment accounting and overrides

- allow the payment date to be before the system date. So this is self-explanatory that whether
you want a payment date to be before the current system date.
- allow override of supplier site bank account or not. So in this case, you are going to take a
decision whether you want to override the supplier side bank account at the time of processing
the payment or not. So if you have got multiple bank accounts, you are going to specify your
default account. So whether you want to override the default account at this time of making the
payment or not.
- allow document category override. So if you want to use a different category than the defaulted
document category, you can enable this option.
- allow pay override for third-party payments.
 Then the next three options that you are able to see, they are related to accounting for payment.
The first option is whether you want to account for payment when the payments are issued. So
in this case, the system will debit the liability account and credits the cash account.
- The second option is at the time of payment clearing. In this case, the system debits the liability
account and credits the cash account when the payment clears. So you should enable this option
only if you are going to use Oracle Cash Management for reconciling your payments.
- Then the third one is at the time of payment issue as well as clearing. So in this case, at the time
of issuing the payment, the system debits the liability account and credits the cash clearing
account. And vendor payment gets cleared. Then system debits the cash clearing account and
the credits the cash account.

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Currency conversion

- required conversion rate entry. If you enable this option, then the system requires a conversion
rate when you enter a payment in a currency other than the ledger currency. If you maintain
daily rates, the rate is automatically supplied based on the date and the rate type that you enter.
If daily rates do not exist for the date and rate type, and if this option is enabled, you cannot
enter or save the transaction. If the conversion rate type is user, then you must always enter a
conversion rate. You cannot create accounting entries or pay foreign currency invoices without
conversion rates. If you do not enable this option after you have created the payments you can
enter conversion rates manually, or you can run a process named apply missing conversion rates
in the application.
- default conversion rate type. So here, you can specify a default conversion rate type. When you
create payments, this rate type will be used as a default one.

Bank charges

 Bank charges are the fees that a bank charges you for transferring funds from your disbursement
bank account to the bank account of your suppliers. You can configure your setup and payment
process to automatically deduct bank charges from an invoice payment. If you enable bank
charges, you must create a bank charge definition in Manage Bank Charges page. To enable, you
must select the Bank Charge Deduction type as Standard, which is a typical rate that a bank
charges you to transfer funds from a disbursement bank account to a supplier bank account. Or
you can set it to Negotiated, which is a rate that you and your bank agree upon for the transfer
of the funds

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 11- Manage payment terms;

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 12- Distribution sets;
We have two types of distribution sets, the first one is (100%) which is used when you are sure about
the ratio between amounts of account distributions. The second one is (0%) which is used when you
don't know the ratio between the account distributions

Case one (100%) > to setup this distribution set navigate from setup and maintenance > financials >
payables > manage distribution set and click add > choose 100% as a distribution percentage

In this case I specified 40% for water combination and 60% electricity combination. In this case when
this distribution set is used the line amount will be distributed based on these ratios

Please note that you can set the project attributes on the distribution set setup to automatically
populate them each time.

Case Two (0%) > to setup this distribution set navigate from setup and maintenance > financials >
payables > manage distribution set and click add > choose 0% as a distribution percentage

To attain the 0%, I set the distribution percentage to 50% for rent and -50% for gasoline. In this case
when the users choose this distribution set they will need to populate amounts, so it's just a
documentation of multiple combinations.

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20- Create bank, branch and bank account
 To create bank navigate from setup and maintenance > financials > cash management >
manage banks > add
 The necessary setup to create a banks would be to provide a bank country and name
 You would find other setups like (alternative bank name - bank code - description taxpayer
ID - tax registration number - addresses - contacts )

 Setting up bank branch wouldn't be much different than setting up a bank. navigate from
setup and maintenance > financials > cash management > manage bank branches > add
 The necessary setup will be bank branch name, bank name and country.
 You would find other setups like (alternative branch name - branch number - BIC code -
Branch number type - bank branch type - EDI ID Number - EFT Number - EDI location - RFC
Identifier - addresses - contacts )

 To setup bank account navigate from setup and maintenance > financials > cash
management > manage bank accounts > add

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  Firstly, fill in the header information
o bank name
o branch name
o account name , it's better to make it informative as possible by providing
info like functional currency along side the account usage (i.e. CIB outgoing
EGP)
o Account currency, please note that later on when allowing the bank account
for multicurrency, the banks having the functional currency of the ledger
will be the only accounts to be multicurrency if you didn't enable it on
creation.
o Legal entity, very important cause it's the owner of the bank account
o Account type (not mandatory), you can choose from (checking - other -
saving)
o Description (not mandatory)
o IBAN (not mandatory)
o Check digit (not mandatory)
o Secondary account reference (not mandatory)
o Account suffix (not mandatory)
o Account usage ( payables - payroll - receivables), please note that this setup
will not be allowed to be changed after setting the account for the first time
and saving. It's better to ask the business whether the bank account may be
used for other uses in the future to avoid not being able to modify this
setup in the future.
o Bank company identifier (not mandatory)
o Bank integration source (not mandatory)

 General tab;
o Cash account (not mandatory), but will be mandatory later on when
providing access to business units which will initially drag the account
combination from here
o Cash clearing account (not mandatory), but will be mandatory later on
when providing access to business units which will initially drag the account
combination from here
o Active check box, this check box will be used later to disable the use of the
bank account later on when needed. This check box will be allowed to re-
check to enable the bank account again if you needed to use the bank
account again.
o Multicurrency account, this checkbox will allow the bank account to
pay/receive funds in other currencies other than the bank account currency.
Please on that functional currency bank accounts are enabled for this option
after saving for the first time, which means that it's critical option for foreign
currency bank accounts. For foreign currency bank accounts It's advisable to
check this option even if the business didn't specify this criteria to avoid
disabling the bank account and creating new one in case business
demanded it for multicurrency use later on.
o Netting account, check this box of you are using this bank accounts in
netting settlements with trade partners

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 o Contacts (not mandatory)

o Payment document.
 Very important setup because this setup covers the document
sequencing part of payments incase it's not done in traditional way.
 There are two types of payment documents (numbered stock and
blank stock), it's advisable to create the both types to avoid wasting
the numbered stock in dummy payments situations like (Zero-amount
payments)
 Provide the payment document name and paper stock type, please
note that (restrict use to manually issued payments) checkbox only
appears when you use numbered stock
 Format (mandatory), this field ties the payment document to a
payment format which makes it obligatory to create a payment
document for each payment document.
 Payment document category, this field is used to tie the numbered
generated by the payment document to the document sequencing of
payments.
 Attach remittance stub, If you checked the Attached Remittance Stub
box, a new field will display: Number of Lines per Remittance Stub.
Use this field to specify the maximum number of invoices/memos you
want printed on each remittance stub (typical numbers are "11" or
"13", depending upon the height of your stub).
You do not need to tick this flag for sending the remittance advice via email
 Number of setup documents, this means the number of checks in the
checkbook. Provide dummy number in case of blank stock
 Document numbers, provide a starting and last available document number in
your checkbooks. In case you have multiple check books, then you will
navigate to the below section (checkbooks) and provide name, prefix , start
number and end number.

pg. 29
  Controls tab, this tab is used to attach cash management and payables setup to the bank
account.
o Manual reconciliation rule
o Automatic reconciliation rule setup
o Reconciliation start date
o Journal reconciliation start sate (in case you enabled the profile option to
reconcile journal entries to bank statements "CE_GL_RECON_ENABLED")
o Bank exchange rate type
o Reversal processing method
o Parsing rule set
o Transaction creation rule sets
o Target balance, this balance will be used to be compared to the bank
balance and this comparison will appear cash management work area
o Pooled account, this setup will be used to act the same as the offset
functionality in payables. It offsets all segments of the liability account with
the cash clearing account when doing the payments, this option is not
preferred if the bank account will used for paying transactions for only one
legal entity.
o Minimum and maximum payment amounts, will be used to detect the
minimum and maximum amounts for a single payment when doing a PPR

pg. 30
 o Allow zero amount payment, this setup will be used alongside a similar
option in PPR to be able to pay the Zero-amount invoices to be able to close
and remove these invoices from the invoice reports
o Maximum outlay amount, this option is used to set maximum amount for
the whole PPR. Payables displays a warning, but enables you to continue
processing the pay run. The maximum outlay for a bank account is supplied
by default from the payable options window. When you initiate a pay run
using the bank account, Payables uses the Bank account's maximum outlay
as a default. You can, however, override this default.
o Void rejected payments ??

 Security tab, in this tab you will e able to secure the use of bank accounts by user or roles.
You will just check "secure bank account by users and roles" check box and then add the
users and roles in the below section

pg. 31
  Business unit access tab, in this tab you will provide the name of the business units that
will use this bank account alongside cash account, cash clearing account, payment method
and document categories that will be used

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21- Create/manage payment method;

 To create a payment method navigate from setup and maintenance > financials >
payments > manage payment methods > add
 Start by entering the header information (name - code - description - alias - anticipated
float number - from/to date range)
 Usage rules tab;
o "automatically assign payment method to all payees" check box, it's
preferrable to uncheck this box to me used on demand.
o In payables section, check "enable use for payables" to be able to use this
payment method in payments. You can filter the use of the payment
method by choosing specific business unit, specific legal entity or payment
process transaction type. When choosing specific payment process
transaction type you will have two options (employee expense - payment
document)
o In receivables section, check "enable for use in receivables" if you want to
use this payment method in customer refunds. You can filter the use of the
payment method by choosing specific business unit, specific legal entity or
payment process transaction type. When choosing specific payment process
transaction type you will have one options (receivables customer refund).
o In cash management section, check "enable for use in cash management" to
be able to use the payment method in cash management module. This
module doesn't have filtering criteria other than payment process
transaction types (ad hoc payments - bank account transfers)

pg. 33
  Validation tab, you can perform validations on documents payable and payments using
the payment method validations
 You have two types of validations on payment methods (predefined - user defined)
 Predefined validations are predefined conditions that are used with localizations to meet
business requirements in these business cases.
 User-defined validations are defined by the user whom add the attribute, condition and
values (for example if the invoice in not issued with certain pay group assigned to it, the
invoice will have a payment hold)
 The payment method validations work in two stages, invoice work area after validating
invoices, which puts payment hold on the installments if it doesn't meet the criteria. The
second case is in PPR when creating payments out of selected installments.
 Please note that payment method validations doesn't affect payment files. If you want to
perform validations on payment files, you will be prompted to do it from payment format
validations.

 Bills payable tab, in this tab you will be prompted to check "bills payable" if you will be
using this payment method for bills payable.

pg. 34
22- Manage payment method defaulting rules ;
 To setup payment method defaulting rules, navigate from setup and maintenance >
financials > payments > manage payment methods defaulting rules.
 In the screen you will find three sections (payables - receivables - cash management), in
each section you will find payment methods assigned qs defaults and arranged by priority.
The mechanism by which the selection goes is that number one priority is chosen to
evaluate the usage rules against the transaction and if it doesn't fit we go to priority two
and so on.

23- Create payment file format;

 Payment file formats are used in multiple situations, payment file formats are created to
issue sperate remittance advice and positive pay reports. Used to print checks after the
payments are created in PPR, sent to bank to process payments on behalf of the company.
 To create a payment file format navigate from setup and maintenance > financials >
payments > manage formats > choose "disbursement payment file format" and click
create.
 Provide name, code, description, from/to date range and a BI template
 You can provide validations on the payment format. These validations will work on
payment documents, payments and payment files
 You have three options for validations setup, 1- predefined validation (made by oracle for
counties localization), 2- user defined validations (will be tailored by you to address the
business needs), 3- advanced validations (used for more complex requirements having the
shape of a formula)
 Check the example below of creating a user defined validation to process all payments
except zero-amount payments to avoid wasting check stock. Another format is made with
reverse validation rule to this to process only zero amount payments to process them
alone and assign them a dummy blank stock

pg. 35
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24- Create payment process profile;
 Payment process profiles define the whole payment cycle from start to end, starting from
how payments are selected, then how they are grouped together to form a payment, then
how payments are grouped to create a payment file and many other options
 To create a payment process profile navigate from setup and maintenance > financials >
payments > manage payment process profiles
 In the header section provide a name, description, code, from/to date range, payment file
format and processing type
 You can assign one payment file format to only one PPP and one payment document.
Please note that payment documents that have the same format are the one that will be
available for use with this PPP also will be available for selection as a default payment
document.
 Processing type, we choose printed for check payments and electronic for electronic
payments

 Usage rules section, defines when the PPP will appear and be available for use. You can
choose to be used with certain (payment methods - disbursement bank accounts -
business units - currencies)

 After finishing the payment system setup (which is integration setup with financial
institutions/banks), you would be able to assign it here

pg. 37
  Payment tab, in this tab you will define the criteria used to group installments together
into payments (mostly we use due date - settlement priority - delivery channel)
 Also you can choose the maximum amounts of installments to be chosen per payment

 Payment file tab, in this tab you will setup how payment files are created
 You can choose how payments are grouped into payment files, maximum number and
amount of payments in a payment file, sorting of payments in a payment file and bank
instructions

pg. 38
  Grouping tab, in this tab you Specify the grouping parameters to create logical grouping of
payments within an ISO SEPA or ISO CGI payment file.

 Reports tab, in this tab you associate the formats of the reports you want to issue
alongside the payments like (payment file register - positive pay - remittance advice)
 Positive pay is a file sent to the bank to account for the check payments made to be
informed of the expected check liquidations of our bank account.
 Separate remittance advise, is a report including the made payments to be sent to the
supplier to make it easy for them to identify the invoices paid and closed.
 This report is used internally to track and record the details of payment files that have
been generated. It includes information about the payment batches, such as the total
amount, number of payments, and the status of each payment file

pg. 39
25- Manage disbursements system options;
 To setup disbursement system options navigate from setup and maintenance > financials
> payments > manage disbursement system options
 This setup can be made on instance level and also can be made on operating unit level
 Check "allow payee bank account override on proposed payments" to be able to change
the payee bank account on payments.
 Choose "override defaulting rules when payee method is set" on payment method default
basis, this will allow the import of payment method from supplier records to the invoices
and it will override the payment method defaulting rules.
 Choose an email to be used to send separate remittance advices alongside an email
subject

 Setup the validation failure setting here instead of setting it each time on submitting PPR
 If you want to enable approval for PPR, you must check the "enable payment approval
checkbox". Please note that, PPR approval is made on the whole PPR not payments inside
the request, also it's setup in BPM worklist and can't be processed in parallel or group
approvals.
 Provide the format template for "payment process request status report" and choose
whether to submit automatically after completion or not.
 Choose whether to save formatted payment files in the database after completion or not
 You can set the (payment method default basis - allow payee bank account override -
separate remittance advice email and subject) on the business unit level and override the
system options.
 You can specify the bank charge bearer and pay documents alone which will ake each
invoice to be created as a payment. Not sure but most probably this option is very generic
and can be overridden by supplier site same option and also the grouping rules in PPP
setup.

pg. 40
26- Make a payment
27- Make a prepayment and apply it

28- Create PPR template;

 To create PPR template navigate from payables > payments work area > task panel >
manage payment process request template
 The PPR template is just a population of the repeated values that you will inserted each
time when you submit the PPR for a certain case.
 In the header part, provide a template name, description, type (Daily - loans - EFT -
Expense reports) and transaction calendar that will be used in case the template will be
scheduled to run at specific times.
 Selection criteria tab,
o Pay through date , this date is used to pay installments up to this date. In
the template you will setup this parameter by adding number of days to
system date each time the process runs.
o Payment priority, use this range to target the Invoices you need inside a pay
group if provided.
o Date basis
o Select early payment invoices (yes - no - discounted only)
o Include zero-amount Invoices, this option should be set to yes to be able to
process zero amount payments for them.
o Supplier type
o Payment method
o Conversion rate types
o Supplier/party
o Pay groups
o Currency
o Business unit
o Legal entity

pg. 41
 o Sources

 Payment processing and options ,

o Payment date, if you checked "calculate based on request date" a box will appear
below the option to specify number of days plus or minus the request date (mostly)
o Disbursement bank account
o Payment document
o Payment process profile
o Settlement priority override
o Bank charge bearer override
o Starting voucher number ??
o Cross-currency rate type
Processing option,
o "apply credits up to zero amount payment " this option allows -if checked- the
payment and application of credit mamos and debit memos until the payment
amount reaches zero (can't be negative)
o Review proposed payments, this option leads to having a stop in the pay run to
review the payments after they get formed from installments grouping.
o Review installments, this will make a stop at the pay run to review the selected
installments due to running using a certain selection criteria
o Create payment files immediately
o Validation failure for documents and payments
o Approvers, specifying first approver override the approver fetched by approval rule.

pg. 42
  Please note that when you enter the "manage payment process request template" task,
you will have the option to select any template and from the action menu you can
schedule, submit single request & submit cash requirement report.

pg. 43
29- Submit PPR;
 To submit PPR, navigate to payables application > payment work area > task panel >
submit PPR
 Enter the name of the request and the template and the data will be auto-populated. If
you don't have a ready template you can proceed with entering filling in the data
normally.
 Please make sure to remove the first approver parameter for regular users.
 After submitting the PPR, navigate to manage payment process requests from payments
work area to monitor the statuses and updates of the of the PPR
 The PPR - according to our setup - will have two stops, one to review installments
selections and one to review payments formation before creating the payment file(s).
 The calculation of the payment withholding tax and interest is done in the PPR processing
before reviewing payments.
 The workflow of PPR goes as follows, select installments > review installments > forming
payments > calculate withholding amounts and interest > review proposed > create
payment file > print payment file > record the print of the payment file

30- Setup PPR approval;

 To setup approval for payment process requests you should go through some steps,
a. Enable payment approval from disbursement system options
b. Setup EPM rules using the task "PaymentApproval"
c. remove the parameter "first approver" using transaction console or
personalization tools

Considerations for setting up payment approvals,

 The payment approval doesn't support parallel or group approvals
 The payment approval is setup on the PPR level, this means that you can approve or reject
the PPR as a whole and you can't approve or rejects payments inside the PPR

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Bills payable (future dated payments) functionality;
What is Future Dated Payment/Bills Payables in Oracle Fusion Applications?

Future dated payments or Bills Payable in Fusion Application is used to control the timing of your
payments, and therefore control your cash flow. A future dated payment helps bank to disburse funds to
your supplier's bank on a specific date which is known as the maturity date. For future dated payments,
Payables creates journal entries in two stages, first to recognize the payment (reduction of liability), and
the second to recognize the clearing of the payment (reduction of cash).

Bills Payables (it’s like Post Dated Cheque) with maturity date on the check. Future dated payments are
payments that mature in future, eg bills payable or postdated check.

What are the different accounting entries involved in Future Dated Payment/Bills Payables?
Below are the different accounting entries which happens in Oracle Fusion application during Bills Payable.

1. At the time Payment Issue (Status Issued)

AP Liability A/c Dr
Bills Payable/Future Dated Payment A/c Cr

2. At the time of Payment Maturity (Status Maturity)

Bills Payable/Future Dated Payment A/c Dr
Cash Clearing A/c Cr

3. During Bank Reconciliation (Status Cleared)

Cash Clearing A/c Dr
Cash A/c Cr

Below are the steps to configure functionality for Future Dated Payment/Bills Payables in Oracle
Fusion Application

1. Provide Bills Payable Account in Common Options

2. Create Payment Method in Bills Payables
3. Create Standard Invoice for Desired Amount
4. Make Payment and include Maturity date
5. Run “Update Matured Bills Payable Status”
6. Create accounting again to close the “future dated payments” into cash clearing

Note; please don’t forget to provide access to the new payment method to the bank account associated
with document category. Navigate to bank account > edit > business unit access tab > open already
created access to your business unit > add line for payment method and document category > save
- Also navigate to PPP setup and associate the payment method to one of the created PPP like
“standard checks – all currencies”, or create a new one with access to that payment method.

Provide bills payable account in the common options. Only after maturity date supplier can encash the
check we are going to issue.
Search for Task- Manage Common Option for Payables and Procurement through project, Click on
Go to Task and enter bills payable account-save and close.

pg. 70
Search for Manage Payment Method- go to task and create separate payment method for bills payables.
Provide required details, enter start date and enable- For Use in Payable
Under Bills Payable Tab- enable- “Bills Payable” check box.
Move to Cash Management Tab –enable “Enable for use in Cash Management”
And click “Use payment method to issue bills payable”
Save and Close and Click done.

pg. 71
Create standard invoice now for USD 5000, Enter invoice details and under invoice action go to “Manage
Instalments” to override default payment method to bills payable method.

pg. 72
Save and close, validate this invoice and choose post to ledger.
Now make payment , go to payment and create payment –enter details and select payment method as
Bills payable-

Specify maturity date under tab “Advanced” enter date-

Select invoice now on same screen to pay.

pg. 73
Apply and OK.

Now navigate to “Schedule Process” and search for “Update Matured Bills Payable Status”
Enter Business Unit and Maturity details.
Run this job.

pg. 74
Check Status for Payment just done, Status should be “Negotiable”

Run create accounting for Payment document number 5085

Check Accounting for Payment done.

pg. 75
pg. 76
 34-Closing procedures;
1. Complete, validate and approve all invoices and payments
2. Reconcile payments with bank statements
3. Create accounting for unaccounted transactions (invoices - payments - reconciled
payments)
4. Submit "Payables Unaccounted Transactions and Sweep Report"
5. Close period
6. Prepare payables for General ledger reconciliation
7. Run Ap to GL reconciliation report
8. Open next period

 Sweep AP transactions to next period;

1. Navigate to schedule process and run "Payables Unaccounted Transactions and Sweep
Report" with sweep now set to yes and with defining the next period.

pg. 77
 Additional topics

 One-time payments;
1. opt in one-time payment feature
2. Add The OTP sources you will use to the payables sources lookup type, lookup type >>
"SOURCE"
3. Add The OTP sources you will use to the trading community sources lookup type, ,
navigate from setup and maintenance > financials > customers > all tasks > "Manage
Trading Community Source System"
4. Assign a location to the business unit
5. Assign a liability and expense account to one-time payments from "manage common
options for payables and procurement"
6. Populate your data to the FBDI sheet ""
7. Generate the CSV file
8. Upload the zip to UCM Server. Account- fin/payables/import
9. Run the 'Load Interface File for Import' process to load the data to the interface table
10. Run "import payables payment request" using the sources you created and used

Notes;
 Please make sure you insert the payment method code not name or don't mention it at all
 Refer to the one-time payment white paper for more details
 The suppliers populated in the invoices that are created by one-time payments are not
permanent and will not be found later in the suppliers records

pg. 78
  Manual payments Vs quick payments
Manual and quick payments are processed on the same way on the system but there are a
slit difference between them, where quick payments leads to running payment formatting
process afterwards unlike the manual payments which doesn't. this functionality is
intentional as it should account for payments done outside the system, hence no
formatting is run cause we won't need to print the checks not transfer data files to the
bank.

 What is the difference between inclusive prepayments and

exclusive prepayments?
In the case of having paid prepayment that needs to be applied on an invoice, if the
supplier sent the invoice deducting the amount of applied prepayment then you should
choose "included on invoice" when doing the application. Using this option will lead to not
reducing the invoice and tax amount cause it's already reduced by the supplier . In case
the supplier didn't send the invoice with applied prepayment on it, then we will use the
usual exclusive application which reduces the amount and tax by the prepayment amount.

 Zero-amount payment model

To process this model you will need some setups, 1- allow zero- amount payments on the
bank account setups, 2- create "blank stock " payment document to be used with zero-
amount payments to avoid wasting the numbered stock, 3-optionally create a format that
validate only zero-amount payments and pay it and then attach it to the blank stock
payment document, when running the PPR select "allow zero-amount invoices" to pay out
these invoices.

 Payment withholding tax

setting up payment withholding tax is not very different from invoice withholding tax and it's almost
done through the same steps;

1. Create tax authority supplier

2. Enable withholding tax from "manage tax reporting and withholding tax options"
3. Create withholding tax code
4. Create withholding tax classification

pg. 79
 5. Enable withholding tax on supplier profile and then on the supplier site level and assign a
default withholding tax group

o Creating a supplier tax authority is as simple as creating normal supplier but with
some specific criteria (1- supplier type to be "tax authority" 2- to have active
address and site 3- the site should be created with pay purpose 4- assign a
payment term to the supplier site )
o To setup withholding tax options, navigate from setup and maintenance > financials
> payables > manage tax reporting and withholding tax options"
As shown in the below screenshot select event class (standard invoices - prepayments ),
check (apply withholding - process transaction taxes - allow manual withholding). Choose
the calculation point to be (payment), in this case the withholding tax won't appear in the
invoice, instead it will appear in the PPR in the installments selection stage.
When you are creating the withholding tax code for the first time

o To create a withholding tax code navigate from setup and maintenance > financials
> payables > manage tax codes > add
o You will be prompted to create a withholding tax regime from inside the screen and
also a withholding tax code and a withholding tax rate. You must provide them the
same date range. Choose the business unit, tax type (percentage) and tax status
code (standard tax rate). Navigate to the lower section (rate periods) and provide
the percentage of the rate, effective start date, ledger and a liability account.
o you will find an option to automatically "create tax classification code" from this
code. Checking this checkbox will save you the next setup step. Please note that this
check box appears only when you do the setup for the first time

pg. 80
 o To create a withholding tax classification code, navigate from setup and
maintenance > financials > payables > manage withholding tax classifications > add
o specify the business unit and add the withholding tax rate you just created
o You can avoid this step by checking "create tax classification code" when setting up
the withholding tax code

o The last step is to enable the withholding tax use from the supplier record. you
should enable it first from supplier profile > income tax > check "use withholding tax
"
o After enabling it from the supplier profile navigate to supplier site > set assignment
> check use withholding tax and choose withholding tax group .

pg. 81
  Interest invoices;
1- define interest rates, navigate from setup and maintenance > financials > payables > manage interest
rates. Provide effective date range and a percentage

2- enable interest invoices from invoice options and provide interest expense account

3- enable interest invoices on supplier site level, navigate to site > invoices > terms section

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POS tax rules

https://community.oracle.com/mosc/discussion/2762926/determine-place-of-supply-location-types

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